Public sector overhaul needed to minimise cuts, claim experts

PROPOSALS:MAJOR PUBLIC sector reforms are essential to help change public administration and minimise cuts in service for the public, according to the Wright report.

The Department of Finance must bear its share of responsibility for “disappointing” progress on modernisation of the public service, the expert panel which wrote the report states.

“The department has not prioritised public service modernisation, and has devoted limited resources to the area.”

The Irish public service experiences much greater rigidity in managing changes than other EU countries, the report says.

When resources were abundant during the Celtic Tiger years, the need to improve the efficiency of the public service was not seen as being as important as it was now.

While social partnership had not been supportive of dramatic public service reform, the report says the terms of the Croke Park agreement showed this was no longer the case. More work was needed to make the process by which departments adapted to spending constraints more transparent and to identify other possible reforms.

While the challenge of public service modernisation was relatively well-defined, the strong organisation for effective implementation is missing, according to the report.

It suggests the establishment of a public service management division to push forward the process, as well as a private sector advisory board.

To drive forward the reforms proposed under the Croke Park agreement, a full-time taskforce should be established. This would include departmental staff, members of other departments and private sector experts in change management.

The taskforce’s leader would have direct access to the minister of state responsible for public service modernisation.

The panel proposes a variety of internal reforms within the department, but said no core functions should be moved out of the department, with the possible exception of the public service management and development division. This could be moved to a new department with specific functions in this area.

Of the 542 staff in the department, only 39 are masters-trained economists, the report points out. This is an “extraordinarily low” number by international standards. In contrast, 60 per cent of the Canadian department of finance are economists trained to masters level or higher, and 40 per cent in the Dutch finance ministry.

The department must make an urgent and sustained effort to boost its number of economists and other skilled staff, it says.

“Management should define the technical needs of positions and hire the best person for the job from within government or otherwise.”