Taoiseach to unveil public sector reforms

PLANS to impose redundancies across the public sector will be finalised early next year by a new group established today to examine how to cut public spending.

The so-called bord snip nua to be announced by Taoiseach Brian Cowen today, will report on how many redundancies should be made and where.

It comes after Health Minister Mary Harney yesterday announced a redundancy plan for the Health Service Executive that she said would cut administration costs by 20%.

Ms Harney told the Dáil the targeted, voluntary early redundancy scheme would initially target surplus management and administration staff but would apply to other staff “in due course”.

Asked if the scheme would target management, specifically those at the higher grades, Ms Harney said: “It is not a matter for me to identify who should stay and who should go.”

Finance Minister Brian Lenihan announced in last month’s budget that he would be introducing initiatives to reform public pay and staff numbers. But the HSE was the only body targeted for redundancies.

It is now understood the minister does not want to limit redundancies to the HSE and the expert group is being given “quite a free reign” to decide where reform is needed. It is understood Mr Lenihan does not want to “tie their hands”.

The group will produce a number of reports, all expected in a few months.

Mr Cowen and Mr Lenihan will announce details of the board along with a plan on public sector reform in Dublin Castle today.

Under the plans, state agencies such as Fás will have to produce value for money reports showing what they have achieved from their spending.

In his budget speech last month Mr Lenihan said: “One of the most limiting factors I have found in my short time as a minister is the lack of flexibility in re-allocating staff resources to the areas of greatest need. This has to change.”