Councils' purchasing power reaps rewards

HB Lass Chairman Craig Waterhouse.

Shared services has saved the Bay's five councils more than $1 million.

Hawke's Bay Local Authority Shared Services (HB Lass) chairman Craig Waterhouse said the saving has come from a combined purchasing power.

All five councils are members of HB Lass - each using the service to varying degrees, depending on whether the service on offer suits their needs.

The company was established in 2012 to investigate, develop and deliver shared services. "The combined purchasing power that has been exercised through the HB Lass initiative has provided opportunities for savings within each of the participating local authorities," Mr Waterhouse said.

"We have identified over $1 million in savings across the five shareholding councils.

"Our initial estimates of the savings as a consequence of HB Lass initiatives are in excess of $100,000 per annum continuing at least for the life of the current contracts."

He said there were seven active work streams that involved many staff from within each of the shareholding councils.

One of these streams was the Geographic Information System (GIS) project, which not only saved HB Lass shareholders $170,000 it also delivered an improved quality in the product.

"The recent progress made by the IS [Information Systems] and GIS Advisory groups has the potential to deliver real operational efficiencies across the councils," he said.

"[This] will not only reduce cost, but increase the quality of service and reduce the operational risks to councils."

HB Lass has also identified savings in the bulk-buy of insurance.

Under the tender process, which involved councils that are members of HB Lass, Manawatu/Wanganui Lass, Bay of Plenty Lass and a consortium of West Coast South Island councils, the region's authorities are looking to save hundreds of thousands of dollars.

"The Hawke's Bay councils spend in excess of $3 million per annum on insurance," Mr Waterhouse said. "The scale provided by the large number of councils participating has generated opportunities for considerable financial benefit to all the councils. The savings, in excess of $900,000 are considered to be significantly greater than would have been achieved by the five councils in Hawke's Bay acting on their own."

He said the opportunities for further savings are being exposed through the forum meeting regularly, and building the relationships and trust around the board table between councils.