Committee Reports > List of Committees > Dáil > 1985 > Committee on Public Expenditure > Report - Review of Department of the Public Service

REPORT ON REVIEW OF DEPARTMENT OF THE PUBLIC SERVICE

INTRODUCTION

1.The review of the Department of the Public Service (D.P.S.) is one in a series of comprehensive reviews of the operations of Government Departments being undertaken by this Committee. The objective of the review is to assess whether or not the D.P.S. has proper arrangements in place for the achievement of value for money in those areas for which it is responsible, and to recommend improvements in this respect if possible.

2.The Committee’s decision to deal early on with the D.P.S. in the context of its major review of Government Departments was prompted by two main considerations:

(1)the examination would provide the Committee with an overall picture of the work and effectiveness of that Department, which was established by Government in 1973 and charged with the task of allocating functions and responsibilities between different Departments from the point of view of efficiency and effectiveness, and of improving standards in these latter respects;

(2)the Committee was concerned to find out to what extent the D.P.S. itself, which has grown considerably since its establishment, had developed its expertise to meet the challenge of a modernised public service and whether it had succeeded in meeting the major objectives set down for it over the years.

The Committee was also concerned that from time to time Oireachtas members receive observations as to the size of the Public Service and criticisms of different aspects of the service, particularly in relation to dealings with the public. The Committee was concerned to determine to what extent improvements could be made.

3.The Committee understands that the Minister for the Public Service will shortly publish a White Paper on the future re-organisation of the Public Service. It is recognised that this White Paper may contain new policies and a more positive direction for the service as a whole and, in that connection, the Committee wishes to acknowledge the contribution of the Minister in taking urgent initiatives to bring his Department and the Public Service as a whole into line with the most modern practices available. The Committee’s views are based, nevertheless, on their observations of the situation in the Department to the extent that this was gleaned during the review undertaken between April and September, 1984. Any comments that may be made in this report are intended as constructive criticisms which this Committee hopes will be interpreted as a contribution towards the goal of a more efficient and cost effective Public Service.

4.In January 1984 the Committee issued a questionnaire (Appendix I) to Mr. Kevin Murphy, Secretary of the D.P.S. Having considered the response received (Appendix II), the Committee met with the Secretary and his officers, between April and June, 1984. Between then and September 1984, Mr. David Algeo of Craig Gardner, who was engaged to assist in the reviews, held discussions with personnel in the D.P.S. These meetings and discussions have enabled the Committee to:

(1)assess the evolution of the D.P.S., its relationship with other Government Departments (in particular with the Department of Finance) and the efforts which have been made by the D.P.S. since its establishment in 1973 to:

-influence the size of the Public Service, in absolute terms and by reference to the number of grades;

-improve efficiency through the use of computers and other methods;

(2)form a view of the Department’s current arrangements for achieving value for money;

(3)identify activities to which a high priority should be given;

(4)make a preliminary assessment of the benefits attainable.

5.This Report sets out the findings of the Committee. It is structured as follows:

(1)the more important matters addressed in this Report are discussed in summary form (Paragraphs 7-19);

(2)the present structure and activities of the D.P.S. are outlined (Paragraphs 20-23);

(3)opportunities for improving productivity in the non-industrial Civil Service are indicated (Paragraphs 24-28);

(4)various aspects of the work of the D.P.S. are described and commented upon (Paragraphs 29-104);

(5)the Committee’s conclusions and recommendations are presented in summary form (Paragraphs 105-111).

6.This Report should be read in conjunction with the Minutes of Evidence of 17 April to 5 June 1984 inclusive. These are available from the Government Publications Office. References are made in this Report to relevant questions in the Minutes of Evidence.

REPORT OVERVIEW

7.In October 1983, the Minister for the Public Service, Mr. John J. Boland, T.D., described an initiative which he was taking to improve the management of his own Department. The Minister’s comments encapsulate accurately the environment necessary to establish proper arrangements for the achievement of value for money and the action which the Minister then proposed to take. The Minister said:

“In Ireland, as in most countries, the Civil Service (to start at the centre) is much better at advising Ministers, preparing legislation and so on than at delivering and managing services on a large scale. In public administration, particularly under our system of government, this bias is probably inevitable. Since it is, in theory, the Minister who takes all decisions, it is easy to understand why many Civil Service managers see their priority as being to protect their Minister from public embarrassment and to satisfy him that they have acted correctly. This is accountability of a kind. But it does nothing to make public servants feel personally responsible for the quality of the service they provide or for the costs - visible and invisible - of providing it.

That is why I am introducing a systematic and more accountable approach to management in Government Departments, starting in my own Department. At the heart of the system is an annual departmental plan. This will set out the Department’s objectives for the year ahead and the resources to be devoted to achieving each of them. For a start, this plan will make it easier for a Minister to satisfy himself that all the Department’s activities contribute fully to Government policy and that the Department’s priorities in allocating its resources coincide with his. In essence, the system will pinpoint the results which each manager will be expected to produce and will give him a fixed budget with which to deliver the results. He will be personally responsible for both his results and his costs.”

8.Progress has been made within the D.P.S. towards the implementation of that initiative. A programme has been established to put in place a number of the arrangements necessary for the achievement of value for money (Paragraphs 91-96).

9.Three criteria are used for deciding if an organisation has made proper arrangements for achieving value for money. These are that:

(1)its objectives, mission or purpose should be clearly understood;

(2)managers should be assigned clear responsibilities consistent with the achievement of those objectives;

(3)appropriate control procedures should be in operation.

10.Within the D.P.S. the fundamental tasks of establishing objectives and assigning responsibilities are well advanced. There remains, however, a substantial amount of work to be done particularly in relation to the day-to-day management and deployment of resources and the achievement of objectives (Paragraphs 56-58, 97-104).

11.The cost of the non-industrial Civil Service whose efficiency and effectiveness the D.P.S. influences is estimated by the Committee to be £460 million. General experience of management in large bodies, where there is a low level of use of technology and where there have not been recent extensive organisation and methods studies, is that substantial improvements are possible. The Committee considers that there is a potential to achieve significant productivity improvements in the non-industrial Civil Service within five to ten years. The Committee recommends that the D.P.S. should devote considerable efforts to the achievement of benefits primarily in the form of significant tangible productivity improvements in the non-industrial Civil Service. This should be the central aim of the advisory service units. The Committee sees as a most important priority the identification of public expenditure programmes which could be systematically reduced in cost and qualitatively improved (Question 18). In monitoring the performance of the advisory service units the Minister should seek to satisfy himself that the benefits achieved are significantly in excess of the costs of the relevant advisory services. (Paragraph 24).

