A streamlining of local government that could save up to £235 million per year was yesterday proposed by the Northern Ireland Office's (NIO) finance minister Ian Pearson.
Under the review of public administration, the number of local councils could be reduced from 26 to seven, while there would also be an overhaul of how health and education is administered.
The minister refused to say how many jobs the proposals put at risk, but pledged that if they are implemented all money saved would be ploughed back into local government.
In this first major review of public administration since the early 1970s, the NIO is proposing that:
the number of local councils be reduced from 26 to seven, 11 or 15 councils;
the four health boards and 18 health trusts be replaced by between five and seven authorities; and
the North's five education boards be merged into one authority.
These proposals now go out for public consultation, with final decisions expected by the end of the year.
"This review represents the greatest change to almost every area of the public sector and to local government for over 30 years. These proposals are a real opportunity to revitalise our public services," said Mr Pearson in Belfast yesterday.
Reducing the numbers of councils - especially if the cut is to seven - would have political implications. It would mean fewer local representatives and could influence how the local government balance of power is divided between unionists and nationalists.
The NIO carrot for such change is that councillors would have additional influence.
"The new councils would have increased powers and functions, such as planning urban and rural regeneration, local and economic development and tourism, with local roads and library and youth services also under consideration," said Mr Pearson.
Under the education proposals a new services support body would be created to replace the five education and library boards.
The education body would also bring together the administration of all the current direct support services funded by the North's department of education that are delivered by or through the Council for Catholic Maintained Schools, Comhairle na Gaelscolaíochta, the Northern Ireland Council for Integrated Education and the Staff Commission.
The education overhaul was published as four Sinn Féin, two SDLP and two unionist councillors on two education boards - Belfast and the North Eastern - resigned as a result of education cuts.
The Belfast resignations took place after the board was forced to accept cuts of £7 million.
The two North Eastern resignations happened after the board voted to close Antrim's Massereene College despite a final attempt by parents and governors to apply for integrated status.
The health proposals would mean the existing four health boards and 18 trusts, with the exception of the ambulance trust, would be replaced by either five or seven sub-regional health and personal social service agencies.
The NIO said that from experience of similar reorganisations it could be possible to achieve overall savings of £150-£250 million per year. All money saved would be made available for use in "frontline" services, said Mr Pearson.
Nipsa, the local government union, called on Mr Pearson to provide guarantees that there will be no compulsory redundancies as a result of the proposals.
