Local Government Bill Regulatory Impact Analysis

Transcription

1 Local Government Bill 2013 Regulatory Impact Analysis 0

2 CONTENTS Summary 1 Section 1 Introduction 5 Section 2 Policy Context and Objectives 7 Section 3 Identification and Description of Options for the Bill 10 Section 4 Identification of Costs, Benefits and Impacts of Options on Main Provisions of the Bill 14 Section 5 Consultation 39 Section 6 Enforcement and Compliance 41 Section 7 Review 41 Section 8 Publication 41 Appendices 1

3 Summary of Regulatory Impact Analysis (RIA) Department/Office: Department of the Environment, Community and Local Government Stage: Text of Bill Title of Legislation: Local Government Bill 2013 Date: September 2013 Related Publications: Report of the Waterford Reorganisation Implementation Group one Waterford Delivering Jobs, Efficiency and Growth, May 2013 Limerick Reorganisation Implementation Plan, December 2012 Putting People First: Action Programme for Effective Local Government, October 2012 Final Report of the Alignment Steering Group, July 2012; Report of the Tipperary Reorganisation Implementation Group Implementation Plan, June 2012 Report of the Waterford Local Government Committee, March 2012; Programme for Government, March 2011; Report of the Local Government Efficiency Review Group, July 2010; Available to view or download at: Contact for enquiries: Michael Murphy Deirdre Mahony Telephone:

4 What policy objectives are being pursued? The primary objective of the Local Government Bill 2013 is to provide a legislative basis for the structural and other changes to the local government system decided by Government that are set out in the local government reform programme Putting People First: Action Programme for Effective Local Government. The main provisions of the Bill include: Merger of city/county authorities in Limerick, Tipperary and Waterford, involving dissolution of the six existing authorities and establishment of three new unitary authorities in their place; Dissolution of 80 existing town councils; New sub-county governance arrangements, involving the creation of a system of municipal districts, integrated with the relevant county councils, with a range of functions being performed by elected members on a devolved basis at municipal district level; Rationalisation of regional structures by replacing the existing 2 regional assemblies and 8 regional authorities with 3 assemblies for the whole country; Changes in local authority functions, including devolution of certain central government functions to local authorities; an enhanced local authority role in economic development; and measures arising with the alignment of the local/community development sector with local government, including dissolution of CDBs and establishment of new Local Community Development Committees; Reforms in local authority governance, including the establishment of a new a National Oversight and Audit Commission; enhancement of powers of local authority members and re-designating the position of Manager as Chief Executive; Consequential amendments arising from structural and other changes across a number of legislative codes, other than the local government Acts, which provide for local authority functions or involvement or which otherwise impinge on local government. 3

5 What policy objectives have been considered? In broad terms, 3 policy options have been considered for each of the main objectives, as follows: Option 1: The no change option Option 2: Introduce policy options other than legislation Option 3: Introduce primary legislation Preferred Option: In the aggregate, the clearly preferred option in all cases is Option 3 to introduce primary legislation. The analysis indicates clearly that Option 1 would not enable the requirement for significant local government reform, as required by the Programme for Government and as set out in the Action Programme for Effective Local Government (approved by Government in October 2012) to be fulfilled. Due to the existing, comprehensive legislative basis for local government structures and actions, the introduction of policy options other than legislation as envisaged under Option 2 is severely constrained as the changes to structure, powers and functions of local authorities envisaged by the Action Programme, may only be undertaken by way of changes to/introduction of (new) statute. Option 3 therefore is the only viable approach to delivering the desired actions envisaged in the Programme for Government and set out in detail in the Action Programme for Effective Local Government. 4

6 Regulatory Impact Analysis Local Government Bill INTRODUCTION 1.1 Arising from the strong focus on reforming the local government sector in the programme for Government (2011), and building on the work of the Local Government Efficiency Review report, the Department of the Environment, Community and Local Government, working with stakeholders, developed an Action Programme for Effective Local Government. The Action Programme was approved by Government in October 2012, with a direction to prepare the necessary legislation to give effect to a range of local government reforms. On that basis, the Department with the Parliamentary Counsel have prepared the draft Local Government Bill 2013 for consideration by Government in September This Regulatory Impact Analysis (RIA) has been prepared in respect of draft Bill which is itself based on the approvals contained within the Government Decision S180/20/10/1494 of 16 October 2012 to: - (1) the publication of the Action Programme for Effective Local Government, Putting People First and a number of related documents; (2) the approval of a number of specific reform proposals contained within the Action Programme, including: a. the delivery of public services and functions of government as far as possible at local level through the local government system; b. the integration of town and country governance including the replacement of 114 local authorities with 31 integrated authorities, the establishment of a system of Municipal Districts at sub-county level, and the overall reduction of local authority elected members; c. details of decision-taking at Municipal District level; d. independent review of electoral areas with a view to reducing representational disparity; e. the establishment of a single new local authority in Waterford; 5

