I move: "That the Bill be now read a Second Time."
This Bill provides for the setting up of a new Department of Government to be known as the Department of the Public Service. The establishment of this Department is an essential step in the implementation of the recommendations of the Public Services Organisation Review Group. As Deputies are aware, this group, under the chairmanship of Mr. Liam St. John Devlin, was set up in 1966 with a very wide mandate to look into the organisation of the public services; I might quote that mandate to give some indication of the size of the task facing the new Department:
Having regard to the growing responsibilities of Government to examine and report on the organisation of the Departments of State at the higher levels, including the appropriate distribution of functions as between both Departments themselves and Departments and other bodies.
The group reported in 1969. Its recommendations are far-reaching and comprehensive, ranging across the whole field of our administrative institutions. There has been general agreement that this report is one of the most important public documents produced since the foundation of the State. Before I deal with what has been decided and with what is being done on foot of these recommendations, I would like to give a brief overview of the report.
The proposals in the report may conveniently be grouped under three main headings. The first group of proposals are concerned with the structure and organisation of the public service. They include what are, possibly, the most radical recommendations in the report—recommendations for the division of each Department into an Aireacht, responsible for policy formulation and appraisal and overall management, and a number of executive units responsible for the execution of settled policy. Other recommendations of a structural or organisational nature deal with the creation of an appelate system and with the attainment of the unity of the public service. This unity of the public service would be achieved, partly, by greater staff mobility and, partly, by the creation of effective systems of management and communication.
This leads to the second broad group of proposals which deal with the management of the public service. They are built around the idea that the managerial functions of planning, finance, organisation and personnel should operate as communication channels through the whole public service. In each Department, each of these functions would have is own specialist staff unit, answerable directly to the permanent head of the Department and co-ordinated on a service-wide basis by the Departments of Finance and the public service. Another important recommendation in this area is for the creation, in each Department, of a management advisory committee, consisting of the top staff, to assist the secretary, finally, there is a third and wideranging group of recommendations for the redistribution of functions between Departments and between Departments and other bodies.
Although this is only a very brief summary of the recommendations in the report, it is clear that fundamental changes are proposed in the structure and operation of our public services. It is clear too that the management machinery of the present public service was not designed for the management of the type of public service envisaged in the report. The Government feel that any approach to the enormous task of restructuring our public service should begin with the machinery of management and, in particular, with the central institutions. They have, therefore, decided to accept the recommendation to set up a Department of the Public Service. The implementation of this decision is the main purpose of this legislation and before I discuss this matter, I should, I think, briefly mention the other steps that are being taken.
First, all Departments have been instructed to set up management advisory committees consisting in each Department of the Secretary and the top staff at assistant secretary level. In the absence of any change in the position where the secretary of a Department is the accounting officer and is, under the Ministers and Secretaries Acts, the principal officer of the Department who bears all responsibility under the Minister, it may be argued that this is not a significant innovation. This, however, is to miss the point. The creation of management advisory committees implies the involvement of the higher staff of each Department in the overall management of the Department's business. I intend to take an active interest in the operation of the management advisory committees and I would hope that they would become the starting points for further development of participative management practices.
Secondly, as a preliminary to the installation of the new system of management proposed by the report, specialist staff units for the functions of planning, finance, organisation, and personnel are being set up in each Department. There are two main problems to be faced here at the outset. The first is to decide on our initial requirements of people with the necessary skills, to see what resources of such skills are available within the public service and to supplement these resources by training and by the recruitment of any additional staff required. The second problem is that of working out the complex pattern of communications and relationships, between these staff functions and, on the one hand, the line units of their Departments and, on the other, the Departments of Finance and the Public Service.
Although the matter is more relevant to a discussion of the functions which will remain in the Department of Finance, I might mention also that the report advocated that the traditional methods of financial control should be supplemented, and perhaps eventually replaced, by a system known as programme budgeting. Programme budgeting is now being introduced in all Departments and has, in fact, made considerable progress in a number of them. Substantial returns by way of improved planning and budgeting procedures are likely to result.
A high priority was given by the report to the immediate development of a system of promotion by merit in the higher Civil Service and to the removal of all barriers to promotion arising from the concept of Civil Service class or from the Departmental location of civil servants. Promotion is a very delicate subject in the public service and before taking any action as regards the higher Civil Service, as a first step, it was necessary to consult the staff at the levels involved. While the complex problems have not yet been solved, the discussions have produced a joint consultative body through which the staff concerned may be able to participate in the process of public service adaptation.
