I move:
That Dáil Éireann takes note of the Report of the Committee on Public Expenditure: Review of Department of the Public Service.
As this is the second time today that we have had an opportunity to explore the issues relative to the Department of the Public Service I do not intend to cover ground that we have already covered. I offer the House this report as the fruit of many months work by the committee of which I have the honour to be chairman. It contains 34 specific recommendations which I trust the Minister or his representative will consider and take note of and, I hope, implement in due course. Our approach to the work dealt with the need to ensure that the public service and the Civil Service would work in pursuit of clear objectives and targets, departmentally, sectorally and for each individual within that service. Secondly, we hoped for appropriate management systems to be put in place so as to be able to assess whether or not the public were getting value for money.
The difference between this morning's debate and this mini-debate is precisely that our concern this evening relates to questions relating to value for money. At present there are some 30,000 nonindustrial civil servants with a total pay bill of £330 million. In addition, the DPS have functions in relation to the entire public sector numbering 300,000 people with a total pay bill of something of the order of £2,464 million, a gigantic sum. The questions my committee addressed were whether or not those figures were justified, whether or not the State got value for money and whether or not the Department of the Public Service, as the motivator and the central dynamic in pursuit of better value for money, were doing the best job possible. In our lengthy and often turgid but at all times interesting discussions with officials from the Department of the Public Service, many of us felt that it was very difficult for any of our guests at those hearings to state absolutely that the State was getting the best value for money, quite often because systems were not in place in order to be able to give such answers.
It is obvious that in the last two to three years, perhaps because of the appointment of a Minister with exclusive responsibility for the public service, there is a new emphasis and focus on getting the public service into a situation where they act as the dynamic which they can and must become. I understand that the Minister will not be here this evening but I gather he will be represented by one of his Cabinet colleagues. Our recommendations are designed to assist in achieving that dynamic and we specifically homed in on a number of areas to which I will refer. As far as we were concerned the essential thing was to embark on an examination of a Department where it is very difficult to evaluate precisely how much progress is being made or what effect they are having on other Departments. When the Department of the Public Service was created 13 years ago out of a limb of the Department of Finance they were designed to become a dynamic in bringing on stream the full potential of the public service. Many feel that that has not happened. Obviously the Government felt the same when they appointed a Minister with exclusive responsibility in that area. Since then significant progress has been made.
Our report points to precise and specific areas where further progress can be achieved. We should remember that we in this House represent the public who are not at all convinced that the public service are what their name suggests, a service for the public. It can often happen that instead of being a public service the public are often shunned and avoided by some of the Government Departments with which they have to deal. We spend in the order of £2,500 million annually on the pay bill of the public service for 300,000 people employed there. When one looks at any assessment of any individual agency or State organisation it is evident that we could get a percentage improvement. My colleagues on the committee agree.
Any of the inquiries or investigations carried out by us over the last couple of years would indicate that there is substantial room for improvement not just in systems that should be in place for getting value for money but in the area of setting down clear targets and pursuing those targets and getting rid of superfluous programmes and superfluous personnel. I am saying "getting rid of" where appropriate, rather than deployment. As the Department of the Public Service are the Government agency charged with responsibility, to a greater or lesser extent, for those areas the committee are convinced that the performance and effectiveness of the Department is the key to success or otherwise of the management and performance in other areas of the public service. When members of the public are reflecting on this report I would ask them to consider, in conjunction with it, the detailed minutes of evidence which have been published and which gave a verbatim account of our discussions with the Department of the Public Service which were subsequent to a very comprehensive set of questions which were forwarded to the DPS and answered by them, and which were dealt with in detail over those meetings.
These meetings were followed up by consultants acting on our behalf who explored every possible aspect of those replies. The committee's recommendations all of which are set out in the report are important but I will just refer to a number of them. Essentially, some of the key recommendations include the following: my committee are convinced that significant productivity improvements can be achieved in the public service. That is demonstrably evident from the work we have done. My committee feel that the Minister for the Public Service should give priority to projects which have high prospective benefits, and studies and assessments should be carried out of any programme or project with which the DPS are involved to ensure that those which have high prospective benefits and clear tangible results in terms of effectiveness and efficiency should get priority.
The level of investment in training for senior personnel throughout the Civil Service should be increased substantially and we accept that that means more money, but we see that as a short term investment for a medium to long term yield. Any investment in training will pay major dividends and if we are engaged in the business of trying to bring to full potential a whole public sector with the kind of logistical implications I have referred to, an increased investment in training will pay dividends.
