Fergus O'Dowd (Louth, Fine Gael)
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Question 56: To ask the Minister for Finance if he has set guidelines in relation to schemes of voluntary redundancy in the public service; the staff reduction numbers planned; and the annual cost savings generated by rationalisation being undertaken in agencies and public services in 2009. [6276/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Following consultations with the Minister for Health and Children and the Health Service Executive, my Department is currently preparing proposals for consideration by Government on a targeted Voluntary Early Retirement Scheme (VER) for the health sector. I would envisage that if the VER in the health sector is approved by Government, it would be adopted as a model for the wider public service where surplus staff are identified and an accelerated reduction in employment numbers is required.

In my Budget Statement on 14 October last, I announced that the Government had decided to proceed with the implementation of 30 rationalisation proposals spread across 11 Government Departments. The details of the rationalisations, which will result in a reduction of 41 bodies, were set out in Annex D of the Summary Budget Measures.

Implementation of these rationalisation proposals, which are a matter for the relevant parent Government Departments, is a complex exercise; it involves amalgamating bodies, reassigning legislative and administrative functions, and discontinuing bodies in some cases. To date, ten of the 30 rationalisation decisions have been implemented, covering nine State agencies and the decision to close four Army barracks. I understand that a further 8 decisions will be implemented in full in 2009. While the savings involved continue to emerge, the completed rationalisations of State agencies is expected to deliver savings of at least €2 million and the closure of the Army barracks savings of the order of €2.5 million over three years, with annual savings thereafter of €2.5 million.

While cost-savings and economy are important, I wish to emphasise that alongside major savings in administrative overheads including staff numbers, a key outcome of this process is to deliver a more citizen-friendly system of government with better, more focused delivery of services.