One of the first tasks I set myself on assuming office as Minister for Local Government was to ascertain at first hand the views of local representatives on the management system. That system has been in operation generally for over 12 years. Its introduction was in the nature of an experiment and there was a general feeling amongst all Parties and the public generally that operation of the system would come up for review in due course; that its merits and demerits would then be examined objectively and that whatever defects could be cured by legislation should be cured. I accordingly arranged a series of meetings throughout the country, at which I met representatives of elected councils and the managers and heard their criticisms of the present system and suggestions for its improvement. The amendments to the present system proposed in this Bill are in accord with the wishes of the great majority of the local representatives with whom I discussed the matter.
The Bill is not a complicated measure and in so far as it was possible I have endeavoured to avoid legislation by reference. I have also had an explanatory memorandum circulated with the Bill.
A complaint frequently heard against the operation of the management system is that the general supervisory powers of the elected members are effective only if they have advance knowledge of the manager's proposals. Section 2 meets this complaint. It provides that the members of a local authority may, at any time, by resolution, require the manager to inform them of his proposals before performing any specified function. It will be for the elected members to determine the matters on which they wish to be informed; functions in regard to officers and servants and individual health functions only are excluded from the scope of the section. Generally, representatives did not want the selection of tenants for local authority houses to be made a reserved function. They did, however, consider that the manager should consult the elected members in regard to the allocation of tenancies of houses. Consultations in regard to this or any other matter decided on by a local authority may be arranged under Section 2. I consider it essential, however, that members should, as a matter of course and without a resolution, be informed of works of a capital nature before they are committed to any expenditure on them. Sub-section (7) provides accordingly. Section 3 empowers the local authority, if they so wish, to prohibit the undertaking of any such works provided they are not works which the local authority are required by law to undertake.
Section 4, which is to a certain extent complementary to Section 2, gives the elected members an effective system of control over the acts of the manager. At present they have the power to require the manager to perform a specified function in a specified way. I found, however, from my discussions with local bodies, that this power has rarely been availed of, mainly because of the absence of power to obtain prior information as to the manager's proposals, and also because the procedure involved is so cumbersome. Under existing legislation the notice of intention to propose a resolution requiring the manager to do a particular thing, must be signed by not less than one-third of the members and a date between seven and 14 days of the date of the notice specified for the holding of a special meeting, at which the resolution is to be proposed. The resolution must be passed either by more than half the total membership of the local authority or by more than two-thirds of the members present and voting. Section 4 of the Bill substitutes a simple form of requisition for the existing cumbersome procedure. The notice of intention need only be signed by three members. The resolution may be moved either at an ordinary meeting or at a special meeting. A simple majority of the members present and voting will be sufficient to carry the resolution, provided the number voting for the resolution exceeds one-third of the total membership of the local authority. A requisition under Section 4 may refer to any matter which the manager or the local authority can lawfully do, except that it may not extend to any functions in relation to employees or the performance of an individual health function.
At present, when an appointment is required to be made to the office of county manager, the Minister requests the Local Appointments Commissioners to recommend to him a person for appointment. The person so recommended is appointed by virtue of such recommendation, the Minister fixing the date on which the appointment takes effect. Because of this unusual method of appointment some members of local bodies are under the misapprehension that the manager is an officer of the Minister and that hence his first loyalty is to the Minister rather than to the local authority. In order to emphasise the fact that the manager is an officer of the local authority, Section 5 provides that the manager will be appointed on the recommendation of the Local Appointments Commissioners by resolution of the appropriate local authority.
Some criticism of the management system has related to the increases in the staffs of local authorities in recent years. It is agreed that increases have been necessary because of new or expanded services, but it is felt that the local councils—the employers—should have definite and direct control over increases in staff and general increases in remuneration. Section 6 of the Bill provides, accordingly, that a proposal to increase or decrease the number of permanent officers under a local authority may not be submitted by the manager for sanction without the consent by resolution of the elected members, and that the manager may not fix an increased or reduced rate of remuneration applicable to any class, description or grade of office or employment without similar consent by resolution of the elected members.
Sections 7 and 9 give new powers to all local authorities wishing to avail of them in regard to the preparation of the annual estimate of expenses. Under the law as it stands, the manager prepares the annual estimate of expenses and submits it for consideration at the annual estimates meeting. I have been impressed by representations that members could exercise a more positive financial control if they were to have a hand in the preparation of the estimates, rather than have to try to criticise and amend an estimate prepared by the manager. The Bill accordingly makes provision for a new procedure for the preparation of the estimates, which may be adopted by any local authority wishing to avail of it. Under Section 7 a local authority may elect from amongst its members an estimates committee to consist in the case of a county council of two members from each county electoral area, and in the case of every other local authority of not more than one-third of its membership.
