paul dunne assistant chief executive officer local government management agency transforming local...
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Paul Dunne Assistant Chief Executive Officer Local Government Management Agency
Transforming Local Government:the HR Agenda
Dublin Castle, 14th October, 2010
Local Government Management Agency
14th October, 2010 Transforming Local Government: the HR Agenda
Background
National Situation – July 2008:• Public Spending Measures Introduced
Difficulties facing local authorities:• Financial Situation• Pre 2008
Local Government Management Agency
Difficulties Facing Local Authorities(Change driven out of necessity)
• In order to understand HR Challenge in local govt sector, essential to understand structure of finances and particular funding challenges
• Financial pressures on Local Government existed prior to national financial crisis
• Numerous studies confirmed extent of funding gap in local government sector – Narrow funding base– High dependence on commercial sector – No local government tax – No household water charges
14th October, 2010 Transforming Local Government: the HR Challenge
Local Government Management Agency
Funding Challenge• LAs legally required to balance books each year • Acutely aware of impact of economic downturn • Unlike other elements of public sector, LAs receive 57% of
revenue from non-government sources • The dependence on these sources of income has grown
over time Income from Commercial Rates rose from 25% (1999) to over
29% (2010) In contrast, income from General Purpose Grant fell from
19.96% (1999) to 16.7% (2010)
14th October, 2010 Transforming Local Government: the HR Challenge
Local Government Management Agency
Graph 1: Sources of Revenue Funding 1999
14th October, 2010 Transforming Local Government: the HR Challenge
Local Government Management Agency
Graph 2: Sources of Revenue Funding 2010
14th October, 2010 Transforming Local Government: the HR Challenge
Local Government Management Agency
Local Government Sector - not Isolated from Recession
• Problems faced by local businesses to some extent mirrored in local government
• Between 2009 and 2010, Local Government Fund fell from €937.3m to €773.91m, or €164.3m (17.5%)
• During the same period, funding for Regional and Local Roads fell by 31% from €604m to €412m
14th October, 2010 Transforming Local Government: the HR Challenge
Local Government Management Agency
14th October, 2010 Transforming Local Government: the HR Challenge
2008 – 2010 Trends in Government Funding
Category General Purpose Grants €m
Regional & local road allocations €m
2008 999 604.2
2009 revised 832 451.4
2010 estimate 773 412.2
Diff 2007 - 2010 23% 19%
Local Government Management Agency
Finance: Conclusion • All other sources of funding ranging from planning fees
income, to development contributions necessary to fund future infrastructure have dried up.
• System has had to absorb these reductions while, broadly speaking, continuing to provide the same range and level of services.
• Only been possible through implementation of actions at local and national level which have squeezed costs and maximised the use of available revenue.
• Change Agenda in Local Government has been driven by local funding and resource pressures
14th October, 2010 Transforming Local Government: the HR Challenge
Local Government Management Agency
Local Authority Response • In responding to these challenges, local authorities have
implemented significant efficiencies across the board over a two year period.
• The most significant of these has been a 5,000 reduction in the number of LA staff (-13.5%) between 2008 and 2010.
• Extent of progress already achieved in reducing the sector’s footprint has been acknowledged, both by the DoEHLG and the independent Local Government Efficiency Review Group.
• Reduction in staffing achieved in relatively short period • Combination of approaches – including moratorium,
LANPAG agreement, various Government measures, including the ISER/Incentivised Career Break Scheme.
14th October, 2010 Transforming Local Government: the HR Challenge
Local Government Management Agency
Local Authority Response Cont’d• LANPAG Agreement• Areas identified:
Non-renewal of temporary/contract staff Non-recruitment of staff Management of vacancies Non-replacement of staff Examination of requests for term time, career breaks, etc. Premium pay – overtime, etc. Attendance management – dealing with absenteeism Summer student / co-op schemes
14th October, 2010 Transforming Local Government: the HR Challenge
Local Government Management Agency
Permanent and Temporary Staff
14th October, 2010 Transforming Local Government: the HR Challenge
Local Government Management Agency
Reduction in No. of Staff
14th October, 2010 Transforming Local Government: the HR Challenge
Local Government Management Agency
Ongoing Difficulties Facing LAs • Loss of technical / outdoor / management
expertise – Will reduce capacity of sector to take on additional
responsibilities, respond to events i.e. flooding, severe weather, complex environmental issues.
• Higher Standards driving Higher Costs – Compliance with Environmental Standards, Health &
Safety, European Legislation – Recession driving additional demand for social services
(housing, homelessness, libraries etc.)
14th October, 2010 Transforming Local Government: the HR Challenge
Local Government Management Agency
Public Service Agreement
14th October, 2010 Transforming Local Government: the HR Challenge
• Local authority agenda driven by need to achieve further savings
• Procurement• Shared services• Maximising use of resources• Savings in work practices / rostering etc.• Single common ICT infrastructure
Local Government Management Agency
Implementation of Public Service Agreement
14th October, 2010 Transforming Local Government: the HR Challenge
• Canvass local authority views• DoEH&LG input• Draft sectoral plan• Establishment of Local Authority Implementation
Committee• Consultation with unions• Agreed Sectoral Action Plan
Local Government Management Agency
Next Steps
• Implementation at local level• Regional briefing sessions• Guidelines for local authorities• Disputes protocol
14th October, 2010 Transforming Local Government: the HR Challenge
Local Government Management Agency
Challenges for Local Government
• Recommendations of Efficiency Review Group
• Reduced funding
14th October, 2010 Transforming Local Government: the HR Challenge
Local Government Management Agency
Efficiency Review Group (ERG)
• Acknowledged LA progress in reducing staff numbers and in achieving efficiencies
• Did not identify significant areas of waste• Strong emphasis on shared service agenda as
way forward • Most notable recommendations dealt with
proposed structural changes
14th October, 2010 Transforming Local Government: the HR Challenge
Local Government Management Agency
ERG – main staffing Recommendations
• 30% reduction in County / City Managers (34 to 24)
• 20% reduction in DoS (240 to 190) • 15% reduction in Middle Management • Establishment of Ten Joint Administrative Areas• 10% reduction in Corporate Services Staff • Review of Dublin / Cork City staffing levels • Roads Staff to reduce by 250 • Planning Staff to reduce by 10%
14th October, 2010 Transforming Local Government: the HR Challenge
Local Government Management Agency
Conclusion
• LAs committed to further change, implementing provisions of the PSA and adhering to the sectors Employment Control Framework figure
• Given the commitments entered into in the PSA detailed further consideration will be necessary as to how the scale of ERG recommendations can be achieved.
14th October, 2010 Transforming Local Government: the HR Challenge
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