merrion street

Good morning ladies and gentlemen.

I am very pleased to have the opportunity to address you this morning at your Annual Conference.   The twin themes of the conference - “change and growth”  - seem to me to be especially relevant at this time. 

Change seems to be happening more quickly than ever before, be it political, economic, social or even technological.  There is no doubt that the pace of change can, at times, be unnerving, but we must not lose sight of the fact that change also offers us new opportunities.  We in the public sector must seek to take advantage of these opportunities for the benefit for the people we serve.  We must strive to become more streamlined, more efficient and simply better at what we do.  In this way, we will help create the conditions for growth and be better positioned to maximise the opportunities that will present themselves in the future.

I know that you are all aware of the significant financial challenges we face as a country, and I do not intend to dwell on them today.    It is the case that in the current environment, reducing the cost of the public service playbill is clearly a key objective.  The total net cost of the public service pay bill will be reduced by some €3.5 billion over the period 2008-2015, which will represent a 19% reduction from peak, even after taking account of the inevitable increase in public service pension costs as a result of retirements. 

Delivering these savings will require continued implementation of the moratorium on recruitment, with exceptions being limited to only essential posts and the utilization of redeployment where possible to fill those posts which have been approved. Our overall target is that by 2015, there will be 38,500 fewer staff in the Public Service than there were in 2008.  I would like to acknowledge the contribution that Local Government has made in this regard.   The sector has exceeded its targets, with staff numbers falling by more than 8,000 from their peak in 2008 to around 29,000 today.     

Of course, you know as well as I that it is not enough to simply cut staff numbers and pay costs.  We must strive for a more customer focused, more efficient and better-integrated public service.  This Government has taken the issue of public service reform seriously from the very beginning. 

As Minister for Public Expenditure and Reform, I am committed to fundamentally changing the way the public service works.  The comprehensive Public Service Reform Plan sets out key commitments and actions for change across the public service under five central themes. These are:

Ø     Placing customer service at the core of everything we do;

Ø     Maximising new and innovative service delivery channels;

Ø     Radically reducing our costs to drive better value for money;

Ø     Leading, organising and working in new ways; and

Ø     A strong focus on implementation and delivery.

I do not need to tell you that the public service must focus on supporting citizens and businesses where and when they need it most, making the interaction with the State as straightforward and as beneficial as  possible.  This commitment is reflected across a range of initiatives being implemented throughout the public service. At the local level, examples of the progress made include the establishment of multi-service customer service facilities and the development of a range of e-payment options for commercial rates, housing rent and loans and even dog licence fees. 

We are reforming how staff are managed through the introduction of new working arrangements including new rosters, standardised arrangements for annual leave and an improved performance management framework.  Redeployment arrangements are protecting frontline services as staff numbers fall by enabling staff to be moved to those areas of greatest need.  Again local authorities are adapting to these new demands, be it by consolidating and creating new teams to optimise performance or by redeploying staff.

We intend to improve the management of expenditure through the introduction of performance based budgeting, which links expenditure more closely to performance indicators, strengthening the focus on performance and delivery and enabling improved performance measurement, reporting and accountability. Multi-annual Medium Term Expenditure Frameworks and the new Value for Money Code will facilitate greater structural planning based on priorities and upon reform with full public input and Oireachtas oversight. We are also working to maximise value for money by managing the State’s property portfolio in a more strategic and integrated manner.

Procurement is another key area for reform. We are driving reductions in public procurement costs through initiatives in aggregation, mandated use of common frameworks, performance measurement, increased professionalism and more innovative use of technology.  I am aware that local authorities are already implementing better procurement practices to generate savings, while a National Local Authority Procurement Group has been established to oversee the implementation of a Local Authority procurement strategy that will be consistent with our overall procurement policy framework.  

We are working to identify and evaluate innovative new business models for the delivery of non-core services. Shared services models in areas such as HR and payroll will reduce duplication, streamline business processes and reduce transaction times. I have recently published a new eGovernment strategy, which will ensure public services are delivered faster, better and more efficiently by leveraging the opportunities offered by new and existing information and communications technologies. A new and expanded rationalisation programme in the State Agency sector will deliver enhanced service efficiencies.

A dedicated Reform and Delivery Office has been established in my Department to coordinate the implementation of the Reform Plan. The office is led by a Programme Director with considerable experience of leading transformational change in the private sector. We also need a strong focus on the delivery of reform at sectoral level and, in this regard, I welcome the establishment of a Programme Management Office to support the Local Government sector.  I am also pleased that an Oversight Board is being established to ensure a strong focus on reform across the sector. Strong programme management and governance are essential if reform efforts are to succeed, and I am pleased that staff in the management office are already engaging with colleagues in the Department of the Environment, Community and Local Government and with my own officials in relation to such critical areas as shared services.

Despite some significant achievements in the past, we have all seen plans for the reform of the Public Service that have not lived up to expectations.   In other instances, good ideas have simply been tied up in endless debate about governance and responsibility. Accordingly, our Reform Plan focuses on real actions, real deadlines, and real results.

I want to commend the management and staff of the Local Authorities for the efforts they have made to date in implementing the recommendations of the Local Government Efficiency Review Group.  The Group identified efficiency savings and revenue raising options totaling €553 million and set out some 106 recommendations to facilitate the achievement of this target.   An Implementation Group, under the independent chairmanship of Pat McLoughlin, was established in April 2011 to oversee and advise on the implementation of the Efficiency Review Group’s report.   This Group recently submitted its first report to Government, and it is clear that much progress has been made.

It is critical that management and staff continue to work together to overcome any obstacles to the delivery of the more challenging recommendations. All available options must be considered to drive down costs and improve performance, whether that be shared services between Local Authorities, the external delivery of certain non-core services, a more efficient and strategic approach to procurement or the greater use of information and communications technology.

I have so far emphasised the important role of the Local Government Efficiency Review and the Public Service Reform Plan in providing a framework for reform.  However, it is the Croke Park Agreement that continues to serve as the key strategic means of ensuring improvements in productivity and work practices.  For example, it is the Croke Park Agreement that facilitates the continued delivery of essential services despite the reduction in staffing levels.  This is no easy task, and it is the Croke Park Agreement that has paved the way for the necessary reforms and efficiencies to be implemented.

The Government fully intends to honour the commitments given to staff under Croke Park.  It is self-evident that this can only hold true for as long as there is full co-operation with the implementation of the change and reform agendas set out in the Action Plans for each sector of the public service.  

The Croke Park Implementation Body is currently carrying out its second annual review of savings and progress under the Agreement and will publish its assessment in the coming weeks. I look forward to the outcome of that review which, I hope, will show that despite all the criticism, the agreement continues to deliver efficiencies and improvements across the public sector while ensuring industrial peace.

The Local Authority sector is responsible for the delivery of many critical services. These frontline services will suffer unless we all embrace the process of modernization and reform.  Change is not easy but the evidence is there that the local government sector can deliver – and is delivering – on the reform agenda.   We must not relax our efforts now. In fact we must redouble them to ensure that we deliver a world class public service that we can all be proud of. 

I wish you all an enjoyable and productive conference.

Thank you.