THE PUBLIC service must be as competitive as the private sector, Taoiseach Brian Cowen said.

"Our public servants are relatively well paid but, in return, they must accept the need for openness to change and innovation on a par with the most competitive aspects of the private sector.

"They must show flexibility and be willing to meet the rigours of performance management and external accountability. They must reflect in their deployment and activity that which matters most: the service of the nation.''

Mr Cowen said that, with the Minister for Finance, he would announce over the coming weeks the specific measures arising from the work of the taskforce on public sector reform.

"This will include a rigorous appraisal of staffing levels, underpinned by external expertise, so that public service managers are supported in their efforts to ensure that available resources are appropriately aligned with priority needs,'' said Mr Cowen.

"I believe that this can be achieved in partnership, applying the terms of the recently-negotiated draft agreement. Such changes are, in any event, essential and will be pursued vigorously by the Government.''

Mr Cowen said there was in many quarters of the public service great talent and an impatience for reform."We need to liberate that talent and fast-track the reform."

He added: "The Budget provides for a 4 per cent reduction in the public service payroll relative to 2008. This is a challenging target, and it will be built upon with targets for further efficiency gains over subsequent years.''

He said the Budget had significantly reduced expenditure on consultancies, and severely curtailed spending on advertising and other support services.