Seán Fleming (Laois-Offaly, Fianna Fail)
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88. To ask the Minister for Public Expenditure and Reform if he will provide a list of shared services projects commenced across the Civil Service since 2011; the costs associated with these projects for each year; when these projects will generate an overall net saving; and if he will make a statement on the matter. [48016/14]

Seán Fleming (Laois-Offaly, Fianna Fail)
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In this question I ask the Minister for Public Expenditure and Reform if he will provide a list of the shared service projects commenced across the Civil Service since 2011, the costs associated with these projects for each year and when the projects will generate an overall net saving.

Brendan Howlin (Wexford, Labour)
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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.

Seán Fleming (Laois-Offaly, Fianna Fail)
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I understand the table will be circulated with the reply when we receive it by e-mail in the afternoon. Members on this side of the House have agreed with the principle and always known that there is a set-up cost. New offices and staff must be provided at new locations, while new software development systems must be put in place. Of course, it will take a few years and I am happy that the Minister has given some indication of the cost involved. My main concern is that he have a good handle on PeoplePoint and the shared services payroll. He said the financial management service was progressing separately. I am more concerned about other Departments mentioned where there is cross-departmental redeployment required to make the projects a success. This is a sticking point and the Minister proved it by saying other Ministers would answer separately. That confirms my worry - that each Department is operating in a silo - and I would prefer if the Minister answered for all Departments about shared services across the public service. It is something the Department could usefully do, rather than let each Department report separately.

Brendan Howlin (Wexford, Labour)
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That is something I will bear in mind. We have a Cabinet sub-committee under the chairmanship of the Taoiseach and each Minister with responsibility for a shared service reports to it. Post-2016, when shared service centres are fully operational, it is projected that PeoplePoint will deliver savings in the region of €12.5 million annually, with payroll shared services delivering savings in the region of €5.6 million annually thereafter. Each Minister is responsible for

shared services in the health, education or local government sector but reports to the Cabinet sub-committee on public sector reform. I will give some consideration to centralising a reporting system in order that people will be able to look at it in the round.

Seán Fleming (Laois-Offaly, Fianna Fail)
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Will the Minister send on the full list of shared services projects in the public service? Some of these are in their initial stages, others partly up and running. I know some of these will take time. My local authority area, Laois County Council, is in charge of the shared services project for local authority payrolls. It brings on three other local authorities each quarter, so it will take two years at least to get all of them online.

Brendan Howlin (Wexford, Labour)
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That is happening with all shared services.

Seán Fleming (Laois-Offaly, Fianna Fail)
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There is a build-up. We are all agreed it could not have been rushed on day one.

On 23 October, I put down a parliamentary question on the number of staff redeployed within local government shared services over the past three years. The reply from the Minister for the Environment, Community and Local Government stated his Department does not collate the redeployment data as requested. How can the Minister for the Environment, Community and Local Government know what is going on when he does not even collect the data? How can the Minister for Public Expenditure and Reform and the Cabinet sub-committee know what is going on if the data is not collected? The Minister stated information is not collected up to grade 7 but grade 8 is done across the Public Appointments Service. There is a massive gap in the information on who wants to move in Departments and even in sections. A local manager can veto staff going to shared services and this causes problems which need to be addressed.

Brendan Howlin (Wexford, Labour)
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There have been issues with mobility. As we have not been recruiting to the Civil Service, there is a reluctance to cede staff, particularly skilled staff, to projects like this. If there is to be a common shared services centre in human resources management, all the human resources experts in a Department might migrate out of it and managers might not want to lose them. It will improve once recruitment improves as well. I will give some further consideration to having a comprehensive overview of the progress of shared services because they are an important feature of the reform programme.