Dáil Éireann díospóireacht -
Tuesday, 16 Dec 1986

Vol. 370 No. 13

Written Answers. - Committee on Public Expenditure Recommendations.

134.

Mr. O'Kennedy

asked the Minister for the Public Service if his Department have adopted any of the recommendations of the published reports of the Dáil Committee on Public Expenditure in relation to his Department and, if so, if he will specify the extent of the adoption of each report.

135.

Mr. Keating

asked the Minister for the Public Service if he will list the names of all reports of the Dáil Committee on Public Expenditure relating to his Department; and if he will outline specifically, clearly and comprehensively the action taken to date with regard to each individual recommendation of such reports.

Minister for the Public Service (Mr. Quinn)

I propose to take Questions Nos. 134 and 135 together.

The Dáil Committee on Public Expenditure have published one report relating specifically to the Department of the Public Service. The report contains 34 recommendations and I attach a summary of the action taken on each.

Summary of action taken on the Recommendations in the Report of the Committee on Public Expenditure on the DPS

Para	Recommendation	Present Position
11	The DPS should devote considerable efforts to the achievement of significant tangible productivity improvements in the non-industrial Civil Service.	Expenditure on Exchequer pay and pensions accounted for over 42% of gross supply service expenditure in 1981 but by 1985 accounted for less than 37%. In real terms the exchequer pay bill declined at an annual average rate of almost 1% between 1981 and 1985. Numbers in the civil service (over which the Government's control is directly exercised by the Department of the Public Service (DPS) have been reduced by almost 10% since 1981. Within that overall reduction there has been a very considerable redeployment of posts to areas of need such as Social Welfare and Prisons. At the same time, the quantity and quality of services have been maintained, or in some cases extended or improved through redeployment and improved procedures. There has therefore been a considerable improvement in productivity in the non-industrial civil service. The DPS is continuing with a programme of projects in Departments designed to improve productivity either by reducing inputs (staff and others) or having higher outputs produced by existing or lower levels of resources.
14	Productivity improvement projects should only be approved where the cost-benefit analysis prepared during the feasibility study indicates a return on investment significantly greater than the cost of borrowed funds. The Secretary of the Department requesting the work should undertake to reflect the anticipated benefits in future budgets for his Department.	In undertaking projects an assessment is made of the nature of the problems to be tackled, the possible benefits to be achieved and the amount of resources required for what period. The arrangements announced in paragraph 8.11 of the White Paper on the Public Service (Serving the Country Better) for organising and managing management services projects will ensure that the management of the Department in which a project is undertaken will be aware of the implications and required to react rapidly to recommendations for improving efficiency through reducing, or avoiding increases in, staff numbers.
		On the computer-related expenditure side the DPS is quite often concerned with (a) computerising systems which are such that they could not effectively be handled manually (e.g. social welfare schemes) and where such computerisation involves significant savings of the staff which would have been needed otherwise or (b) computerising the handling and processing of information where the benefits cannot be quantified in purely financial terms. Essentially, computer-related expenditure is not sanctioned unless the DPS are satisfied that the cost is justified taking all factors of which the strictly financial benefit is only one, into account. The requirements to be satisfied in this regard are set out in detail in a circular on computer-related expenditure recently issued to Departments. As regards having Secretaries reflect the expected benefits in future budgets, this is a question that is pursued with Departments at estimates time.
32	The DPS should establish a rolling five-year programme during which the staffing levels, organisation and clerical procedures of each Department would be reviewed.	While the Department has not drawn up a formal five year rolling programme of reviews, it is currently involved in reviews covering about half the civil service (Revenue, Social Welfare, Agriculture, Industry and Commerce). Proposals have been agreed for reviews in Department of Education and in the Prison Service. In addition the DPS undertakes a general review of staffing levels each year in the context of the determination of the estimates for the civil service. In accordance with the provisions of the White Paper (paragraph 8.9) the staffing level targets to be reached by each Department/Office a year hence are determined. This exercise involves an assessment of the relative staffing needs of Departments in a general way.
36 and 37	The organisation of advisory projects should be changed in accordance with detailed recommendations contained in Paragraph 36 of the report.	The procedures in paragraph 8.11 of the White Paper should meet the recommendations made by the Committee on the organisation of advisory projects.
	The resources allocated to the advisory service areas should be determined by the demands which the DPS receives for assistance, using adequate cost justification and an expectation of sucessful implementation as acceptance criteria.
39	The Minister for the Public Service should give priority to projects which have high expected benefits. He should seek to develop a portfolio of projects which would achieve, in aggregate, the overall productivity improvements target established by him.	The DPS does seek projects with high expected benefits and give priority to such projects. The Government have decided that the DPS should review staff intensive areas which might be expected to yield benefits and this is being done (see response to the recommendation in paragraph 32). The DPS proposes projects to be carried out from time to time, in particular Departments or initiates service-wide studies such as those on stores management and on arrangements for Government printing.
