The Northern Secretary of State has unveiled plans for the reorganisation of public bodies that will radically change the way North is governed.
The changes follow a Review of Public Administration that was set up by Stormont and will result in a reduction of the number of district councils from 26 to seven.
Each council - three in the west, three in the east, and a council in Belfast - will have a maximum of 50 councillors each.
The changes announced today by Peter Hain follow a Review of Public Administration which was set up by Stormont.
The changes will result in a reduction of the number of district councils from 26 to seven. Each council - three in the west, three in the east, and a council in Belfast - will have a maximum of 50 councillors each.
A new law will be introduced that will bar politicians from having more than one office as both a local councillor and Assembly member.
With a population of 1.7 million people, Mr Hain said the North was over-governed and over-administered, with public expenditure nearly a third higher than the United Kingdom overall.
The newly constituted councils will have increased powers, such as responsibility for local roads, economic development in their areas, planning and physical regeneration.
The number of public bodies operating in local government, health and social services and in the education area will be reduced from 67 to 20.
The North's Health and Education boards are also to be replaced. A single Education Authority will be created to replace the five education and library boards that manage local schools, administer school transport and meals, assist research and provide recreational and youth service facilities.
A new Strategic Health and Social Services Authority will take the place of the four existing health and social services boards.
Describing it as the biggest challenge to the public sector in Ulster in more than 30 years, Mr Hain said: "I expect the streamlining of structures to result in significant savings. Estimates I have received indicate savings of up to £200 million per annum are possible."
