Scotching the rumours

Getting to his feet within the last few minutes to talk about the plans to replace the current 26 councils with 11 new "super councils", the Environment Minister Edwin Poots said he wanted to scotch rumours that the shake up might not go ahead.

Earlier this month Patsy McGlone revealed that the review of public administration has so far cost £90 million. That figure included costs associated not just with the council shake up but also the accompanying reforms of the health and education structures.

An economic appraisal released by the minister today estimates the cost of the council shake up as £118 million. But it argues that the reforms will deliver savings of £438 million over 25 years (which strikes me as quite a long time for such a projection).

So far as paying for the shake up is concerned, aside from grant aid from central government, the latest economic appraisal suggests councils could find the money through increasing the district rate, introducing a business rates supplement, work place parking levies or charges for council services.

All of those suggestions might raise ratepayers' eyebrows.

So far I haven't heard any mention of the proposed severance payments for veteran councillors who choose not to contest the elections for the 11 new councils. I believe the minister has yet to decide on the level of these payments, but as this blog noted back in August the range of expenditure being considered on this scheme is anything between £4,196,000 and £5,247,000.

One Stormont source suggested to me earlier today that the NIO Minister Paul Goggins is not prepared to allow parties here to have a mass co-option of new councillors to replace party colleagues who wish to stand down. the source suggested that veteran politicians will therefore hang on until the election to the new councils and that the minister may keep open the severance package until nominations for the 2011 elections close. If this is the case it would call into question some of the logic of the original severance proposal which was meant to enable new councillors to take up the reins some time before the 11 council model goes live.

Whatever the niceties, I imagine that when the severance arrangements become more widely debated the public may be sceptical about the need for such pay offs.

P.S. Thanks Suzie - have re-inserted the missing zero

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