Shane McEntee (Meath East, Fine Gael)

I am replying on behalf of the Minister for Public Expenditure and Reform.

The policies being pursued by the Government are working and the evidence is there for all to see. The public service pay bill has stabilised and we have now returned to 2006 pay levels. The number working in the public service continues to fall and we are now close to 2005 staffing levels. The Croke Park agreement has provided for the co-operation and flexibility required that have enabled the Government to achieve the necessary reductions in the Exchequer pay and pensions bill in a climate of industrial peace.

Front-line services are being protected. Strategic workforce planning groups have been established in all sectors and are developing plans to deal with the operational and strategic consequences arising from the turnover of staff expected in 2012 and future years. When account is taken of the effect of the pension related deduction in public service pay, the total net public service pay bill will be reduced by around €3.5 billion, or 20%, in the seven years between 2008 and 2015.

The bottom line is that we cannot sustain the current system of public service delivery. It must be changed. The coming years will not be easy and a massive effort is required. Future economic growth will only be generated from a solid and sustainable fiscal position. Taking the easy option is no longer an option.

The mission statement of the Department of Public Expenditure and Reform is "to achieve the Government's social and economic goals by ensuring the effective management of taxpayers' money, and the delivery of quality public services that meet the needs of citizens". In less than 30 words, it provides the road map we must follow if Ireland is to return to having a sustainable financial model. Under the EU-IMF programme, Ireland is committed to reducing the overall size of the public service. This is also a key element of the programme for Government and it is not being done merely because it is a fiscal imperative. It is also being done to ensure we can continue to enjoy a vibrant, modern, forward looking civil society, with a public service that supports such a society.

In order to protect front-line services, the Government is committed to making fundamental changes to the way the public service operates. This will inevitably mean changes in the way in which services to the public are delivered. Our overriding objective is to have a more customer focused, leaner, more efficient, better integrated public service which delivers maximum value for money. I am confident that the public service and public servants are up to meeting these challenges. What was lacking was leadership. The Government will provide that missing element. It will provide the people with an affordable public service that is fit for purpose, that rewards efficiency and decreases waste, and enables its workers to serve their fellow citizens with pride, while earning a decent standard of living.

In response to Deputy Ó Caoláin, on the question of retirements, whether grace periods are incentivised is not purely semantic. Staff have chosen to retire at the end of their careers and there can be no suggestion that their employer will not allow them to retire. Their managers will need to address how the work they have been doing will be discharged.

Deputy Sean Fleming has agreed that certain historical allowances need to be reviewed. The Department of Public Expenditure and Reform will be reviewing them critically.

We would not be having this debate if we had the money. We have to tell people the truth. Opposition Deputies are talking about the provision of services, but what happens if we do not have the money to pay for them? We spoke about the killings in County Kildare yesterday and the accident in Dundalk which was attended by gardaí, firemen and ambulance drivers, all of whom need to be kept on the front line. I cannot understand how Opposition Deputies are saying "No" to everything. They are all against the €100 household charge, but that is what the money that will be raised will be used for. If somebody puts his or her card in an ATM and there is no money in it, he or she can shout and roar and kick it, but no money will come out of it. We have a treaty to pass and need to have a system in place by which we can obtain money at a reasonable rate from the European Union. Whether we like it, we have signed up to the treaty. Those who are saying "No" to everything are being disingenuous and not telling the people who put them where they are the truth. I cannot understand how they have complained about the provision of services for the entire afternoon and yet do not want to pay for them. The money is just not available.

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