7 f. the development of a more central role for local government in the promotion of economic development including the phasing out of City/County Development Boards and the establishment of Local Community Development Committees; g. the establishment of three regional assemblies to replace the existing eight regional authorities and two assemblies; h. the replacement of local authority managers with Chief Executive posts and the strengthening of reserved functions of elected members; i. a range of governance provisions strengthening the ethics code, and providing for an external oversight and audit process; and (3) the preparation of any legislation necessary to give effect to the reforms set out in the Action Programme and consequential amendments arising therefrom. 6

8 2. POLICY CONTEXT AND OBJECTIVES 2.1 Policy Context Local Government Reform The Action Programme for Effective Local Government, Putting People First, ( the Action Programme ) which was published in October 2012 following Government approval, sets out Government decisions on a range of measures relating to the reform and development of local government structures, functions, funding, governance and operational matters. Other reports published in conjunction with the Action Programme were: Report of a Steering Group on community/local development alignment; Tipperary Reorganisation Implementation Plan; Limerick Implementation Group Progress Report; Waterford Local Government Committee Report. Implementation of the local government reform agenda is a priority commitment in the Programme for Government and is a key element of the overall public sector reform agenda. It is necessary that the relevant changes in structure, functions and operation of local government are in place prior to the local government elections to take place in May An extensive framework of legislation is required to implement the reform programme, involving amendment not only of the local government code but also of a wide range of other legislation impinging on local government. It should be noted, however, that this legislation is just one aspect of the overall implementation of the Action Programme. The programme also requires a range of other policy, preparatory and organisational measures to effect the necessary changes in structure, orientation and practices within local government. In this regard, some important local government reform actions have already been progressed towards the amalgamation of city and county authorities in Limerick, Tipperary and Waterford (on foot of Government decisions in 2011). Implementation Plans setting clear agendas and guidance for the continuation and completion of the local authority merger process in Limerick, Tipperary and Waterford were completed in June 2012, December 2012 and June 2013 respectively. A general Implementation Guidance Framework document, dealing particularly with sub-county reorganisation, was issued to local authorities in July Preparatory reorganisation arrangements are proceeding and implementation reporting and oversight arrangements have been put in place. 7

9 2.2 Objectives of the Local Government Bill 2013 The Action Programme for Effective Local Government provides a rigorous analysis of the local government system in Ireland and sets out clearly the rationale for strong local government and the need for a wide-ranging reform programme to achieve this. It outlines an overall vision for local government as the primary vehicle of governance and public service at local level, delivering efficient and good value services, performing a wide range of appropriate functions and representing citizens and communities, as effectively and accountably as possible. In this regard, two overarching objectives are identified namely maximising operational efficiency, standard of performance and customer service; and enhancing representational effectiveness and accountability. Accordingly, the Action Programme provides a detailed and robust policy basis for the legislation. More detailed presentation of the impacts are summarised in the analysis provided in the Action Programme and can be found at The immediate actions to be provided for in the Local Government Bill 2013 are to give effect to decisions detailed in the Action Programme as follows: Merger of city/county authorities in Limerick, Tipperary and Waterford, involving dissolution of the six existing authorities and establishment of three new unitary authorities in their place. These mergers will take effect after the local elections in mid-2014; interim dual management arrangements are in place in Limerick (and similar arrangement will be established in Tipperary and Waterford) to manage the implementation of the impending mergers; Dissolution of the 80 town councils; New sub-county governance arrangements, involving the creation of a system of municipal districts, integrated with the relevant county councils; Provisions giving power to the Minister to rationalise the regional structures by replacing the existing 2 regional assemblies and 8 regional authorities with a number (at least 3) of regional assemblies for the whole country. The new assemblies will bring a greater focus to the strategic functions for which regional structures are intended, such as regional and spatial and economic planning, and serve as an influential link between central and local government; Changes in local authority functions, including devolution of certain central government functions to local authorities; an enhanced local authority role in economic development; 8

