Shared service success for Hawke's Bay
The latest cost-savings from regional shared services group ‘HB LASS’ show such groups are the way of the future for councils, says HB LASS director Wayne Jack.
It was announced today that a partnership between 25 councils on insurance premiums has led to more than $3 million worth of savings for ratepayers across Hawke’s Bay, Bay of Plenty, the Horizons Region and the West Coast.
“The savings for Hawke’s Bay alone is $930,000 and is a great example of how, despite what some people say, we can all work together in the best interests of our ratepayers where it matters. It’s a great result,” Mr Jack said.
Local Authority Shared Services (LASS) companies Manawatu-Wanganui LASS (MW LASS), Bay of Plenty LASS (BOP LASS), Hawke’s Bay LASS (HB LASS) and a West Coast Group of Councils joined together recently to tender for Insurance Brokerage and Risk Management services and have achieved significant cost savings in excess of $3 million, allowing each council to reallocate its savings to other priority activities.
Executive officer for MW LASS Craig Grant said the partnership demonstrates how councils across the country can work together where there is a common drive to achieve economies of scale.
“The Local Authority Shared Services or LASS model is paving the way for councils throughout New Zealand to work together to achieve cost savings or service improvements,” he said.
“In this case, with assistance from our advisers Grant Thornton New Zealand, we’ve achieved substantial synergies in our insurance programs and, while there has been a softening of the market, these savings simply would not have been achieved had all 25 councils acted on their own.
“Through this process we have achieved the same level of insurance services for our councils, with an even better result for our ratepayers.”
AON New Zealand will be providing Insurance Brokerage and Risk Management services to MW LASS, BOP LASS and the West Coast Group of Councils, with JLT providing these services to the HB LASS.
13 March 2015