Dáil Éireann Debate, Tuesday - 12 May 2015
606. Deputy Terence Flanagan asked the Minister for the Environment, Community and Local Government the efficiencies being achieved in the sectors under his remit, regarding the use of shared services; and if he will make a statement on the matter. [18834/15]
View answerShared services have been identified in the Local Government Efficiency Review and the Public Service Reform Plans as an important opportunity to make further savings in administrative costs, through streamlining and improving service delivery without impacting on front line services. This builds on practical experience, over many years, in the local government sector of local authorities co-operating in the performance of functions and the delivery of services, including on a regional basis.
To drive the reform agenda, and in particular shared service initiatives, in the local government sector, a dedicated Programme Management Office (PMO) has been established which reports to a high-level Oversight Group. The roll out of shared services and process improvements across the sector is supported by the use of shared expertise, a shared technical infrastrucutre supported by the Local Government Management Agency and a singular local government web portal.
Overall, 31 operational areas have been identified for examination for potential as a shared service or other collaborative approach that may provide efficiencies. The PMO has adopted a comprehensive methodology for the development and evaluation of projects including gathering and analysing baseline data, business case preparation and peer review of business cases.
Payroll/Superannuation, Building Control, Treasury Management, Procurement and Accounts Payable have been prioritised in the shared services programme in the short to medium term and the programme is being progressed using a lead authority model. A number of other shared services are currently under development including services in debt management, veterinary services, road management systems and the register of electors.
Following a competitive bidding process in 2013, Laois County Council was selected to provide Shared Payroll and Superannuation services on behalf of all local authorities and has established a shared services centre for that purpose in Portlaoise. This shared service commenced in January 2014 and all local authorities will transition to it in waves in the period to 2016.
In relation to procurement, the local authority sector is working closely with the Office of Government Procurement to deliver significant savings over the coming years. The table below shows the costs associated with each project to date, as well as the anticipated benefits. No costs were incurred for these projects prior to 2013.
|
Project |
- |
Costs |
Benefits |
|
- |
2013 |
2014 |
- |
|
MyPay (shared payroll and superannuation) |
€1,345,606 |
€ 1,784,549 |
- €4.3M savings per annum anticipated. • Project Net Present Value (NPV) €27,839,444 and Pay Back 7 years. - Creation of a Centre Of Excellence for Payroll and Superannuation to service Local Government staff and pensioners. - In order to realise the savings from the Shared Service Centre, surplus staff will need to be redeployed. An effective redeployment programme exists to support this. |
|
Building Control Management System |
- |
€240,000 |
- Reduction in over-the-counter transactions and correlating efficiencies in allocation of staff resources; - Improved system for public - Standardisation across the sector in approach to Building to Certificates - Improved compliance in building standards |
|
Local Government Strategic Procurement Centre and Local Government Operational Procurement Centre |
- |
€692,902 |
- Estimates savings of €4.25million in 2014 from procurement efficiencies - Forecast savings of €15.1million for 2015 as a result of procurement efficiencies to be made by the Local Government Operational Procurement Centre for all Minor Works and Plant Hire for the entire public service, including Health, Education and Government Departments. |
|
Treasury Management |
€ 14,950 |
€124,036 |
Local authority and sectoral savings and efficiencies through: - Aggregated approach to banking sector to deliver savings and efficiencies in treasury management - best practice treasury management systems |
Outside of the Local Government Efficiency Review, collaborative arrangements for service delivery are also being progressed in a number of sectoral areas, including in the fire and library services.
