Strasbourg, 27 November 2009                                                                 LR-FS(2009)7

                                                                                                                         

EUROPEAN COMMITTEE ON LOCAL AND REGIONAL DEMOCRACY

(CDLR)

COMMITTEE OF EXPERTS ON LOCAL AND REGIONAL

FINANCE AND PUBLIC SERVICES

(LR-FS)

WORKSHOP

“THE POLICY CHOICE BETWEEN PROMOTING CO-OPERATION BETWEEN OR AMALGAMATION (MERGER) OF LOCAL AUTHORITIES”

Secretariat Memorandum

prepared by the Directorate General of

Democracy and Political Affairs

Directorate of Democratic Institutions

This document is public. It will not be distributed at the meeting. Please bring this copy.

Ce document est public. Il ne sera pas distribué en réunion. Prière de vous munir de cet exemplaire.

Introduction

At its last meeting (6-7 April 2009), the LR-FS Committee agreed to hold at its second meeting in 2009 a workshop on two related themes:

1. economies of scale resulting from increasing the size of local authorities (see document LR-FS(2009)6);
2. the policy choice between promoting co-operation between or amalgamation (merger) of local authorities.

As concerns the second topic, it was decided that a short questionnaire would be sent out to members to take stock of member States’ current policy positions on this issue. The workshop would thus allow for an in-depth exchange on the concrete advantages and difficulties of these policy options.

The questionnaire appears overleaf. Members are invited to send their replies in advance of the meeting or to bring them with them to the meeting.

As a background document, members attention is drawn to the recent CDLR European Practice Report on good practices on intermunicipal co-operation (CDLR, 2007), which will be sent to members separately.

Action required

Members are invited to reply to the questionnaire and to prepare for active participation in the workshop, including by presenting information concerning their country.

The Committee is invited, following the workshop, to consider what, if any, further work should be proposed to the CDLR for inclusion in the programme of activities. This reflection will thus join the more general consideration of new work to be undertaken further to the Utrecht Agenda (see item 4 of the agenda).

APPENDIX

Questionnaire on the policy choice between promoting local co-operation or amalgamation

Country:

Correspondent and e-mail address:

       
Please send your reply to the Secretariat ([email protected]) before or bring it to the LR-FS meeting on 10-11 December 2009.

If completion of the questionnaire in full proves too difficult, also very brief answers or answers to some of the questions only will be much appreciated. National materials that may help understand national policies on these questions are also welcome.

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Question 1. Current size of local authorities and possible benefits of increasing it

Would an  increase in the current size of local authorities in your country make it possible to delegate more functions to the local level so as to obtain better services and/or more efficient delivery? If so, which functions would benefit from more decentralisation? Have political proposals been made in your country to delegate more functions to the local level?

Question 2.  A policy preference between co-operation and amalgamation?

Has the choice between policies of co-operation at the local level and policies of local amalgamation been discussed in your country? Can you mention some of the arguments made in the political debate on one or the other solution? (For example: Is it simply considered impossible in your country to implement legislation on local amalgamations? Has the desire to avoid unclear placement of the political responsibility for service delivery been discussed in this connection, or have other arguments been made?).

Question 3. Local government amalgamation

a)  Have there been amalgamations at the local level in recent years (many or few?)? Has the government indicated any ideal or desirable minimum size of local authorities?

If you have answered yes to the first question under b please answer c:

b)  Have these amalgamations been voluntary or compulsory? Please describe possible examples of policies of “a mild degree of compulsion”?

c)  Has the government encouraged voluntary local amalgamations in other ways? Please describe such steps?

Question 4. Co-operation between sub central governments

a)  Have economies of scale been demonstrated at the local level through co-operation between local authorities? If so, for which (main) local functions? Can you give some indications of the relative magnitudes of such savings?

b)  Have economies of scale been obtained at the local level through co-operation between local and regional authorities? If so, for which local functions has this solution most commonly been used? Has such co-operation been voluntary or is it the result of obligations imposed by legislation?

Question 5. Use of private suppliers

 
a)  Do local authorities or regions use private suppliers to gain economies of scale (like using heavy equipment from private entrepreneurs for road construction or maintenance)?

b)  For which sectors do local authorities use private suppliers for reasons of economies of scale?

c)  Are local utilities privatised to companies that have activities in several local authorities?