Ms Caroline O'Loughlin:

I thank the Chairman for the invitation to appear before the committee and the opportunity to discuss the public service performance report 2017 and answer any questions the committee may have on performance reporting and its role within the overall expenditure framework. When it comes to the detail on any issues regarding specific performance indicators, the relevant line Departments are best placed to address such matters.

Following the Government's submission to the select committee on arrangements for budgetary scrutiny in June 2016, the first public service performance report was published in April last year. The second publication, the public service performance report 2017, was published last Friday, 27 April. The performance report is a key element of a suite of expenditure reform measures implemented in Ireland. The objective of this report is to create a space in the budget process for performance dialogue, focusing on results delivered from public expenditure in terms of outputs and impacts. An ongoing focus on efficient and effective delivery of public services is an essential part of an expenditure framework targeted at ensuring sustainable public finances.

Performance budgeting was introduced initially on a pilot basis for the 2011 Estimates, before being rolled out across all Departments. At that time, with the revised Estimates volume, REV, being published in spring each year, it was possible to report on outturn information for the previous year alongside the REV targets for the current year. However, following changes to the budgetary timetable at European level, the outturn information cannot be provided in the REV due to the timing of REV publication in December each year. The performance report addresses this shortfall in regard to outturn information by providing timely quantitative information on what was delivered with public funds in the previous year. This creates an opportunity for meaningful dialogue on Government performance.

The report clearly presents relevant performance indicators in a dedicated, focused document. The report is arranged by Vote group and provides an overview of the funding allocated to each Vote group as well as staff numbers, trends across categories of expenditure and a breakdown of the composition of spend and spend by programme. Output information is then presented in a dashboard format at programme level. Each Vote group then reports on a number of key performance metrics for each programme area across a range of activities. Key metrics are identified by line Departments themselves.

This year the report also includes an update on the equality reporting pilot that is under way. The ongoing work regarding equality reporting in Ireland follows the programme for a partnership Government commitment to develop the process of budget and policy proofing as a means of advancing equality, reducing poverty and strengthening economic and social rights. Some six relevant diverse policy areas from six Departments were selected, with the equality dimension of gender the focus at the current time. Those Departments were asked to identify goals and associated targets and reported on these in the revised Estimates volume 2018, published last December. The public service performance report 2017 contains an update on progress on achieving the targets set for each of the pilot areas.

As this is only the second year a public service performance report has been produced, it is expected that the presentation of information and approach taken will be developed and refined over time. The intention is that, over time, the information provided in the report will build up a picture of performance trends within a given sector through consistent reporting of key metrics. Outturn information can then be mapped against targets to give a picture of what is being delivered through public resources and help to track progress towards strategic outcomes. The Department of Public Expenditure and Reform welcomes feedback from the Oireachtas on how to develop the report so that it best supports the scrutiny needs of committees. I thank the committee.