Brendan Howlin (Wexford, Labour)

The comprehensive review of expenditure which has been carried out across all Departments in recent months has carefully examined all areas of Exchequer spending, including the funding provided by Departments to the non-commercial State bodies that operate under their aegis. The comprehensive review of expenditure has been finalised and it is now informing the decisions that the Government is taking in the context of deciding the Estimates for next year and the years beyond.

As a further part of the Government's reform plans, today I announced the Government's new target for further reductions in public sector numbers in the coming years. We are now in the process of determining new staffing ceilings for each of the public services and these will be announced in the first week in December as part of the budget and Estimates. A revised employment control framework, ECF, will be published at that time setting out the staff numbers ceiling for each Vote area, thus encompassing the individual Departments and their non-commercial agencies.

In respect of State agencies, the Deputy will be aware that today I announced the Government's plans to reduce the number of such bodies. The Government has demonstrated its commitment to reform and the pursuit of efficiencies by rationalising 48 bodies by the end of 2012 and by nominating a further 46 bodies for critical review by the end of June 2012. This radical streamlining of State bodiesis a key deliverable of the Government's reform programme and will lead to a more transparent, accountable and efficient public service.

The Government has also decided to: introduce "sunset clauses" when new bodies are created which will ensure that a new body will cease to exist after a predetermined date unless its mandate is specifically renewed; ensure that Departments regularly review the business case for all significant State bodies; and require that robust service level agreements are put in place as a matter of urgency by each Department with each of its State bodies. The overriding imperative must remain the absolute requirement to achieve major savings in all areas of expenditure and to reduce staff numbers and administrative overheads. This underscores the need to ensure that public services delivered by State bodies are done in the most cost-effective manner possible.

Finally, the issue of shared services, which has the potential to transform the cost effectiveness of State bodies, is also being examined by my Department and I hope to bring proposals to Government shortly.

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