Overview of local government

reform in Ireland

Dr. Seán Ó’Riordáin

Introduction

• Overview of Local

Government Reform

• The Role

• Finance

• Prospects?

Sub-National Structures

Local

Administration

60 plus Area based Initiatives

52 Local Development Companies

33 County/City Childcare Committees

35 County/City Enterprise Boards

32 VECs

5 Harbour Authorities

Statutory Local

Government

80 Town/Borough

Councils

34 County/City

Councils

34 County/City

Development Boards

8 Regional Authorities

2 Regional Assemblies

But critically...

•15 Government Departments

•124 State Companies

...and what about their arms

length agencies...

...critical that local government

reform be seen within an

overarching reform of the Irish

public service!

Is bigger better?

NO

•Evidence suggests that bigger

might be better in a limited range

of services

•Smaller is better in citizen

focused services

Country Units of

Administration

Councillor/

Elector Ratio

France 36,880 116

Ireland 34 Co/City

Councils

80 Towns

3,585

711

Italy 8,215 397

Spain 8,149 597

United Kingdom 472 2,605

7

17

31

45

66

134

48

100 000 and over

40 000–99 999

20 000–39 999

10 000–19 999

6 000–9 999

2 001–5 999

< 2 000

But what about

elsewhere...Finland

75 %

80 %

50 %

JOENSUU

LAPPEENRANTA

SAVONLINNA

KOTKA

KOUVOLA

MIKKELI

KUOPIO

JYVÄSKYLÄ

ROVANIEMI

KAJAANI

OULU

KEMI

PORVOO

HYVINKÄÄ

LAHTI

JÄRVENPÄÄ

HELSINKI

KERAVA

TAMPERE

HÄMEENLINNA

NURMIJÄRVI

RIIHIMÄKI

LOHJA KIRKKONUMMI

TUUSULA

SEINÄJOKI

KOKKOLA

SALO

NOKIA

VAASA

RAUMA

TURKU

PORI

KAARINA

© Municipal boundaries: Statistics Finland

Territorial Councils

• 11 Regional Councils

• 12 City Councils

• 54 District Councils

• 6 Unitary Authority Councils

• Community Boards

• All elected

• Auckland City Region-largest pop 1.216 m, 8,000 employees

• Chatham Island-population 726

• 3 year electoral cycle

• Regional mayors elected by regional councillors

• City/district directly elected mayors (non-executive bully pulpit)

New Zealand

Facts not myths please...

•Need for a comprehensive overhaul of

public management in Ireland

•Ireland may need more local elected

members to increase access into

politics not less

•Ireland is not Manchester!

•Reform must reflect Irish factors but

we must learn from others

•The Mayor is not the only answer...

•Place-based leadership the crucial

role

Key Reform Issues

• Lack of meaningful linkage between local authorities and community groups

• Comparatively few local authorities and councillors

• Local Government should be given a voice in relation to the local government dimension of matters such as the preparation of national economic programmes

• More attention should be paid to the policy role vested in the elected members

• Structured arrangements to facilitate contact between local authorities and community groups should be devised by each local authority

Better Local Government-1997/98

• BLG was based on four core principles: -Enhancing local democracy and widening participation

-Serving the customer better

-Developing efficiency in local government

-Providing proper resources to allow local government to fulfil the role assigned to it

• Partnership approach to national economic and social planning would be mirrored in the representation on the SPCs

• Establishment of Community and Enterprise Groups which would include members drawn from local development bodies

Task Force on Integration: 1999-2000

• Integrated strategies for each county/city involving a wide range of public sector agencies, the social partners, the community and voluntary organisations

• Focusing on social, economic and community development at local level

• The major problem with the existing structures was identified as the weakness of the linkages between them

• Establishment of Community and Voluntary Fora

Efficiency Review-2010

• Organisational Efficiency Issues

• Local Government Staffing

• Value for Money and Audit

• Shared Services

• Procurement

• Local Government Services

Mahon...

