Presentation by Ray O'Dwyer

LAMA September 2012

Doing More with Less

Ray O’Dwyer

Chair of the Public Service Reform

Group for Local Government

Forces on Local Government

McCarthy Report

LGER Report July 2010 €511m Savings Target

Challenging Media Environment

Croke Park Agreement 2010 - 2014

Financial Crisis

Reduced LG Grant

Shrinking Rates Base

Local Government Reform

106 Recommendations

Drivers of Change

• Troika…….. • Severe budget cuts from 2008 to 2012 …Severe budget cuts to come in 2013 /14 …DPER wants ambition and pace to increase …MECLG twice yearly progress reports on efficiency

and Reform …Necessity for Balanced Budgets to be presented

annually to the Council Members • LEANER, SMARTER & MORE EFFICIENT LG

SECTOR

Lger IG

• Lger IG ‘Local Government Efficiency

Reform Implement Group’.

• Established to oversee the implementation

of the LGER July 2010 Report

• Members are:

Pat McLoughlin- Chair (Irish Payment Services Organisation)

Des Dowling, DECLG

David Hearn, Deloitte

Garrett Fennell, GFC Consulting

Anne O’Keefe, former Director OLAM

Public Service Reform Plan

“The implementation of the Public Service Reform Plan will involve an unprecedented level of change.” Minister Brendan Howlin, T.D. 17th November 2011.

Shared Services

• Shared Services is among the key reform initiatives mandated by Government and set out in both the Programme for Government and the Public Service Reform Plan

• The “Report of the Local Government Efficiency Review Group”, dated July 2010, states that:

– Shared or joint service provision offers the potential to realise cost

savings, re-engineer and streamline processes, and improve services to the public. They can help local authorities not just by saving money, but also by economising and freeing up resources for other tasks in core local government responsibilities. ….

– Work is progressing in this area on a number of fronts, including a

shared human resources and payroll system to be used by most local authorities, and a shared approach to ICT and e-government. These efforts should be intensified.

Reform

• Strong Clear Political Mandate for reform

• Focus:LEANER, SMARTER & MORE EFFICIENT LG SECTOR

– Shared Back Office Services

– Shared procurement

– Cost of LG sector had to reduce

• Need for LG to act as a sector rather than separate Local Authorities from a transactional point of view

• Need for the Council Members to support that agenda.

PSROG • Public Service Reform Oversight Group

(PSROG) for Local Government

• Established December 2011 to make decisions for the sector and report on progress in achieving recommendations of Lger Report

• Members are: Geraldine Tallon, DECLG

Hubert Kearns, Sligo Co Co Martin Riordan, Cork Co Co

John Tierney,Dublin City Co Michael Malone,Kildare Co Co

Joe Harford –private sector rep Paul McSweeney, LGMA

Ray O’Dwyer, Chair

Evidence of

the Sector’s Achievements

• Need for Verified Local Government

progress against recommendations of the

Local Government Efficiency Review

• Data directly provided by Local Authorities

formed the basis of Report to Minister

submitted in March 2012

We’re Doing More with Less

Individually Local Authorities have responded to the change agenda by:

– Endeavouring to deliver high-quality public services despite reduced income and falling staff numbers

– Reducing costs and achieving efficiencies through innovation, smart procurement, co-operation, revised and improved work practices, VFM

And it’s been proven…

Publication of County and City Managers’

Association (CCMA) Report

Local Authority Savings (2008-2012)

Published 25th July 2012

Revenue Payroll Savings €236,508,322

Non-Pay Expenditure Savings €406,691,129

Agency Services Division G €92,576,366

Capital Payroll Savings €94,515,408

TOTAL Savings

€830,291,225

REDUCTION IN STAFF 8,243 (FEB 2012)

Minister’s Response to Report

• “One of the key aims of local government reform is to ensure that good value public services are delivered at local level with maximum efficiency. The sector has saved €830 million since 2008 and a further €150 million in direct efficiency savings will be targeted over the next 18 months, while maintaining existing services”.

• The Minister for the Environment, Community and Local Government, Mr. Phil Hogan T.D., today (25 July 2012), welcomed the publication of the first Report of the Local Government Efficiency Review (LGER) Implementation Group. Minister Hogan said: ‘We have had a lot of talk about local government reform over the past decade. That reform programme is already underway with the sector achieving over €195million savings through efficiency measures in 2010 and 2011 alone.’

From Minister’s Press Release Issued on 25/07/2012

LG Response

Issues:

• NO collective capacity to respond

• NO Collective Information

• Collective Decision making issue

• NO Plan

• Shared Procurement

• ICT Strategy

Responses:

• Set up the PMO as a SS

• PMO’s first task

• PSROG

• Shared Services Plan

• NPO (Kerry Co Co)

• CCMA adopted

Preparation of Business Cases

• Business Case preparation currently underway for all projects

• Questionnaires prepared to assist with baseline data on current costs

• Risk Register for all projects drawn up to aid delivery of projects

Shared Service Projects

Shared Payroll Laois County Council

Treasury Management Heads of PMO Finance Sub Group

Legal Services Cork County Council

Veterinary Services Cork County Council

Accounts Payable Kildare County Council

Transactional HR Fingal County Council

Integrated Inspectorate Fingal County Council

Internal Audit South Dublin County Co (with Sligo Co Co with Cork Co Co & Louth Co Co)

Social Media Kilkenny County Council

Local Government Portal LGMA

Online Services Dublin City Council

Register Electors Dún Laoghaire-Rathdown

Housing Assessment Louth County Council

Corporate Services Cork City Council

ICT – back office LGMA

Shared Procurement Services

Staff Welfare Leitrim County Council

Laboratory Services Roscommon Co Co

Debt Collection Cork City Council

Paid Parking Westmeath County Council

Public Lighting Maintenance Waterford City & Waterford County Councils

National LG Procurement

Office

Kerry County Council

Library Service

Procurement

Dún Laoghaire-Rathdown &

Kildare County Council

Shared ICT Projects

Open Source Website Development Limerick City and County Councils

CRM – Microsoft Dynamics LGMA/LGCSB

CRM – Open Source LGMA/LGCSB

Spatial Information / GIS Kildare County Council

Document Management – Open Source Meath County Council

Knowledge Management & Open Data Fingal County Council

FixYourStreet South Dublin County Council

Online Services Dublin City Council

So…..

• The journey has begun…

• Let’s make sure we succeed:

– Adapt quickly and effectively to changes

– National and Local Political support for

the Reform Agenda

– Clear focus on maintaining front line

services

Thank You

Q & A