12.It is important to note that benefits may not be realised as overall reductions in public expenditure. There are numerous ways in which the resources can be usefully redeployed - only one of which is to reduce public expenditure. Other opportunities include improving current services, providing new services or undertaking capital projects. However the resources are used, the overall effect should be to improve the value derived from public expenditure.

13.It is envisaged that these productivity improvements would be achieved through a combination of improved organisational arrangements, revised procedures, new systems and greater use of technology (Paragraphs 25-28).

14.Significant manpower, equipment and software costs would be incurred in achieving these benefits. To ensure that these do not become additional ongoing costs, projects should only be approved where there is a detailed cost justification incorporating a return on investment significantly greater than the cost of borrowed funds. The Secretary of a Department should undertake to reflect the anticipated benefits in future budgets for his Department in terms of reduced costs or improved services.

15.It is also worth noting that the comments in Paragraph 11 above do not include any provision for benefits that:

(1)could be achieved in non-commercial State-sponsored organisations or in areas of the Public Service outside the non-industrial Civil Service;

(2)might result from the use of better information to improve the cost-effectiveness of programmes generally.

16.While the major responsibility for the achievement of benefits ultimately rests with the various Departments, the Minister for the Public Service should make every effort to encourage their achievement and should use his numbers control function to prompt action when appropriate.

17.In order to monitor the progress being achieved, the Committee will include in its Annual Report, from 1985 on, a clear statement of identified potential gains and actual realised gains. In this regard the Committee will be particularly interested to note the benefits achieved from the review of the Office of the Revenue Commissioners undertaken by the D.P.S.

18.The Committee recommend that the D.P.S. give priority to:

(1)organising advisory projects with particular emphasis on:

-the preliminary scoping of work;

-the establishment of terms of reference;

-cost benefit assessments;

-maintenance of continued management commitment in “client departments” to the successful implementation of recommendations (Paragraphs 31-37);

(2)improving the range, depth and breadth of available skills and experience (Paragraphs 41-48);

(3)establishing overall departmental information systems plans as a pre-requisite to sanctioning expenditure on computer systems (Paragraphs 49-52);

(4)staff organisation, deployment and utilisation (Paragraphs 56-58);

(5)improving procedures to identify the full cost of programmes (Paragraphs 67-71);

(6)developing manpower planning and control procedures for use throughout the Civil Service (Paragraphs 72-86);

(7)improving internal management information systems (Paragraphs 97-100).

19.The Committee plans to enquire into the progress made with the implementation of the recommendations made in this Report in about twelve months time. In those instances where the Minister for the Public Service does not have the authority to implement a recommendation the Committee recommend that he should seek a Government decision on the matter.

SUMMARY OF THE ACTIVITIES OF THE D.P.S.

20.The Secretary of the Department, Mr. Kevin Murphy, described (Question 1) five main objectives of the D.P.S. as follows:

(1)“to allocate functions and responsibilities between different Departments and different parts of the Public Service in the best possible way”;

(2)“to help these Departments or organisations to organise themselves in the best way and to have effective top management systems, proper allocation of responsibility and adequate information systems, computer systems and other systems”;

(3)“to recruit the best people, put them in the right places, promote them, motivate them, etc. This could be described as manpower planning and personnel policy”;

(4)to look after “pay, conditions, pensions and all the control and regulatory work of the Civil Service and the Public Service”;

(5)to bring about “fundamental change” by “standing back…and looking at the Public Service in a much more objective way”.

This description of the objectives of the D.P.S. was the basis for much of the discussion by the Committee with the Secretary and his officials. A more formal statement of the aims, objectives and programmes of the D.P.S. is contained in Appendix III.

21.The D.P.S. has three major divisions:

(1)The Remuneration and Conditions Division which deals with matters of pay, conditions and staff relations throughout the public sector;

(2)The Planning and Development Division which is responsible for general, structural and legislative matters, training and training policy and for assisting in drafting policy concerning public service matters such as the forthcoming White Paper on public service re-organisation. It is also responsible for introducing service-wide practices and policies such as those operated by the Top Level Appointments Committee (TLAC);

(3)The Management and Personnel Division which is responsible for numbers control, recruitment policy, staff development and appraisal, manpower information and the promotion of Irish in the Civil Service. Through the Central Data Processing Service (CDPS) it controls expenditure on computer systems and provides a bureau service for Civil Service and some other Public Service users. It also provides an advisory service on computers through the CDPS and on organisation, methods and staffing through the Management Services Unit and the Operations Research Unit.

Details of the Department’s organisation are set out in Appendix IV.

22.The DPS staffing levels and annual expenditure are as follows:

At 31 March 1985 the D.P.S. staffing level was 429.

23.The Committee examined in detail the growth of D.P.S. staff numbers since the establishment of the Department. The members were informed that over the period 1974 to 1983 the numbers in the D.P.S., excluding the Central Data Processing Service (CDPS), went up by 34 per cent. In the CDPS they went up by 123 per cent and the overall increase was about 65 per cent for the Department as a whole. Other increases in the same period included 8 per cent in the case of the Department of Defence, 129 per cent in the Department of Justice and 17 per cent in the Department of Finance staff. Within the D.P.S. the number of Assistant Principals and more senior personnel has increased by 65 per cent since 1974 whilst increases in the numbers of individuals in the lower grades has been of the order of 10 per cent (Questions 292 to 311, 338, 347, 350).

PRODUCTIVITY IMPROVEMENTS

24.The Committee considers that there is a potential to achieve significant productivity improvements in the non-industrial Civil Service within five to ten years. The justification for the advisory functions of the D.P.S. should be determined by the tangible benefits which result from their work. The following paragraphs outline the reasons why the improvements are considered feasible and the manner in which they should be attained.

25.In assessing the potential to achieve productivity improvements the following factors have been considered:

(1)the cost of personnel at staff officer level and below is approximately 50 per cent of total staff costs. In many office environments the cost of administrative support personnel is less than 25 per cent of the cost of all white collar personnel. This is achieved through the establishment of appropriate management structures, clerical procedures and the use of management reporting and data processing systems. There is no apparent reason why the volume of clerical activity should be higher in the Civil Service than in office organisations generally. There thus appears to be a potential to achieve productivity improvements in the clerical area;

(2)the use of various methods for analysing overhead cost structures usually identify opportunities for improving productivity by at least 10 per cent. This assumes that the overall organisation does not include a large volume of routine clerical activity. Much of the 10 per cent improvement would be achieved in middle and senior management levels;

(3)the use of office information systems and related technologies (dictaphones, digital PBXs, word processors, fourth generation languages, electronic mail, electronic in-trays, electronic diaries etc.) are generally recognised as providing opportunities for achieving productivity improvements of the order of 15 per cent within five years in organisations with a lesser clerical content and greater use of technology than is currently found in the Civil Service. Comparable benefits should be achievable within the Civil Service.

