Brendan Howlin (Wexford, Labour) | Oireachtas source

Over the course of the past five years, the public service has reduced in size by almost 10%. The cost of the pay bill has fallen even further, by some 17%, and the Haddington Road agreement which I reached with the public service unions earlier this year will permit that cost to fall still further. These savings need to be protected and sustained, which means we must continue to demand further efficiency across all areas of the public service. In addition, we must ensure that public service managers across every sector make full use of the extra15 million hours achieved and the hard won workplace flexibilities agreed in Haddington Road.

However, as we reform and improve, there are immediate pressures that need to be addressed. In recent times I have come to the view that there are some areas of the public service where we simply need to provide more staff after five years of downsizing. For that reason, the target for public service numbers next year has been adjusted to allow some additional scope for extra staff in classrooms, hospital wards and front-line policing.

These important additional resources are a reform dividend, only made possible because of the savings being delivered across the system as a whole. That can be done. There can be a fresh intake of people, while at the same time we intend to reduce the pay bill next year by €500 million. I intend to publish a revised public service reform plan by year end, building on what we have achieved and setting out a new ambitious programme of reform. That plan will focus on innovation in terms of service delivery and an increased focus on outcomes. As one example, today the Government is announcing a pilot phase for a new model of financing social interventions called social impact investment. It uses private capital to provide better outcomes for citizens.

To determine the potential for social impact investing in Ireland, the pilot phase is seeking private sector investment partners to provide long-term, stable homes for homeless families in the Dublin region. The project will provide families and children, in particular, with better lives through increased levels of school participation; reduced levels of anti-social behaviour; and reduced levels of adult homelessness. This measure is radical, reforming and demonstrates my commitment to explore any model of intervention that can better use resources to protect the most vulnerable in society.

Investing in Jobs

The Minister for Finance has set out a series of measures to promote employment. That is a priority of my Department and every Department. Our current five year capital framework sets out a €17.1 billion investment programme between now and 2017 to maintain and improve the country's infrastructure. In recognition of the importance of stimulating economic activity, we have sought to augment that programme when possible, consistent with our troika commitments.

In July last year I announced a €2.25 billion infrastructure stimulus package. These projects are progressing as planned. Five of the nine PPP projects have already issued to market and the flagship Grangegorman DIT project, valued at over €200 million-----

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