local government efficiency review pat mcloughlin, ipso belfast 3 rd november 2010

Local Government Efficiency Review

Pat McLoughlin, IPSO

Belfast3rd November 2010

Terms of Reference

• To review the cost base, expenditure of and numbers employed in local authorities with a view to reporting on: – Specific recommendations to reduce costs;– The effectiveness of particular programmes;– Optimal efficiency in the way programmes

are delivered; and– Any other proposals to enhance value for

money in the delivery of services at local level.

2

Structures

• 114 units of local Government• Membership Ranges: 9 – 52• Population per elected member:

1,300 – 10,000

3

Sources of Local Authority Income

Government Grants/Subsidies

24%

Goods/Services28%

Commercial Rates29%

General Purpose Grant17%

Pension Related Deductions2%

Chart Title

4

Dependence on Government ResourcesCounty Councils

• Average 48%

• Range

5

21% Fingal75% Leitrim

Dependence on Government ResourcesCity Councils

6

Cork Dublin Galway Limerick Waterford Average 0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Dependence on Government ResourcesCounty Councils Cont’d

7

Recommendations in Context

• €300m reduction over past 2 years

• €511m recommended over short to medium term

8

Staffing Levels

2000 29k2008 37k2010 32k

Pay / expenditure is 41% of expenditure

9

Impact of Moratorium

• Director 7%• Clerical / Admin 4%• Professional / Technical 3.7%• Outdoor 13%

10

Movement in PersonnelImpact of Moratorium

06/08 12/08 03/10Directors 228 234 207Admin 11,168 11,321 10,700Professional / Technical

4,316 4,370 4,155

Total 15,712 15,925 15,062

11

Joint Administration UnitsPopulation Range Present Proposed

< 100k 17 1100k – 200k 13 18200k – 300k 2 3300k – 400k 1 1400k – 500k 0 0> 500k 1 1Totals: 4,239,848 34 24

12

Joint Administration Units

13

< 100k 100k – 200k

200k – 300k

300k – 400k

400k – 500k

> 500k 02468

101214161820

Present Proposed

Impact of Joint Administrative Units

Existing Number of Units 34Proposed Number of Units 24Existing Average Population

125k

Proposed Average Population

177k

14

Span of Control – Management

Director to Senior 1 – 6

Senior Management to Management

1 – 2.5

Management to Clerical Admin 1 – 2

15

Local Authority Staffing

16

Mayo 9.5

Kerry 8.7

Donegal 6.8

Cork 6.5

Galway 5.8

Staffing per 1,000 of

Population

Source: Survey of County and City Councils, 2010

17

Local Authority Staffing

Galway City 6.7

Limerick City 10

Waterford City 8.9

DLR Rathdown

6.1

South Dublin

5.6

Staffing per 1,000 of

Population

Source: Survey of County and City Councils, 2010

Local Authority Staffing Cont’d

Remaining 18 counties

Source: Survey of County and City Councils, 2010

Leitrim10.4 per 1,000

Laois6 per 1,000

Range

18

Staff Reductions / Management / Admin

• 10 County Managers• 50 Directors• 170 Corporate J.A.A.s• 50 Corporate other• 225 Middle / Senior Replacement • 62 H.R. Payroll• 15% Dublin / Cork Senior Managers

19

Staff Reductions (other)

• 180 Professional, Senior / Middle and Replacement• 250 Roads• 171 Planning

20

Shared Services Cont’d

• Very few national initiatives

• Need for a sector-wide approach

• Minister to direct if necessary

• Maximise the potential of scale

21

Shared Services Cont’d

• A uniform H.R. and payroll system

• Recruitment through P.A.S.

• Single, national ICT applications for all

• Extend model of Regional Design office

22

Shared Services Cont’d

23

Business Case

Fire Services

Homeless-ness

Building Inspection

Internal Audit

Motor Tax

eGovernment

Other

Motor Tax

• €670m collected at offices• €385m collected online• Cost of collection €38m• Off the road statements 396k p.a.• Incentivise / disincentivise and take

out costs

24

Motor Tax Cont’d

Counter

• Cork 36%

• Donegal 80%

Postal

• Donegal 4%

• Wexford 26%

Online

• Donegal 15%

• Dublin 44%

25

Motor Tax

26

Volumes %

Counter 2.7 m 53%Postal 0.8 m 16%Online 1.6 m 31%

2,700,00053%

800,0

00 16%

1,600,000 31%CounterPostalOnline

Housing

Social Housing Rents • 60% - 75% on state benefits• Arrears €40m• Collect at source• Savings €25m

27

Planning

Efficiency & Cost Recovery

Full Cost recovery over 5 years

Accelerate e-planning

Business process re-engineering

Tackle variation in development contributions

28

Water

• Water conservation: 17% - 50% unaccounted

• Enhance regional office rate – River basin approach

• Emphasis on water conservation

• Economies of scale (maximise)

• Benchmark performance

29

Procurement

• Reduce reliance on consultants

• Encourage local suppliers

• Adopt a single procurement system

• More dedicated procurement specialists

• Sector approach to improve performance

30

Internal Audit

• 99 staff as at 01/09• Most have no formal

auditing qualifications• 3 councils had none• Don’t report to the

Managers

31

Internal Audit Cont’d

Time Allocation

Audit Assignment 71%Checking Receipts 13%Checking Motor Tax

7%

V. F. M. 6%Other 3%32

Audit / V.F.M.

V.F.M.

Performance Improvement

Information / Web

New Regulation / Public

Audit Plan Audit

Committee

33

Proper Skills

Shared L.A.

Director of Audit

Oireachtas Committee

Cost Recovery

• Full economic cost recovery – water, waste

• Handling fee for manual motor tax

• Increased cost of driving licenses

• Curtail exemptions of commercial rates

• Extend model of late payment penalties

34

Local Government / Wider Public Service

What we found?–Crowded pitch–Agencies not well integrated–Rate of consolidation slow–Difficulty in measuring

effectiveness

35

Local Government / Wider Public Service (Cont’d)

Recommendations– Intensify consolidation of

development bodies– Align programmes and plans– Plans to be approved by local

authority– New programmes under local

authorities– Integrate county / city enterprise

boards– Incentivise sharing of resources– Establish an innovation fund

36

Decision Making

Decision

V.F.M.

Financial Programme

Service Indicators

Benchmarking Reports

37