10 and the alignment of the local/community development sector with local government, including dissolution of CDBs and establishment of new Local Community Development Committees; Reforms in local authority governance, including the establishment of a new a National Oversight and Audit Commission; re-designating the position of Manager as Chief Executive; and restricting the applicability of the section 140 provision; and Consequential amendments arising from structural and other changes across a number of legislative codes, other than the local government Acts, which provide for local authority functions or involvement or which otherwise impinge on local government. 2.4 Impacts on other legislation As well as amending the Local Government Act 2001 the Bill provides for consequential amendments to the Housing Acts 1966 to 2009, to the Planning and Development Act 2000 and to the Local Government (Rates) Act (1970), among others. It should also be noted that certain measures of significant importance to the reform of local government involve substantial legislation in their own right, notably the establishment of Irish Water, the dissolution of County Enterprise Boards, local property tax legislation, and the strengthening of ethics provisions relating to local government. 9

11 3. IDENTIFICATION OF OPTIONS FOR THE BILL The draft Bill includes provisions where there is a requirement for primary legislation to effect the necessary change as set out in the Action Programme. This section will consider the available options for the Bill as a whole, while section 4 will expand on this by considering the cost, benefits and impacts of the three options individually for the main objectives of the Bill. In broad terms the three options to be considered are as follows: The no change option; Policy options other than legislation; The introduction of primary legislation. 3.1 Option 1: The no change option The ultimate purpose of local government is to promote the well-being and quality of life of citizens and communities through effective, accountable and democratic representation, and to ensure the efficient performance of functions and delivery of services at the local level. However, the current system of local government in Ireland is severely constrained in its ability to achieve this. Apart from changes in the 1980s and 1990s in Galway and Dublin, local government structures have changed little since the establishment of the county-based administration system in Although the structure has worked well in many respects, there has been a growing body of evidence that it is no longer fit for purpose in its present form to achieve the key objective of serving as the main vehicle of governance and public service at local level. In recent years numerous reports 1 have identified anomalies, inconsistencies and structural and other deficiencies within the system which are preventing it from achieving its potential. Some of the most important challenges are as follows: Structures that have changed little since Victorian times providing services that are increasingly complex and technology based; A disparate array of authorities, many lacking the scale or resources to support significant functions e.g. some small towns with their own council, larger ones without municipal Report of the Special Group on Public Service Numbers and Expenditure, 2010 Government Efficiency Review Group Report (LGER), 2008 Green Paper for Local Government. 10

12 status; boundaries that bear little resemblance to current reality; some neighbouring authorities that compete instead of co-operating; Elected bodies with very limited revenue-raising powers, and as a result limited accountability, responsibility and self-reliance; Fragmented operating arrangements, with duplication and diseconomies; and Systems of governance, performance measurement and public engagement that have lagged behind modern best practice. The no change option would preserve the current system, as provided for in the Local Government Acts 1925 to 2001, with its significant shortcomings. Maintaining the status quo would inhibit local government from making the most of its resources, capacities and potential. It would continue to impede the system from maximising its potential as part of a reformed national public service and political structure, in the context of overall public service reform, and from contributing to national recovery and economic growth. 3.2 Option 2: Policy options other than legislation Implementation of the local government reform agenda is a priority commitment in the Programme for Government and is a key element of the overall public sector reform agenda. While the overall local government reform programme involves a range of wider policy measures as documented in the 2012 Action Programme, for example, through the local government efficiency agenda, this RIA deals exclusively with those reform provisions for which provision is being made in local government legislation. As such, this option is primarily being included for benchmarking purposes and will therefore not be examined in detail as part of this RIA and it is not envisaged that this option will be pursued in practice. That said, a number of models of structural change were considered the Report of the Local Government Efficiency Review Group (July 2010) (LGER) recommended the delivery of corporate services on a joint basis across contiguous local authorities and joint management structures in order to generate scale efficiencies in local government structures. However, the limitations to achieving fundamental reform without addressing the core structural issues, both in the context of the LGER recommendations and numerous previous reform proposals, were fully set out in the 2012 Action Programme. As the framework of local government in Ireland, including its structures, 11

