Brendan Howlin (Wexford, Labour)

I propose to answer Questions Nos. 7 and 35 together.

The implementation body has completed its second annual review and published this morning its second annual report of progress under the Croke Park agreement. In my view, the body has once again produced a very comprehensive, detailed and robust report. The report analyses the pay and non-pay efficiency savings being delivered under the agreement. It also examines the change and reform being delivered in each sector of the public service and highlights examples of improved productivity that have been achieved as the decreased number of staff respond to increased demand for many public services.

The body has found that pay bill savings in the order of €650 million were achieved between April 2011 and March 2012, driven primarily by a significant reduction in staff numbers of 11,530. Furthermore, the body sought to factor in an estimate for planned recruitment to fill critical positions later this year, following the retirement of some 8,000 staff in the first quarter of this year, in order to arrive at an estimate of the sustainable pay bill savings that might be achieved. This yields an estimated net sustainable pay bill saving of €521 million. In addition, the body found that €370 million in administrative efficiencies or non-pay savings were achieved.

The body engaged external financial advisors to undertake an independent verification of the savings being reported in the case of a small sample of projects. Following a tendering process, Grant Thornton were engaged to evaluate four projects. They found that the savings reported by management in each of the four projects were reasonable estimates of savings; the methodology used for each project was found to be acceptable; and the agreement is playing a significant role in facilitating the implementation of the savings initiatives in each case. The Grant Thornton report was published in parallel with the report of the implementation body.

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