•Need a system based upon the

democratic process

•Complementing best international

practice

• Transparent systems in place which

underpin the decision-making

• A renewed local political process is

central to a renewed planning process

•Charter on Local Self-Government

Fair conduct of elections, Representation and Participation Responsiveness, to ensure the local authority meets the legitimate

expectations and needs of citizens

Efficiency and effectiveness, to ensure that objectives are met while

making the best use of resources

Openness and transparency, to ensure public access to information and

facilitate understanding of how public affairs are conducted

Rule of law, to ensure fairness, impartiality and predictability Ethical conduct, to ensure the public interest is put before private ones

Competence and capacity to ensure that local representatives and officials

are well able to carry out their duties

Innovation and openness to change to ensure that benefit is derived from

new solutions and good practices

Sustainability and long-term orientation, to take the interests of future

generations into account

Sound financial management, to ensure prudent and productive use of

public funds

Human rights, cultural diversity and social cohesion, to ensure that all

citizens are protected and respected and that no one is either

discriminated against or excluded

Accountability, to ensure that local representatives and officials take

responsibility and are held responsible for their actions.

12 Principles for local Government

•Constitutional Reform

•Legislature/Executive Re-structuring

•Public Sector Re-structuring

•Reduction of public authorities through re-

absorption/merger

•Greater accountability for individual public

servants

•Re-balancing of local government and

agencies

•Re-structured arrangements for public

service co-ordination

Overview of Party Manifestos

Local Government Specialist

Group Submission • The role of the Public Service

• The role of local government

• Resourcing of local government

• The scope for local flexibility

• A local-national policy framework

• Greater integration of local, regional and national

planning

• Integration of local development, community

development and enterprise development processes

• A common set of boundaries across public bodies,

locally and regionally

• Underpinning of development board role

• Refocusing of Member-Official roles

• Site Valuation Tax/Water Utility Business Case

• Anticipating future challenges and opportunities for the local area;

• Building coalitions and looking outside community boundaries for knowledge and collaboration;

• Advocating powerfully on behalf of the local community with the creditability to negotiate across all sectors;

• Arbitrating between competing local interests and supporting community cohesion, taking tough choices where necessary;

• Listening to the views of local residents and other stakeholders and building trust in local institutions;

• Being open with information and ensuring transparency in decision making;

• Demonstrating a high level of understanding of local issues and having a strong evidence base which shapes policy priorities;

• Focusing on service performance for its impact on the community rather than to meet government requirements, looking outward rather than upward; and

• Championing efficiency and service innovation-getting the best value from public expenditure and maximum impact from private investment in their area

What we see modern Local Government as...

Local Government needs

active citizens

•Community and societal development is based upon a process of collaborative planning

•Social inclusion based on targeted local development needs

•Partnership / participation based on the development of governance having real inclusion in decision making capability

•Democratic legitimacy based upon an integrated framework of elective and participative forms of governance

Key Finance Issues

• Dependency on central government

• Cost Shifting: Operations vs capital

• Limited Range of fees, charges and taxes

• State Agency Role

• Block Grant/Specific Grants

• Limited centralization of collection systems

• Need for efficiencies-back office opportunities

Per Capita Exp 2009 (€)

Austria 2,687

Denmark 15,122

Finland 7,297

Slovakia 883

Lithuania 843

Ireland 2,791

Quick comparison-2011

Location Fingal London Neuss Grafing The Hague

Water charges Nil €1,200 €1,000 €1,000 €1,044

Property

Charges

Nil €3,000 €300 €400 plus Fire

service charge

€232

Motor Tax €550 €260 €600 €720 €624

Licences €12.70 N/Ap €100-€534 €100 n/ap

Summary points

to note

• Ireland is not centralised

• Disaggregated model

• Local Authorities larger than European norm

• Lower representation levels

• Lower Public Service Spend proportion

• Broadly consistent functions save education/public

health...but primarily engineering focused

So what about the Future Local

Authority?

The Programme for Government suggests...

• Leadership through the Council

• Vertical/Horizontal coherence

• Coordination role

• Central role in local social inclusion

• Renewed role in economic development

• Refocusing of performance determination and evaluation

So this means?...

• Smaller, streamlined local government arrangements

• Reduced responsibilities for engineering services

• Enhanced local economic role

• Re-balancing of elected member-manager

• Executive Mayor?

• Re-configured community development responsibilities

• Resourcing...???

But what should it mean...?

A local government system, fit for purpose, is

likely to:

• Have more functions

•Be more democratically accountable to local

communities.

•Have a sustainable local funding system,

and

•Have a more coherent division of functions

between town/district, city/county and

regional/national levels

What are we likely to have?

• A missed opportunity?

Or a local government system for

... the best small country in the world in which to do business, to raise a family and to grow old with dignity and respect?

Contact Details

• sean@seanoriordain.ie

• www.seanoriordain.ie