26/07/2012

Local Authority Cuts Bring About Multi-Million Euro Savings

Cuts to procurement contracts and staffing levels have driven down local government costs by nearly €200m over the past two years, a new report has found.

The Local Government Efficiency Review Implementation Group Report, published yesterday by Minister for Local Government Phil Hogan, found sharing services such as human resources and payroll systems was another effective way of improving efficiency.

In yesterday's report, the implementation group, led by chairman Pat McLoughlin, said the savings so far were "clear evidence" of the effort made by the sector.

Moving forward, it suggested that a cost-effective graduate trainee programme could be introduced to provide "a future stream of talent for local authorities", and it said local authorities should penalise people who make late payments.

The report recommended greater sharing of services "on a sector-wide or lead authority basis", including computer services.

Welcoming the report, Mr Hogan said the "easier savings had started to be delivered".

He said staff numbers had been cut by 23% (8,432 jobs) since mid-2008, and said this involved "significant reduction in senior management grades".

But councillors led by the Socialist Party's Ruth Coppinger handed a letter in to Mr Hogan rejecting the cuts to local authorities.

Socialists suggested that the cuts – of 5-15% - should be halted in place of a wealth tax.

(NE)

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