Speaking exclusively to the 'Journal', Chief Executive Valerie Watts explained that her plans will "lift the council by its shoestrings" to make it one of the North's "most successful, effective and innovative" local authorities ahead of and beyond the creation of a Derry-Strabane supercouncil in 2011.

It's estimated that the cost-cutting process will reap a net saving for the Council of £600,000 per annum.

Ms Watts' hard hitting paper, entitled 'Transforming Derry City Council', earned her a standing ovation from councillors who unanimously backed her proposals at a closed-doors meeting this week.
A key element of the 78 page report - which has been seen by the 'Journal' - include a trawl for voluntary redundancies throughout the council's management structure with the axing of up to 20 posts.
The shake-up will see the replacement of the Council's seven departments with three 'directorates', namely Corporate Services, Environment, Infrastructure and Culture; Business and Community Services and the Town Clerk and Chief Executive's Office.

Under the new plan, the position of Deputy Town Clerk will be "eliminated".

Ms Watts refers to the report as the "biggest piece of work" in her nine month tenure.

"The implications of the report will leave people in no doubt about the amount of research that's been done on what is broken in council and what needs to be fixed," she says.

"If it's not right, then it's my job to change it and that's what the report is all about," she says.

Ms Watts is keen to stress that her plans only concern Derry, although she has also received the support of local councillors to open consultations with Strabane District Council on the how to secure mutual efficiency ahead of the merger.

She believes there is a "window of opportunity" between now and the 2011 to use imagination to put in place "what would really make a difference to the people of Derry and the wider North West.

One long standing Derry City Councillor, who declined to comment on the record ahead of the publication of the full report, said last night the plans were "potentially brilliant" for the city and would be 'democratic'.

However, trade unionists have reacted angrily to the report with NIPSA referring to Ms Watts as "hatchet wielding".

However the Journal has learned the redundancies will be voluntary and that a number of employees have already expressed an interest in going.