Cowen hopes 'perestroika' will revitalise departments

ANALYSIS: Restructuring has echoes of measures taken by Gorbachev, writes DEAGLÁN DE BRÉADÚN , Political Correspondent

ANALYSIS:Restructuring has echoes of measures taken by Gorbachev, writes DEAGLÁN DE BRÉADÚN, Political Correspondent

THE RUSSIAN word “perestroika” gained international currency when it was used to describe the structural changes made by Soviet leader Mikhail Gorbachev over 20 years ago to revitalise the communist system of government.

The term comes to mind when considering the reconfiguration of departmental responsibilities announced by Taoiseach Brian Cowen as part of his long-awaited Cabinet reshuffle.

As his recent trip to Silicon Valley underlined, Cowen is committed to creating new jobs through innovation, especially in the high-technology sector. This is reflected in his decision to rename the Department of Enterprise, Trade and Employment the Department of Enterprise, Trade and Innovation and to transfer his close political ally at Cabinet, Batt O’Keeffe, from the Department of Education and Science to one of the most important but also challenging roles in government.

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A key factor in this as well as other appointments was the fact that O’Keeffe is seen as a good media performer. He will also be happy to bring the RD funding for the Programme for Research in Third-Level Institutions with him from his former department.

O’Keeffe is swapping places with Mary Coughlan, who takes over what will henceforth be known as the Department of Education and Skills. She in turn will bring part of her old portfolio with her, as she will retain responsibility for skills and training policy.

In addition to the work of the Expert Group on Future Skills Needs, responsibility will transfer for the training activities of Fás, the national training and employment authority, which will be aligned more closely with the related activities in the training area which are already part of the Department for Education remit.

Unlike other announcements, the Coughlan move was not widely forecast, which suggests the decision was taken late in the day. One of the big winners yesterday was Éamon Ó Cuív, whose political demise was generally predicted but who has emerged with a more senior ministry than heretofore with his transfer from Community, Rural and Gaeltacht Affairs to Social and Family Affairs, which will become the Department of Social Protection.

The employment services and community services programmes of Fás are being transferred to Ó Cuív’s new department and Cowen intends to give him responsibility for the Rural Social Scheme “so that services which provide income and direct work opportunities for the unemployed are brought together”.

In due course, Cowen envisages that responsibility for the payment of redundancy and insolvency payments will also come under Ó Cuív’s remit. Responsibility for Fás has been divided among three Departments – Enterprise, Trade and Innovation; Social Protection and Education and Skills – whereas previously it was entirely under Enterprise, Trade and Employment. This is already a focus of Opposition criticism.

There was little surprise that Government Whip Pat Carey was promoted to Cabinet. One of the “worker bees” of Leinster House, Carey will head up the Department of Community, Rural and Gaeltacht Affairs which will now become the Department of Community, Equality and Gaeltacht Affairs and will incorporate responsibility for social inclusion policy and family policy from the Department of Social and Family Affairs and for equality, disability, integration and human rights from the Department of Justice, Equality and Law Reform.

The Department of Arts, Sport and Tourism becomes the Department of Tourism, Culture and Sport under Mary Hanafin, who is moving from Social and Family Affairs. The new name reflects the priority given by Cowen to the tourism and hospitality industry. Hanafin’s new job is being widely seen as a demotion, but restoring the hard-hit tourism sector to economic health is a significant challenge. With  Minister for Finance Brian Lenihan undergoing major health treatment, Cowen is appointing Dara Calleary to be Minister of State at the Departments of Finance and the Taoiseach, in addition to his responsibility for labour affairs.

Calleary, a solid media performer, is likely to undertake out-of-town speaking assignments that would not be appropriate for Lenihan.

This appointment is also linked with the talks between the Government and the unions on public sector reform, with Cowen claiming it will  “strengthen the political leadership of the change process“  in the public service.