Eight Tasmanian councils achieved savings of $170,000 in March and April this year through the exchange of services and resources.
The Local Government Shared Services saw more than 2250 hours of services exchanged for the two months covering a range of local government activities.
Member councils include Brighton, Central Highlands, Glenorchy, Glamorgan Spring Bay, Huon Valley, Sorell, Southern Midlands and Tasman. Northern Territory councils Litchfield, Palmerston, Wagait Shire, West Arnhem and Coomalie are also members of the organisation and the Derwent Valley, Flinders Island and West Coast Councils exchange services with the group.
A total of 1023 hours of shared services were exchanged between the councils in April following 1237 hours in March.
Services included general council management and administration, building surveying, engineering, asset management, finance, human resources, planning, building and plumbing permits, risk management and works services.
Analysis of the shared services provided indicates that both the provider council and the client council achieve savings of approximately 50 percent through the exchange.
This is a result of increased use of existing council staff, accessing services from within the member participants and using services provided by the local government industry rather than external consultants. On average, these services can be procured at significantly discounted rates.
The independent Chairman of Local Government Shared Services, Peter Murfett, said collectively the councils were saving in excess of $1 million annually and the value of sharing services went far beyond the ratepayers’ funds saved.
“It demonstrates the efficiency being achieved by the member councils, and the broader learning opportunities for participating staff.
“Councils may have existing staff not fully occupied and/or assets with some down-time that can be used by other councils providing significant cost savings and efficiencies for both the employing council and the client.
“Local Government Shared Services continues to deliver valuable savings and new efficiencies for the participating councils.”
Mr Murfett said a member Council was currently investigating the implementation of a Cloud solution to further reduce information technology costs and to create a seamless platform to conduct work for any council from any location with a virtual office reducing the disadvantage of isolation.
“The success of the Tasmanian initiative is recognised through the five Northern Territory Councils joining our organisation with some other interstate councils currently considering membership,” Mr Murfett said.
Chairman of Local Government Shared Services, Peter Murfett
