Brendan Howlin (Wexford, Labour) | Oireachtas source

Public service numbers stood at 290,400 at the end of 2012. That number should have decreased to 282,500 by 2015, in line with the target set by the Government. This means that between now and 2015, the number employed in the public service will fall in net terms by a further 2.7%. I anticipate that this will mostly be achieved through natural retirement across the service, while allowing for recruitment in areas where that is authorised. The 282,500 target will mark a 12% reduction in the size of the public service since the peak value of 320,000 in 2008.

The Government's policy on reducing the size of the public service is one of its key broader reform agenda items. It needs to be understood in the context of two main drivers. First, there is undeniably a need to repair the public finances. Second, we need to improve and catch up with international best practice in how public services are delivered. This is why through reform initiatives we are building on existing good practices and addressing areas where there are too many agencies, too much duplication, not enough automation, not enough use of e-technologies, not enough shared services, poor practices and sub-optimal structures. This transition is difficult. It is difficult to shed staff while maintaining service levels and rolling out new services, but it is necessary.

To help us safeguard our core public services, we will deliver an unprecedented increase in productivity across the public service through the Haddington Road agreement, which is currently under way. We will provide for almost 15 million additional working hours and a range of other reforms and efficiencies agreed by the public sector unions. One of the main benefits of these additional hours is that they will allow public service management to maintain services with fewer staff. We have already achieved real and tangible progress in areas such as cost reduction, improving efficiency and enhancing service delivery. The roll-out of reform against a backdrop of reduced numbers has produced challenges. I compliment all those in the public service who have risen to the challenge.

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In so far as possible, front-line services have been protected. In parallel, there has been real and permanent reform of service delivery models to the benefit of citizens and businesses. Earlier this year, we launched the Civil Service human resources and pensions shared services centre. It serves over 15,000 employees across 13 organisations. When it is fully operational, it will lead to substantial savings estimated at €12.5 million annually, with a reduction of 17% in staff numbers in human resources across the Civil Service. We have allowed for some targeted recruitment into priority areas, particularly health and education, while continuing to reduce the size of the public service overall. Redeployment has been an important enabler of this managed reduction of public service numbers. Since 2010, more than 10,000 surplus staff have been redeployed into priority areas. With regard to alternative strategies to achieve savings, I remind the Deputy that the cost of running the public service in Ireland accounts for some 36% of total Government expenditure. It would be impossible to put the public finances back onto a sustainable footing without addressing this sizable element of the cost base.

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