Managing Local Government in a Changing Environment

Paper Delivered by Joe Gavin, Cork City Manager at the Local Government Management Conference, University Collete, Cork. 3rd December, 2004

Commemorating the 75th Anniversary of the Appointment
Of the first City Manager in 1929

In my talk today I will touch on the following topics:

• Background to Local Government Management System
• How Managers are Appointed
• Accountability of Managers
• Working relationship between Managers and Elected Councils
• Expanding Role of Local Authorities
• Modernisation of Local Government
• Future Challenges
  

Background

The Local Government Management System that we know today was introduced to this country in 1929 when the first Manager, Philip Monahan, was appointed to Cork City Council. Some years later it was extended to Dublin, Limerick and Waterford and to all County Councils with the passing of the County Management Act of 1940. The management system introduced was based on the American model of City Management. It was seen as a way of making the operation of local authorities more efficient and more business like.

The general concept was that the Elected Members of the Council would determine policy and that the responsibility for executing policy and managing the day to day business of the Council, including the control of staff and resources, would rest with the Manager.

Legislation made a distinction between the functions to be exercised by the Manager, called “executive functions” and those to be exercised by the Elected Members which were known as “reserved functions”. These functions were set out in the 1940 Management Act and in various other acts passed since that time. Any function which is not named as a “reserved function” in legislation is automatically an “executive function”. Reserved functions which are the policy functions relate to such matters as the making of a Development Plan, the adoption of the Annual Budget, the making of Bye Laws, the borrowing of money and the sale of property. The Manager, when making formal decisions, such as the granting of planning permission, appointing staff or consultants, making contracts, letting of houses, acts by way of written orders which are signed and dated. A register of all orders made must be kept and made available to the Elected Members.

Provision was also made in legislation which gives the Elected Members the right to direct the Manager to perform an executive function in a particular way if they consider that such action is warranted.

This Local Government system has been updated in the Local Government Act of 2001 which provides that “for every county and city there shall be a Manager who shall be appointed on the recommendation of the Local Appointments Commission”. It provides that the Manager is responsible for the efficient and effective operation of the local authority.

Dr. A.H. Marshall in a review of Local Government Management Systems – Local Government Administration Abroad 1967 says of the Irish system:

“The undeniable fact is that Ireland having sought for an answer to the problem of reconciling ultimate democratic control with prompt discharge of duties has formed a solution which under Irish conditions works well”.

Ronan Keane 1982 writing on efficiencies secured by the Management System described it as “the most important single development in the history of Irish Local Government in the 20th Century”.

Appointment of Manager

Before being appointed Managers are put through a very rigorous process administered by the Local Appointments Commission. This Commission is an independent body established by the Government and charged with selecting and recommending persons to be appointed to senior posts in Local Government. The position of Manager is advertised publicly and is open to all comers, whether within the public sector or in the private sector. The Manager is appointed for a seven year period but has the option of extending this contract period for a further three years provided the extended period does not bring the holder beyond the retirement age of sixty five.

The Manager may be removed from office if three quarters of the Council support such a move with the sanction of the Minister.

The job description for the post of City/County Manager reads as follows:

“The Manager, working with the elected Council will be responsible for developing and implementing a medium and long-term strategy for the City/County in the physical, social, economic and cultural areas”. The successful applicant must:

• Have a vision for the promotion of the physical, social, economic and environmental development of the city/county.
• Have the ability to generate and implement constructive and innovative ideas with practical application.
• Have a clear view of what actions are required in order to achieve immediate and long-term objectives to quality standards, within time scales and budgets.
• Be excellent at communicating and able to encourage discussion and consultation.
• Demonstrate the leadership skills necessary to achieve efficient and cost-effective outcomes through effective delegation and support.

Accountability of Managers

From time to time questions are raised about the accountability of Managers in the context of democratic control. I have heard Managers described as “answerable to no one – accountable to no one”. Nothing could be further from reality. It will be seen from the role description given earlier that local authority management involves leadership, team working and partnership in securing development and service delivery, within a democratic process. I would now like to outline the manner in which the Manager is held accountable and answerable:-

