MORE THAN half of the 106 recommendations contained in the Local Government Efficiency Review, including controversial proposals such as the introduction of tolling on national roads, are unlikely to be implemented in the near future.
The group, chaired by Pat McLoughlin and nicknamed An Bord Snip Eile, has suggested savings and efficiencies that will lop some €511 million (or 11 per cent) off the current spending budget, which stands at €4.7 billion this year.
The bulk of the savings, €346 million, will be drawn from cutbacks and efficiencies, with the remaining €165 million coming from new revenue streams.
Yesterday Minister for the Environment John Gormley said he would now form a group to advise on implementing relevant recommendations.
The terms of reference for the group was not to come up with recommendations that would see the scalpel applied immediately. Many of the more controversial proposals – road tolling, increased planning fees, handling fees for non-online motor tax transactions – are very firmly identified as medium- to long-term projects.
When broken down, the two components that make headline items are staffing and general efficiencies (€113 million) as well as motor tax (at €115 million).
By contrast, extra revenue identified under the “roads” heading amounts to a modest €10 million, which suggests that tolling booths on national roads will be placed few and far between, if they are ever given the go-ahead. In any instance, the group clearly identifies that revenue-raising measure as a mediu-m to long-term goal.
The more significant sums from reductions in staffing levels as well as the efficiencies identified for motor tax (a key revenue stream for local government) are likely to be implemented in the shorter term though both issues are sensitive, will involve grasping political nettles, and are sure to face opposition.
Significantly for motor tax, the recommendations which the group says should be implemented immediately will not be controversial. These call for an end to the facility allowing car owners to self-declare vehicles as “off the road”, and propose that the (more efficient) online motor tax system be expanded to owners of commercial and other vehicles.
The group does not specify when the more controversial measure of introducing handling charges for those who pay their motor tax in person or by post should be implemented. It is likely that this will be in the medium term.
The report calls for significant reductions in staff at senior and middle management, particularly in Dublin and Cork, and in sections such as planning, corporate services and roads.
Some of these changes, the group says, should take place almost immediately while others are long-term projects. It clearly envisages a phasing in (beginning immediately) of a process where the number of county and city managers is reduced from 34 to 24; where the number of other senior staff is reduced from 240 to 190; and where the number of middle managers is reduced by 15 per cent.
It specifically recommends that the review of staffing numbers in Dublin and Cork be carried out over a six-month period, a process that will coincide with the preparation of legislation for a directly elected mayor.
The Croke Park agreement has protected public sector workers from redundancy. But, significantly, it has introduced flexibilities whereby employees can more easily be transferred from one local authority to another, or from local government to central government. Many of the organisational changes – where corporate functions and other services such as planning, fire, homelessness, motor tax, internal audit and e-Government are concerned – are very much short-term changes, according to the group.
Other planned new fees, including increased planning fees, are also seen as longer-term initiatives.
In its main recommendation on planning, the group has stated: “Planning fees should be increased with the aim of moving towards full-cost recovery over a five-year period, and maximum fees for large developments should be terminated.”
Main points: local government efficiency review
- Tolls on National roads.
- Cut in city and county managers from 34 to 29.
- A handling charge on motorists who do not pay road tax online
- Increase in the cost of a 10-year driving licence from €25 to €40. Increase in cost of replacement driving licence from €15 to €30.
- Increase in planning fees.
- End to maximum planning fees for large developments.
- Social welfare recipients to have social housing rents deducted from their welfare payments to reduce overheads associated with revenue collection in this area.