40	The DPS should systematically monitor benefits achieved by all projects to determine whether Civil Service productivity is improving at least as fast as the targets set by the Minister for the Public Service.	The DPS regularly follows-up on implementation of its recommendations and with the measures for improved follow-up set out in paragraph 8.11 of the White Paper, a better level of implementation in the future is envisaged. The main relevant targets set by the Minister for the Public Service are the staffing levels and the DPS recommendations are used to help Departments stay within those levels.
44	The proportion of current Civil Service Training Centre (CSTC) resources devoted to programme management, performance improvement, management accounting, information technology and management reporting systems should be increased significantly.	In the CSTC programme of training for 1986, a new suite of development courses was introduced including courses on “Managing for Results” and “Management and Information Resources”, which cover the topic areas mentioned in this recomendation. In addition, seminars are being provided within Departments in connection with the introduction of the new management system envisaged in the White Paper. Learning groups are being introduced within Departments to develop management in specific topic areas such as Information Technology. Six such groups are already in operation and more are planned for the coming year. The CSTC has also developed a packaged Information Technology course for management grades below AP level which will be delivered by Departmental Training Officers with assistance from CSTC.
45	The level of investment in training for senior personnel throughout the Civil Service should be increased substantially beyond the current level of one day per person per year.	The requirement in the White Paper that staff development programmes be introduced by all Departments should ensure that all staff, including senior levels, follow a planned development programme including appropriate training (see also response to the recommendation in paragraph 83). The possibility of expanded training in formats other than the traditional ones. (e.g. computer-based training) is being examined but no suitable courses are yet available.
46	The capability of the advisory units of the DPS should be improved by increasing the range of skills available and increasing the average level and breadth of experience of individuals.	This is being pursued through the staff development programme for the staff of the DPS
47	There should be a review of the overall organisation of the Management Services Unit. the Operations Research Unit, the personnel assigned to the Structural Reform programme and the advisory services of the Central Data Processing Services (CDPS) to assess whether a merging of all the advisory services into one unit with less formal internal reporting lines might improve their overall effectiveness.	This merger has largely taken place. The Operations Research Unit and the personnel assigned to the Structural Reform programme have been merged with the Management Services Unit. The advisory service of CDPS has been assigned to a new Information Management Advisory Service (IMAS) in the DPS with a much wider remit. set up as part of the implementation of the report of the Review Body on Computerisation which has been accepted by the Government. In this context also, the remainder of CDPS (excluding the control function which has been transferred to numbers control section) has been replaced by a new Central Computing Service (CCS) which provides a bureau and systems analysis and design service for departments without their own capabilities in these functions, and certain service wide systems (e.g. payroll, communications networks). All the advisory services referred to report to the same Deputy Secretary.
52	Requests made for additional computer systems should not be sanctioned unless a Departmental strategy for using information systems is being prepared. After 31 December 1985, sanction should be refused where such a strategy does not exist.	A circular was issued to Departments in July 1986 on computer-related expenditure, seeking outline short-term plans (to be followed in due course by formal plans drawn up under IMAS guidelines). These plans will have a direct bearing on the provision to be made for computer-related projects in the 1987 Estimates. Similar information was obtained separately in respect of 1986. These measures are aimed at achieving maximum control and co-ordination of computer-related expenditure.
58	Formal procedures should be established for planning for deployment of advisory personnel and monitoring their utilisation.	This has been done. See also the response to the recommendations in paragraphs 37 and 101-104.
61	A detailed external review of the operations section of the CDPS should take place.	Having regard to the structural changes referred to in response to the recommendation in paragraph 47 and the fact that the CCS are at present upgrading hardward and software which will improve operations, the question of an external review was deferred and will be considered when the upgrading is completed.
62	In-depth control and efficiency reviews should be carried out on applications being run on the CDPS computer for other public service organisations where no recent review has taken place.	Post implementation reviews are primarily a matter for the user who commissions a system. However, in the context of the circular referred to in response to the recommendation in paragraph 52, the DPS will reserve the right to initiate and carry out such review where necessary.
64	Resources should be allocated to maintenance and enhancement projects only if line managers submit a document stating the reason for changes and it is established that the benefits expected are sufficient to justify the resources required.	Systems maintenance is a necessary part of the service provided by CCS. Almost all the resources which are currently being used on maintenance are in respect of statutorily introduced or other non-discretionary requirements. The general need for adequate justification from users is fully accepted and appropriate procedures are applied.
