Oireachtas Joint and Select Committees

Wednesday, 28 November 2012

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Public Expenditure and Reform

Estimates for Public Services 2012
Vote 12 - Superannuation and Retired Allowances (Supplementary)

3:00 pm

Photo of Brian HayesBrian Hayes (Dublin South West, Fine Gael)
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It is a complex organisation in which almost 300,000 people work and there are some extraordinarily talented people with vast expertise. If some of that expertise was at work in the private sector, those involved would probably be on twice the salary they are on currently. Another point should be made to those who regularly harangue those in the public sector. Our public sector numbers vis-à-vis the total number of people at work in the economy is small by EU standards. Approximately 17% of the total workforce is made up of the public sector. It is a rather small component. Anyway, we must do things differently. That is the great challenge and buy-in is required.

Benchmarking was supposed to be about additional productivity for the additional pay given to people but I do not believe that ever happened. In a funny way, with benchmarking in reverse, there is an opportunity now for a new type of benchmarking. Several things have to be sorted out. First, we must benchmark ourselves as a country vis-à-vis other small countries in Europe. Second, we must benchmark ourselves with regard to the question raised by Deputies McDonald and Fleming on the long-term sustainability of pensions in the public sector. Third, we need to benchmark ourselves against future agreements. There must be space in which brilliant people in the public sector who have brilliant ideas and who carry out reform and make things happen are rewarded. However, we do not have the type of flexibility within the pay and remuneration system currently in place to do that. These are the challenges we face in trying to do benchmarking in reverse in a circumstance whereby the last exercise was a dreadful example of how not to go about it.