Transcript Paul Dunne Assistant Chief Executive Officer Local

Transforming Local Government:
the HR Agenda
Paul Dunne
Assistant Chief Executive Officer
Local Government Management Agency
Dublin Castle, 14th October, 2010
Background
National Situation – July 2008:
• Public Spending Measures Introduced
Difficulties facing local authorities:
• Financial Situation
• Pre 2008
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Transforming Local Government: the HR
Agenda
Local Government
Management Agency
Difficulties Facing Local Authorities
(Change driven out of necessity)
• In order to understand HR Challenge in local govt sector,
essential to understand structure of finances and particular
funding challenges
• Financial pressures on Local Government existed prior to
national financial crisis
• Numerous studies confirmed extent of funding gap in local
government sector
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Narrow funding base
High dependence on commercial sector
No local government tax
No household water charges
Transforming Local Government: the HR
Challenge
Local Government
Management Agency
Funding Challenge
• LAs legally required to balance books each year
• Acutely aware of impact of economic downturn
• Unlike other elements of public sector, LAs receive 57% of
revenue from non-government sources
• The dependence on these sources of income has grown
over time
 Income from Commercial Rates rose from 25% (1999) to over
29% (2010)
 In contrast, income from General Purpose Grant fell from
19.96% (1999) to 16.7% (2010)
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Transforming Local Government: the HR
Challenge
Local Government
Management Agency
Graph 1: Sources of
Revenue Funding 1999
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Transforming Local Government: the HR
Challenge
Local Government
Management Agency
Graph 2: Sources of
Revenue Funding 2010
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Transforming Local Government: the HR
Challenge
Local Government
Management Agency
Local Government Sector
- not Isolated from Recession
• Problems faced by local businesses to some
extent mirrored in local government
• Between 2009 and 2010, Local Government
Fund fell from €937.3m to €773.91m, or €164.3m
(17.5%)
• During the same period, funding for Regional
and Local Roads fell by 31% from €604m to
€412m
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Transforming Local Government: the HR
Challenge
Local Government
Management Agency
2008 – 2010 Trends in
Government Funding
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Category
General Purpose
Grants €m
Regional & local
road allocations €m
2008
999
604.2
2009 revised
832
451.4
2010 estimate
773
412.2
Diff 2007 - 2010
23%
19%
Transforming Local Government: the HR
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Local Government
Management Agency
Finance: Conclusion
• All other sources of funding ranging from planning fees
income, to development contributions necessary to fund
future infrastructure have dried up.
• System has had to absorb these reductions while, broadly
speaking, continuing to provide the same range and level
of services.
• Only been possible through implementation of actions at
local and national level which have squeezed costs and
maximised the use of available revenue.
• Change Agenda in Local Government has been driven by
local funding and resource pressures
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Transforming Local Government: the HR
Challenge
Local Government
Management Agency
Local Authority Response
• In responding to these challenges, local authorities have
implemented significant efficiencies across the board over
a two year period.
• The most significant of these has been a 5,000 reduction
in the number of LA staff (-13.5%) between 2008 and
2010.
• Extent of progress already achieved in reducing the
sector’s footprint has been acknowledged, both by the
DoEHLG and the independent Local Government
Efficiency Review Group.
• Reduction in staffing achieved in relatively short period
• Combination of approaches – including moratorium,
LANPAG agreement, various Government measures,
including the ISER/Incentivised Career Break Scheme.
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Transforming Local Government: the HR
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Management Agency
Local Authority Response Cont’d
• LANPAG Agreement
• Areas identified:
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Non-renewal of temporary/contract staff
Non-recruitment of staff
Management of vacancies
Non-replacement of staff
Examination of requests for term time, career breaks, etc.
Premium pay – overtime, etc.
Attendance management – dealing with absenteeism
Summer student / co-op schemes
Transforming Local Government: the HR
Challenge
Local Government
Management Agency
Permanent and Temporary Staff
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Transforming Local Government: the HR
Challenge
Local Government
Management Agency
Reduction in No. of Staff
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Transforming Local Government: the HR
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Management Agency
Ongoing Difficulties Facing LAs
• Loss of technical / outdoor / management
expertise
– Will reduce capacity of sector to take on additional
responsibilities, respond to events i.e. flooding, severe
weather, complex environmental issues.
• Higher Standards driving Higher Costs
– Compliance with Environmental Standards, Health &
Safety, European Legislation
– Recession driving additional demand for social
services (housing, homelessness, libraries etc.)
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Transforming Local Government: the HR
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Management Agency
Public Service Agreement
• Local authority agenda driven by need to
achieve further savings
• Procurement
• Shared services
• Maximising use of resources
• Savings in work practices / rostering etc.
• Single common ICT infrastructure
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Transforming Local Government: the HR
Challenge
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Management Agency
Implementation of Public Service Agreement
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Canvass local authority views
DoEH&LG input
Draft sectoral plan
Establishment of Local Authority Implementation
Committee
• Consultation with unions
• Agreed Sectoral Action Plan
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Challenge
Local Government
Management Agency
Next Steps
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Implementation at local level
Regional briefing sessions
Guidelines for local authorities
Disputes protocol
Transforming Local Government: the HR
Challenge
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Management Agency
Challenges for Local Government
• Recommendations of Efficiency Review
Group
• Reduced funding
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Transforming Local Government: the HR
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Local Government
Management Agency
Efficiency Review Group (ERG)
• Acknowledged LA progress in reducing staff
numbers and in achieving efficiencies
• Did not identify significant areas of waste
• Strong emphasis on shared service agenda as
way forward
• Most notable recommendations dealt with
proposed structural changes
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Transforming Local Government: the HR
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Management Agency
ERG – main staffing Recommendations
• 30% reduction in County / City Managers (34 to
24)
• 20% reduction in DoS (240 to 190)
• 15% reduction in Middle Management
• Establishment of Ten Joint Administrative Areas
• 10% reduction in Corporate Services Staff
• Review of Dublin / Cork City staffing levels
• Roads Staff to reduce by 250
• Planning Staff to reduce by 10%
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Transforming Local Government: the HR
Challenge
Local Government
Management Agency
Conclusion
• LAs committed to further change, implementing
provisions of the PSA and adhering to the
sectors Employment Control Framework figure
• Given the commitments entered into in the PSA
detailed further consideration will be necessary
as to how the scale of ERG recommendations
can be achieved.
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Transforming Local Government: the HR
Challenge
Local Government
Management Agency