65	The CDPS should undertake more extensive costing of development and maintenance projects.	The costing of and charging for the services of CCS will be included in the review of costing arrangements under paragraph 2.17 of the White Paper (see also response to the recommendation in paragraph 67). In addition, work in developing internal cost-control procedures is currently being undertaken in CCS.
66	Modern systems analysis methods should be introduced within the CDPS as soon as possible.	A structured methodology for systems development has recently been selected. CCS are currently in the process of selecting an appropriate project for a pilot implementation.
67	The DPS should establish the real cost of all programmes for which it is responsible, including such elements as premises and pension costs.	A standard approach to establishing the real cost of programmes is being developed by the DPS in consultation with the Department of Finance in accordance with paragraph 2.17 of the White Paper.
68	Charges should be made in all cases for ongoing services provided by the DPS. The true costs of services provided to a Department should be paid for by that Department, even if this means that the budget of Departments be adjusted upwards in order to cope with a corresponding decrease in the DPS budget. The Committee further recommends that Government Departments should seek competitive quotations for such services from external organisations, and that the Department's decision as to whether to use DPS or these external organisations should take account of a number of factors, including the relative costs.	This recommendation is being considered in the context of the costing systems being developed in response to the recommendation in paragraph 67. The CCS already charge outside bodies for services.
75	Each year the DPS should obtain from all Departments:	The following overall approach to civil service manpower is at present in place:
	—forward estimates of manpower requirements based on their plans for programme delivery and improvement of performance;—forecasts of the future profile and availability of existing personnel;—action plans to meet personnel requirements;—evidence that manpower planning is being co-ordinated with other management functions such as service development, training, organisation development and budgeting; —evidence that implementation of action plans is the responsibility of designated individuals and is being monitored.	—a decision is taken on the overall size of the civil service to be achieved a year hence;—within that overall framework end of year targets are set for each individual Department/Office after consultation with and having considered the specific needs of each Department/Office;—in setting targets regard is had to the outcome of staff inspections and wider reviews of the structures and systems of Departments/Offices;—responsibility for reaching its targets and for the overall management of staff resources within these targets is a matter for individual personnel units;
		—regular meetings are held between personnel units and the Civil Service Commission at which future recruitment needs are discussed;
		—each Department/Office is now required in accordance with the terms of the White Paper to produce a development plan for its staff, such plans to be monitored by the DPS (see also the response to paragraph 83);
		—any special skill needs which emerge are researched and steps are taken to meet them e.g. accountancy, in respect of which special arrangements are being made to recruit qualified staff and to encourage serving staff to undergo training and take out accountancy qualifications.
		The foregoing approach balances reducing Civil Service numbers, providing a further impetus for Departments/Offices to concentrate on the deployment of available resources to best advantage, the requirements of control, monitoring and planning and the independent role of departmental personnel units.
77	An exercise should be undertaken to determine the effect which the presently unfunded pension liability will have on public expenditure and to identify appropriate action.	This has been done. As regards the accruing unfunded superannuation liability the review indicates that the changes expected over the next 30 years are not of a magnitude which would warrant special Exchequer measures but the actual trend will be carefully monitored.
78	The Minister for the Public Service should establish a programme to reduce substantially the number of grades in existence in the Public Service.	The need to reduce the number of grades in the civil service has been acknowledged in paragraph 4.11 of the White Paper. Grade structures are under review at present with a view to identifying possibilities of reducing the number of grades without increasing costs. Some reductions have already taken place and further proposals are subject to discussion with staff interests in accordance with C&A arrangements.
79	The DPS should incorporate into the manpower planning and control systems procedures to identify surplus staff so as to facilitate their early redeployment.	The detailed knowledge of Departments/Offices acquired by staff of the central control function of the DPS enables them to identify likely areas of staff surpluses as changes in the nature and range of services provided emerge. Surpluses are also identified through staff inspection and more fundamental reviews of Departments/Offices undertaken either by the control staff or the Management Services Unit. The annual determination, within an overall limit, of the staffing level targets for each Department/Office and the requirement on each to operate within the resources resulting for them, provide a further impetus for the identification and utilisation of surpluses. In recent years, there has been considerable redeployment of surplus staff to areas of greatest need.
