Scrapping the municipal councils would save $700 million a year and at least 500 jobs, it was revealed last night. The Government had previously said the saving would be $500 million and 400 posts by 2003. In a paper to legislators released yesterday, the Government said the new structure created for municipal services would hire about 500 surplus staff until they could be redeployed. 'Since the vast majority of them belong to the general or common grades, we do not envisage much problem in their redeployment,' said the Task Force on Reorganisation of Municipal Services. It did not say how the remaining 791 staff would be treated. Officials have pledged nobody would be sacked as a result of the councils being scrapped.