Public service reforms 'must not be mixed up with an ideology of privatisation'

The trade union movement’s economic think-tank has pointed to a significant drop in the cost of employing public servants and said reform of the sector must not be mixed up with an ideology of privatisation, commercialisation of public goods or the introduction of private sector processes.

The Nevin Economic Research Institute (NERI), referenced OECD figures which showed that, in 2010, total compensation — wages plus employer social contributions — of general government employees here came to 12.3% of GDP compared to the OECD average of 11.1%. By 2014, the cost had fallen to 10% compared to the OECD average of 10.6%.

Tom Healy, NERI director, said neither levels of remuneration, nor the size of the workforce explains how efficient a public service is but he said interpreting the figures it could not be concluded that the Irish public service is bloated or over-paid compared to OECD norms.

“In key areas of service delivery including health and education there is scope everywhere and always to continue improvements,” he said.

“Caution, however, is necessary. Too often the term and concept of ‘reform’ may be mixed up with an agenda that is driven by an ideology of privatisation, commercialisation of public goods such as education and health as well as the introduction of norms and processes from the private commercial world that either do not fit at all or are badly matched with the requirements of the public sphere.”

Mr Healy said that such an ideology might seek to transform a particular area of public service into a production line as if the service delivered can be reduced to measureable inputs, outputs and indicators.