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Delivering Public Service Reform in Ireland

Presentation to EUPANInformal Meeting of Directors General

13th June, 2013

Paul Reid, Reform and Delivery OfficeDepartment of Public Expenditure and Reform

One of the key enablers of change is to have a burning platform

Extremely challenging fiscal, industrial and public agenda

Fiscal and economic

crisis

Expenditure consolidation

Reduce headcount

Increased demands for

services

Rebuild public trust

Maintain industrial

peace

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Three core elements to our strategy of Public Service Reform

LRC PROPOSALS 

PUBLIC SERVICE STABILITY AGREEMENT 2013 – 2016

THE HADDINGTON ROAD AGREEMENT

 May 2013

Strategic Political Operational

Strategic

We launched an ambitious & comprehensive Public Service Reform Plan

A plan with clear timelines and ownership that transforms;

1. How we are organised2. How we lead and manage people

3. Our future vision and strategy

Strategic

Fundamental reforms of how we are organised to deliver

• Shared services• Outsourcing of non core work• Procurement reform• Property consolidation• eGovernment / ICT / Cloud strategies• Rationalisation of state agencies• Expenditure reforms

Reforming how we are organised

Whilst at the same time continuously reducing public service numbers

Strategic

Fundamental reforms of T&C’s and the leadership of people

• Strengthened performance management• Revised pension entitlements• Revised rosters in front line services• Rationalisation of annual and sick leave• Single Public Service Pension Scheme• Workforce planning• Senior management mobility • Investment in coaching and mentoring

Reforming how we lead and manage

Political

• Ombudsman Amendment Bill (Oct 2012)• Freedom of Information (Amendment) Bill• Protected Disclosure Bill (Whistleblowing)• Regulation of lobbying• Houses of the Oireachtas Inquiries Bill• Accountability Framework for the Civil Service

Rebuilding the public trust in the State

Reforming the political and administrative framework

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LRC PROPOSALS 

PUBLIC SERVICE STABILITY AGREEMENT 2013 – 2016

THE HADDINGTON ROAD AGREEMENT

 May 2013

Operational

• 5 months of intensive negotiations on pay and pensions bill• 14M extra hours to be worked across sectors, without pay• Further pay reductions for all earning over €65K• Reductions in:

• overtime rates and volume• cost of premia payments• agency workers• costs of increments

• Supports further headcount reductions• Radical reform of working arrangements in each sector

A negotiated set of proposals to sustain industrial peace and deliver further savings

The largest productivity deal in the history of the state

Proposals to deliver savings of €300M (0.2% of GDP) in 2013and €1BN (0.7% of GDP) by 2015

Strong political oversight with a robust governance model

Dedicated Cabinet Committee on Reform

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Cabinet Committee on Public Service Reform

Minister for Public Expenditure and Reform

Other Government Ministers

Advisory Group of Secretaries General

Secretary GeneralD/PER

Shared Services Steering Board

Reform Delivery Board

Cross Cutting Project Boards

(as required)

Assistant Secretaries (Public Service Reform)

Departmental Secretaries General and

MACs

Reform Programme Boards in Four Main

Sectors

Management /Delivery of Reform

Political

Strategic Steering and Oversight

LEGEND

A robust Governance Model

Presenting single view of reform progress to Government

In the first 18 months we have made significant progress

• Expenditure deficit reduced to 7.6% (from 11.5% in 2009) and to go below 5% in 2014

• Transformation of budget and expenditure processes and controls

• Overall headcount reduction from 320K to 291K (since 2008)• Pay bill to be reduced by 20% by end 2015• Implementation commenced on shared services with

savings of between 17%-27%• Procurement plan agreed by Government to save €500M

(0.3% of GDP) over the next 3 years• Outsourcing agenda commenced• Major reforms on staff entitlements (annual leave, sick

leave, pensions)• Recruitment and appointment of key specialist skills in IT,

Procurement, programme governance, shared services• Publication of performance data – IrelandStat

There are many challenges in implementing Public Service Reform

High level / political support

Stability - Public Service Agreement(s)

Robust approach to the delivery

Balance central and sectoral initiatives

Effective communications

Leadership and ownership

Capacity and capability

CHALLENGES

• Launch next wave of reforms – November, 2013• Develop a vision and strategy for the civil service• Innovative approaches to service delivery• Greater efficiencies – procurement, property, shared

services• Change the relationship between the administrative

and political systems• Develop management capability and capacity –

programme / performance / personnel • Enhance communications – internal and external• Cultural shift

We are now planning to focus on the next wave of reforms

Questions / Discussion