Govt Sector Saves €229m Through Efficiency Measures

The Minister for the Environment, Community and Local Government, Mr. Phil Hogan TD, has made his comments on the publication of the latest Report of the Local Government Efficiency Review (LGER) Implementation Group.

The County and City Managers' Association, in its input to the Report, has confirmed total savings of €839m since 2008, the beginning of the economic crisis. In the period since the preparation of the LGER Report (2010 to end 2012), the savings achieved and projected are reported at €561m. This includes €229m (already more than half the €346m identified as potential direct efficiency savings in the LGER Report) attributed to efficiency measures (as opposed to reduction in activity) in the years 2010 to the end of 2012. The majority of the efficiency savings identified relate to staffing reductions and procurement.

Minister Hogan welcomed the substantial efficiency savings achieved by the local government sector over the past 3 years. "The local government sector continues to make significant progress on implementing the efficiency changes recommended in the original LGER Report", said Minister Hogan, "however, it is imperative that the rate of implementation of the efficiency agenda is accelerated by the sector to ensure the overall targeted efficiency savings (€346m) are achieved in a timely manner. Substantial savings have been delivered in the sector from improved efficiencies and better business processes, while maintaining and improving services to citizens."


Minister Hogan acknowledged the ongoing reduction of staffing levels within the local government sector, "local authorities have shed some 8,900 staff since June 2008 whilst continuing to maintain an impressive level of public service delivery". Staff numbers at end-December 2012 were 28,344, down from 37,243 in 2008.

"The establishment of the CCMA Programme Management Office and the Public Service Reform Oversight Group has facilitated the sector in addressing the particular challenges arising from the implementation of the LGER Report as it involved the allocation of a specific resource and governance structure to address that specific agenda." Minister Hogan continued. "While the current implementation structures have delivered the first wave of savings and assessing approaches for further savings, and have ensured commitment of all local authorities to the efficiency agenda, it is now timely to consider the establishment of a national organisational structure with sufficient qualified resources to design and deliver the proposals successfully, and with the present structures being replaced by more permanent structures."

(CD/MH)