At the same time, Departments have been looking at the redistribution of the functions of the public service proposed in the second part of the report. While some of these proposals could be considered on their individual merits, it would be preferable that they should be considered in the context of a unified public service in which they were made. In particular, they should be considered in the light of one of the main themes in the report—the recommended separation of policy and execution through the division of each Department into an Aireacht and a number of executive units. This is, as I said, probably the most radical and difficult area of the group's proposals and it has been the subject of much consideration by the Government. While the changes proposed would ultimately involve legislation and a final decision could be made only by the Oireachtas on the Government's proposals in the matter, I would at this stage direct the attention of Deputies to two important associated issues. First, if, as seems likely, the separation of policy and execution would produce a more efficient public service, it would be necessary and desirable to consider what changes, if any, should be made in our political procedures to take advantage of this increased efficiency. Secondly, the highly sophisticated machinery for the public service which is entailed in the proposals for the separation of policy and execution will require an intensive programme for the development of the managerial skills of the public service. A limited experiment on a non-statutory basis is being carried out in a few selected Departments so that the proposals can be tested by hard experience before the Oireachtas is asked to commit itself to radical change. The Departments of Health, Industry and Commerce, Transport and Power, and Local Government were selected and joint teams from my Department and each of these Departments are at present examining the problems involved in the experiment. It is hoped that the experiments will commence to operate in some of these Departments at an early date. This question of the structure of our public service is one which concerns all our people and I would be glad to have the opinions of Deputies on a matter which will be a primary concern of the new Department.
In fact, everything done so far on foot of the report brings us back inevitably to the need for a central unit of Government to co-ordinate the process of restructuring to be carried out by the various parts of the public service. Indeed, experience has underlined the wisdom of the statement in the recommended implementation programme given in the report that "the first essential is the establishment of the Public Service Department". The Government have decided to establish a Department of the Public Service and the first purpose of the legislative proposals now before the House is to give the necessary statutory authority for this Department.
As Deputies are aware, the responsibility for the staffing of the Civil Service has always been vested in the Minister for Finance. The functions of organisation and personnel were assigned to a division of the Department of Finance originally known as the establishments division and more recently styled the personnel division. The case for the assignment of these functions together with responsibility for the co-ordination of organisation and personnel matters for the whole public service to a separate Department of the Public Service is based on a few fundamental considerations. In the first place, the review group found that, in the past, these functions have tended to be subordinated to the financial and economic responsibilities of the Department of Finance; secondly, the skills employed by the organisation and personnel functions are so different from those required by the finance and planning functions that they should be under a separate permanent Departmental head and, thirdly, it is essential that the organisation and personnel functions for the public sector should be given the status they have acquired in the private sector. The eventual assignment to the Department of the Public Service of responsibility for the co-ordination of all public service organisation and personnel practices is a logical consequence of the acceptance of the idea of a unified public service.
The assignment of the Department of Finance and of the Public Service to the same Minister also follows the recommendations in the report. Planning, finance, organisation and personnel are interdependent functions and it is essential that they should be co-ordinated by the same member of the Government. Since, in our system, planning and finance are the responsibilities of the Minister for Finance, organisation and personnel must also be assigned to the same Minister.
The new Department will have divisions responsible for the functions of organisation, personnel, and remuneration in the public service. Remuneration, which is really part of the personnel function, is of such importance that it merits a separate division in the new Department. In fact, I would see this division as primarily responsible for staff relations and as providing the location where the co-operation of the public servants in the re-organisation of our public service will be secured.
The report had also recommended the incorporation of two other functional units in the new Department—a procurement division and a commissioner for administrative justice. Action on these recommendations is being deferred for the moment. The future organisation of the units of the public service dealing with such matters as accommodation and supplies must await a decision on the future of the Office of Public Works and other purchasing units in the service. As regards the commissioner for administrative justice, the net point at issue is the creation of some form of appellate machinery to deal with the complaints of those aggrieved by administrative decisions. In the report, it was recommended that this machinery should be co-ordinated by a commissioner of administrative justice associated with the Department of the Public Service. I propose that the relevant recommendations should be considered at an early date by the new Department in light of the experiments which I mentioned earlier are being conducted in relation to four Departments.
The Government have designated the assistant secretary in charge of the personnel division of the Department of Finance for appointment to the post of secretary to the new Department. The post of deputy secretary in charge of remuneration has been filled by promotion from within the Department of Finance and the two posts of deputy secretary for organisation and personnel have been filled by a competition which has been held by the Civil Service Commission and which was open to civil servants and noncivil servants. The officers appointed are, of course, serving in the Department of Finance at this stage. This opening of eligibility for the higher posts in a Department is a departure from normal practice, but it follows logically from the reminder in the report that "In the establishment of a Public Service Department a great responsibility rests on the Government to select the right men for the top posts in this Department". The open competition ensured that each appointee to these posts would have demonstrated his suitability in competition with all comers. The need to bring the organisational and personnel skills of the public service to the highest possible levels makes it essential that these posts be filled with people with the skill and competence to begin the transformation of that service.
