The best way of managing public service pay costs is through a combination of partnership and negotiation of increases in line with our ability to pay, seeking improvements in the quality of service provision and controlling public service numbers. Staff numbers in the public service increased by 59,000, or 27%, between 1997 and 2002. These increases are unsustainable in the context of the moderation in economic growth which we have experienced and the slower growth in tax revenues. Accordingly, the Minister for Finance announced in last year's budget a cap on numbers employed in the public service and a reduction of 5,000 in the overall numbers employed. The Government subsequently agreed the timing and details of the reductions and has sought to minimise the impact on front-line staff in implementing them. A reduction of 2,000 is expected by the end of next year while the full impact of the reduction in numbers will be seen in 2005 and 2006.