Poots calls on local government to move forward with him on reform
Wednesday, 23 June 2010Environment Minister Edwin Poots today asked local government to work with him to deliver long-lasting savings for every ratepayer in Northern Ireland.
The Minister was speaking this morning following a meeting in Belfast with representatives from the Northern Ireland Local Government Association (NILGA), to discuss the next steps in the reform programme.
Mr Poots said: "Both local government and I remain fully committed to reform. But it must be reform that delivers high-quality, efficient services. It must be reform that saves ratepayers money through creating stronger and more effective councils. And it must be reform that creates prosperous, safe and sustainable communities for everyone.
"We must not lose momentum. To date, both local councils and government departments have invested considerable time, energy and money into reform. No-one wants to see this wasted by abandoning the programme. Therefore, we need to move quickly, and in partnership, to bring forward new proposals which will benefit all ratepayers by reducing costs and delivering effective services.
"We are still in a postion to move forward together. Therefore, today, I am asking my local government colleagues to continue their invaluable work in putting in place plans to deliver real efficiency savings for ratepayers. With their co-operation and support, I intend to bring fresh proposals on delivering these measures to the Executive over the summer."
Notes to editors:
- DOE officials began work in February 2009 on the detailed design work and full economic appraisal for the delivery of local government including the savings and projected costs of transformation. This took nine months to complete.
- Minister Poots published the PwC economic appraisal on 20 October 2009. Option 5 of this report demonstrated that by investing £118million now, savings of £438million could be made over a 25 year period.
- This involved the creation of a Business Services Organisation (BSO) and Single Waste Authority (SWA). Local government rejected the BSO as being undemocratic and there has been no consensus on the Waste Authority.
- Local government presented their alternative proposals to the Minister in February and April 2010 for a voluntary collaboration process between councils.
- The Minister accepted this model in principal however further detailed design work needs to be done to assure the Minister that significant financial savings will be made to outweigh the costs of implementation.
- The total sum for implementation is £176million: £118million for amalgamating the councils; £33million interest to be repaid over 10 years; £25million to assist councils with rates convergence plus interest. The savings identified over 25 years in the PwC report without the BSO and SWA was £159million.
- All media enquires should be directed to the Department of the Environment Press Office on 028 9054 0003. Out of office hours, please contact the duty press officer via pager number 07699 715 440 and your call will be returned.