26.General weaknesses in the planning and management reporting systems in Departments which are referred to in the Minutes of Evidence (Questions 10, 13, 14, 72 to 78, 85 to 92) reinforce the Committee’s view that significant improvements should be attainable. Furthermore, the D.P.S. appear to consider that opportunities for staff reduction may exist in every Department. (Question 99).

27.It would be unreasonable to expect to achieve all of the potential benefits implicit in the factors considered in Paragraph 25. To do so would assume very substantial improvements. However, given the apparent magnitude of the potential benefits the Committee has concluded that the realisation of productivity improvements should be the central aim for the advisory services provided by the D.P.S.

28.The Minister should achieve improvements by a coordinated use of his numbers control function with his advisory functions. The numbers control function can be used to achieve a targeted reduction in the authorised establishment of non-industrial civil servants assigned to existing programmes. The target should be adjusted to reflect changes in the volume of activity. It should be noted that increased activity may not necessarily require a proportional increase in numbers. The advisory services should be used to assist line managers achieve the required improvements without reducing the quality of service provided.

D.P.S. ADVISORY SERVICES

29.A number of Advisory Service units have been established within the D.P.S. to improve efficiency and effectiveness in the Public Service. These include the:

(1)Central Data Processing Service (CDPS) which, inter alia, provides computer system consultancy service;

(2)Civil Service Training Centre (CSTC) which provides training for Civil Service personnel;

(3)Management Services Unit which provides a management consultancy service;

(4)Operations Research Unit which conducts efficiency and methods reviews.

Personnel have also been assigned to implement a structural reform programme based on the recommendations of the Public Service Organisation Review Group (PSORG - Devlin Committee).

30.These advisory units have been established for some time and a number of successful projects have been completed. In the recent past the D.P.S. has instigated a number of important projects designed to improve the public’s perception of the Public Service (Questions 206 to 232, 365). However, the Committee considers that the effectiveness of the advisory service units can be improved and greater benefits realised.

The main opportunities for improvement relate to:

(1)overall project organisation with particular emphasis on establishing terms of reference and maintaining management commitment in “client departments” to the successful implementation of recommendations (Paragraphs 31-37);

(2)the achievement of benefits with particular emphasis on the preliminary scoping of work including cost/benefit assessments together with post-implementation reviews at the conclusion of a project (Paragraphs 38-40);

(3)the extension of the range, depth and breadth of available skills and experience among D.P.S. staff (Paragraphs 41-48);

(4)expenditure on computer systems (Paragraphs 49-55);

(5)staff organisation, deployment and utilisation (Paragraphs 56-58).

Overall Project Management

31.The D.P.S. undertakes a wide range of projects. These can conveniently be categorised into two groups:

(1)projects concerned with the control and regulation of the Civil Service;

(2)projects of a general advisory nature.

32.In the case of projects which are directly related to the Department’s responsibility for the control and regulation of the Civil Service, D.P.S. personnel need to undertake regular reviews of staffing levels and organisation within the Service. This is a most important function. The D.P.S. should establish a rolling five year programme during which the staffing levels, organisation and procedures of each Department would be reviewed.

33.The overall organisation of advisory projects is perhaps the factor which most influences the benefits ultimately derived. Weaknesses in this area are contributing to problems in implementing recommendations and achieving benefits (Question 370).

34.A good example of this problem is the implementation of the programme of structural reform in the Public Service. Extreme difficulty has been found in successfully implementing the PSORG recommendations (Question 71, 120 to 122).

35.The problem is reflected in a more general way by the comments of the Public Service Advisory Council to the effect that “problems are experienced in securing the implementation of recommendations for improvement”. This is a fundamental problem as it brings into question the value being derived from expenditure on these advisory services.

36.The Committee recommends that the organisation of advisory projects should include the following features:

(1)work should generally only be undertaken in those Departments where the Department requests the involvement of the D.P.S., but the Minister for the Public Service, acting on behalf of the Government, may direct a Department to undertake exercises with the assistance of the D.P.S.;

(2)the terms of reference of each study should clearly identify what it is intended to achieve and by what date. They may be agreed at official level wherever the D.P.S. considers that such agreement does not jeopardise the successful completion of the study. In general it should be clear that the study has the support of the Minister responsible for the Department requesting the study;

(3)the D.P.S. should only continue work on a study as long as it is satisfied that the expected benefits are likely to be achieved within the agreed timescale. Where difficulties arise, the D.P.S. should withdraw until revised terms of reference with achievable goals are agreed between the Minister for the Public Service and the Minister sponsoring the study. Should a study continue for a material amount of time beyond its targeted completion date or should the study fail to achieve its objectives then the D.P.S. must be held to have contributed to that failure;

(4)there should be post-implementation reviews of all major projects to determine whether or not the objectives were achieved. This should apply to all projects involving more than one hundred man days;

(5)copies of reports, including post implementation reviews, should be submitted to the Minister for the Public Service and to the Minister for the Department on whose behalf the project was undertaken.

37.These recommended working methods are designed to ensure that D.P.S. resources are devoted to areas where benefits can be achieved within a reasonable timescale. The resources allocated to the advisory service areas should be determined by the demands for assistance which result from use of the working methods outlined above.

Achievement of Benefits

38. Currently the terms of reference for many projects are relatively “soft” and do not focus clearly on the achievement of tangible benefits. Projects, other than feasibility studies, should only be undertaken where cost benefit analyses indicate that project costs are justified. Certainly no implementation projects should be carried out for a Department unless the Secretary of that Department undertakes to incorporate the expected benefits into the Department’s budget and operating plans.

39.The Minister for the Public Service should give priority to projects which have high expected benefits. He should seek to develop a portfolio of projects which, in aggregate, would achieve an overall productivity improvement target established by him. In this regard it should be noted that some of the productivity gains will result from internal departmental projects or consultancy projects sanctioned by the D.P.S. Internal projects undertaken primarily by the staff of a Department, possibly with some external assistance, are to be particularly encouraged (Questions 191 to 192). Where outside consultants are used their terms of reference should be consistent with the guidelines in Paragraph 36 of this report.

