Dáil Éireann Debate, Wednesday - 26 February 2014
104. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which reform, as a component in economic strategy, has achieved savings in line with projections; and if he will make a statement on the matter. [9953/14]
View answerAs set out in the Government's new Public Service Reform Plan 2014-2016, Public Service Reform has been, and will continue to be, an important part of the Government's overall recovery strategy.
From 2009 to 2013, there was a reduction in gross voted expenditure of 13.5%.
Staff numbers have been reduced by around 32,000 or 10% since 2008 and the paybill was reduced from €17.5 billion in 2009 to €14.1 billion in 2013, including the pension related deduction.
Public Service Reform has enabled us to maintain public services in the face of this necessary reduction in budgets and staff numbers, at a time of increased demands for public services.
In addition to the industrial stability that it brought, the benefits of the Croke Park Agreement were significant. The final report of the Implementation Body concluded that significant cost savings, amounting to €1.8 billion, were delivered over its lifetime. Building on this work, the Haddington Road Agreement will deliver a €1 billion saving in the cost of the public service pay and pensions bill by 2016.
In terms of cost reduction, approximately €300 million in savings, arising from the implementation of various measures under the Agreement, was incorporated into the various Votes in the context of the Revised Estimates for 2013.
The measures and reforms implemented under the Agreement helped to ensure that spending remained in line with profile and resulted in Ireland delivering on our fiscal target for 2013.
Alongside a greater focus on achieving better outcomes for service users, the Government's new Public Service Reform Plan maintains a strong focus on delivering greater efficiency and further cost savings. Some examples include:
- The new Office of Government Procurement is leading a radical new approach to public procurement with a target of delivering savings in the region of €500 million over the next 3 years;
- PeoplePoint, the Civil Service HR and Pensions Shared Services Centre became operational in March. There are now over 24,000 employees serviced by PeoplePoint across 19 organisations. Once PeoplePoint becomes fully operational, the savings are estimated at €12.5 million annually;
- A new single Payroll Shared Service Centre for the Civil Service (in 3 locations), which will consolidate and integrate payroll processes and practices from the 18 payroll centres currently providing payroll services to 53 Public Services Bodies, has commenced operation. It is estimated that this initiative will achieve savings of €5.6 million per annum when fully operational;
- Laois County Council is leading the rollout of a payroll and superannuation shared service for the Local Government sector. When fully operational, this will deliver savings of €4.3 million per annum;
- As already referenced, the Haddington Road Agreement will deliver a €1 billion saving in the cost of the public service pay and pensions bill by 2016.
These are just some examples of the ways in which reform will continue to drive efficiency and reduce costs in the Public Service. The Government's new Public Service Reform Plan and a Progress Report on Public Service Reform can be seen at reformplan.per.gov.ie
