Vol. 453 No. 4
8 Mr. McCreevy asked the Minister for Finance if he will put a cap on spending, in view of the fact that increases in expenditure have not led to a parallel increase in the quality of public services; and if he will make a statement on the matter. [9413/95]
The Government's programme, A Government of Renewal, provides that “over the period of this programme it is intended that the growth of current supply services spending will be constrained to a maximum of 6 per cent, in nominal terms in 1995, and to an average annual rate of 2 per cent in real terms over the following two years of the programme.”
Therefore, in answer to the Deputy's question, this Government has already placed a cap on public spending on the basis outlined in its programme. The Government is committed to a policy of maintaining firm control over the public finances and adherence to the strict limits on the growth of public expenditure which it has set for itself is the cornerstone of that policy.
Capping spending will not, in itself, lead to an improvement in the quality of public services. That requires the better use of resources. Recognising this, the Government's programme also states that the Government is committed to reform of public expenditure that would lead to greater efficiencies, better quality of services, value for money, and improved morale in the public service. To give effect to this commitment, a programme of public service reform has been initiated and is being implemented across the public service.
In tandem with this programme of reform, a strategic management initiative is being implemented in all Government Departments with the aim of improving the contribution which the public service can make to national development, especially through improved competitiveness, to provide a high standard of service to the public and to make the best use of resources. Therefore, I can assure the Deputy that the issue of the quality of public services is being fully addressed through the public service reform programme and the strategic management initiative.
I sympathise with the Minister, Deputy Coveney, on the trauma he suffered in the past few days and congratulate him on his appointment as Minister of State at the Department of Finance. I can think of no better person to be involved in the area of public spending to which this question refers. Although, as Minister for Defence and the Marine, he made a speech about this, I hope he will be in a position to curb the excesses of more senior Ministers in the Government. Is he aware of the comments of the Governor of the Central Bank on the recent publication of the Central Bank report about the dangers of increasing the levels of public spending and his statement that we can only hope to achieve economic growth if we have control of public spending?
As I was otherwise engaged during the past few days. I did not see that, but if that is what the Governor of the Central Bank said, I agree with it. It is crucial to the future of the country and of the Government that public spending be kept under strict control and I am enthusiastic about helping to do that.
