Department of the Taoiseach

The Government has published an action plan for reform of the Irish public service and it hopes implementation will help to eliminate the current budget deficit of €4.7 billion by 2011. A new public spending review group is to report by June 2009.

In April, following a review of the public service by the OECD government think-tank, a taskforce was established and today its report was published together with a report of the pilot phase of the review of Government Departments to assess how well they are placed to deliver on current and future challenges. SEE: Bettergov.ie

Taoiseah Brian Cowen said he will chair a Cabinet Committee to review  progress in implementing its policy of reform.

"I am also announcing today a new and refocused programme of value-for-money-reviews which look in depth at the effectiveness and results achieved by major spending programmes in key areas of policy.  This will go beyond the scope of the initial review being announced by the Minister for Finance and will embed a stronger evaluation culture across the public system,"Cowen said.

Cowen said the overall objective of the reform programme is to achieve:

-  better value for the citizen;

-  better value in terms of minimising the cost of delivering necessary services;

-  better value in terms of joining up different programmes and agencies to deliver a more coherent and co-ordinated response to the needs of the citizen;

-  better value in terms of a well managed, performance oriented and fully accountable public service; and

-  better value in terms of a more integrated and professional approach to the management of technology, information and support services.

Minister for Finance Brian Lenihan said public service pay currently accounts for about €18 billion, or 32% of total current expenditure – a rise of €5 billion or 39% from 2004. Over that period, the numbers employed in the public service have increased by 31,500 (or 11%) to over 316,000 at the end of 2008. While the increase in numbers has been driven mainly by Government decisions to upgrade public services and create new agencies in line with Programme for Government priorities, there is now a need for adjustments and economy in this overall area.

He announced the establishment of a Special Group on Public Service Numbers and Expenditure Programmes to search for savings and economist Colm McCarthy is to chair the Group..

"I will advise my Cabinet colleagues of the names of the other members of the Group next Tuesday," Lenihan said. "The Group will get up and running next week and it will report regularly to me, with a final report to be submitted to me by the end of June 2009. "

FINFACTS ANALYSIS: Slow-motion Government promises Irish public service reform; "Festina lente" it's not as "Task Force" gives way for "Expert Group" 

Reacting to the publication of the Government’s Taskforce Report on Public Service reform, IBEC Director General Turlough O’Sullivan said:“IBEC welcomes this new direction in the reform of our public services. Most private sector enterprises are taking tough measures to keep afloat in a severely competitive environment. Most public servants want to see reform and want to provide a quality service to the public. They also see that the country simply cannot afford the cost of the present public sector pay bill. It is vital that this burden on all taxpayers is quickly reduced.

“The Taskforce Report on Public Sector reform sets out a road map for delivery of reform, to be overseen by a Cabinet Committee chaired by the Taoiseach. The time for analysis is over and urgent delivery of realistic targets is required.”

“The timescale proposed for staff reduction should be accelerated in line with best practice in the private sector,” added O’Sullivan.

IBEC especially welcomes the following:

Proposals for a more integrated public service involving a review of public sector numbers, as outlined in Budget 2009, merit-based promotions and a streamlined means of redeploying staff to where they are most needed;

• a greater emphasis on sharing best practice and cross-departmental cooperation;

• a focus on customer service and performance, through the introduction of new performance measures for both individuals and organisations;

• the extension of performance management systems to teachers and healthcare professionals;

• creating economies of scale across the public sector, through the greater use of shared services for internal administration in human resources, finance, IT and procurement.

O’Sullivan added: “The Government has already announced the rationalisation of 41 state bodies, but more is needed. Stronger partnerships with private sector providers will also enable Government to deliver services to the public more efficiently and cost effectively than through direct provision. We now need effective implementation and those charged with the responsibility must take on the vested interests who will try to thwart real reform.”

“Current public service numbers of 373,000 are not sustainable and must be reduced speedily through an imaginative but tailored voluntary service programme, minimising the effect on front line services. Headcount must be reduced, increments frozen, pensions capped, benefits brought into line with the private sector and state bodies reduced.”

The taskforce report commits to a detailed review of agencies being completed within 12 months, which will focus on where staff costs can be saved and on the scope for redeployment. IBEC believes this timescale should be accelerated.

“The productive sector is already immersed in economies, with nearly 100,000 more people on the live register now compared with this time last year. We need to take all sensible measures to ensure that the gains we have all made, by working together, are not lost.

“Government must in the national interest and by working with the social partners, continue to take tough measures, to tackle waste and inefficiency with determination. We must all live within our means and the public sector is no exception. Tough measures need to be supported – not for the sins of the past – but for the promise of the future.”