Áine Brady (Kildare North, Fianna Fail)

I thank Members for scheduling time to deal with this important matter.

The Government and the leaders of the public service unions decided in March that, in order to boost our prospects of economic recovery and in the interests of those reliant on public services who would be affected by significant industrial action, an agreed way forward was best. The Croke Park agreement sets out the framework for the public service to change for the better in ways that public servants themselves wish. It also secured acceptance of the 14% average earnings reductions and reductions of up to 30% for top earners which the Government imposed across the public service, made up by the pensions levy and the pay reductions, and brought to an end the escalating industrial action which was beginning to have a serious impact on services, not least for Members of both Houses of the Oireachtas.

In the context of the national recovery plan and the budget, the Government has reaffirmed that it wants to comply with the commitments it gave in the Croke Park agreement but that it is critical that both sides deliver on the promise and potential of the agreement, namely, that significant change will be delivered in the public service to accommodate the reduction in public service numbers in a climate of industrial peace. The Government has indicated that it intends to secure a further saving in the public service pay bill of some €1.2 billion over the four years of the national recovery plan through reductions in numbers and other efficiencies, including those provided for in the agreement. This comes on top of the €1.8 billion in savings secured through the pension levy and the pay cuts imposed in 2009 and 2010.

The Minister of State, Deputy Calleary, has outlined that the reforms are happening. We now have fewer public servants and they are cheaper to provide, yet we are maintaining the same level of public services. The introduction of a general moratorium on recruitment and promotion, together with incentivised early retirement and career break schemes, with natural turnover of public servants who retire or leave, have led to a reduction in the number of public servants employed by approximately 12,000. The continued strict application of the frameworks across the public service will result in a further reduction in public service employee numbers up to 2014. To accommodate this reduction in numbers, work practices in the public service, ways of delivering services, new technologies and redeployment will all be required. The effective implementation of the Croke Park agreement and the efficiencies and other measures which will arise as a result will provide a sustainable framework to manage the provision and delivery of essential public services, despite the reductions in public service numbers in a period of unprecedented pressure on resources.

Senator Phelan has asked what has been achieved. The Minister of State listed a number of achievements. He also pointed out that we were not giving enough publicity to these achievements which will gather pace in the next few weeks and months. The Senator also queried why there was little reference in the Budget Statement to the Croke Park agreement. The Minister for Finance specifically highlighted that the Government was standing by its commitments to the agreement and noted that, if the Government was to be held to its commitments, the reductions specified had to be delivered.

Senator O'Toole referred to and praised by Mr. P. J. Fitzpatrick. I support the Senator in that regard. Mr. Fitzpatrick is delivering effectively in the role given to him and I will ensure the Senator's invitation is conveyed to him. I emphasise the role of delivering real change belongs to public service management and it is to these managers the Senators' attention should be directed. No matter how energetic he is, Mr. Fitzpatrick cannot do the work single-handedly. Public service management must step up its level of activity. The next test will be its response to the challenges posed by the national recovery plan and the revised action plans due in January. As other Senators noted, the review to be undertaken in the summer in advance of the third quarter of 2011 reports should help to focus minds.