Minister for Public Expenditure Brendan Howlin has said the Government is not planning on "mugging" anybody to bring about public service reform but is intent on bringing about a more efficient service with fewer resources.
Mr Howlin is due to outline his plan for a comprehensive spending review across all Government departments at a Cabinet meeting this evening. The plan is expected to involve a significant reduction in the number of so-called quangos.
Mr Howlin said he expected the Government to "immediately" embark on implementing measures designed to seek value for money.
The Coalition is "committed" to reducing the overall numbers in the public service but would make efforts to retain services that people need "as far as is practicable", he said.
Having already met the implementation committee of the Croke Park Agreement, the Minister said he believed there exists "an understanding of how dire the financial straits of this country are".
He said the Government is "determined" to find a path out of current economic strictures. “And, that means engaging with public sector unions but the reality is the money is finite."
Mr Howlin pointed out the high level of borrowing required by the State this year. "We are going to borrow up to €18 billion this year. That can’t go on. We need to balance our own budgets and we set the time frames to do that and we need to do that in a way that impacts as less as we can possibly do on the most vulnerable people who depend on public services.
"And, that means everybody in the public service and in the wider public engaging with our to do our job more effectively and efficiently," he said.
Acknowledging that the public service has implemented severe cuts in recent years, Mr Howlin said "we have to go an awful lot further".
He said some 16,000 people have been taken out of the public service in the last two years and that savings of about €1.3 billion have been achieved in that time with another €1 billion collected from the public service through the levy.
"So that’s about €2.3 billion – we have to go an awful lot further. We know that. I am ambitious and I believe the public service itself is ready to make the changes.”
Alluding to a demand for compensation of time in lieu of pay for civil servants, the Minister said: “We can’t think in the old way. The status quo is no longer acceptable. We need for creative solutions to be put forward. Not simply presenting a cheque or people wanting to work less hours or to have some compensation for giving.
“This is a collective effort for this country to get to a place where we can pay our own way without borrowing and where we can provide decent standards for the people who depend on public services and that is my absolute priority and I hope it can be achieved without imposing pay cuts and that’s the task I have set myself and the Government has set itself in the coming months.”
