Brendan Howlin (Wexford, Labour) | Oireachtas source

As I announced when launching the new public service reform plan for 2014 to 2016 last month, I expect the State agency rationalisation programme to be completed this year. A great deal has already been delivered.

The Government made two commitments in 2011 on the rationalisation and reform of State bodies. First, we undertook to begin immediately with the implementation of 48 identified measures. Second, we agreed to review a further 46 measures targeted at broader rationalisation.

I reported last month that the original 48 measures, involving more than 100 State bodies, have either been fully delivered or will be delivered this year, apart from two measures where the Government decided on reflection not to proceed. These were measures involving the National Cancer Registry into the Department of Health and, in the transport sector, the merger of the Commission for Aviation Regulation and the Irish Aviation Authority, which we were advised at European and domestic level was not the correct course of action.

The review process was completed in the further 46 measures that the Government undertook to review, and we decided to implement 25 of those 46 measures, involving more than 100 State bodies. That will be fully completed this year. In total, full implementation of all of the rationalisation measures – the original 48 measures and the further 25 measures - will be completed. The monetary effect is very modest, with the €20 million target set out in the 2011 plan being achieved this year.

Additional information not given on the floor of the House

The Deputy also asked about the number of new bodies created. As I have indicated, there are a small number of new bodies arising from the merger of two or more existing bodies, as envisaged under the rationalisation programme. There is still important work to be done and public service to be provided. The purpose of the rationalisation programme has been to deliver these services with less. For example, there are 16 new education and training boards doing what was previously done by 33 VECs. There is one new body called Quality and Qualifications Ireland doing what three separate bodies used to do.

Aside from this, there have also been a small number of other bodies established in recent years to address urgent matters of concern to the Government. Examples include where the Government had identified systemic failings of oversight, or considered a need for new resources to tackle priority issues around job creation and unemployment. I refer to the Irish Fiscal Advisory Council, NewERA and the Credit Union Restructuring Board under the Department of Finance, the Residential Institutions Statutory Fund Board and SOLAS under the Department of Education and Skills, Microfinance Ireland under the Department of Jobs, Enterprise and Innovation, Irish Water and the Pyrite Resolution Board under the Department of Environment, Community and Local Government, and the Property Services Regulatory Authority and the Insolvency Service of Ireland under the Department of Justice and Equality.

The rationalisation programme needs to be understood as just one of a package of reform measures, many of which represent much greater savings than the rationalisation measures. For example, the Haddington Road agreement will deliver a €1 billion saving in the cost of the public service pay and pensions bill by 2016; the targeted savings from public procurement reform are €500 million over three years and €127 million in 2014; and the Civil Service human resources and pensions shared services centre, PeoplePoint, when fully operational, will have estimated savings of €12.5 million annually.

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