1. In making decisions on planning applications, the Manager must comply with the policies and qualifications laid down in the City/County Development Plan which has been made by the Elected Members. The Managers decisions are appealable to the Planning Appeals Board.
2. In dealing with the allocation of houses, the Manager must comply with the letting scheme of priorities approved by the Elected Members.
3. The Manager cannot borrow money on behalf of the local authority without the prior approval of the Elected Members.
4. The Manager cannot dispose of any land or property without the formal approval of the Members.
5. In approving expenditure, the Manager must adhere to the provisions of the Annual Budget approved by the Members.
6. Managers’ executive functions must be made by way of signed written orders which are available to the Elected Members and the general public.
7. Elected Members have the right to direct the Manager to carry out an executive function in a particular way and they have the right to prior information as to how the Manager proposes to exercise the function and the right to stop works proceeding.
8. The Elected Members have the ultimate right of suspending and removing the Manager from office with Ministerial consent.
9. The Manager’s financial administration is subject to annual examination and report by the Local Government Auditor.
10. The Manger’s decisions are open to examination by the Ombudsman and are subject to the provisions of the Freedom of Information Act.
11. The Manager attends Council Meetings which are held in public, twice monthly in many cases, and at such meetings may be questioned and held to account for any function of the local authority by any of the Elected Members.

It is difficult to conceive of any other Chief Executive Officer either in the public or private sector who is more accountable and in such a public way as the City/County Manager.

Policy and Execution

While in theory there is a clear distinction between the executive functions of the Manager and the reserved functions of the Elected Members, there tends in practice to be a meshing of both roles. While the Elected Members have the final say on policy matters, they frequently look to the Manager to bring forward policy recommendations. In practice the Manager has become the initiator of policy in many cases. On the other hand, the Manager in exercising executive functions frequently has regard to the local knowledge of the Members. A good working relationship between the Manager and the Elected Council is of critical importance. It is fair to say that nowadays such a relationship generally exists. That is not to say that there will not be differences of opinion expressed from time to time. The essence of Local Government is the Elected Member who stands before the public and gets a mandate to represent them. It is important to always recognise and appreciate this.

Without the elected arm we would no longer have Local Government but local administration. The Manager must at all times be aware of the importance of the Elected Member. Every effort must be made to ensure that the Council is fully informed, given an opportunity to be involved and to effectively reflect the views of the public in the formulation of policy and its execution.

The public today are much more demanding, more articulate, and more inclined to put personal and individual rights before the common good.

The media are highly active and require immediate replies to queries. There is a clear requirement for transparency and for the delivery of services in a way that gives value for money. In this environment, Elected Members are subjected to greater pressures and Managers must be aware of these pressures.

Notwithstanding these pressures, the Manager is required to discharge executive functions in a fair and equitable way and at all times ensure that due process is followed.

Board of Directors

The local authority Manager requires the same skills to manage an organisation as are required by the private sector manager. However, in addition the local authority Manager requires particular skills to manage within the parameters of the democratic system. In the private sector company the Board of Directors seek to portray a positive image of the company. Issues are debated in private and difficulties are ironed out.

The public are not privy to internal ongoings and a united positive line is taken when reporting company affairs in public. Companies concentrate on the good news, positive achievements and positive future projections.

The Elected Members of the Council equate to the private sector Board of Directors. They generally meet in public, twice monthly. As one of the primary roles of the Elected Member is to represent the public, a great amount of debate at these meetings is concentrated on drawing attention to matters which have not been dealt with and which need to be done.

The achievements seldom get the attention they deserve. If left unchecked this can lead to an unbalanced view of local authority activities. It therefore becomes important to highlight positive developments with the production
of newsletters, regular updating reports which are released to the media and direct distribution of information leaflets to the general public. This is not only important for the corporate image of the local authority, but it is also important for staff morale.

Potential for Tension

As I have said earlier a partnership arrangement has developed between Elected Members and management in the performances of their respective reserved and executive functions. Over recent years the Government has introduced legislation to deal with specific issues at local level in controversial areas. The effect of this legislation has been to reduce the role of the Elected Members in respect of these particular issues.

The areas involved relate to Traveller Accommodation, Waste Management Plans and Waste Charges. If this trend continues it has the capacity to fracture the good working relationship between Elected Members and Managers. It is ironic to hear senior national politicians at times criticise local authority Managers as having too much power, having themselves conveyed some of these powers on Managers where there was failure politically at local level to deal with specific issues. If Local Government is to remain effective and democratic, Councillors will have to show leadership and courage in facing up to difficult decisions and avoid the need for Government intervention.

Expanding Role

The general public perception of the role of local authorities has been one of service providers. Local authorities do provide a critical range of public services such as roads, housing, drainage, water, parks, libraries, planning etc. These are essential services but the role of the local authority goes far beyond that of service provision and its range of roles and functions continues to expand.

Under the provisions of the Local Government Planning and Development Act of 1963 local authorities were deemed to be development corporations in their own right. They were to prepare plans for the economic growth of their areas, to secure the provision of infrastructure, to promote development and tourism. Over the years, local authorities have to the extent that financial resources were available, undertaken a whole range of initiatives under the powers conveyed in the 1963 Act. They have developed industrial estates, provided workspace and services for small industries, have developed visitor centres and promoted investment in job creation in their areas. Their efforts on the economic development front have greatly added to the improved economic conditions which we enjoy today.