The second main purpose of this legislation is to set up the Public Service Advisory Council—Coiste Comhairleach na Seirbhíse Poiblí—to advise the Minister for the Public Service on organisation and personnel matters in the public service. It is proposed that this council shall report to the Minister each year and that the Minister shall cause copies of every such report to be laid before each House of the Oireachtas. It is of interest to note that the review group commented, in connection with this proposed report of the Public Service Advisory Council and other material about the activities of Departments to be submitted to the Oireachtas, that
While it is for the Oireachtas itself to determine its own procedures, the existence of this volume of information opens up the possibility of having Parliamentary Committees to review the activities of the Government.
Generally, the provisions relating to the council follow the recommendations of the review group. There is to be a chairman and seven members; the chairman may not be a whole-time public servant and one of the members shall be the secretary for the time being of the Department of the Public Service. The report recommended that four of the members should be from the private sector and four including the secretary of the Public Service Department should be from the public sector. It would be difficult to give a satisfactory definition of the boundaries of the private and public sectors; in fact, as I shall mention later, it is difficult to give a precise definition of the public service. Consequently, the recommendation for the four and four representation is not being written into the legislation but it is my intention that four of the members will not be serving whole-time public servants in the commonly accepted sense of the term. The other four will be public servants. In advising the Minister and his Department and in keeping the Oireachtas informed on the progress of the continuous process of re-organisation of the public service, the council will, therefore, combine a wide range of experience from the public and private sectors of the economy.
Before I conclude by giving an outline of the way in which I see the new Department operating in the public service of the future, I might, perhaps, deal with some of the difficulties that arise in defining the public service. If, as recommended, we are to aim at a unified public service, we must consider carefully what the constituents of that public service are to be. There will be no doubt that the public service includes the Civil Service and few will dispute that the officers and employees of local authorities and health authorities and of bodies financed from public moneys and established to perform functions which might well be performed by the Civil Service, are public servants. Furthermore, those semi-commercial bodies established by statute and dependent to some extent on public funds are, in some sense, part of the public service although they may operate in a purely commercial environment.
It would, however, be stretching things too far to maintain that all bodies in receipt of aid from public funds are part of the public service. Another problem arises in relation to such bodies as the Defence Forces, the Garda and the teachers whose members are undoubtedly public servants although it is hardly appropriate that they should be reviewed by the Public Service Advisory Council.
On the establishment of the Department of the Public Service, all the existing organisation and personnel functions for the public service at present discharged by the Department of Finance will be transferred to it by order. If and when it is decided to assign any further functions in relation to any other body in the public service to the new Department, this will, in almost all cases, require further legislation. Whether or not particular public service bodies are to be designated as being within the public service in the sense in which this expression is used in the context of the Public Service Advisory Council will be decided by the Minister, and confirmed by regulations made by him in each case.
Having dealt with the institutions proposed, I would like to give a brief outline of how I foresee the operation of the new Department. Its first task will be to equip itself for the renewal of the public service. As the central unit of service-wide systems of organisation and personnel, it must first of all ensure that the levels of skill it possess and which are possessed by the organisation and personnel units in all Departments are equal to the best available. Secondly, it must press on with the re-organisation of the public service on a fundamental basis on lines like those suggested in the report of the review group. Finally, it must guide and co-ordinate the general structural changes required to produce a public service combining unity of purpose and efficient and effective deployment of resources with diversity of initiative towards the attainment of national goals. In this it will, as I have indicated, have the assistance of the advisory council.
The council's functions are primarily advisory; in fact it might well be regarded as another of the channels of communication needed to secure a unified public service properly integrated into the machinery of government in the widest sense. On the one hand, it will advise the Minister and the Oireachtas on progress in the continuous process of updating public service structures and staffing; on the other hand, it has the equally important function of keeping the public service in touch with developments outside.
In the same way, the functions of organisation and personnel will be channels through which, in conjunction with the functions of planning and finance, the management of the public service is unified. If we can succeed in building an efficient management structure for the public service, we can then proceed to use this structure to enable the Government, and the Oireachtas, to take the appropriate major policy decisions while allowing the maximum discretion in execution. In all this, our aim must be to see that our people are served by a public service which is sensitive and responsive to their needs and aspirations and, at the same time, which is capable of initiative and the exercise of discretion. As we move over the threshold of the European Communities, it is more than ever necessary that we should have a public service at least as good as the best European model. The Report of the Public Services Organisation Review Group has charted the way for us; what is first required is the building of the necessary management structures and this legislation is an essential preliminary step.