A NEW group is to identify cost savings in the 34 local authorities in an exercise similar to the survey of central Government and State agencies by economist Colm McCarthy.
The Local Government Efficiency Review Group was announced yesterday by Environment Minister John Gormley with a mandate to review the cost base, expenditure of and numbers employed in local authorities.
The new group will be chaired by Pat McLoughlin, a freelance health sector business consultant and former deputy chief executive of the Health Service Executive.
Its terms of reference suggest it can perform a similar role to that of the so-called An Bord Snip Nua, chaired by Mr McCarthy.
There are 29 county councils in the State; one for each county with the exception of Tipperary which has two (for historical reasons); and Dublin which has three county councils: Fingal, South Dublin and Dún Laoghaire-Rathdown.
There are five city councils: Dublin; Cork; Galway; Limerick and Waterford.
The group has been asked to make recommendations to reduce costs; assess the effectiveness of particular programmes; judge if they are delivered efficiently; and make other suggestions to deliver value for money.
Local authorities spend €11 billion annually on their current and capital programmes, although they are largely dependent on central government for funding.
Mr Gormley said that it was essential that county and city councils delivered full value for money.
“The current economic climate demands that we bring a new sharper focus to those sectors which spend significant sums in providing services to the public,” he said.
He said there would be a comprehensive consultation process, which would include the public.
The group has been asked to complete its work by mid-2010 and will be supported by a secretariat in the Department of the Environment, Heritage and Local Government.
There have been calls in the past for the number of councils to be reduced to achieve greater efficiencies and coherence. It does not appear that the mandate of the group will extend to making such radical suggestions.
Any move to amalgamate county councils would face fierce political resistance on the basis that county boundaries are the natural division in Ireland and should be preserved.
