Seán Fleming (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

12. To ask the Minister for Public Expenditure and Reform the set up costs associated with new shared services arrangements across Departments in 2013, 2014 and 2015; and if he will make a statement on the matter. [49581/13]

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

Shared Services is a key element of the Government’s Public Service Reform Plan. In May 2012, the Government approved the establishment of a Civil Service HR and Pensions Shared Services Centre, PeoplePoint, which has been operational since March this year. It already serves some 15,000 employees across 13 organisations. Once PeoplePoint becomes fully operational, at the end of 2014, serving 40 organisations, savings estimated at €12.5 million annually will be achieved in the delivery transactional services for Human Resources.

In April, the Government also approved the establishment of a Civil Service Payroll Shared Services Centre which will commence operations next month. It is important to note that international experience has demonstrated that no Shared Service Centre can deliver savings until it is fully established and stabilised. This typically takes two to three years and the payback period is usually four to six years in a public service context.

With effect from January 2013, funding for these new Shared Service arrangements is provided under the Shared Services Vote for which my Department is responsible. This dedicated Vote provides transparency on expenditure and funding of Shared Services Centres as they become operational.

The total estimated set up or project costs relating to both PeoplePoint and Payroll Shared Services for 2013 is €10,438,000. The total set up costs for 2014 is €10,075,000. In 2015, when PeoplePoint is fully operational, there will be no further set up costs. It is not possible to comment on 2015 set up costs for Payroll Shared Services at this time. Once fully operational, Payroll Shared Services will result in €5.6 million savings annually in addition to the €12.5 million annual savings associated with PeoplePoint.