Brendan Howlin (Wexford, Labour) | Oireachtas source

Shared services are a key element of the public service reform plan and a core priority for my Department. The national shared service office within the Department is leading the shared service strategy and the implementation of shared service projects within the overall reform and renewal context. The new office is directly responsible for overseeing shared service projects within the Civil Service. As part of its wider leadership role, it provides expert guidance and support for other public service sectors in progressing their shared service commitments.

My colleagues, the Minister for Health, the Minister for Education and Skills and the Minister for the Environment, Community and Local Government, will respond separately on the implementation of their individual shared service plans. Each Minister is working on this agenda.

We are advancing three key shared service projects within the Civil Service, which is my area of operation. The first is PeoplePoint, a HR and pensions administration shared service which was established in March 2013. It already services more than 26,000 employees across 21 public service bodies. We also have payroll shared service and the Deputy will be interested to know that I am going to Tullamore tomorrow to launch this shared service centre, with some 20,000 payees already on board. The third is financial management shared services, a major project which is still at a relatively early stage but which is being carefully managed to ensure the resilience of the detailed business case.

I am circulating a table which sets out the cost of each project since establishment in 2011. The total spent on Civil Service shared service projects in 2011 was €5,000; in 2012 it was €5.4 million, while in 2013 it was €10.4 million. Total expenditure on these projects to date is expected to be €7.769 million by year end.

In examining these costs, it is important to understand shared services are not a short-term efficiency measure. Both public and private sector best practice indicates that benefits are generally realised over a three to five year period.

Project	2011	2012	2013	2014*
PeoplePoint	€5,000	€5,340,553	€6,577,406	€3,141,830
Payroll Shared Services	Nil	€67,650	€3,559,408	€2,953,569
Financial Management	Nil	Nil	€262,461	€1,674,000
Total	€5,000	€5,408,203	€10,399,275	€7,769,399

*Figures based on provisional outturn for 2014

See this speech in context