40.The D.P.S. should systematically monitor benefits achieved by all projects to determine whether Civil Service productivity is improving at least as fast as the targets set by the Minister for the Public Service. Undertaking post implementation reviews will facilitate this monitoring process.

Available Skills and Experience

41.The personnel within the advisory areas of the D.P.S. may not possess a sufficiently wide range and depth of skills. They are drawn exclusively from within the Civil Service and often have too little relevant experience.

42.A major problem facing public sector organisations today is the perceived lack of value derived from public expenditure. The Committee perceives a lack of proper reporting systems, management information systems and planning in some Departments and see a need for the D.P.S. to deal positively with weaknesses and omissions in that regard (Questions 72 to 78, 85 to 92, 173 to 175, 236). The Committee noted that the D.P.S. did not appear to be particularly concerned about the small numbers of qualified accountants in the Civil Service or to consider that the application of modern accounting skills had a role in improving management’s ability to improve the value derived from Civil Service expenditure (Questions 139 to 147, 157). Furthermore, in the Management Services Unit, there is not one cost accountant, one economist or one computer systems expert, although a number of its personnel do have an appreciation of these subjects. In essence, the Management Services Unit does not contain within it a sufficient range of expertise to establish the systems necessary for line managers to identify and eliminate unnecessary costs and improve the value derived from public expenditure. The skills available are most applicable to organisation and personnel studies. This reflects the strong personnel and industrial relations experience of many D.P.S. personnel (Questions 137, 181 to 183).

43.Similar comments can be made about the CSTC although the staff there have been augmented recently to include some individuals with computer expertise (Questions 245, 246). It still does not include any tutor with strong management expertise and experience of the organisational, procedural and reporting systems necessary for the efficient operation of organisations. Whilst the CDPS contains a large number of people with computer experience, they do not have sufficient knowledge of modern management systems to enable them to assist managers to take full advantage of the opportunities presented by technology.

44.The range of courses offered by the CSTC is too narrow, focussing primarily on role training. These are relatively “soft” courses and do not provide participants with the skills to focus on the economy, efficiency and effectiveness of programmes. The proportion of the current CSTC resources devoted to programme management, performance improvement, management accounting, information technology and management reporting systems should be increased significantly.

45.Investment in training throughout senior levels of the Civil Service appears very low, being approximately one day per person per year. This is a matter which needs to be addressed urgently.

46.The practice of recruiting personnel into the D.P.S. advisory services exclusively from within the Civil Service results in the range of experience being too restricted. The fact that individuals frequently stay for relatively short periods of time (four to five years in the Management Services Unit) means that the average practical experience available is too low (Question 311). The D.P.S. may provide excellent experience to individuals but that is not its primary purpose.

47.There is a need to improve significantly the capabilities of these Units by increasing the range of skills available and the average level and breadth of experience of individuals. There is also a need to review the overall organisation of the Structure Reform Programme personnel, the Management Services Unit, the Operations Research Unit and the advisory services of the CDPS to see whether a merging of all the advisory services into one unit with less formal internal reporting lines might improve their overall effectiveness.

48.Provision of adequate experience and specialisation is constrained by current policies affecting staff mobility, open recruitment and the provision of adequate career paths. However, these problems must be addressed, for without sufficient depth of specialisation and breadth of experience the advisory units cannot be effective.

Co-ordinating Computer Expenditure

49.Telecommunication and computer technologies are rapidly converging and presenting major potential benefits to all organisations. It is most important that computer expenditure incurred by public service organisations should be co-ordinated in a manner which ensures that these benefits are realised. These benefits are above and beyond the tangible benefits derived from individual projects and flow from the ability to transfer information between systems.

50.The ability of computers to rapidly transfer information of all types (data, text, voice and images) is one of the most important features which enable managers to derive major benefits from their use. This potential can be greatly reduced if hardware and software procurement policies are weak and fragmented, allowing incompatible systems to be acquired.

51.Currently the CDPS sanctions requests to acquire hardware and software on an ad-hoc basis. This must inevitably lead to major inefficiencies and the loss of valuable opportunities.

52.Departments requesting additional computer hardware or software should have developed a strategy for using information processing systems. The strategies should be based upon the achievement of each Department’s aims and objectives and contain an overview of the facilities to be provided, an outline of the hardware, software and communications facilities required and a preliminary assessment of costs and benefits. Individual Departments may need external assistance with the development of information processing strategies. Requests made for additional systems should not be sanctioned unless such a strategy is being prepared. After 31 December, 1985 sanction should be refused where such a strategy does not exist.

53.The Committee considered the approach being adopted by the D.P.S. to the selection of computer projects (Questions 246 to 270, 342 to 344). The approach is characterised by:

(1)limited system development resources;

(2)pressing requirements to respond to urgent needs in Departments;

(3)the ability of Departments with the necessary resources to progress projects which may be of less benefit overall than other potential projects in Departments having less resources directly available;

(4)limited use of formal cost-justification methods to select projects, with frequent use being made of subjective judgements.

54.These characteristics are indicative of a situation where there is under-investment in development resources and/or the ineffective use of existing resources. They are also relevant to the considerations underlying one of the key conclusions of this Report namely, the significant potential to achieve productivity improvements within the non-industrial Civil Service and indeed other areas of the Public Service.

55.The Committee seriously questions whether the potential of computer systems is being exploited within the Public Service. This concern results from its awareness of the significant proportion of total personnel costs accounted for by personnel at Staff Officer level and below, and of the number of manually prepared documents which are received by members of the public from Government departments. The Committee considers that there is a strong case to be made for a heavy investment in improved computer systems and related personnel development activities in many areas of the Public Service. It is, however, most important that projects should only be approved where there is a detailed cost justification incorporating a return on investment significantly greater than the cost of borrowed funds and that the Secretary of a Department undertakes to reflect the anticipated benefits in future budgets for his Department in terms of reduced costs or improved service. The Committee believes that projects of this nature have a major contribution to make to improving the value derived from public expenditure, improving the public’s perception of the public service and, most importantly, improving the quality and range of services provided to the public.

Staff Organisation, Deployment and Utilisation

56.The organisation, deployment and utilisation of personnel working in the advisory units have a major influence on performance, motivation and morale. There is also a need to create a dynamic, progressive and highly professional environment. In particular, there is a need to establish a coherent work programme, develop a high level of expertise in the skills required to undertake the work, overcome the difficulties currently encountered with the implementation of recommendations and utilise staff to their full potential.

