We in Friends of Gloucestershire Libraries share your concerns Ian, and those of Bob Usherwood who said in a letter to the Independent,
"There is also the real danger of tyranny by a local majority whereby a policy – stock selection, say – may be based on local prejudice rather than professional judgement. "
Our concern is that the "community libraries" in Gloucestershire are going to be outside of the statutory provision and will essentially become private reading clubs. When in a meeting with the head librarian of Gloucestershire, we raised these concerns about the lack of accountability for these libraries and requested that Gloucestershire County Council at least allow the "community libraries" to remain within the statutory provision. In response the head librarian said, and I paraphrase, "but if they were considered as part of the statutory provision we would be accountable, we don't want to be"
So in answer to your question Ian,
"Are librarians no longer bothered about censorship? Once it is farmed out to the community, is it no longer our problem?"
In our experience yes, you have hit the nail on the head. These libraries can be as rubbish as they like. It doesn't matter as they are not public libraries. The communities who are being made to run their own libraries or lose them pleaded with GCC also to allow them to still be statutory libraries but GCC's , as usual, ignored the wishes of library users as it does not fit in with their political agenda.
It is very worrying that these issues and ethics, which should be at the very heart of library provision, are merely a footnote in the decimation of the national public libraries network. I am very sorry that our professional body is not screaming these issues from the rooftops and that it is left to us.