13 powers, functions, duties and the respective roles of elected members and the executive are codified in the Local Government Acts 1925 to 2001 to effect the reforms set out in the Action Programme, it is necessary to provide the necessary legislative basis. 3.3 Option 3: Introduction of Primary Legislation In addition to structures and governance as set out above, the operation of specific services by local authorities is provided for in a broad range of other legislation, e.g. housing, roads, planning waste, etc. Accordingly, as local authorities are bodies incorporated by statute and their operation is confined to the functions, powers and duties conferred on them by statute. Any changes to structure, powers and functions, as envisaged by the Action Programme, can only be undertaken by way of changes to/introduction of (new) statute. As referred to at Option 2 the introduction of primary legislation to effect the structural changes to local government as set out in the Programme for Government and the Action Programme for Effective Local Government is urgently required. This involves the amendment, not only of the local government code but a wide range of other legislation impinging on local government. It will also involve making legislative provision for some innovative arrangements, notably the introduction of a new comprehensive system of integrated county and sub-county municipal governance to replace the 80 long-standing town councils, the establishment of a new National Oversight and Audit Commission for Local Government, the dissolution of six city/county councils and their merger into three sets of new unified authorities, and a range of other important structural and governance changes. A critical aspect of the local government reform legislation is the fact that is essential to have it enacted ahead of the next local elections, which will be held in late May The latter sets a clear time limit, giving rise to a further sequence of deadlines such as the implementation of a range of secondary legislation to provide for elections to the revised structures and to implement the new legislative regime generally. The legislation will have a positive regulatory impact, particularly by providing for a new integrated system of county and sub-county governance. Reduction, in the number of local authorities to 31 from the current overall total of 114 will achieve significant streamlining administration generally, particularly in terms of corporate requirements including HR, IT and electoral matters, financial 12

14 responsibilities, including estimates, accounts, and audit, and a range of processes, reporting and publication requirements, such as annual reports, corporate planning and development plans. In future, these activities which give rise to multiple activities on the part of the county and town authorities in each county will be consolidated in a single organisation. More specifically, the legislation will result in reduction from 88 to 31, in the number of local authorities which have fiscal powers and regulatory type responsibilities across a range of functions such as planning, rating, environment, parking, litter, casual trading, and bye-laws for various other matters at local level. An indicative list of the type of regulatory activities which will be streamlined is at appendix 1. In two counties, the effect of reorganisation will be to reduce the number of separate regulatory authorities that businesses and individuals might need to engage with from 9 to 1. In addition to specifically regulatory activities, this streamlining will reduce the range bodies which the public and local groups may need to deal with in relation to local authority services such as housing, amenities and various community-related matters. 13

15 4. IDENTIFICATION OF COSTS, BENEFITS AND IMPACTS OF OPTIONS FOR THE MAIN PROVISIONS OF THE BILL 4.1 Merger of City/County Authorities in Limerick, Tipperary and Waterford: Parts 2, 4 and 5 of the Bill provides for the merger of city/county authorities in Limerick, Tipperary and Waterford, involving dissolution of the six existing authorities and establishment of three new unitary authorities in their place. These mergers have been approved by Government, as recommended by the Local Government Committees/Reorganisation Implementation Groups in Limerick, Tipperary and Waterford Principal features of the proposed legislative provisions The dissolution of Limerick City Council, Limerick County Council, North Tipperary County Council, South Tipperary County Council, Waterford City Council and Waterford County Council; The establishment of three new unitary authorities covering the urban and rural areas of Limerick, Tipperary and Waterford (to take legal effect after the local elections in May 2014) Identification and Description of Options Option 1 No policy change: No policy change would see the continuation of the existing sub-optimal, and in some respects dysfunctional, local government arrangements in these authorities. In the cases of Limerick and Waterford, this would see the continuation of the donut effect whereby the population at the heart of the urban area is in decline with a consequent impact on the commercial, cultural and recreational life of the city centre. The existing cycles of disadvantage, exacerbated by neighbourhood effects, in the regeneration areas of Limerick City would continue due to the relative unattractiveness of the City relative to the County for economic development. If the mergers do not take place, the continued distortion for business of different rates (and other charges) in adjacent authorities, and indeed the competition between authorities for revenue generation will continue, and the greater efficiencies in service costs (due to economies of scale) will not be generated; Option 2 Introduce policy options other than legislation: Progress towards the merger of the two Limerick authorities has already been initiated on the basis of an interim dual 14

16 management arrangement and progressive integration of administrative structures and local services. However, despite this progress through interim structures, primary legislation is required to give full legal effect to the merger i.e. by the dissolution of the six authorities and their replacement with three new merged authorities and the creation of a single integrated set of councillors, staff and services. It addition, it is not possible to continue the ad hoc arrangements beyond the local elections in May 2014 as the representation by two separate sets of councillors would continue and would perpetuate the old two authority structures rather than achieving the benefits of a unified authority; Option 3 introduce legislation: As outlined in the consideration of options 1 and 2, there is a requirement for legislation to give legal effect to the merger of the local authorities in Limerick, Waterford and Tipperary Preferred Option Option 3 is the only approach by which the full benefits of local authority unification of the Limerick, Tipperary and Waterford local authorities can be achieved due to the requirement for primary legislation to establish the new merged authorities Analysis of Costs Benefits and Impacts for all Options The implications of the possible alternative options are analysed under by reference to key elements of the proposed legislation: Summary of Costs, Benefits and Impacts of the 3 Options OPTION COSTS BENEFITS IMPACTS 1 no change - No direct costs but savings arising from efficiencies and streamlining of structures and functions would not be achieved. - Continued economic decline of the city centres in Limerick and Waterford; - No institutional disruption. - No additional direct costs No economic incentive for businesses to locate in the heart of Limerick and Waterford Cities continuation of the donut effect ; - Continued cycle of disadvantage within the regeneration areas