57.For practical reasons, there may be little alternative to using external consultants for a proportion of assignments and insisting on D.P.S. personnel being seconded to the consulting firm for the duration of the project. This process would have the important benefit of transferring various technologies into the D.P.S. It would have to be carefully managed to ensure that D.P.S. personnel acquire a consistent set of working methods.

58.There is also a need to develop further the procedures for planning the deployment of staff and monitoring their utilisation. Good advisory personnel enjoy the challenge of working to tight deadlines and achieving high levels of utilisation and outstanding results. The methods currently used to plan deployment of staff are informal. The actual time used on a project is not regularly recorded and compared with the budgeted time for the project. Management does not know the level of staff utilisation. This informal approach, combined with the generally soft approach to project justification and post-implementation reviews, means that the advisory services are most unlikely to be achieving their full potential.

CENTRAL DATA PROCESSING SERVICE

59.The CDPS provides a computer bureau service to many public sector organisations. It also develops computer systems and provides a computer advisory service particularly in relation to the acquisition of hardware and software.

60.The “Review Body on Computerisation in the Government Services” report of June, 1982 contained important recommendations about the future of the CDPS. The delay in making a decision about these recommendations made it difficult for the CDPS to plan its future development. Furthermore, staff morale problems arose from the absence of such a decision. The Committee understands that a decision has recently been taken to implement the report. The comments in paragraphs 61 to 66 and the manner in which they are implemented need to be considered in that context.

61.No detailed external review of the operations section of the CDPS has ever been undertaken. The scope of such a review should focus on control, security and efficiency issues and identify what action, if any, should be taken to minimise the risks associated with unauthorised access to computer systems, fraud and major disruptions due to fire or other peril. CDPS personnel have limited experience of other large computer environments. A detailed review by independent external personnel with extensive computing experience would normally reveal many opportunities for improvement in such an environment. Such a review should take place.

62.In-depth control and efficiency reviews have not been carried out on many applications being run on the CDPS computers. Such reviews would normally take place primarily within the organisations on whose behalf the systems are operated and would include consideration of clerical procedures. They should be carried out where no recent review has taken place.

63.These recommendations are made with the understanding that the role of the CDPS is currently changing in accordance with the recommendations of the Review Body Report. Any weaknesses which currently exist need to be highlighted, otherwise they will carry over into a new environment. Further, even though the volumes of work processed on the CDPS computer may not grow significantly in the foreseeable future, it is highly likely that there will be a requirement for a central bureau service for the foreseeable future.

64.Resources are allocated to maintenance and enhancement projects with inadequate justification being required from line managers. A standard document stating the reason for changes and the resources required does not exist. Thus, significant resources-say two or three man-months-may be unjustifiably assigned to projects. There is an urgent need for stronger management of the deployment and utilisation of maintenance resources.

65.The costing systems in use in the CDPS are better than elsewhere in the Department but are not comprehensive enough. In particular, there is a need for more extensive costing of development and maintenance projects.

66.Modern systems analysis methods are not currently used and should be introduced as soon as possible.

CHARGING FOR SERVICES

67.It is impossible to be satisfied that good value is being obtained from expenditure on any programme unless the cost of the programme can be identified and compared to the benefits derived. This does not happen at present in the D.P.S. or, it is understood, in the Civil Service generally. The D.P.S. should establish the real cost of all programmes for which it is responsible, including such elements as premises and pension costs.

68.Charges should be made in all cases for ongoing services provided by the D.P.S. An example would be to charge for operating computer systems including maintaining and enhancing existing systems (Questions 203 to 204). The true costs of services provided to a Department should be paid by that Department, even if this means that the budget of Departments be adjusted upwards in order to cope with a corresponding decrease in the D.P.S. budget. The Committee further recommends that Government Departments should seek competitive quotations for such services from external organisations, and that the Department’s decision as to whether to use D.P.S. or these external organisations should take account of a number of factors including the relative costs.

69.The question of charging for developmental activities is somewhat more difficult. Many organisations do not charge line departments for such services as management does not wish to discourage developmental work. No charge should be made for many of the services provided by the Management Services and Operations Research Units or for preliminary investigations into the development of new systems. However, it would be reasonable to charge the budgeted cost of developing and implementing a new system as it is a real cost of operating a programme and should be controlled by the programme manager.

70.There are a variety of means of accounting for and reporting on inter-departmental charges. Such charges are common practice in many organisations and are facilitated by the use of modern management reporting systems. These systems are capable of analysing and reporting on expenditure in accordance with vote reporting, programme costing and management responsibility requirements.

71.The role of the Department of Finance (Question 126) in introducing programme costing is important. Its assistance should be sought with the design of a costing and charging method.

MANPOWER PLANNING AND CONTROL

72.The Committee was particularly keen to review the management procedures being used by the D.P.S. in relation to manpower planning and control. The procedures relating to pay policies were not considered as the Committee decided that this area is outside the scope of this Report.

73.The Committee has considered the manpower planning and control procedures presently used and recognises the contribution they make to the control of numbers (Question 99). However, they are largely reactive in nature and need strengthening in order to exercise control over manpower numbers, available skills, succession planning and other key personnel matters. These matters are critical to improving productivity and the value derived from public expenditure.

74.There are major structural manpower problems within the Civil Service which may manifest themselves in about ten years time (Questions 80). Approximately 15,500 (50 per cent) Civil Servants are under thirty years old. The problems this gives rise to include:

(1)minimal promotion prospects for many young highly trained civil servants;

(2)few opportunities for young people to join the Civil Service with a consequent difficult situation arising in ten to fifteen years when a large proportion of civil servants could be filling relatively junior posts having reached their mid-forties;

(3)management problems for years to come in relation to staff motivation, morale and succession planning;

(4)a major pension liability in approximately thirty years when a large number of civil servants retire. This is an unfunded liability (Questions 25 to 31, 108) which will have a noticeable impact on public expenditure at that time.

75.Each year the D.P.S. should obtain from all Departments:

(1)forward estimates of manpower requirements based on their plans for programme delivery and performance improvement;

(2)forecasts of the future profile and availability of existing personnel;

(3)action plans to meet personnel requirements;

(4)evidence that manpower planning is being co-ordinated with other management functions such as service development, training, organisation development and budgeting;

(5)evidence that implementation of action plans is the responsibility of designated individuals and is being monitored.

