Irish Public Service Reform: A report on the progress of the Croke Park Agreement over the past 12 months shows a net savings on the pay bill of €289m but the additional cost of pensions, including lump sum payments. The expected budget deficit in 2011 is €18bn
The annual pensions bill was €2.23bn in 2010.
The Public Service Agreement 2010-2014 (Croke
Park Agreement) provides for an annual review focusing
on the sustainable savings generated from the implementation of the Agreement
and of the agreements in each sector of the public service. This is the first
such Review and was undertaken by the Implementation body which is charged with
driving the delivery of the commitments under the Agreement. The review covers
the 12-month period to the end of March 2011.
Based on estimated pay rates, the elimination of the 'bank hour' is given a value of around €5.5m.
However, these type of savings do not cut the pay bill.
The body engaged independent external auditors, MKO Partners Ltd., following a tendering process, to undertake independent verification of reported savings for a sample of three projects. A copy of their report is also available on the Department’s website.
The Minister for Public Expenditure and Reform, Brendan Howlin T.D.
said: “I welcome the conclusions of the Implementation
there has been solid and measurable progress to date on the implementation of
the Croke Park Agreement and that public servants are engaging positively with
the efforts to significantly reduce staff numbers, reconfigure services and
reform work practices.
At the same time, we must also ensure that services to the public are maintained and improved to the greatest extent possible. That is the core challenge now for the Agreement. A key element of the Comprehensive Review of Expenditure that is currently being undertaken by my Department is to look at the way services are being delivered and to consider new ways of achieving Government objectives in the context of public sector reform.”
The Minister added “We need to move forward quickly to build on the important
progress that has been achieved to date and accelerate the delivery and
implementation of urgently needed reform. I look forward to a heightened level
of effort and engagement from both public service management and unions in the
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