Danish Structural Reform
Transcript of Danish Structural Reform
1
Local Government Denmark (LGDK)International Consultancy Division
The Administrative-Territorial Reform in Denmark 2002-2007
By Holger Pyndt, Director
2
Local Government Denmark (LGDK)International Consultancy Division
Key essentials of the Danish Local Government System since 1970
The system must be in balance▲ LG legal competences must match tasks and
responsibilities
▲ LG resources (finances, human resources, ownership etc.) must match tasks
▲ LG structure must reflect division of tasks
▲ LGs must have a fair degree of financial self-sufficiency (“sustainability”)
In 2002, the Government decided to review if a suitable balance still exists
3
Local Government Denmark (LGDK)International Consultancy Division
Denmark – LG Reform Preparations
October 2002 – January 2004: Commission on Administrative Structures
▲ Broadly composed with CG (4 ministries), LG Ass., Researchers and Independent experts
▲ Reviewed all public sector tasks and structures
Jan 2004: Presented a 1500 pages report▲ 4 potential options
▲ Presented for public hearing
4
Local Government Denmark (LGDK)International Consultancy Division
Schematic organisation of the Danish local government system 2003
The central government
13 counties
Copenhagen, Frederiksberg
and Bornholm
269 muni-
cipalities
5
Local Government Denmark (LGDK)International Consultancy Division
Size of Municipalities 2003
Largest: Copenhagen (502,362) Smallest: Læsø (2,145)
Inhabitants Municipalities
0-4,999 16
5,000-9,999 113
10,000-19,999 77
20,000-49,999 48
50,000- 17
6
Local Government Denmark (LGDK)International Consultancy Division
Distribution of countiesaccording to population (2003)
Largest: Århus (644.666)Smallest: Bornholm (44.197)
Inhabitants Counties
0-199.999 2
200.000-299.999 9
300.000-399.999 1
400.000-499.999 3
500.000- 1
7
Local Government Denmark (LGDK)International Consultancy Division
Structural Reform Time PlanOctober 2002: Appointment of Commission on Administrative Structure
January 2004: Report and recommendation from the commission
24 April 2004: Government programme ”New Denmark”!
June 2004: Agreement with political parties in Parliament
1 July 2005: Parliament decision on new administrative structure
November 2005: Local election to new municipal councils
1 January 2006: New councils in office
1 January 2007: New structure and division of task in place
8
Local Government Denmark (LGDK)International Consultancy Division
Structural Reform - Objectives
A simple and efficient public sector
Improved services with unchanged taxes
“A world class health service”
Less bureaucracy and fewer counters
More influence for the citizens
Better participatory democracy
9
Local Government Denmark (LGDK)International Consultancy Division
Commission on administrative structure - recommendationsLarger municipal and regional units … to ensure:
▲ Professional sustainability
▲ Economies of scale
▲ One entrance to the public sector – easy access for the citizens
Change in distribution of tasks … to ensure:
▲ Coherence in performing tasks
▲ Coordinated offers for citizens– termination of grey zones
▲ Improvement of efficiency and transparency
10
Local Government Denmark (LGDK)International Consultancy Division
Models - the structure of the public sector
Unchanged distribution of tasks…but larger units
“Strengthened Counties” Regional tasks augmented with state tasks
“Strengthened Municipalities”Municipal task augmented with state and regional tasks
“State model”All tasks placed in municipality and state
11
Local Government Denmark (LGDK)International Consultancy Division
Government Reform programme - ”New Denmark”
Combined “Strengthened municipalities model” and “State model”
▲ Municipalities: The majority of welfare state tasks
▲ 5 regions with one single task = Health care
▲ Central Government: National/regional coordination and highly specialized institutions
The Municipality: “One entrance to the public sector”
▲ Focus on E-government
12
Local Government Denmark (LGDK)International Consultancy Division
Procedures for amalgamation
Voluntary amalgamations – under potential threat
Minimum size 20,000 inhabitants – although 30,000 recommended
Municipalities below 20,000 inhabitants:
▲ Either amalgamation or
▲ Mandatory cooperation with neighbouring municipalities on service delivery
13
Local Government Denmark (LGDK)International Consultancy Division
98 new municipalities:
66 amalgamations
32 municipalities continue:- 2 voluntary cooperations- 3 islands
14
Local Government Denmark (LGDK)International Consultancy Division
From2007:
5 NewRegions
15
Local Government Denmark (LGDK)International Consultancy Division
LGDK’s Role in the Reform
Establishment of a Structural Reform Secretariat in LGDK
▲ Provide information to municipalities about the reform, challenges and experiences
▲ Exchange information with members
▲ Provide consultancy assistance to municipalities in need
▲ Facilitate internal information in LGDK on various reform issues
16
Local Government Denmark (LGDK)International Consultancy Division
LGDK’s Role in the Reform
Core issues to be addressed▲ HRD and personnel issues
▲ Legal issues (ownership changes, long contracts, etc.)
▲ Financing and economy
▲ New organisation and management
▲ IT coordination
▲ Transfer of new tasks to municipalities
▲ How to ensure provision of core services during a period of fundamental reform
17
Local Government Denmark (LGDK)International Consultancy Division
LGDK’s Role in the Reform
Core products to guide municipalities▲ Process Guide on Amalgamations
▲ Process Guide on Transfer of New Tasks
▲ Calendar for Decision-Making on Amalgamation Issues in 2006
Web site established▲ More than 100 notes on various issues presented
▲ Entries from municipalities also presented (dialogue forum)
18
Local Government Denmark (LGDK)International Consultancy Division
LGDK’s Role in the Reform
Core consultancy services▲ Process consultancy – how to find partners and
organize the process towards amalgamation, incl. Internal and external information
▲ Development of a joint future vision for municipalities to be amalgamated
▲ Advise on personnel issues
▲ Development of options for a new joint service level for amalgamating municipalities (quality, quantity, price of services in future)
19
Local Government Denmark (LGDK)International Consultancy Division
LGDK’s Role in the Reform
Structural Reform Secretariat Staffing▲ Core group of 4-5 full-time employees,
supplemented with part-time experts
▲ The following expertise available: Legal, Finance, Personnel, HRD, Organisation, IT, Communication, Environmental issues, Job creations, Integration of immigrants, Child care and youth, Health
The role played by LGDK in 2003-07 equals the role of the Ministry of Interior in 1962-70!!
20
Local Government Denmark (LGDK)International Consultancy Division
Change in Counties’ tasks from 2007
Hospitals an public health insurance to regions
Round-the-clock social service partly to municipalities
Secondary education to self ownership
Regional planning and development large part to municipalities
Culture to municipalities and state
Environmental control to municipalities
Major roads and regional public transport to municipalities
21
Local Government Denmark (LGDK)International Consultancy Division
Central government tasks Overall economic policy
Overall Legislation
Foreign policy and defense
Judicial system: courts, prisons and police
Customs authorities
Postal services
Overall transport system
Employment services
Vocational training
Higher education
Tax collection and tax assessment from municipalities