Bernard Durkan (Kildare North, Fine Gael)
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To ask the Minister for Public Expenditure and Reform the extent to which public service reforms embraced to date have resulted in the achievement of specific budgetary targets; if he has identified a means of rewarding those sectors that have achieved the best performance under this heading to date; if programmes of incentivisation to encourage net beneficial reform have shown results or need to be further enhanced; if he expects to be in a position to specifically focus on particular areas that may have given rise to concerns; and if he will make a statement on the matter. [43387/12]

Brendan Howlin (Wexford, Labour)
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I am happy to confirm that the public service reform agenda has contributed to the Government's success to date in meeting all the budgetary targets we set under the medium-term fiscal statement of November 2011 and the broader EU-IMF programme. In particular, the move to introduce a medium-term expenditure framework, as set out in last December’s comprehensive 2012-14 expenditure report, marks an important reform in terms of establishing multi-year expenditure ceilings for each ministerial area to guide policy planning over the medium term. As regards the question of incentives for those sectors that perform well in meeting their budgetary and reform commitments, it is relevant to note that the medium-term expenditure framework envisages a new "carryover" facility for Departments that manage their allocations within budget in any year so they can use these savings in the following year. Those Departments that are proactive in driving reform, innovation and structural planning will naturally be best placed to avail of this facility.

As the Deputy will be aware, a key commitment of the programme for Government is to modernise, renew and transform the public service to enhance service delivery and achieve greater value for money. The Government’s public service reform plan, which was published last November, outlines key commitments to radically change the public service in terms of how it is managed and organised and how it manages expenditure. Last month, I published an update on the implementation of the reform plan, which shows that good progress has been made in delivering on the commitments we set out last year. The reform plan is making a vital contribution to the achievement of our budgetary targets. As of mid-2012, public service numbers had fallen by approximately 28,000. The reduction in numbers is delivering major savings to the pay bill, estimated at €3.8 billion by 2015.

I would like to give a couple of examples of the implementation of the reform agenda. A strategic mandate for shared services in the Civil Service has been agreed by the Government and the major sectors are also finalising their own shared services plans. Shared services will eliminate duplication and mean fewer staff and resources will be required to maintain many back-office functions. From next March, Civil Service human resources functions will begin a phased transition to a new human resources shared services centre. All Civil Service bodies will move to this centre by the end of 2014. The Government has agreed to implement the main recommendations of the review of the central procurement function that it commissioned. My colleague, the Minister of State, Deputy Brian Hayes, is driving that reform, which includes the establishment of a national procurement office that will be headed by a chief procurement officer. It is estimated by external advisers that the implementation of these recommendations over a three-year period could yield savings of between €249 million and €637 million.

Additional information not given on the floor of the House.

The Government has also agreed a strategic mandate for external service delivery of non-core processes to reduce costs and focus staff on priority areas. Work is under way to identify and select a number of major external service delivery projects for priority implementation. The four major sectors of health, education, justice and local government will prepare and implement a detailed benefits-driven external service delivery plan in their sectors. These are just some of the major projects under the public service reform plan that are driving greater efficiency and better value for money and contributing to achieving our budgetary targets. As I have said, this is a key priority for the Government. While good progress has been made, there remains a need for management across the public service to further develop their reform plans and drive implementation to build a public service equipped to meet the challenges we face as a country. I will meet the Committee of Public Accounts tomorrow to discuss progress and will also meet the Joint Committee on Finance, Public Expenditure and Reform in the coming weeks in this regard.