76.Of the £2,376 million total Exchequer pay bill for 1984, a sum of £162 million was for pensions (Questions 25, 30). This represents about 7% of the current Exchequer pay bill. Payment of pensions is on a “pay as you go” scheme unlike the funded schemes which commonly operate in the private sector and in State-sponsored bodies. The D.P.S. estimated that the cost of superannuation was in the region of 18 per cent of pay (Question 29). This is the additional amount that would be charged in the case of a Civil Servant on loan to an outside organisation. Other independent estimates suggest a figure of the order of at least 30% as being more appropriate. The Committee is very concerned as to the accuracy of the figures for estimating the cost of superannuation and about the future cost to the State of unfunded State pensions, particularly in the context of the relatively young age structure of the Civil Service.

77.It is recommended that an exercise be undertaken to review the accuracy of the 18% estimate and to determine the effect which the accruing pension liability will have on public expenditure and to recommend appropriate action. It is anticipated that the discharge of the liability will give rise to a problem in about thirty years (Questions 28 to 31). An indication of the extent of the problem is provided by the difference between the 7% which pensions currently represent in the Exchequer pay bill and a suggested 30% minimum estimate of the cost of funding future pension liabilities.

78.At present there are in excess of one thousand personnel grades in the Public Sector (Questions 23, 24, 59, 60, 151 to 156, 347 to 360). This gives rise to considerable administrative problems, and makes industrial relations work very complex and difficult. The Minister should establish a programme to reduce substantially the number of grades over the minimum period of time consistent with avoiding additional costs.

79.The Committee was informed that there is no systematic procedure to remove excess staff from posts which are no longer needed. The manpower plans prepared by Departments as recommended at paragraph 75 should help to identify the potential for staff savings. Currently where staff may be required urgently, in some cases as a result of the current embargo on filling vacancies in the Civil Service, the D.P.S. seeks to redeploy the staff concerned (Questions 19 to 24, 37 to 42, 169 to 172). This, the Committee considers, is an area which warrants close attention in the context of implementing a realistic policy for a reduction of Public Service numbers. The Committee would expect that, in the normal way, the management of other Departments should be reporting on staff excesses to the D.P.S. In fact there was no evidence that this had ever happened or that there was concern that it should happen or that anyone was charged with this reporting responsibility. The Committee recommends that the D.P.S. should incorporate into the manpower planning and control systems procedures to identify surplus staff so as to facilitate their early redeployment.

80.There is a system of sending staff on loan between Departments and the temporarily vacant post may be filled by recruitment of an additional officer on a permanent basis (Questions 312 to 333). The Committee recommends that the D.P.S. review this practice to ensure that it conforms fully with the current Government guidelines on recruitment. Consideration should also be given to making the appointments permanent when the time involved is more than two years.

81.Manpower planning and control is closely related to manpower development and training. In this area the D.P.S. has made considerable progress with the establishment of new procedures for appointing senior civil servants and with the extension of interdepartmental promotion competitions to the grades of Assistant Principal and Principal. An appraisal scheme for Administrative Officers, Higher Executive Officers and Executive Officers has been in operation for some time. Schemes of appraisal for Assistant Principals and Principals have also been launched (Questions 111 to 117, 173 to 176, 184 to 185). Because of the importance of appraisal and counselling, the Committee will assess the extent to which these schemes are operating in Departments.

82.The D.P.S. has initiated a programme of job exchanges embracing the private and public sectors which is aimed at broadening the experience of staff. To date the results of the scheme have been disappointing. The Committee strongly recommends that the programme for job exchanges should be reviewed at an early date so that the twin objectives of increased training opportunities and cross-fertilisation of experience with the private sector can play an increasingly important part in the future development of the Public Service (Questions 104 to 107, 124).

83.Departments do not currently prepare manpower development plans. These plans should be prepared and incorporated into the action plans to meet the future personnel requirements of each Department. The plans should be derived from a training programme developed for each individual as part of his or her annual appraisal. They should also reflect the future needs of the Civil Service.

84.Consideration of the manpower planning and control functions of the D.P.S. would be incomplete without relating its role to similar roles exercised by other entities in the Public Service (Questions 3, 4, 51 to 57, 136 to 138, 151 to 152). Appendix V contains a table prepared by the D.P.S. summarising the current situation. This table needs to be read mindful that some controls are, additionally, exercised on an informal or non-statutory basis. For example, the Minister for the Public Service influences the pay and conditions of teachers, Health Board staff and certain other Public Service staff on the basis of custom and practice or participation in the relevant Conciliation and Arbitration Scheme.

85.The numbers employed in various public service agencies are also influenced by the Department of Finance directly or indirectly as a result of its budgetary control functions. The degree of detailed involvement by the Department of Finance varies from one agency to another depending on statutory and other aspects. The Committee consider that there is a certain duplication or, at least, a lack of clarity between particular activities undertaken by the Department of Finance and the D.P.S. (Question 15, 16).

86.The current situation, as outlined in Appendix V, has been arrived at as a result of a series of decisions taken over a long period of time. It is, therefore, unlikely to be the most appropriate. It is recommended that a study be undertaken to determine whether cost savings or improvements in effectiveness would be expected from a reallocation and/or merging of functions.

RELATIONSHIP WITH OTHER DEPARTMENTS

87.The efficiency and effectiveness with which Civil Service functions are performed is influenced by the allocation of functions between Departments. In the case of the D.P.S., efficiency and effectiveness is also influenced by the Department’s relationship with other Departments.

88.The D.P.S. and the Department of Finance each have functions relating to the overall control of public expenditure and to improving the value derived from that expenditure (Question 15). It is the Committee’s view that cost savings or improvements in effectiveness might result from a reallocation of some of the functions at present performed by the D.P.S. and a number of related Departments. However, this would require a detailed study of the present allocation of functions between these Departments. The implementation of this recommendation would be a matter for Government (Questions 11 to 12, 192 to 193).

89.The fact that the D.P.S. is responsible for the control and regulation of the Civil Service can make it difficult to develop the good relationship with Departments which is so necessary for the successful completion of advisory projects. Careful consideration should be given to the options for organising these functions to ensure that the effectiveness of the advisory services is not limited by the necessary exercise of the control function.

90.There is a need for more extensive independent reporting on the performance of public sector organisations to members of the Oireachtas. Regular reports should be provided on the economy, efficiency and effectiveness with which public sector organisations implement programmes and discharge their responsibilities. This is necessary to encourage a positive attitude throughout the Public Service towards improving the value derived from public expenditure. These reporting mechanisms should complement the functions of the D.P.S.

INTERNAL RESOURCE MANAGEMENT BY D.P.S.

