Seán Kyne (Galway West, Fine Gael)

One of the most regrettable features in the difficult times we have been experiencing has been the forces attempting to pitch one group of society against another: young against old, urban against rural, employed against unemployed, and private sector against public sector. These attempts have served no purpose whatsoever in the battle to regain our economic sovereignty, which is a battle that can be won only by working together.

In recent weeks, several thousand workers from across the public service have opted for early retirement. It has been highly distressing for some workers to hear accusations that they have, as it were, taken the money and run. When one considers the facts, it is clear that a completely false and inaccurate picture was constructed by some sections of the media who often engage in rounds of attacking the public sector.

A total of 87% of public sector workers who opted to retire were over 60 and had given 40 years or more of dedicated service to the Irish State. The remaining 13% were in their mid to late 50s and opted to receive a reduced pension. I hope this will put an end to the erroneous belief retiring public servants were receiving anything more than that to which they were entitled.

While the public sector is, as a whole, imperfect, many of its problems lie in the shortcomings at leadership level, by which I mean Government level. During the so-called Celtic tiger years, when governance was less concerned about value for public money and more about popular, headline grabbing measures, the public sector grew immensely. The 2009 report of the special group on public service numbers and expenditure programmes, otherwise known as an bord snip nua, contained some startling revelations. In the seven years between 2001 and 2008 public sector numbers increased from 270,000 whole-time equivalent posts to just shy of 320,000. This increase of approximately 45,000 positions cost the public purse €2.25 billion. By 2009 the overall public sector pay bill was a staggering €17.5 billion. To put this figure in context, State revenue at the time was slightly more than €30 billion. With such substantial increases in expenditure and personnel, it would not have been unreasonable to expect the most efficient and effective public service in the world. However, what taxpayers received was a service lacking an overall strategy and focus. Funds and additional public moneys were thrown at any and every problem as a universal solution.

Another startling revelation from the 2009 report was that between 1997 and 2009 the number of middle and higher level managers in the public service increased by 82%. Another solution to whatever problem presented itself was to add an extra layer of management. Is it any wonder that there is such anger at the fundamentally flawed financial and economic decisions taken by some at senior managerial levels, including Government level?

The stark reality facing us is that we must work within our means, a concept which was undoubtedly lost on many in the previous Governments. The Government cannot afford the public sector it inherited. For this reason, it has committed itself to reforming, reshaping and refocusing the public service. Reducing public sector numbers is a crucial part of the effort to stabilise public expenditure in the battle to regain our economic sovereignty. I am heartened to note attention is not only on reducing numbers but also on refocusing how the public sector works. This will allow us to ensure services are delivered in the most effective and efficient manner.

Out of our economic problems we can seize an opportunity not only to achieve the necessary savings but also to reform the service, by which I mean changing how we do things, examining and reviewing business practices to ascertain whether they are serving us well and identifying more customer focused approaches. I very much welcome how the Government has prioritised public sector reform, with the most visible action being the creation of a new Department of Public Expenditure and Reform. I also welcome the new focus on communication and dialogue, specifically communication between the Government and the Oireachtas and members of the public on the planned changes and the progress made in dialogue between the Government and public sector workers. The Department of Public Expenditure and Reform has been most active in communicating its actions. Every Deputy and Senator has received the comprehensive reports and reform documents on a regular basis allowing progress to be closely monitored.

The other significant driver of reform has been the public sector agreement, more commonly known as the Croke Park agreement. Although the agreement is not without its problems and has attracted both supporters and opponents, no one can doubt that reforms have occurred as a result of it. The goals and targets set and exceeded are unambiguously set out in the various progress reports of the implementation body.

It would be dishonest of me if I did not point out that public sector workers enjoy a measure of job security above and beyond that available in the private sector. However, no one can deny that savings have been made or that public sector workers have taken pay cuts, are making higher pension contributions and changing old and often unproductive business practices. The proof is available. The total number in the sector fell ahead of schedule to below 300,000 at the end of 2011. This year it will be lowered further to reach a target level in order that by 2015 we will not only be back to more sustainable figures before the excesses of the years of Fianna Fáil, Progressive Democrats and Green Party coalitions but we will also have a more efficient public service capable of meeting the needs of all citizens.

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