Brendan Howlin (Wexford, Labour) | Oireachtas source

The Government’s public service reform agenda has delivered and will continue to deliver real improvements in the way public services are provided. A key part of this effort has been the reduction in the number of State bodies under the agency rationalisation programme, the introduction of shared services and a continued focus on streamlining organisational structures and modernising processes. As a result, the public service is much leaner and more efficient than before, with some 30,000 fewer public servants compared to five years ago maintaining service levels across the system, while dealing with more citizens. This has been made possible by real improvements in the way public services are delivered.

The same reform agenda applies to the regulatory sector, too. Effective regulation is a critical part of the State infrastructure, central to ensuring a competitive economy and protecting the consumer. The individual regulatory bodies also have an obligation to operate in an effective and cost-effective manner. To that end, in July the Government published a new policy statement on sectoral economic regulation entitled, Regulating for a Better Future, which was informed by a review carried out by Forfás and public consultation. Progress against this policy statement will be overseen by the Cabinet subcommittee on economic infrastructure.

The Government’s policy statement requires those Ministers with regulators under their aegis to introduce legislative changes to provide for policy and mandate reviews on a statutory basis at least every seven years. It also requires that performance and accountability frameworks for regulators and regulated sectors be put in place.

On the operational side, the statement addresses the issues of efficiencies, requiring parent Departments to develop a shared services approach between economic regulators in their sectors. An overriding principle is that, where appropriate, existing regulatory roles will be extended to take on new regulatory functions.

Under the public service reform plan there have been several critical reviews of amalgamations relating to regulatory bodies. These reviews examined the merits of amalgamating bodies such as the Broadcasting Authority of Ireland and the Commission for Communications Regulation; the Property Services Regulation Authority and the Private Residential Tenancies Board; the Pensions Board and the Financial Regulator; and the Aviation Regulator and the Irish Aviation Authority. These reviews suggested that in some instances amalgamation should not be pursued, for a variety of reasons, including potential conflicts of interest and regulatory concerns.

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However, where it was deemed to deliver real savings and benefits, progress has been made, most notably through the ongoing merger of the Competition Authority and the National Consumer Agency and the bringing together of the back-office and administrative functions of the Commission for Communications Regulation and the Broadcasting Authority of Ireland. Where similar opportunities arise, particularly in the areas of shared services and administrative efficiency generally, I expect the relevant Ministers to pursue them in line with the Government’s policy statement on regulation and as part of our ongoing commitment to public service reform.

The Forfás report confirmed that further rationalisation of existing regulators would have a limited impact on reducing costs and increasing efficiencies. Instead, the report noted the potential for shared services in relation to front and back office functions.

The new framework on regulation also requires sectoral Departments to facilitate the development of memoranda of understanding between regulatory bodies in order to share functions. Reductions in administrative cost should be targeted, where feasible.

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