Under the provisions of the Local Government Act 1991 the local authorities were given “general competence” and this has been repeated in the Local Government Act 2001 which empowers a local authority to “take such measures, engage in such activities or do such things as it considers necessary or desirable to promote the interests of the local community”.

This expanded role enables local authorities, in addressing the interests of the local community, to deal with the whole range of economic, social, environmental, cultural, recreational, and development issues which impact on the lives and welfare of people in their areas. In considering initiatives under this 2001 Act the local authority must avoid duplication of activities of other statutory agencies.

These additional powers reflect the leadership role which local authorities are now more and more providing. This expanded role is also reflected in the concepts underlying the Better Local Government Programme which sought to integrate the many varied local development systems with Local Government and which culminated in the establishment of the City and County Development Boards.

Modernisation

The basic structure of Local Government has been in place since the early part of the last Century. Through difficult times and with scarce resources, Local Government has served the country very well. However, there was need in the light of changing times and circumstances to review the operation of local authorities and to better equip them to meet modern challenges. In 1996 the Government introduced a programme for change entitled “Better Local Government”. Three of the core principles of the Programme were:

Enhancing Local Democracy
Serving the Customer Better
Developing Efficiency

The following new structures were put in place to give effect to these core principles:

Strategic Policy Committees
Corporate Policy Groups
County and City Development Boards

Strategic Policy Committees

These committees have been established by all City and County Councils. They comprise Elected Members of the Council and representatives from the following sectors:-

Environmental/Conservational/Cultural
Development/Construction
Business/Commercial
Community/Voluntary/Development

The Strategic Policy Committees offer both the Elected Members and local sectoral interests the opportunity to be more involved in policy formulation.

Their role is to assist the City and County Councils in the formulation and review of policy. The Chairs of these Committees are Elected Councillors.

Corporate Policy Group

A Corporate Policy Group has been put in place by all major local authorities. The Corporate Policy Group comprises the Chairman or Mayor of the Council together with the Chairs of the various Strategic Policy Committees. It provides a forum for policy issues which transcend the remit of the individual Strategic Policy Committees. It must be consulted by the Manager when the Annual Budget is being prepared.

City and County Development Boards

City and County Development Boards have been established across the country. They are a forum to co-ordinate the activities of Local Government, local development bodies and state agencies at local level. Their membership comprises the following sectors:-

Local Government
Local Development Bodies
State Agencies
Social Partners

A central role for the City and County Development Boards is to prepare a strategy for the economic, social and cultural development of their areas. The strategy is seen as an overall framework into which the plans of the various agencies, sectoral and local plans can fit. Social inclusion is central to the strategies formulated by the Boards.

Local Government has always been seen as the main service provider at local level and there is a very clear linkage between the Strategic Policy Committees, the Corporate Policy Group and the City/County DevelopmentBoards. The Chairpersons of the Strategic Policy Committees are members of the Development Boards.

Corporate Plans

As part of the modernisation process local authorities now produce Corporate Plans which are prepared on the basis of an organisation wide strategic approach and include the following:

1. A statement of the principal activities of the local authorities.
2. The objectives and priorities for each of the principal activities and strategies for achieving these objectives.
3. The manner in which the authority proposes to assess its performance in respect of each such activity, taking account of relevant service indicators and of the need to work towards best practice in service delivery and in the general operation of the local authority.
4. Human Resource activities (including training and development) to be undertaken for the staff of the local authority and, where appropriate, for the Elected Council.
5. The organisational structure of the local authority, both elected and staff, including corporate support and information technology and the improvements proposed to promote efficiency of operation and customer service and in general to support the Corporate Plan.

Staffing and Organisational Change

In order to service and implement the new structure and procedures it will be appreciated that major change at organisation and staff levels was needed. Local authorities have reviewed and strengthened their staffing structures.

 

Senior management has been strengthened by the appointment of Directors of Services who working under the overall direction of the Manager, head up the various programmes. These Directors of Services also service the Strategic Policy Committees. At senior level the “dual structure” or the divide between technical and administrative staff has been removed and there is now a greater emphasis on team work. Substantial investment is taking place in I.T. infrastructure and the level of training for staff and Elected Members has been stepped up. New financial procedures have been introduced and professional staff have been recruited in the financial area.

The local authority Manager has played a pivotal role in setting up and embedding these new structures and procedural arrangements.

