‘No cost savings’ in merging LDCs

There will be no financial gain from absorbing local development functions into local authorities, according to the findings of consultants who examined staff and administration costs in local development companies (LDCs), local authorities and the civil service.

The LDCs asked consultants Smith Everett & Associates (SEA) to compare their staff costs with similar positions in local authorities and the civil service, and overall administration costs as a percentage of overall income.

The consultants’ findings are the latest development in the opposition of LDCs to the re-organisation of local government led by Environment Minister Phil Hogan.