RESTRUCTURING AT the Department of Finance under its newly appointed secretary general John Moran offers a fresh approach to how things might be done in an organisation noted for its conservatism. The transfer of some traditional responsibilities to the Department of Public Expenditure and Reform created an opportunity for a modernisation of functions at Finance that appears to have been seized with enthusiasm. Particular emphasis has been placed on supporting job creation and improving living standards.
A revised “statement of strategy” noted that, for the past year or so, the department had operated under commitments given under the EU–IMF funding programme. Now, however, it was appropriate to redirect its focus towards measures that would enhance confidence, deliver sustainable growth and repair the damage done to the lives of citizens, the economy and the banking sector. In that regard, its international section would be expanded to promote Ireland on the bond market and as a location in which to do business.
These changes will come at a price. Mr Moran noted that costs within the department had fallen significantly since 2008, reflecting a fall in staff numbers and associated supports. It would not be possible to move from crisis management to strategic planning, he said, without the additional resources the Government had agreed to provide. Publication of this revised strategy was, therefore, something of a public softening-up process in anticipation of a recruitment drive. If the Department becomes more effective in promoting investment and job creation, it will be money well spent.
Five principal goals have been set out: to increase employment; ensure sound finances; raise living standards; return to the international debt market at the earliest possible date and complete a restructuring of the banking system. Delivery on those fronts will involve complex interactions at political, administrative and international level, along with favourable conditions.
There is every reason to plan for the future by encouraging innovative thinking within the department about the problems facing society. An IMF report identified debt relief for homeowners as one measure that could boost economic recovery. Mortgage debt relief would have to be carefully calibrated, however, as relief for one citizen would involve cost for another. Legislation on this potentially contentious issue, although promised for some time, is still awaited.