Transcript Debate: - This House believes that Ireland cannot afford a blanked

Desmond Greaves
Summer School
September 2010
BLAIR HORAN
GENERAL SECRETARY
Civil Public & Services Union

Public Service provision depends on economic
performance.

Budget 2005. High water mark of Celtic Tiger –
–
–
–
–

Growth twice EU
Spending three times EU
Employment half EU
Debt lowest EU
“Colleagues in EU would love to have our record”
“Did not achieve merely by chance” “Sound
economic and fiscal policy”
– Extra €30 billion since 1997




Spending
Tax Reduction
Investment
€20B
€6B
€4B
Now it is clear that “low tax burden” created a
bubble.
 Public
Service provision will now be
severely constrained by current
economic conditions.
 Judge
performance by reference to
OECD Report 2007.
 Numbers
increase 1995 to 2007 by
30% but from a low base.
 Catch
up – Ireland third to bottom in
OECD as percentage of GDP.
 Modernisation
of Irish Public Service
commenced with Strategic
Management Initiative 1994.
 Influences were new public
management theory – neo-liberal
economic theory. Make Public Sector
more like Private.
 Privatisation, deregulation,
commercialisation.
 Citizens are more than consumers.
Entitlement.
Impact of Modernisation

Better service delivery and citizen
satisfaction. Good examples.
–
–
–
–
–

Revenue
Social Family Affairs
Motor Tax on line
Passport Office
No queues.
Focus on internal process. Recruitment,
performance, promotion.
NPM theory main driver of agencification.
 Small country 800 Public Bodies.
 Waste of resources. Duplication. No clear
benefit.
 OECD Report called for more integrated
public service.
 New public administration theory.

– Retain – values/ethos
– Value for money
– Citizen focus.

New approach focussed on “one public
service”.



Main public service failures were in policy advice.
Excessive neo-liberal approach to economic policy.
Key Failures
1. Increased supply main solution to house price inflation.
House Prices 1987 - 2007
1987 -1997
140%
1997 - 2007
241%
House Prices 1997 – 1999
1997
26%
1998
32%
1999
20%
Total 1997 - 1999
99.6%
2. Euro membership removed market discipline.
Inflation 1999 - 2000
July 1999
1.2%
November 2000
7%
3. Success of low corporation tax model
transferred to income and capital gains tax.

Widespread view that fundamentals of Irish
economy superior to main European partners.

Rise in Euroscepticism across broad sections of
Irish society.
 Pay
policy in public sector.
 First
“Benchmarking Agreement” was
under 1987 Programme for National
Recovery.
 Usually
every 5/7 years since 1960s
based on private sector comparisons.
 2001
Benchmarking put an end to
leap frogging claims.
Increases in Staffing 2001–2009 (McCarthy Report)
 Health
20%
 Education
27%
 State Agencies
11%
 Local Authorities
6%
 Civil Service
7%
Civil Service 1998 to 2009 (Dail Question)
 Assistant Secretary
→
60%
 Principal Officer
→
114%
 Assistant Principal Officer
→
109%
 Higher Executive Officer
→
72%
 Executive Officer
→
101%
 Staff Officer
→
22%
 Clerical Officer
→
14%
Conclusion

Growth in numbers from a low base but
facilitated by windfall taxes. Significant
retrenchment a reality.

Better service delivery for citizens over
past 15 years.

Fragmentation of public service a waste
and duplication of resources.

Real failure in area of policy advice.