Future Challenges

Ireland has undergone major change economically and socially in recent decades. We no longer have involuntary emigration, we have practically full employment. We have an expanding population, a multicultural society, more educated skilled and articulate citizens. We have great change in family formation and social mores. Our natural environment is under greater threat with growth in urbanisation and massive growth in car traffic. We are experiencing a reduction in community and voluntary activity with more emphasis on the individual and less regard for the concept of the common good. We still have large pockets of poverty.

The challenges presented by this changed environment require a changed approach from local authority Managers and Members. I will look now at some of these new challenges:

Growth

Local authorities are major players in the physical development area with a staff of 35,000 and an annual expenditure of €8.5 billion which represents 6% of GNP. We play a big part in delivering sections of the National Development Plan and the National Spatial Plan for balanced regional growth. In the past our emphasis was on securing development.

The future emphasis must be on managing development. This will require strategic planning with a core value of sustainable development. Co-ordinated land use and transportation policies will be critical. Here, I might mention the Cork Area Strategic Plan 2001 or C.A.S.P., as it is known. This document sets out strategies for the development of the city and surrounding area for the next twenty years. It is seen as a model for sustainable development. Its preparation involved thorough research and had an input from the local authorities, various state departments, state agencies and the general public. It involved a number of local authorities working together in partnership and agreeing a set of strategies which cut across individual local authority boundaries. It has been informed by input from experts from a whole range of disciplines and takes a holistic approach to development. The future will see similar co-operation from neighbouring authorities and agencies on a variety of issues.

Waste

In the past the level of waste generated by society was easily dealt with. Today with the growth in affluence, the emphasis on consumption, the intensification in farming and the growth in our industrial base there is a major challenge in properly managing the waste generated. Local authorities are taking comprehensive initiatives for the reduction and recycling of waste. We are experiencing difficulty in securing necessary landfills for residual waste due to objections from the public in areas of proposed landfill locations. Proposals for thermal treatment or incineration, as it is more commonly known, are met with huge resistance. Even securing locations for bottlebanks and civic amenity sites present challenges. Education, consultation and leadership are all ingredients required in this instance to deal with public apprehension.

Value for Money

There will be an increasing demand on local authorities to deliver value for money and to be responsive to public needs. This will require the delivery of services in an efficient and effective way. It will involve training and development of staff and measurement of outputs. It will involve the setting of delivery standards and the monitoring of performances.

Securing the necessary funding and the balancing of books will present greater challenges as the public demand grows for more and better services.

Partnership

Within local authorities there will be a greater emphasis on partnership working between managers, staff and trade unions. This will require more consultation, more sharing of information and more team working.

Social Inclusion

Greater attention will require to be given to ensuring that all sectors of society have access to services, and that they have an opportunity to play a meaningful role in their community. Many sectors are still excluded from meaningful involvement in their communities. Measures will have to be put in place to correct this and will require new skills and disciplines on the part of local authorities. We are no longer a monocultural community and new approaches will be needed to address and serve the needs of a multicultural population.

Maintaining and supporting established communities and developing new functioning communities will be an important task in the future. Modern developments and lifestyles are impinging negatively on the viability of community development and interaction.

Co-Ordination/Leadership

With the expanded role envisaged for local authorities arising from their general competence powers “to take such measures, engage in such activities or to do things as it considers necessary or desirable to promote the interests of the local community” local authorities will, in the future, have a central leadership and co-ordination role to play in the planning and provision of public services in their areas. From the public there will be a greater emphasis on quality of life issues.
Local authorities are well placed to provide leadership at local level and local authority Managers have the capacity and commitment to meet the new challenges.

Conclusion

Next year will be my 40th year working in Local Government. During this time I have served in a variety of capacities with a total of seven different local authorities including Town Councils, County Councils and City Councils throughout the country. For me it has been a privilege to serve in Local Government and to have the opportunity, with the Elected Members and staff, to contribute to the betterment of local communities. I have, at all times, been impressed with the commitment and loyalty of Local Government staff to their respective authorities and areas. There is a great sense of public service.

The Elected Members are the essence of Local Government. Those, who stand before the public for their mandate are active and valued members of the community and take on tasks in the public interest. They serve a noble cause. In the past this work was undertaken on an unpaid, voluntary basis. Today, there is rightly some financial payment.

I hold Local Government in the highest regard. It is the means by which people can provide services for themselves, can take part in the business of Government and can help shape the future of their communities. The management system introduced to Local Government in 1929 has proved its worth. It received a vote of confidence from the Government when it was incorporated in the Local Government Act 2001 as the appropriate management system for a modernised Local Government.

J. Gavin,
City Manager.

22nd November, 2004

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