17 - Inefficient competition between adjacent authorities to reduce rates. of Limerick City; - Continued lack of coherent political and administrative leadership due to the continued existence of two local authorities in the same jurisdiction; - Lack of harmonised rates in the same jurisdiction leading to administrative difficulties for businesses, as well as unhealthy competition between authorities; - Lack of a single plan for physical, social and economic development for the areas; - Continued duplication of services and service inefficiencies. 2 Introduce policy options other than legislation - Some initial costs associated with the administrative measures such as joint services are envisaged. While these would be somewhat offset by savings arising from some reduction in duplication, the scope for such would be limited without full merger; - Some inconvenience to -more cohesive physical, economic and social development planning in non-statutory plans; - The potential for enhanced public service coordination and integration across the jurisdiction; -The potential for more efficient and costeffective staffing arrangements; 16

18 services users; -some financial savings. - Inefficiencies may arise due to a lack of clarity on roles and functions in purely administrative arrangements. In particular joint management arrangements, as considered in the 2010 LGER review would be likely to be problematic from a governance and administration perspective merger. 3 Introduce primary legislation - Some initial costs associated with mergers, abolitions and reformed structures are envisaged, but these will be offset by anticipated long-term cost savings of at least 25 million per annum when all reforms have been fully implemented. -more cohesive physical, economic and social development planning; - single point of contact for businesses seeking to locate in the areas, harmonised rates across the jurisdiction; - a single authority with greater scale/critical mass - Means to provide coherent economic incentives for businesses to locate in the heart of Limerick and Waterford Cities creating vibrant centres for economic, social and recreational use; - Some inconvenience to services users will enhance the representational efficiency of the authority and enable it to better compete at regional, national and global levels; -Enhanced public service coordination and integration across the jurisdiction, delivering better and more coherent - A more coherent approach to the regeneration of Limerick City; - Coherent political and administrative leadership across the whole area better representation of citizens interests; services for citizens and businesses; - Harmonised rates offering consistency 17

19 -More efficient and costeffective staffing arrangements; -Annual financial savings of at least 25m in the long-term; -Streamlining regulatory functions and public services. and reduced costs for businesses and eliminating unhealthy competition between adjacent authorities; - The powers to develop a single plan for physical, social and economic development for the areas; - No duplication of services and elimination of service inefficiencies; - Facilitating engagement by the public and business with local government. 4.2 Dissolution of Town Councils and New Sub-County Governance Arrangements: Parts 3, 4 and 5 of the Bill provide for new sub-county governance arrangements, involving the creation of a system of municipal districts, integrated with the relevant county councils, to replace the 80 existing town councils Principal features of the proposed legislative provisions The principal features of the proposed legislative provisions are as follows: i. Comprehensive territorial configuration of each county into municipal districts based generally around principal towns; ii. Members will be elected in the first instance for the municipal district, with the combined district membership constituting the membership of the plenary county council. There will not be separate, parallel sets of local authority members at two levels, with duplicate representation; 18

20 iii. A single county-wide executive or operational structure and no duplicate administrative or organisational overhead; iv. The organisational format of local government will involve a single corporate entity incorporating two elements of jurisdiction for the elected members - the county-wide level and district level; v. The total number of municipal districts in the 25 counties involved (excluding Dublin and taking account of mergers) will probably be around 90 based on the recommendations of the electoral review; vi. There would be a significant reduction from the current combined total of 1,627 local authority members (town and county) due to replacement of separate town councils by municipal districts. The total number of individual councillors will reduce from around 1,450 (taking account of dual membership currently) to not more than 949. In addition to bringing local area views to bear on decisions at the overall county council level, the elected members will perform a range of reserved functions involving policy decision and local regulatory functions in respect of matters for which a local area jurisdiction is appropriate. Examples of functions to be assigned to District level include: - policy and regulatory functions in areas such as planning, housing, roads, traffic, - environment, recreation and amenity and relevant finance and governance matters, - representational and oversight functions, - civic and ceremonial roles, - citizen/community engagement and leadership, - provision for further matters to be devolved from county to district level. The full list of functions is provided in schedule 3 of the draft Bill. The division of functions between county and district levels will be decided by what is most relevant to each level. Local matters will be dealt with at district level while those of wider strategic application will be dealt with at county level. There will be no duplication or overlapping of functions between county and municipal district jurisdictions. Any matter that is to be decided within the municipal district jurisdiction will be dealt with on a fully devolved basis and will not be submitted to county level for approval, subject to certain requirements in relation to consistency. In 19