91.The management system in the Department operates with a Management Committee as its focal point (Questions 67-68, 101-103, 180). The Management Committee consists of the Secretary, Deputy Secretaries and Assistant Secretaries. It has weekly meetings at which management matters are discussed. Subject to Ministerial approval, responsibility for the achievement of aims and objectives at overall Departmental level rests with the Management Committee. Particular programmes for the achievement of overall objectives are assigned at Assistant Secretary level. Deputy Secretaries co-ordinate two major areas and the remainder is co-ordinated by the Secretary. Where appropriate, the programmes are broken down with specific targets being set at Principal level. The Principals are responsible to their Assistant Secretaries and to the Management Committee for the achievement of targets as agreed.

92.Changes in workload are reflected in staff resource planning through the Management Committee. Resource planning is a normal part of the budgetary and estimates cycle during which demands for staff are measured against priorities for the period ahead. Should workloads change during any one-year period, the Management Committee decides on how best to redeploy staff or reallocate work to meet such changes, whether on a temporary or long-term basis (Questions 162 to 164, 177, 180).

93.For each individual down to the level of Principal, a statement exists (Questions 16-17, 69, 79, 173 to 175, 236 to 239) which defines :

(1)responsibilities;

(2)objectives of the individual for the current year and the criteria by which it is agreed his or her performance will be judged;

(3)resources over which he or she will have control during the year.

94.These statements, together with the aims and objectives of the Department, are contained in a Management Manual which has recently been introduced and which is being used as the basis for managing the Department.

95.It is intended that the objectives defined in the Management Manual for each person will become an integral part of the annual assessment procedure.

96.Monthly reports are prepared which compare actual expenditure with the budgeted profile of expenditure (Question 129, 133 to 135). This is an effective procedure which provides the Secretary with the information necessary to ensure that expenditure does not exceed the amounts contained in the Vote.

97.The monthly expenditure reports need to be augmented by additional information which will not only ensure that expenditure is in line with budget but will also measure outputs, assess performance and ensure that good use is being made of resources (Questions 85 to 92, 100, 121). This is a prerequisite to the D.P.S. having in place proper arrangements for the achievement of value for money.

98.At the present time a number of costing exercises take place within the Department. Some are undertaken on an annual basis and some as and when required. The Management Manual also contains estimates of the cost of the resources allocated to a manager.

99.There is a need to strengthen these procedures by:

(1)reporting key cost and performance data monthly;

(2)analysing D.P.S. expenditure by programme;

(3)clearly measuring output and hence assessing performance.

There is also a need to extend the current procedures beyond a one year planning horizon. It is difficult to evaluate progress with programmes in the absence of medium term plans (Questions 79 to 83, 110, 276 to 284).

100.The basis for costing programmes also needs to be strengthened. The total cost of programmes and the total value of outputs (e.g. course days, consultancy days etc.) should be reconciled to the overall Vote for the D.P.S. A number of costs are not reported, the most material being office charges and funding of future pension liabilities. These should be included in the reported costs of programmes. This is a general issue and needs to be addressed on a Civil Service-wide basis.

101.The current situation also allows for the suggestion that the scale of the programmes operated by the Department is determined by the size of the Vote rather than the value of the output. Inadequate information exists to form a conclusion on this question. The Committee recommends that the Department undertake a study of all of its activities which:

(1)assesses the contribution made by each to the achievement of the aims and objectives defined in the Management Manual;

(2)determines the cost of each activity.

The need for such a study is supported by the growth in numbers of personnel at senior grades in the D.P.S. since 1974 referred to in Paragraph 23.

102.As a result of such an analysis the Department should be able to identify whether or not the scale of any activity should be changed. This can be done by asking a small group of middle managers to identify how the cost of activities with a high cost relative to their contribution could be reduced by, say, 50 per cent. Activities with a low cost and a high contribution might also be examined to see whether large benefits could be derived from relatively small additional expenditure. Should an activity be identified whose contribution does not justify the resources required by it then it should be abolished.

103.This exercise should be completed within six months and should identify the extent to which the productivity of the Department could be improved. The exercise would serve as a pilot study to gain experience of the methods to be used for achieving overall Civil Service productivity gains.

104.The availability of the Management Manual provides an excellent basis for commencing this exercise.

SUMMARY OF RECOMMENDATIONS

105.This section sets out a summary of the Committee’s recommendations, cross-referenced to the specific paragraphs of the report, where appropriate. The Committee recommends that:

(1)The D.P.S. should devote considerable efforts to the achievement of significant tangible productivity improvements in the non-industrial Civil Service (Paragraph 11).

(2)Productivity improvement projects should only be approved where the cost-benefit analysis prepared during the feasibility study indicates a return on investment significantly greater than the cost of borrowed funds. The Secretary of the Department requesting the work should undertake to reflect the anticipated benefits in future budgets for his Department (Paragraph 14).

(3)The DPS should establish a rolling five-year programme during which the staffing levels, organisation and clerical procedures of each Department would be reviewed. (Paragraph 32).

(4)The organisation of advisory projects should be changed in accordance with detailed recommendations contained in Paragraph 36 of this report.

(5)The resources allocated to the advisory service areas should be determined by the demands which the D.P.S. receives for assistance, using adequate cost justification and an expectation of successful implementation as acceptance criteria (Paragraph 37).

(6)The Minister for the Public Service should give priority to projects which have high expected benefits. He should seek to develop a portfolio of projects which would achieve, in aggregate, the overall productivity improvements target established by him (Paragraph 39).

(7)The D.P.S. should systematically monitor benefits achieved by all projects to determine whether Civil Service productivity is improving at least as fast as the targets set by the Minister for the Public Service (Paragraph 40).

(8)The proportion of current CSTC resources devoted to programme management, performance improvement, management accounting, information technology and management reporting systems should be increased significantly (Paragraph 44).

(9)The level of investment in training for senior personnel throughout the Civil Service should be increased substantially beyond the current level of one day per person per year (Paragraph 45).

(10)The capability of the advisory units of the D.P.S. should be improved by increasing the range of skills available and increasing the average level and breadth of experience of individuals (Paragraph 46).

(11)There should be a review of the overall organisation of the Management Services Unit, the Operations Research unit, the personnel assigned to the Structural Reform programme and the advisory services of the CDPS to assess whether a merging of all the advisory services into one unit with less formal internal reporting lines might improve their overall effectiveness (Paragraph 47).

(12)Requests made for additional computer systems should not be sanctioned unless a Departmental strategy for using information systems is being prepared. After 31 December 1985, sanction should be refused where such a strategy does not exist (Paragraph 52).

(13)Formal procedures should be established for planning the deployment of staff and monitoring their utilisation (Paragraph 58).

(14)A detailed external review of the operations section of the CDPS should take place (Paragraph 61).

