Dáil Éireann Debate, Wednesday - 22 January 2014
5. Deputy Mary Lou McDonald asked the Minister for Public Expenditure and Reform if it is still his intention to further reduce public sector numbers by 10,000 whole-time equivalents by 2015; and the percentage of this reduction that will come from health services.. [2891/14]
Amharc ar fhreagraMy question refers to the Minister's stated intention to reduce public sector staff numbers by 10,000 whole-time equivalents by 2015. Could the Minister set out how he intends to progress this commitment regarding these public sector worker reductions. Could he tell us how many of these he envisages coming from the health sector and whether he intends to initiate another incentivised redundancy scheme in the lifetime of this Government? Could he provide details of any new hires that are envisaged, when they will be brought into the system and where they might be targeted?
Budget 2014 sets out a revised target for public service numbers of 287,000 by the end of this year. With serving numbers already below 289,000, this is a lower net reduction than in previous years, reflecting the fact we have already downsized a huge amount and the public service is now almost 10% smaller than it was in 2008. The appropriate path beyond 2014 will be considered as part of this year's comprehensive review of expenditure, which will examine public spending and resource issues in the context of the fiscal parameters, service demands and the reform and efficiency opportunities arising from the new public service reform plan, which I launched last week.
With regard to the health service, it is required to deliver a modest 1% reduction in head count during this year, which reflects a significant readjustment of the previously set target. In education, in acknowledgement of the growing needs in the classroom, serving numbers are actually profiled to increase by over 1,200 posts in 2014. As part of this, provision was made in the last budget for 960 additional resource teachers by the end of 2014. As I mentioned, public service numbers have been reduced by almost 10% in the last five years. The approach to public service numbers reduction has been informed by financial necessity, of course, and also by recognition of the significant opportunity to reform work practices and business processes to rationalise the number of State agencies and to introduce money-saving initiatives such as shared services. As a result, the public service today is more efficient and effective than before the crisis and for that, the contribution of those working across the system must be acknowledged. I acknowledge the work of all public servants who are valued.
The new reform objectives will also help drive change in the way the public service is organised and how it delivers its back office functions. To give just one example, PeoplePoint, the HR and pensions shared services centre, became operational last March and is now servicing over 15,000 employees across 13 organisations. When fully operational, PeoplePoint will provide services to 40 organisations with savings estimated at €12.5 million annually. This example, and there are others, shows how service levels cart be maintained, and in some cases improved, with reduced numbers. I have made reference to the idea of a reform dividend. I had a chance to begin discussion on that at the committee last week. I will be happy to expand in response to the Deputy's question.
Additional information not given on the floor of the House.
It is about understanding that reform and efficiency drives are about improving public services, not reducing them, and that the dividend comes from identifying and tackling waste and inefficiency and making savings - savings which can then be used to invest in areas that work best for the citizen. What is important over the medium term, therefore, is to continue to introduce new ways of doing business and to make the best use of new technology and of shared services so that we have a public service that is affordable, that is consistent with a sustainable fiscal position and that works for our citizens. This is the best way of protecting front-line services in health and education and right across the public service.
I note that the public service reform plan, which is the most recently published document from the Minister, cites an OECD study from 2010 which reflects the fact that prior to all of these cuts in the public sector, this State was beginning from a very low base in comparative terms in respect of the numbers of public sector employees. It is a point I made to the Minister very many times - a point that he rejected very many times - but I am very happy to see that this thought and analysis have found their way into his current thinking.
The Minister has reduced his target of the number for reduction within the service by year end, which is welcome. In respect of the health service in particular, could the Minister be a bit more specific in his answer? At the Oireachtas Sub-Committee on Public Expenditure and Reform, I raised the fact that there is a crisis in the service, which is reflected in the trolley count numbers and many other indicators. Could the Minister be more forthcoming on that?
When I spoke to the committee last week, I indicated that I was not fixated on numbers. Numbers were an instrument we had to employ to bring down costs. It is happening across every sector of the economy. People are not providing services in the same way. If one checks in with an airline, one does not normally do so in a queue with an array of people checking you in. One does so online or at a terminal at the airport. We are now providing more than 400 public services online and will greatly increase that number. The public service card is being rolled out this year. A total of 500,000 were offered last year and an additional 900,000 will be issued this year to make it much simpler and easier for citizens to access State services. That will reduce the necessity of having a huge number of people processing material that will be done electronically. That will allow us to do what I have described as having a reform dividend. We are not simply going to bank all the savings. We will re-invest a portion of them in better front-line services.
The Minister has drawn that analogy with checking in with an airline many times but the simple fact is that the majority of public services are not comparable to checking in with Aer Lingus or any other airline operator. No offence to the Minister but I do not think that is a good comparison to draw. The fact is that front-line services are under huge pressure and that although the Minister now says he has no fixation with numbers, he and his predecessors have had an absolute fixation with numbers. I take it that he has moved from this target of a reduction of 10,000 whole-time equivalent posts by the end of 2015 and envisages a cut of 2,000 posts this year. I do not know what figure he envisages for next year. How is that to be done? I initially asked him about an incentivised redundancy scheme. Is that in his thinking? When would it come about and would it be targeted?
Again, the Deputy has asked a number of questions. She disputes the contention that the majority of services are analogous to checking in with an airline. There are front-line services that are not analogous but there are many process services that are such as renewing a driving licence and all the other things one does automatically that can be done much more effectively and efficiently. We are doing that. That gives us the capacity to supplement the front-line services.
Having that capacity has allowed me to sanction the recruitment of gardaí again this year. We will increase the number of gardaí. The general number of workers in the public service will not diminish this year by the volume we initially outlined. We will utilise the reform dividend - the savings we are making by providing general services more efficiently - by churning it into better front-line services. There will be more teachers in schools. As I said, we will have an additional 1,200 resource teachers this year and there will be more gardaí on the streets. I have mentioned that we are beginning to recruit gardaí again after many years of not being able to do so. That is the approach I want to take. I do not want to take a crude approach.