The capability of the advisory units of the Department of the Public Service should be improved. There should be a review of the overall organisation of the DPS management services unit, the operations research unit, the personnel assigned to the structural reform programme and the advisory services of the Central Data Processing Service. In a report the Public Service Advisory Council, a body set up to assist and advise the Minister in that respect, refer to the need to have a careful assessment of such reorganisations and realignments within the DPS, and they point out that sometimes reorganisation and realignment of those systems can simply present an impression of activity without any improvement in efficiency or effectiveness. Their exact words in their 1984 report are that the rearrangement of functions has the cosmetic effect of giving the impression that something is being done but does not necessarily result in more efficient and effective administration. Therefore, a serious review of overall organisation is what my committee are talking about.
We suggested a detailed external review of the operations section of the DPS. Further, the DPS should be obliged urgently to establish the real cost of all programmes for which they are responsible including such elements as premises and pension costs. It is lamentable and remarkable and not all that forgivable that it is not possible for the DPS on their own admission at this time — the Department who are concerned and charged with responsibility for ensuring value for money in other areas of the public service — to establish to their satisfaction or the satisfaction of my committee, and presumably to the satisfaction of this House and the people who are paying the bill for all of it, the real cost of programmes which they have in place at present, including the cost of premises, pensions and all other related costs. I will not dwell on it except to say that that is a fair indicator of the state of events.
We suggest that charges should be made in all cases for services provided by the DPS and that Government Departments should pay out of their own budgets for all that they utilise or consume in the course of their work, even if this means that the budget of Departments be adjusted upwards in order to cope with a corresponding decrease in the DPS budget or the budget of the OPW or whatever appropriate Department may be involved. We recommend further that Government Departments should seek competitive quotations for such services from external organisations. In short, the old days of a Department ringing up a central sister Department and saying, "We should like 20,000 more square feet of office space furnished in this way and designed this way, the following telephone installation and the following staff resources", and they getting that in due course are over. That is a nonsense because no cost consciousness element is built into it. A Department should be given a budget and allowed to spend it, within reasonable safeguards, in whatever way they wish; and if they wish to acquire or consume further items of expenditure let them do so but pay for it themselves.
There is nothing more salutary and chastening for people engaged in expenditure then being obliged to spend their own money, although even in this case that is to some extent a misnomer. How can we expect Government Departments to be cost-conscious, to be effective in this area, to be concerned about public expenditure, when not one of them could understand the price of any of the consumables which they devour daily in the course of their work? That change alone, in my view and that of my committee, of all the recommendations, would if implemented, effect a very substantial saving of public money without any deterioration or drawback in the quality of public service. We are convinced that if the Minister listens to that suggestion, puts it in place and says, "from tomorrow or next year onwards you have your budget, you can spend it as you wish and if you want further items of expenditure, so be it, but out of your budget it comes" that would be enormously helpful and advantageous.
We draw attention in some detail to the effect which the currently unfunded pension liability will have on public expenditure. It should be quantified and appropriate action should be identified, and we suggest that the Minister undertake an immediate study of the full liability in which the State is engaging and contracting for day after day every time it employs a public servant. We are suggesting, obliquely enough in view of the circumstances which are known to many of us, that there is massive under-funding and that unless in due course proper arrangements are put in place for ensuring that there are adequate funds to meet public service pensions, then in a short number of years there will be a major problem relating to the possible inability of the State to pay for pensions which it has obliged itself to pay. There are various estimates about the amount of funds necessary to be put aside for that purpose, but the present fund is inadequate. I am aware of semi-State organisations who are walking the tightrope in this respect and who have not made adequate provision and if tomorrow they were to be faced with collapse or being liquidated or wound up they would face major problems. There would simply not be enough money to pay for legal obligations which the State had entered into. To put it charitably, we have had a whiff of that already in the Irish Shipping case. We draw serious attention to that problem. We do not want it ignored that we will come back to it in due course if it is ignored.
The Minister for the Public Service should reduce dramatically, substantially and immediately the number of grades in the public service which we gather to be of the order of 1,000 — an incredible, multi-tiered, multi-faceted complex of bureaucracy within which bureaucratic, stangulated maze I do not know how people can work or operate or expect to be rewarded for effort. It would not happen in any other country. There are companies which have a bigger GNP than this whole country has and they would not tolerate that state of affairs.