When I had the Bill drafted I included this provision as one that would be mandatory on all local authorities, but during the passage of the Bill through the Dáil I accepted a recommendation that it should be made a permissive provision so that each local authority could decide for itself whether or not it would adopt it. Where an estimates committee has been appointed it will be the duty of such committee to prepare the annual estimate of expenses. This does not mean that the members of the committee will have to perform work which is appropriate to officers of the local authority. The estimates committee will have the full assistance of the officers of the local authority and such assistance will include the preparation and submission of statements of the estimated receipts and expenditure and so on. It is not necessary to provide explicitly for this but to remove doubts and to clarify the intention behind Section 9 it is provided in sub-section (2) that the manager must, so far as is not inconsistent with the due performance of his other duties, attend every meeting of the estimates committee and furnish the members with such information, assistance and advice as they require. Where the manager cannot himself attend, he must under sub-section (5) designate an officer to act in his place.
The estimate of expenses prepared by the estimates committee will be presented to the estimates meeting of the local authority and the local authority will not be committed in any way to adopting it. Where the manager considers that an estimate of expenses as prepared by an estimates committee would seriously prejudice the efficient or economical performance of the functions of the local authority, he must prepare a separate report specifying the provision which in his opinion is necessary. This report will be furnished to members of the local authority with copies of the estimate.
If the estimates committee fail to prepare the estimate, or where an estimates committee has not been appointed, the manager must himself prepare the estimate as heretofore.
Section 8 provides that it shall be the duty of the estimates committee— or where no such committee exists, the manager—to furnish the members of the local authority, at such intervals as the members may decide by resolution, with whatever financial statements they require to keep them informed of the position of the local authority's finances.
Under the existing law, the members of the local authority cannot at an estimates meeting, make an amendment of the estimate to which the manager objects. Consideration of any amendment proposed must be adjourned to a special meeting, and at that special meeting no new amendment can be considered. I am satisfied that these provisions are too restrictive of the members' freedom to examine and decide on the estimate. They are being repealed and new provisions are being included in Section 10. This section will enable local authorities to amend an estimate of expenses at the estimates meeting or at any adjournment thereof, provided that the meeting may not be adjourned to a day outside the period of 21 days from the day on which the estimates meeting began.
Section 12 empowers the Minister to group for management purposes two counties, the councils of which have requested him to do so. It is provided under Section 13 that the Minister may degroup any counties grouped for management purposes, on the receipt of a request from each of two such grouped counties. In Section 14 there are similar provisions to enable the present arrangement, whereby the Dublin City Manager is also Dublin County Manager, to be terminated. Consequential provisions dealing with the Dublin Assistant Managers are contained in Section 22.
Section 28 of the County Management Act, 1940, and corresponding provisions in the City Management Acts, empower the members to make, if they so think fit, regulations prescribing the procedure to be followed in regard to the reception and examination of tenders. I found in the course of my discussions with local representatives that many of them appeared to be unaware of their powers under these provisions. Section 15 of the present Bill places an obligation on each new council to make a formal decision to have regulations or not, and provides that the regulations may extend to the seeking of tenders, as well as to their reception and examination.
Section 61 of the Local Government Act, 1925, placed a responsibility on the chief executive officer of every local authority to advise the members before they voted on any resolution to do any act in consequence of which an illegal payment would be made or a loss or deficiency in the funds of the local authority was likely to arise. The names of the members who voted for the resolution were recorded in the minutes. The purpose of this section was to protect the members of the local authority by requiring the chief executive officer to give warning whenever the council were considering some proposal which, if adopted, might result in a surcharge or charge. If the warning were not given, the council as a body might subsequently be surcharged or charged. When, notwithstanding a warning given under the section, the council adopt the proposal the names of the members voting for the proposal are recorded in the minutes and these members and no other members are liable, in the event of a surcharge.
In Section 61 of the Local Government Act of 1926, the term "responsible officer" is defined as meaning the secretary, clerk, R.M.S., or other chief executive officer of such local authority. This definition must be brought into line with the management code under which the manager is the chief executive officer of the local authority. This is done in Section, 16 of the Bill, which places responsibility for objecting on the manager or in his absence on such other officer as may be designated by him.
It is necessary to stress that the question of warning does not arise where a local authority are proposing lawful expenditure outside the provision made in the estimates, such as the repairing of a road the repair of which was not included in the road works scheme. Once a work requisitioned by the members is a work that can lawfully be carried out and the council provide the money, by authorising the expenditure, the manager must carry out the work.
Section 17 empowers a manager to delegate any of his functions, with the approval of the appropriate Minister, to an approved officer of that local authority. The intention is to enable managers to delegate some of their less important functions, as they may have to attend to important administrative duties elsewhere. The manager will continue to be responsible for the acts of his delegate and he may revoke the delegation at any time. At present, managers are obliged to give a considerable proportion of their time to the making of orders of a routine character, because of the legal requirement that everything in the executive functions of a manager which formerly required to be done by resolution of the local authority should thereafter have to be done by the manager by signed order.
The remaining sections of the Bill contain miscellaneous provisions of a minor nature, designed to clarify or facilitate the administration of the Management Acts.