21 addition, it is envisaged that the specific functions proposed will be subject to certain important general provisions, including: (a) Power for the full county council to decide that certain additional reserved functions should be assigned from the overall county council to district level; (b) Provision for the members at district level to propose that certain functions should be performed at overall county level rather than district level, subject to Ministerial approval. (c) Provision that particular district level functions are subject to right of call in by the overall county council for performance of the function in specific instances and circumstances and other measures to ensure consistency and effectiveness in the performance of functions Identification and Description of Options Option 1 No policy change: No policy change would see the continuation of the existing inefficient local government arrangements with 80 town councils continuing to duplicate the functions of county councils, and the continuation of duplication representation by local authority members. As there is robust body of evidence 2 that does not support the continuation of these inefficient arrangements, it is not possible to consider the no policy change option. The Local Government Efficiency Review Group in particular found that town councils are an additional overhead in the local government service whereby administrative work is duplicated between county and town levels and the existence of parallel functions in areas such as planning, housing and roads; Option 2 Introduce policy options other than legislation: As the town councils are provided for in primary legislation, any reform of sub-county arrangements including the proposal for municipal districts requires a legislative response. As such, it is not possible to achieve the necessary reforms proposed in the Action Programme for Effective Local Government other than by the proposed Bill; Option 3 introduce legislation: As outlined in the consideration of options 1 and 2, there is a requirement for legislation to give legal effect to the dissolution of the 80 town councils, as well as to providing the necessary legislative framework for the establishment of the Barrington Report on Local Government Reform, 2008 Green Paper on LG Reform, 2012 Local Government Efficiency Review Group. 20

22 municipal districts, the representation and functions of members at municipal district level, and the elections in The long-term savings envisaged from the introduction of this legislation would be in the region of 40m to 45m 3 per annum to be derived mainly from reductions in overheads, the elimination of duplicated services, and achievement of economies of scale. In terms of the elimination of duplicated services appendix 1 provides an indicative list of the functions of town councils that will be streamlined following the introduction of the new legislation Preferred Option Given the requirement for primary legislation Option 3 is the only viable approach to delivering the objective of new sub-county governance arrangements, including the creation of a system of municipal districts, integrated with the relevant county councils, to replace the 80 existing town councils Analysis of Costs Benefits and Impacts for all Options Summary of Costs, Benefits and Impacts of the 3 Options OPTION COSTS BENEFITS IMPACTS 1 no change - No direct costs but savings arising from efficiencies and streamlining of structures and functions would not be achieved. - Current system of subcounty local government, with its significant shortcomings, would be maintained. - No institutional disruption - No additional direct costs - Limited functions and limited ability to effect change would continue; - Inconsistency of structures due to the arbitrary distribution of town councils, boundaries would perpetuating under outdated etc. continue the 3 This is the total estimated savings for all actions at both county and town levels. 21

23 2 Introduce policy options other than legislation 3 Introduce primary legislation representation of large centres of population not having town council status; - Continued fragmentation services; - Continued duplication administrative other overheads; of of and - Continued lack of economies of scale at town Council level. - As above As above As above - Some initial costs associated with mergers, abolitions and reformed structures are envisaged e.g. 4.6m above the normal level for retirement gratuities for local councillors, but these will be offset by the anticipated longterm cost savings in the region of 15m to 20m per annum when all reforms have been fully implemented; - Some inconvenience to services users which will be offset by fully exploiting the potential of modern ICT and -Enhanced subsidiarity, ensuring that decisions are taken as closely as possible to the citizen within a cohesive overall local government organisation; -Representational effectiveness, accountability and responsiveness to local needs and priorities will be enhanced; -Functions exercised at a level close to local communities; -Members elected for each municipal district will also carry forward that mandate to county level - enhanced representational role and status; -the introduction of this legislation will contribute to the overall achievement of a reformed government local which represents citizens and local effectively accountably; -will communities and enable improvement in the delivery of efficient and good value services; -it will allow for more equitable and better planned economic, social and community development at 22

