Brian Cowen (Laois-Offaly, Fianna Fail)

Deputy Kenny raised a number of matters. First, the Minister for Finance outlined in the Budget Statement his intention to move on public sector reform. As I said, there is a task force which will provide the implementation plan in coming weeks. This will implement and sequence the OECD report on reform of the public service and how to integrate public services in order that we can improve those services. The plan will improve opportunities for those who work in our public services to provide an integrated, co-ordinated and citizen-centred approach. It will seek to ensure that the very considerable resources provided by taxpayers are used to the best possible effect in terms of the administrative structures we devise and that there is ability to move beyond departmental and agency boundaries and to work in a co-ordinated fashion to get the best possible output for taxpayers.

Second, on the response I gave Deputy Kenny about the public service, the pay increase and how we will deal with that issue, the draft pay agreement provides for a pay pause of 11 months in the case of the public service, which is a very significant saving. The Government has decided that special provision will not be made for the cost of that increase in the Estimates for 2009. In other words, the cost must be found within the existing allocations for Departments and agencies which already reflected a 3% reduction in payroll costs for 2009 over 2008 outturn levels. The net effect is a reduction of 4%, which will require significant restructuring and productivity gains. The framework by which this will be achieved, including a comprehensive review of staffing levels and deployment of personnel, will be announced by the Minister for Finance and me in a major package of public service reform measures in coming weeks.

Regarding the budget, this contribution will ensure that social partnership continues to be a part of the operation of Government. Our commitment to social partnership is an effort on our part to ensure that we get a good outcome. Deputy Kenny described the budget as a discussion document. The budget will be implemented and the deficits in the macro-economic indicators that we set ourselves are those to which we will work during the coming year. The Fine Gael Party finance spokesman put forward an alternative budget which seeks a deficit of 5.5% without tax increases. That would require a further €4 billion in expenditure cuts in either the capital programme or in current expenditure. That is a non-discussion document.

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