Joe Higgins (Dublin West, Socialist Party)
Link to this: Individually | In context | Oireachtas source

To ask the Minister for Public Expenditure and Reform his plans to outsource various public services; and if he will make a statement on the matter. [51869/12]

Brendan Howlin (Wexford, Labour)
Link to this: Individually | In context | Oireachtas source

Evaluating the opportunity for the external delivery of some public services is an important element of the overall public service reform plan agreed by the Government in November 2011. Last July, the Government agreed a range of actions aimed at achieving a focused and integrated approach to external service delivery of non-core processes with the objective of reducing costs and focusing staff on priority areas. The Government has decided that all proposed new services across the public service will be first tested for external service delivery before any approval to provide the service internally will be granted. A commercial delivery manager has joined the reform and delivery office in my Department to oversee the development and implementation of an external service delivery strategy.

We are evaluating the potential to deliver cost savings and efficiencies with the four main sectors of health, justice, education and local government by assessing areas of non-core work that could be potentially delivered by an external provider. The reform and delivery office has also been engaging with Departments, offices and sectors to identify existing services that may be suitable for delivery by external providers with a view to selecting a number of major projects for evaluation. All of this is in line with the agreement we have with the public sector unions, which is known as the public service or Croke Park agreement, which sets out a clear process for engagement and consultation with public service employees and their representatives. I have insisted that this be carried out in full. I am not of the view that external service delivery options are a panacea for all of our difficulties but they can be a part of an overall solution in the reform agenda for the public services as set out in our reform plan.

Joe Higgins (Dublin West, Socialist Party)
Link to this: Individually | In context | Oireachtas source

What is this except a proposal for wholesale destruction of sections of the public sector and wholesale privatisation? The Government has already killed off tens of thousands of jobs in the public sector and plans to kill tens of thousands more. At the same time it is proposing to privatise services from the same public service it is annihilating. What is this except an agenda to secure widespread privatisation? What is the reason behind it? Is it to create call centre-type operations with sweated workers to replace permanent and pensionable jobs?

The Minister stated the purpose was to reduce costs. He should work with public sector workers by bringing them to the heart of management of the public service. If improvements are to be made in that regard, he should make them. This proposal, however, is an incredible scenario.

Has the Minister not learned from the disastrous history of privatisation in this State, of which Telecom Éireann and Team Aer Lingus are but two examples? The bleeding of Eircom by vulture capitalists has left us years behind other countries in terms of broadband investment, while in Team Aer Lingus we had the destruction of a tremendous aircraft maintenance facility. This is a disaster.

Brendan Howlin (Wexford, Labour)
Link to this: Individually | In context | Oireachtas source

The Deputy may wish to examine the specifics before deciding ideologically that it is a disaster. Let us consider what we are proposing in terms of shared services. We will have the PeoplePoint facility to avoid duplication of individual human resource management in every agency and workplace. This function will be rationalised in one unit and we could do the same with pensions management. This is what normal, efficient companies do.

I do not discriminate between public and private sector workers. Employees are workers and should be respected as such. Working in the private sector does not automatically mean working in a sweatshop or in appalling conditions. Some of the best workplace conditions are in the private sphere. I wish we could be as comprehensive in having the best quality services and conditions and places of work in the public arena.

We are examining how to achieve a more efficient and focused public service. Some things can be done better in the private sphere. For example, if one was establishing a bakery tomorrow, one would not open a laundry next door to do the bakery's laundry but would have it done by a professional laundry. Certain things are done on scale and can feed into the public service to enable it to focus on those things it does best. The public service is unique in providing quality services across education, health care and many other areas which I am determined not only to preserve, but to enhance.

Joe Higgins (Dublin West, Socialist Party)
Link to this: Individually | In context | Oireachtas source

The 2008 OECD report on the Irish public sector was complimentary and stated it compared very well with the public sectors of wealthier European countries. The Minister referred to duplication and achieving other efficiencies. Why does he not achieve this by discussion inside the public service with the involvement of public sector workers? As he is well aware, many of the most recent entrants into service provision are low paying employers who do not provide any level of security of tenure and offer difficult working conditions.

Although it is separate from the areas to which the Minister referred, water is a crucial public service. I note from reports this morning that Bord Gáis will commence wholesale water metering of homes in 2014. This is a complete waste of public money. The resources in question should be used to remediate the disastrous water infrastructure rather than fattening up the water service for privatisation.

Brendan Howlin (Wexford, Labour)
Link to this: Individually | In context | Oireachtas source

The Deputy referred to a 2008 report. There are many reports on our economy from that period which would not be considered accurate in the current circumstances. I am very proud of our public services and will defend them. I want to migrate the best practices in the private sphere into the public sector and I hope the best practices in the public sphere, integrity for example, will migrate into some elements of the private sector, banking for instance, from which it has been absent in the past.

The Deputy asked a question about discussions. Discussions are provided for in the Croke Park agreement and take place before we do any outsourcing. As laid down in the agreement, there will be interaction and dialogue with the trade unions.

Water will remain as a public utility in public ownership; this is understood. However, water metering is part of the programme for Government and memorandum of understanding with the troika.