24 customer service facilities. -Duplication of functional responsibilities and double mandate system will be eliminated; -Cost and administrative overheads will be reduced and efficiency potential maximised; -The status of towns will be enhanced as focal points of municipal districts while town and county loyalties and identification will be respected. municipal level; It will facilitate engagement by the public and business with local government. 4.3 Rationalisation of Regional Structures: Part 9 of the Bill provides for the rationalisation of regional structures by replacing the existing 2 regional assemblies and 8 regional authorities with 3 assemblies for the whole country. The new assemblies will bring a greater focus to the strategic functions for which regional structures are intended, such as regional and spatial planning, and serve as an influential link between central and local government Principal features of the proposed legislative provisions Part 9 of the Bill (Regional Assemblies) provides for the following: - The Minister to make orders to replace the existing 10 regional bodies (2 assemblies and 8 authorities) with new regional assemblies. It is intended that, following the enactment of the relevant section that at least three regional assemblies will be established for the Southern Region, Eastern-Midlands Region and Connaught-Ulster Region; - The Minister shall have the power to define the specific functions of the assemblies in their establishment orders; - The main functions of the regional assemblies will be to adopt and oversee the implementation of regional strategies e.g. economic and spatial strategies. These strategies will be provided for in complementary legislation updating the provisions for regional planning guidelines; 23

25 - Oversight of functions in relation to Regional Operation Programmes and EU funding; - Other regional projects, studies and initiatives involving EU or other external funding; - Although it was originally envisaged in the Action Programme that the National Oversight and Audit Commission for Local Government would have a role in regional oversight, it has not been possible to provide for this at this stage Identification and Description of Options Option 1 No policy change: No policy change would see the continuation of parallel systems involving 8 authorities and 2 assemblies currently in existence with the associated costs of operation and the maintenance of 290 members. The Action Programme proposed 3 assemblies with 62 members; Option 2 Introduce policy options other than legislation: It would be possible to implement partial reforms through secondary legislation. Option 3 Introduce legislation: This will allow more comprehensive reform in the functions, governance and administration of regional bodies and also enable certain legal shortcomings that have been identified in the current statutory framework to be addressed Preferred Option Option 3 is the preferred option as it is the only means by which the full range of desired reforms, as decided by Government in the context of the Action Programme for Effective Local Government, can be achieved Analysis of Costs Benefits and Impacts for all Options Summary of Costs, Benefits and Impacts of the 3 Options OPTION COSTS BENEFITS IMPACTS 1 no change - No direct costs however cost savings from fewer regional - No disruption to current operation of regional 24 - Continued high cost for 10 regional bodies when fewer are

26 structures would not be achieved. bodies. needed; - Funding diverted from local authority services etc. to fund 10 bodies; - Continued duplication in activities of local authorities and regional bodies; - Many functions originally envisaged for the regional authorities continue not to be performed by them; - Ineffective regional coordination of local authorities. 2 Introduce policy options other than legislation - No direct costs however cost savings from fewer regional structures would not be achieved, although some administrative savings might be achieved from a reorganisation of the work of the existing regional bodies. - Limited disruption to current operation of regional bodies. As above. 3 Introduce primary legislation - Moderate savings will be derived from the significant reduction in the number of members, the reduction in separate corporate entities and administrative savings. -strengthened and more focussed role at regional level in spatial and economic planning based on a stronger framework of statutory provisions; -better oversight of local authority performance; - Citizens better served by a more coherent and coordinated regional structure; - Better services as funding previously directed from local authorities to 10 25

27 More relevant and effective set of functions for the regional structures; -more coordinated action between local authorities and more coherent translation of national policy between local areas; -reduced number of members at regional level, with consequent cost savings on personnel and overhead costs; -reduced overheads from fewer regional structures; -greater funding in local authorities as less funding is required to support 10 regional bodies. regional structures may be diverted to services. 4.4 Alignment of the local/community development sector with local government dissolution of CDBs and establishment of Local Community Development Committees: Part 6 of the Bill makes provision for the better alignment of the local/community development sector with local government through the dissolution of CDBs and establishment of new Local Community Development Committees Principal features of the proposed legislative provisions Part 8 provides for: The dissolution of City and County Development Boards. The establishment of Local Community Development Committees (LCDCs), as committees of local authorities, for the purposes of developing, implementing and co-ordinating a joined- 26

