Brian Cowen (Laois-Offaly, Fianna Fail)

Regarding the question of how to reorganise government and how agencies or offices can be rationalised for the future, it is a matter and process which was set out in the budget in October by the Minister for Finance, Deputy Lenihan and one which is an ongoing priority for individual Ministers according to the list outlined.

On the question of procurement, a national operations unit has been set up in the Office of Public Works for the purpose of trying to bring better value for money to the procurement aspects of Government and the public service generally and, generally speaking, there has been a lot of improvement in that area. There are constant questions about getting the best value for money, bulk buying and ensuring small and medium sized traders are not excluded from the process.

Changes have been brought about by OPW in some of the tendering arrangements to ensure small and medium sized enterprises are not discriminated against. They have the ability to apply for some, rather than all, parts of all contracts and various flexibilities have been introduced to assist SMEs in that respect. As part of that balance, the provision of such services locally to public bodies is also an issue.

The overall value for money requirement of getting the best possible price for taxpayers in respect of the purchase of goods and services by Government is a high priority and one which is being pursued through the operation of this unit and the various changes it is bringing about.

The question of staff being re-employed as a result of the embargo is a matter for the Minister for Finance, Deputy Lenihan, who has indicated there are issues he can and cannot consider. The background to this is we have a public service pay bill of some €18.5 billion on a spend this year of more than €54 billion on the current side alone. There is also the question of our tax base being some 33% less than it was two financial years ago. There are a number of ways to deal with this, in terms of the public pay and pensions bill. One is through the pensions levy and another is through controlling numbers. We can also get greater flexibility in terms of how we can deploy the very considerable resources available to the State. The question of transforming public services is about giving people of talent and ability the opportunity to serve in various parts of the service and blurring the distinctions that have built up over time, in IR and other organisational terms, in various aspects of the public service and Civil Service.

The first step in the interactability or interoperability of senior and other staff is to start with the senior Civil Service structure which enables people to move around. We are currently in the process of establishing that senior service structure. The question of a single contract, starting with the Civil Service and getting re-deployment and flexibility within the senior Civil Service core is the first step in a wider public service challenge we intend to pursue, as outlined in the task force report.

Regarding Deputy Ó Caoláin's question, the purpose of pursuing a reform programme is to get a sustainable level of public services, to help with morale in the public service in terms of giving people the opportunity to use their own initiative to make decisions at the lowest appropriate level, to avoid the strong hierarchical culture that has dominated public service provision, to get flexibility and re-deployability of people across the service and to move people according to the needs identified, depending on demands placed upon services generally. This is the purpose and reason behind reform. Public service reform has too often been characterised as negative and as an attack on the service. I am convinced public service reform provides a great opportunity for the public service to show, as many in the service wish to demonstrate, a capacity to meet needs to the highest possible standard. The public service organisations with which I have dealt, and those who represent them, have shown a great commitment in this regard. We need to find the political will and industrial relations know-how to put in place these changes as a matter of urgency in order that the public service can show that, as in other sectors of the economy, whatever changes are necessary to help improve the service are made. Given the limited resources available, change is imperative and we should all seek to encourage it at every turn.

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