Oireachtas Joint and Select Committees

Thursday, 11 October 2012

Public Accounts Committee

Public Service Reform Plan: Discussion

10:10 am

Photo of Brian HayesBrian Hayes (Dublin South West, Fine Gael)
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Yes. By the time our plans are fully implemented that number will be down to approximately 640. Bringing all of the HR personnel together will yield savings of 26%; therefore, we will have reduced by one quarter the total amount of money we are spending on HR services in the public sector. It will allow us to move HR personnel to do other things because of the arrangements in place under the Croke Park agreement. That is a tangible example of what "shared services" means. We also have plans to bring forward the same principle of shared services on the pensions, pay and banking sides. We are very confident we can achieve this.

We are still spending a great deal of money on public procurement. The figure is about €9 billion for goods and services and €5 billion for construction. We must achieve much greater savings. I will be clear and blunt to the committee. We have too many involved in public procurement. This is a small country. The efficiencies should be much easier to obtain here because of our size. If we can organise the system properly, we will do so.

The first decision we have taken is to ensure we mandate the public sector to use the framework agreements that have been put in place. The Cabinet signed off on it last July. The Minister for Public Expenditure and Reform, Deputy Howlin, announced a competition for chief procurement officer. It is proposed that the chief procurement officer will bring forward an implementation plan by March 2013 to generate savings ranging from €250 million to €600 million during the next three years. These savings can be achieved by aggregating contracts, having greater framework contracts and by demanding the public sector uses the framework agreements we have negotiated. That will require much more centralised procurement, which brings its own issues but none the less we believe significant savings can be put in place.

We have 2,200 buildings across the public sector. About 60% are owned but 40% are leased. Some years ago we were spending €130 million on leasing buildings. There is no reason that in two years that figure should not be less than €100 million on an annualised basis. We are negotiating in a much more aggressive way because of the circumstances we face and because of shared services. We will be demanding that the public service will work in a collaborative way and use space better. We will put in place a new policy on the use of office space, with greater use of open plan offices in the public sector. We hope to launch Ireland Stat if not next week, then the following week. This website is aimed at explaining to people how we are doing internationally and will be very clear. It will show our outputs and expenditure levels across a whole range of matrices. I think this portal will explain how much money is being spent and what we are getting for it.

I appeal for fairness in the commentary on our situation. Much has changed. We must ensure the implementation process actually works and the change process is delivered. Many positive things have occurred. In the debate we do not get the full buy-in and support for what has occurred. While the change has occurred, much more needs to happen. We need to parcel the debate in the context of the dramatic changes that have taken place in the public sector in the past number of years.