Tuesday, March 18, 2014

Power of Veto for Councillors


The Irish local government system has traditionally operated a corporate model with the county/city manager accountable to the elected councillors who in turn are answerable to the people at election time. In theory this equates to the relationships between a CEO (City/County Manager), a Board of Directors (elected councillors) and the shareholders (electorate).

 
Under the local government Management Acts, the functions of local government are divided into two classes – Reserved Functions, performed by the elected members and Executive Functions, performed by the City/County Manager. While the law tries to make an exact division of functions, it was never the intention that the elected members and the Manager should operate independently of each other. The fact that the executive functions are assigned to the Manager is simply intended to provide the elected council with an experienced, whole-time administrator for the prompt and efficient discharge of day-to-day business without making an undue demand on the time of the elected members. The Manager is ultimately an employee of the local authority, appointed by the elected members (on the recommendation of the Public Appointments Service) and he may be suspended by them or removed from office with the consent of the Minister of the Environment, Community and Local Government.

 
The elected council is responsible for all policy decisions and the Manager must act in conformity with the general policy laid down by them. In carrying out his duties, the Manager operates under the general supervision of the council. The power-sharing relationship between elected members and the Manager is at the heart of understanding local government in Ireland. The perception among very many councillors is that the power in Irish local government is skewed towards the Manager. Other councillors will readily admit that they have passed power to the Manager in a number of controversial areas due to their unwillingness to make difficult decisions.

 
In producing the Local Government Reform Act 2014, Minister Phil Hogan has sought to re-address the balance of reserved/executive functions in favour of the elected councillors. The title of City/County Manager is to disappear and Chief Executive Officers will replace it, thus re-enforcing the corporate model mentioned above. Section 54 of the Local Government Reform Act 2014 deals with the new post of CEO and the section runs to nearly 10 pages.

 
The main change being introduced is in relation to the appointment of the CEO. It has always been the case that the elected members formally appointed the Manager but they were obliged to do so, i.e. the legislation stated that the council shall appoint the candidate recommended by the Public Appointments Service. Intriguingly, under the 2014 legislation, councillors are being given veto powers. Within three months of having received a recommendation from the Public Appointments Service, the council must meet and decide to appoint or not appoint the person recommended. If the council decides not to approve the appointment, reasons for such a decision must be furnished to the recommended person.

 
It is interesting to tease through some of the ramifications of this veto power. Previous legislation insisted on the fact that the elected members had to appoint the recommended person so as to avoid political influence in the process. The new legislation brings the appointment of CEO firmly into the political arena which may not be wise. Of course, a strong argument can also be made that the Board of Directors should have a key role in deciding who their CEO will be.

 
Will the new veto power have a damaging impact on candidates from the private sector applying for the role of CEO in local councils? After all, winning through a competitive process organised by the Public Appointments Service and then being rejected by the elected council is not a very attractive proposition for outside candidates. While the council’s vote on the appointment of a CEO has to take place in a closed session, it is highly probable that details of the meeting will emerge and the credibility of the rejected candidate will suffer.

 
Other than the veto power, there is little in the Local Government Reform Act 2014 to suggest that the role of CEO will be any different from that of Manager. The act continues the trend of previous legislation by listing the reserved powers of councillors and simply stating that ‘every function which is not a reserved function is an executive function.’ Maybe the new CEOs need greater clarity than that?

 
Dr Aodh Quinlivan is a lecturer in politics at the Department of Government in University College Cork, where he specialises in local government. Twitter: @AodhQuinlivan

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