Brendan Howlin (Wexford, Labour) | Oireachtas source

Budget 2014 sets out a revised target for public service numbers of 287,000 by the end of this year. With serving numbers already below

289,000, this is a lower net reduction than in previous years, reflecting the fact we have already downsized a huge amount and the public service is now almost 10% smaller than it was in 2008. The appropriate path beyond 2014 will be considered as part of this year's comprehensive review of expenditure, which will examine public spending and resource issues in the context of the fiscal parameters, service demands and the reform and efficiency opportunities arising from the new public service reform plan, which I launched last week.

With regard to the health service, it is required to deliver a modest 1% reduction in head count during this year, which reflects a significant readjustment of the previously set target. In education, in acknowledgement of the growing needs in the classroom, serving numbers are actually profiled to increase by over 1,200 posts in 2014. As part of this, provision was made in the last budget for 960 additional resource teachers by the end of 2014. As I mentioned, public service numbers have been reduced by almost 10% in the last five years. The approach to public service numbers reduction has been informed by financial necessity, of course, and also by recognition of the significant opportunity to reform work practices and business processes to rationalise the number of State agencies and to introduce money-saving initiatives such as shared services. As a result, the public service today is more efficient and effective than before the crisis and for that, the contribution of those working across the system must be acknowledged. I acknowledge the work of all public servants who are valued.

The new reform objectives will also help drive change in the way the public service is organised and how it delivers its back office functions. To give just one example, PeoplePoint, the HR and pensions shared services centre, became operational last March and is now servicing over 15,000 employees across 13 organisations. When fully operational, PeoplePoint will provide services to 40 organisations with savings estimated at €12.5 million annually. This example, and there are others, shows how service levels cart be maintained, and in some cases improved, with reduced numbers. I have made reference to the idea of a reform dividend. I had a chance to begin discussion on that at the committee last week. I will be happy to expand in response to the Deputy's question.

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It is about understanding that reform and efficiency drives are about improving public services, not reducing them, and that the dividend comes from identifying and tackling waste and inefficiency and making savings - savings which can then be used to invest in areas that work best for the citizen. What is important over the medium term, therefore, is to continue to introduce new ways of doing business and to make the best use of new technology and of shared services so that we have a public service that is affordable, that is consistent with a sustainable fiscal position and that works for our citizens. This is the best way of protecting front-line services in health and education and right across the public service.

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