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COUNCIL LEADER WORKS WITH CHIEF EXECUTIVE TO PLAN COST-SAVING PRIORITIES FOR FUTURE

January 2006

The Leader of South Ayrshire Council, Councillor Gibson T. Macdonald has outlined the priorities and commitments that the new Council's Administration faces in preparing for the important budget meeting which will determine the Council tax level for South Ayrshire in 2006-07.

In doing so, he emphasised the importance of a specially set up "implementation group" led by the Council's Chief Executive Tom Cairns which has already begun work on the recommendations contained in a report produced by external consultants.

As Councillor Macdonald and the Chief Executive examined a portfolio of action points, the Council Leader said: "The most pressing task is to deal with the failure to meet financial targets in the Environment and Infrastructure Department. We are convinced that the solution provided by Bishops Consulting, which is essentially to completely 'disolve' the department and to reduce overheads by reallocating its services to other departments, thereby removing certain duplication, is the correct one. "

"With due consideration to a reference within the report by Bishops Consulting that there is a potential saving of some £4 million, the Council instructed that, subject to proper statutory consultation with the unions on the implementation of the report, the Chief Executive lead a corporate team to implement the recommendations.

"This is now underway," said Councillor Macdonald. "The Chief Executive and I discussed what was required to set up the implementation group, and I have every confidence in him, and the new team's ability to deliver the stated objectives on time.

"While I am ensuring that I receive a regular update on the process that is under way, I am leaving it to the Chief Executive and his fellow officers to make the recommendations happen."

The implementation team chaired by Tom Cairns, comprises Graham Peterkin, Depute Chief Executive & Director of Development, Safety and Regulation; Brian Davidson, Director of Environment and Development; Eileen Howat, Head of Finance & ICT; Nicki Beveridge, Acting Head of Human Resources and Peter Linton, Customer Service Manager, who has been appointed as Project Co-ordinator on secondment to March 31, 2006.

Said Councillor Macdonald: "The priority for the new Council Administration is to tackle the projected £20 million shortfall between income and expenditure that is looming and to identify the efficiency savings necessary both to plug that gap and to begin the vital task of investing in frontline services to local residents and improving the quality of life for everyone living in South Ayrshire."

Councillor Macdonald also pointed out: "Given the scale of the financial challenge facing the Council it is clear that there will be some very hard choices to be made over the coming weeks and months and it is crucial that immediate steps are taken both to more tightly control expenditure and to make significant reductions in overheads."

The Council Leader added: "Taking a broader view, we are determined to comb through the entire Council organisation to identify the fullest possible range of potential structural savings. We have extended the current contract with Bishops Consulting so that the company can undertake such a review and make recommendations on how to reduce the central overheads without the disruption of frontline services."

Acknowledging that the process of taking control of the Administration, and separately replacing the Provost had been a "fraught" one, Councillor Macdonald said: "Now that the matter of the Provostship has been decided, it is time for the Council to move forward and to deal decisively with the serious issues facing us. A line must be drawn under the political disagreements that may have become apparent."

He continued: "The newly appointed Conservative Administration recognises that, although the minority Labour Group no longer forms the Administration of South Ayrshire Council, it has an important contribution to make and it is essential that all members of the Council - regardless of their political standpoint - look to the future and pull together to best serve the interests of the residents of South Ayrshire.

"The new Administration is determined to ensure that the Council's finances are brought back into the black as swiftly as possible."

One saving that the new Administration has imposed on itself, is an immediate 10% cut in the special responsibility allowances paid to councillors, with agreement also to effectively "freeze" these payments until March 2007.

Said Councillor Macdonald: "In view of the serious financial position we have inherited it was decided that we would volunteer to take a voluntary cut in our allowances, before telling our employees about the steps that would have to be taken to balance our budget. We feel that this is a practical demonstration of our willingness to lead by example."

The Leader of South Ayrshire Council, Councillor Gibson T. Macdonald with Chief Executive Tom Cairns.