Dáil debates

Wednesday, 19 October 2011

Public Service Pensions (Single Scheme) and Remuneration Bill 2011: Second Stage (Resumed)

 

5:00 pm

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)

As Deputy Buttimer observed, the retirement age for those elected since 2004 has increased to 66, while the retirement age and conditions for those elected before then are considerably different. I make this point not to be smart but because a glance around this Chamber reveals how different it is when compared with this time last year. I do not refer to the make-up of the parties but to the individuals involved. Much attention was given to packages given to some, but no attention was given to the fact that many people who were elected for the first time in 2002 or 2007 are now unemployed, do not have other incomes to which they can return and in some cases will not have the advantage of any pension provision for 30 years. The criticism Members receive from the usual quarters, as well as from some within this Chamber, about the specific arrangements for public representatives should be considered in this context. Moreover, the turnover in this House from election to election is getting more significant. If Members wish to attract younger people into this profession and if they have any respect for it, this issue and what they are doing about it must then be considered.

On the general legislation, I welcome the change whereby career average earnings will now be considered, rather than a person's final salary. It has become apparent in recent years that the current practice of basing pensions on final salaries has cost the State some fine civil and public servants. Fearing potential attacks on their lump sums or that their pensions will be reduced next February, such people have left, even though they have many years to give. Moreover, they have taken with them much experience and many contacts which the State could do with. This is very apparent in the Garda Síochána, among teachers and nurses and right across the public service. However, because this deadline has been placed on people and because of the manner in which pensions are measured based on their final salary, they have left rather than face a lower pension after next February. A system of using career average earnings is far more effective economically but I share Deputy Donohoe's concerns regarding section 19(1)(a), which is a matter of the Government must address before Committee Stage.

On the subject of public sector reform in general, obviously it is an area in which I have an interest. I compliment the Government on the appointment of Mr. Paul Reid as the programme director for the new reform and delivery office within the Department of Public Expenditure and Reform. The design specification of the reform and delivery office is incredibly important but while I do not criticise the appointment, I am critical of the fact it was not publicly advertised. A point must be reached at which all jobs at this level in the public service are advertised publicly. A range of Secretaries General will retire in the coming weeks and each such Secretary General post should be fully advertised nationally and internationally. If one is to begin to change the culture at the top levels of the Civil Service, which are resistant to change, outside thinking must be introduced.

I reiterate that the design and proposed specification of the reform and delivery office will be incredibly important. The manner in which the public service is designed into silos at present, whereby all Departments and organisations operate strictly independently of one another and God forbid that one might exchange information or trends, constitutes one of the greatest barriers to achieving transformation of the service. If this new office within the Department of Public Expenditure and Reform can break down these silos and has the power and mandate to so do, which will require the power of the Minister behind the office, then there finally may be some progress on shared services, common recruitment policies and pension policies. The pension policies under discussion differ in some instances from agency to agency and from Department to Department, even though everyone effectively works for the same Civil Service. If Mr. Reid and his unit can achieve this alone and can break down these silos, they will set themselves on a path towards delivery of the transformation programme.

Senior management within the civil and public service is not engaging at an appropriate or an energetic level with the transformation agenda. Seven months after the establishment of the new Department, there still is little evidence of this agenda, despite the work of the Minister and his new Secretary General. Those on the coalface have the best ideas in respect of transformation. Those who man accident and emergency units in hospitals and who must deal with greatly reduced budgets know where savings may be achieved without affecting patient care. Those in the schools who are in the same position with regard to budgets know where savings can be achieved without affecting education. However, a system still has not been devised to involve such people formally in decision-making and to pay due attention to their ideas and proposals. Were a single consultancy contract within the transformation agenda within the public service to be cancelled and were the money saved then put into a pot for ideas from those on the coalface, savings would be achieved for the Exchequer and far better ideas and greater efficiencies, which everyone seeks, would be forthcoming without ruining the level of service.

There are some signs of hope. I welcomed the establishment of the Department of Public Expenditure and Reform when the establishing legislation came before the House last June. I welcome that public service transformation was linked to public expenditure. However, the next six weeks will test this Department and will test whether these two parts of the equation are equal. I have no doubt but that senior management people within all Departments are trying to be seen to dance to the tune of the Department of Public Expenditure and Reform as they engage in the ritual of budget negotiations. Moreover, all senior Ministers will fight for their turf. However, the Minister, Deputy Howlin, must fight back for that turf by asking what those involved are bringing to the equation in respect of public service transformation. He must ask what is being brought into the equation in this budget discussion regarding the reformation of the relevant Department, more effective delivery and the delivery of services to people on the ground with much smaller budgets. When Members are presented with the budget or with whatever sequence of announcements is to be made, presumably starting after the by-election, it would be great were a delivery mechanism to be associated with each expenditure announcement, showing where a transformation will take place with regard to services in each Department and agency. If that could be seen or even if signs of that happening were discernible, I would then believe the Department is working and that public expenditure and public service reform constitute even parts of the equation.

I do not doubt the personal commitment of the Minister, Deputy Howlin, to reform but when I served as Minister of State with responsibility for this sector, I made a point I now reiterate, namely, as far as the senior management in the civil and public services is concerned, public service transformation is someone else's business. It is an "any other business" item and such people have no heed or respect for it unless it is attached to the budget. It will be down to the Minister or Mr. Robert Watt or officials within that Department in the coming days and weeks to put it directly to them that their budgets for 2012 to 2016 will depend on what they will do to transform their organisations. They must understand that failure to transform their organisations will have budgetary consequences and one must be this direct and specific in this regard.

A set of Secretaries General is due to retire, as are sets of senior officials in Departments and agencies. I welcome the reforms the Minister has initiated in respect of the top level appointments committee, TLAC. However, this will not be enough unless such job vacancies are advertised, unless information about them is circulated internationally and unless an international pool of talent is encouraged to work within the Irish civil and public services to bring different ideas, including thoughts and ideas from the private sector, and to bring an entirely new raison d'être to that service. A golden opportunity to do this will arise in the coming weeks and the Government must ensure all these posts are advertised.

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