Danish Structural Reform

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Local Government Denmark (LGDK)International Consultancy Division

The Administrative-Territorial Reform in Denmark 2002-2007

By Holger Pyndt, Director

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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

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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

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Schematic organisation of the Danish local government system 2003

The central government

13 counties

Copenhagen, Frederiksberg

and Bornholm

269 muni-

cipalities

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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

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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

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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

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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

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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

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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

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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

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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

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98 new municipalities:

66 amalgamations

32 municipalities continue:- 2 voluntary cooperations- 3 islands

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From2007:

5 NewRegions

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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

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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

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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)

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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)

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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!!

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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

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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

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Danish Structural Reform

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