Desmond GreavesDesmond GreavesSummer School Summer School September 2010September 2010

BLAIR HORANBLAIR HORANGENERAL SECRETARYGENERAL SECRETARY

Civil Public & Services UnionCivil Public & Services Union

Public Service provision depends on economic Public Service provision depends on economic performance.performance.

Budget 2005. High water mark of Celtic Tiger –Budget 2005. High water mark of Celtic Tiger –– Growth twice EUGrowth twice EU– Spending three times EUSpending three times EU– Employment half EUEmployment half EU– Debt lowest EUDebt lowest EU

““Colleagues in EU would love to have our record” Colleagues in EU would love to have our record” “Did not achieve merely by chance” “Sound “Did not achieve merely by chance” “Sound economic and fiscal policy”economic and fiscal policy”– Extra €30 billion since 1997Extra €30 billion since 1997

Spending Spending €20B€20B Tax ReductionTax Reduction €6B€6B InvestmentInvestment €4B€4B

Now it is clear that “low tax burden” created a Now it is clear that “low tax burden” created a bubble.bubble.

Public Service provision will now be Public Service provision will now be severely constrained by current severely constrained by current economic conditions.economic conditions.

Judge performance by reference to Judge performance by reference to OECD Report 2007.OECD Report 2007.

Numbers increase 1995 to 2007 by Numbers increase 1995 to 2007 by 30% but from a low base.30% but from a low base.

Catch up – Ireland third to bottom in Catch up – Ireland third to bottom in OECD as percentage of GDP.OECD as percentage of GDP.

Modernisation of Irish Public Service Modernisation of Irish Public Service commenced with Strategic commenced with Strategic Management Initiative 1994.Management Initiative 1994.

Influences were new public Influences were new public management theory – neo-liberal management theory – neo-liberal economic theory. Make Public Sector economic theory. Make Public Sector more like Private.more like Private.

Privatisation, deregulation, Privatisation, deregulation, commercialisation.commercialisation.

Citizens are more than consumers. Citizens are more than consumers. Entitlement.Entitlement.

Impact of ModernisationImpact of Modernisation

Better service delivery and citizen Better service delivery and citizen satisfaction. Good examples.satisfaction. Good examples.– RevenueRevenue– Social Family AffairsSocial Family Affairs– Motor Tax on lineMotor Tax on line– Passport OfficePassport Office– No queues.No queues.

Focus on internal process. Recruitment, Focus on internal process. Recruitment, performance, promotion.performance, promotion.

NPM theory main driver of agencification.NPM theory main driver of agencification. Small country 800 Public Bodies.Small country 800 Public Bodies. Waste of resources. Duplication. No clear Waste of resources. Duplication. No clear

benefit.benefit. OECD Report called for more integrated OECD Report called for more integrated

public service.public service. New public administration theory.New public administration theory.

– Retain – values/ethosRetain – values/ethos– Value for moneyValue for money– Citizen focus.Citizen focus.

New approach focussed on “one public New approach focussed on “one public service”.service”.

Main public service failures were in policy advice.Main public service failures were in policy advice. Excessive neo-liberal approach to economic policy.Excessive neo-liberal approach to economic policy. Key FailuresKey Failures

1. Increased supply main solution to house price inflation.1. Increased supply main solution to house price inflation.

House Prices 1987 - 2007House Prices 1987 - 2007

1987 -19971987 -1997 140%140%

1997 - 20071997 - 2007 241%241%

House Prices 1997 – 1999House Prices 1997 – 1999

19971997 26%26%

19981998 32%32%

19991999 20%20%

Total 1997 - 1999Total 1997 - 1999 99.6%99.6%

2. Euro membership removed market discipline.2. Euro membership removed market discipline.

3. Success of low corporation tax model 3. Success of low corporation tax model transferred to income and capital gains tax.transferred to income and capital gains tax.

Widespread view that fundamentals of Irish Widespread view that fundamentals of Irish economy superior to main European partners.economy superior to main European partners.

Rise in Euroscepticism across broad sections of Rise in Euroscepticism across broad sections of Irish society.Irish society.

Inflation 1999 - 2000Inflation 1999 - 2000

July 1999July 1999 1.2%1.2%

November 2000November 2000 7%7%

Pay policy in public sector.Pay policy in public sector.

First “Benchmarking Agreement” was First “Benchmarking Agreement” was under 1987 Programme for National under 1987 Programme for National Recovery.Recovery.

Usually every 5/7 years since 1960s Usually every 5/7 years since 1960s based on private sector comparisons.based on private sector comparisons.

2001 Benchmarking put an end to 2001 Benchmarking put an end to leap frogging claims.leap frogging claims.

Increases in Staffing 2001–2009 (McCarthy Report)Increases in Staffing 2001–2009 (McCarthy Report) Health Health 20%20% EducationEducation 27%27% State AgenciesState Agencies 11%11% Local AuthoritiesLocal Authorities 6%6% Civil ServiceCivil Service 7%7%

Civil Service 1998 to 2009 (Dail Question)Civil Service 1998 to 2009 (Dail Question) Assistant Secretary Assistant Secretary →→ 60%60% Principal Officer Principal Officer →→ 114%114% Assistant Principal Officer Assistant Principal Officer → → 109%109% Higher Executive Officer Higher Executive Officer → → 72%72% Executive Officer Executive Officer → → 101%101% Staff Officer Staff Officer → → 22%22% Clerical Officer Clerical Officer → → 14%14%

ConclusionConclusion

Growth in numbers from a low base but Growth in numbers from a low base but facilitated by windfall taxes. Significant facilitated by windfall taxes. Significant retrenchment a reality.retrenchment a reality.

Better service delivery for citizens over Better service delivery for citizens over past 15 years.past 15 years.

Fragmentation of public service a waste Fragmentation of public service a waste and duplication of resources.and duplication of resources.

Real failure in area of policy advice.Real failure in area of policy advice.