80	The DPS should ensure that, where officials are sent on loan/secondment to another Department/Agency, no additional permanent post should be created unless the Minister for the Public Service is convinced that there are compelling reasons for doing so and that it conforms fully with the current Government guidelines on recruitment.	This recommendation reflects present standard practice. Permanent replacement posts are not created.
82	The programme for job exchanges should be reviewed at an early date so that the twin objectives of increasing training opportunities and cross-fertilisation of experience with the private sector can play an increasingly important part in the Public Service.	The programme was reviewed in the context of the White Paper — see paragraph 4.19.
83	Manpower development plans should be prepared by Departments and incorporated into the action plans to meet the future personnel requirements of each Department. The plans should be derived from a training programme developed for each individual as part of his or her annual appraisal. They should also reflect the future needs of the Civil Service.	In accordance with paragraph 4.15 of the White Paper, each Department is required during 1986 to prepare a staff development plan for its staff. The CSTC will issue guidelines to assist Departments on the preparation of these plans. Central to the staff development measures to be adopted is the planned programme of training designed by the CSTC for 1986. This programme sets out the training measures which are available to individual managers beginning with basic management training and encompassing management development courses. The appraisal reports will be a key ingredient in the identification of developments needs. The staff development plans will form part of overall manpower policy within individual Departments (see also response to the recommendation in paragraph 75).
86 and 88	A study should be undertaken to determine whether cost savings or improvements in effectiveness would result from a reallocation of responsibilities for various aspects of public service manpower planning and control, now exercised by several entities including the DPS.	Experience has highlighted gaps in effectiveness due to lack of coordinated responsibility for policy development in these areas. This is being remedied by the assignment to the DPS of statutory authority for coordinating manpower, organisation, pay and personnel across the entire public service. The intention to provide that statutory authority is referred to in paragraph 8.4 and 9.6 of the White Paper. The drafting of the required legislation is now at an advanced stage.
	A study should be undertaken to establish whether cost savings or improvements in effectiveness might result from a reallocation of some of the functions at present performed by the DPS and a number of related Departments. The implementation of this recommendation would be a matter for Government.	In parallel with this development, a study is being made of the possibilities for delegation of controls and other functions from the department to line departments. Even in advance of that study—control of staff numbers is being made more flexible to meet the requirements of Departments (see response to the recommendation in paragraph 75)
		—responsibility for various aspects of information technology has been devolved from the DPS to line Departments as set out in paragraph 5.6 of the White Paper.
90	More extensive mechanisms should be established for providing elected representatives with regular ongoing reports on the economy, efficiency and effectiveness with which public sector organisations implement programmes and discharge their responsibilities.	See Chapter 3 of the White Paper, action on which is proceeding.
97,99 and 100	Internal management reports within the DPS should be augumented to include information necessary to measure output, assess performance and ensure that good use is being made of resources. Costing systems should be established within the DPS which—report key cost and performance data monthyl;—analyse the DPS expenditure by programme:—clearly measure output and assess performance.	During 1985 the cost, including an estimated apportionment of overhead costs based on a standard civil service costing method, for all of the Department's programmes was established. Some provisions in the DPS Vote for certain administrative support services were not allocated to specific programmes. Budgets have also been assigned to individual managers. The normal monthly expenditure reports are being augumented by the issue of monthly reports on expenditure from the DPS Vote by programme and by individual manager. The preparation of the 1986 Estimates for the DPS was based on demands from sections on a programme basis.
	The total cost of programmes and the total value of outputs should be reconciled to the overall Vote for the DPS. Costs not currently reported should be included within the reported cost of programmes.	As indicated in response to the recommendation in paragraph 67, a standard approach to establishing the real cost of progammes is at present being developed in consultation with the Department of Finance. In addition, arrangements are being made in the DPS to develop the type of information proposed in paragraphs 97 to 99.
101-104	The DPS should undertake, within six months, a study of all its activities which:—assesses the contribution made by each to the achievement of the aims and objectives defined in the Management Manual;—determines the cost of each activity;	The contribution of each of the Department's programmes to the achievement of its aims and objectives has been assessed in the context of the review procedure set up by Management Committee and some reallocation of resources was effected (mainly in the staffing and staff related areas). The assessment of personal performance within programmes is carried out on a regular basis by the Assistant Secretary in charge of each programme and his supervising officers and in the context of the scheme of staff appraisal.
	The resources devoted to specific activities should be modified in the light of the findings of this study.	As regards the identification of the cost of each activity, see the response to the recommendations in paragraphs 97, 99 and 100.