28 up approach to local and community development within the administrative area of each local authority Identification and Description of Options Option 1 No policy change: No policy change would see the continuation of existing local governance arrangements relating to the delivery of local and community development programmes and services. This would see the continuation of multiple and complex local development structures at local level that can be overlapping and duplicative, and result in a lack of a joined-up cross government approach to planning, oversight and delivery of programmes at local and national level, and the unsustainable requirement for organisations to be represented on local boards and consultative bodies. Maintaining the current approach would also see a continuing peripheral role for local government in the management, oversight and planning of local and community development programming at local level, at odds with the norm in other OECD countries. Unless more integrated, sustainable local governance arrangements are introduced, the local development model in Ireland will continue to hinder integrated, evidenced-based planning and service delivery, perpetuate high overheads and bureaucratic burdens upon organisations, and result in less efficient and cost effective services for citizens and communities at time of increasing pressure on many local and community development budgets. Option 2 Introduce policy options other than legislation: A key objective of the local government reform process, and the Alignment of Local Government and Local Development, is to strengthen the role of local government in social, economic and community development. In order to empower local government to take a stronger leadership and co-ordination role in these areas, the powers, functions and duties of local government will have to be broadened and refocused. Local authorities are bodies incorporated by statute and their operation is confined to the functions, powers and duties conferred on them by statute. Any changes to powers and functions, as envisaged by the Action Programme, can only be undertaken by way of changes to or introduction of legislation. Limited actions only would be possible to reform local governance without legislation, and in particular, the empowerment of local government would not be as effective. 27

29 It is also the stated intention of the Action Programme that separate structures for the delivery of public services will not be established outside of local government in future unless clearly necessitated in exceptional circumstances. Accordingly, it is necessary to establish LCDCs within the local government as committees of the local authorities. The power of local authorities to establish committees and their operation is confined to the powers, functions and duties conferred upon local authorities by statute. The establishment of LCDCs as committees of the local authorities requires an appropriate legislative basis. Option 3 introduce legislation: As outlined under Option 2, it is necessary to provide a legislative underpinning to the establishment of Local Community Development Committees to provide for the expanded role of local government in leading social, economic and community development, as well as to streamline local delivery structures and establish the LCDCs as committees of the local authorities and to dissolve CDBs Preferred Option Option 3 is the preferred option. Option 1 represents no change to the current local development model in Ireland and will not bring about the arrangements under which we can sustain the delivery of efficient and effective frontline local and community development services for citizens. Option 2 is not a viable approach given the need for legislation to underpin the policy imperative to provide a more enhanced role for local government in local and community development at local level and to establish the local arrangements necessary to streamline and reduce the number of local delivery structures. Given the need for a more sustainable and integrated approach to local and community development and the need to provide a legislative basis for the new local governance arrangements, Option 3 is the only fully viable option Analysis of Costs Benefits and Impacts for all Options Summary of Costs, Benefits and Impacts of the 3 Options OPTION COSTS BENEFITS IMPACTS 28

30 1 no change No direct costs but improvements in terms of efficiencies and streamlining of structures would not be achieved. No disruption to the current local delivery arrangements at local or national level. No additional direct costs Less efficient and cost effective approaches to local and community development Continued peripherality of local government in the management, oversight and planning of local and community programmes Continued bureaucratic and administrative burdens on organisations and individuals Continued overlap and duplication in the delivery of services due to the complexity of the local development landscape Continued parallel approach to service planning and delivery by central government and local development agencies and bodies Lack of a coherent and co-ordinated approach to service delivery at local and national levels. 2 Introduce No direct costs Limited actions to reform Some improved 29

31 policy options other than legislation associated with establishment of new governance arrangements outside of local government structure local governance arrangements may bring some benefits in terms of co-ordination and oversight of local services and spend The scope to achieve improvements through non-legislative action has already largely been exploited. efficiency, effectiveness and coherence in service planning and delivery resulting in better identification of needs at local level, improved prioritisation of resources to meet those needs and greater impact of investment Improved citizen and community participation in planning and assessment of local needs Improved measurement of performance arising from a consistent and joined-up approach 3 Introduce primary legislation No direct costs associated with the establishment of Local Community Development Committees as committees of local authorities. Indirect costs associated with general administrative support of the Local Community Development Committees by local More central role for local government in the management of local and community development programming and service delivery. More streamlined approach and reduced complexity of local and community development structures and bodies Improved democratic accountability for local Improved coordination, planning and implementation of economic and local development interventions with greater impact for citizens and communities More efficient, effective and joinedup approach to service planning and delivery resulting in better identification of needs 30