(15)In-depth control and efficiency reviews should be carried out on applications being run on the CDPS computer for other public service organisations where no recent review has taken place (Paragraph 62).

(16)Resources should be allocated to maintenance and enhancement projects only if line managers submit a document stating the reason for changes and it is established that the benefits expected are sufficient to justify the resources required (Paragraph 64).

(17)The CDPS should undertake more extensive costing of development and maintenance projects (Paragraph 65).

(18)Modern systems analysis methods should be introduced within the CDPS as soon as possible (Paragraph 66).

(19)The D.P.S. should establish the real cost of all programmes for which it is responsible, including such elements as premises and pension costs (Paragraph 67).

(20)Charges should be made in all cases for ongoing services provided by the D.P.S. The true costs of services provided to a Department should be paid for by that Department, even if this means that the budget of Departments be adjusted upwards in order to cope with a corresponding decrease in the D.P.S. budget. The Committee further recommends that Government Departments should seek competitive quotations for such services from external organisations, and that the Department’s decision as to whether to use D.P.S. or these external organisations should take account of a number of factors, including the relative costs (Paragraph 68).

(21)Each year the D.P.S. should obtain from all Departments:

-forward estimates of manpower requirements based on their plans for programme delivery and improvement of performance;

-forecasts of the future profile and availability of existing personnel;

-action plans to meet personnel requirements;

-evidence that manpower planning is being co-ordinated with other management functions such as service development, training, organisation development and budgeting;

-evidence that implementation of action plans is the responsibility of designated individuals and is being monitored (Paragraph 75).

(22)An exercise should be undertaken to determine the effect which the presently unfunded pension liability will have on public expenditure and to identify appropriate action (Paragraph 77).

(23)The Minister for the Public Service should establish a programme to reduce substantially the number of grades in existence in the Public Service (Paragraph 78).

(24)The D.P.S. should incorporate into the manpower planning and control systems, procedures to identify surplus staff so as to facilitate their early redeployment (Paragraph 79).

(25)The D.P.S. should ensure that, where officials are sent on loan/secondment to another Department/Agency, no additional permanent post should be created unless the Minister for the Public Service is convinced that there are compelling reasons for doing so and that it conforms fully with the current Government guidelines on recruitment (Paragraph 80).

(26)The programme for job exchanges should be reviewed at an early date so that the twin objectives of increasing training opportunities and cross-fertilisation of experience with the private sector can play an increasingly important part in the Public Service (Paragraph 82).

(27)Manpower development plans should be prepared by Departments and incorporated into the action plans to meet the future personnel requirements of each Department. The plans should be derived from a training programme developed for each individual as part of his or her annual appraisal. They should also reflect the future needs of the Civil Service (Paragraph 83).

(28)A study should be undertaken to determine whether cost savings or improvements in effectiveness would result from a reallocation of responsibilities for various aspects of public service manpower planning and control, now exercised by several entities including the D.P.S. (Paragraph 86).

(29)A study should be undertaken to establish whether cost savings or improvements in effectiveness might result from a reallocation of some of the functions at present performed by the D.P.S. and a number of related Departments. The implementation of this recommendation would be a matter for Government. (Paragraph 88).

(30)More extensive mechanisms should be established for providing elected representatives with regular ongoing reports on the economy, efficiency and effectiveness with which public sector organisations implement programmes and discharge their responsibilities (Paragraph 90).

(31)Internal management reports within the D.P.S. should be augmented to include information necessary to measure output, assess performance and ensure that good use is being made of resources (Paragraph 97).

(32)Costing systems should be established within the D.P.S. which:

-report key cost and performance data monthly;

-analyse the D.P.S. expenditure by programme;

-clearly measure output and assess performance (Paragraph 99).

(33)The total cost of programmes and the total value of outputs should be reconciled to the overall Vote for the D.P.S. Costs not currently reported should be included within the reported cost of programmes (Paragraph 100).

(34)The D.P.S. should undertake, within six months, a study of all its activities which:

-assesses the contribution made by each to the achievement of the aims and objectives defined in the Management Manual;

-determines the cost of each activity.

The resources devoted to specific activities should be modified in the light of the findings of this study (Paragraphs 101-104).

CONCLUSIONS

106.The Committee has spent considerable time considering the arrangements made by the D.P.S. to achieve value for money in those areas for which it is responsible. The Committee has also endeavoured to assess the extent to which the D.P.S. is successfully attaining the five objectives described in Paragraph 20.

107.Based on the criteria set out in Paragraph 9 for deciding whether an organisation has made proper arrangements for achieving value for money, the Committee has concluded that within the D.P.S. the fundamental tasks of establishing objectives and assigning responsibilities are well advanced (Paragraphs 91-96). There remains, however, a substantial amount of work to be done particularly in relation to the day-to-day management and deployment of resources and the achievement of objectives (Paragraphs 97-104).

108.In many areas, the achievement of objectives is dependent on external factors, most notably good working relationships with other Departments. Notwithstanding these factors and recognising the potential benefits to be derived from the effective use of the advisory services, the Committee is firmly of the view that the future justification for the existence of these services should be dependent on the demonstrable achievement of an adequate level of benefits. The Committee will bear this point in mind when, in about twelve months time, it enquires into the progress made with the implementation of the recommendations made in this Report.

109.The Committee considered the progress which appears to have been made towards successfully attaining objectives 1, 2, 3 and 5 referred to in Paragraph 20. The fourth objective relates to pay policies which the Committee excluded from the scope of this Report. The Committee is concerned that the current level of resources being devoted to objectives 1, 2, 3 and 5 may not be justifiable (Questions 184 to 190, 194 to 198). This concern is based on two reasons:

(1)known difficulties in achieving progress in certain areas (Questions 71, 120 to 122, 370);

(2)weaknesses in the internal management systems of the D.P.S. which make it difficult to demonstrate value for money in these areas (Paragraphs 97-101).

110.The Committee also notes that opportunities for staff reductions may exist in every Department (Question 99) and that there is no systematic procedure to remove excess staff. The Committee considers that this may be attributable to a failure by Departments to use the D.P.S. and/or other resources to establish proper arrangements for achieving and demonstrating value for money. In particular it suggests weaknesses in manpower planning and control procedures.

111.The Committee believes that the implementation of the recommendations contained in this report will enable management in the D.P.S. to identify opportunities for improving the effectiveness of its services, possibly changing the level of resources devoted to specific activities. The D.P.S. should then be able to demonstrate that it has made proper arrangements to achieve value for money in those areas for which it is responsible and that the benefits achieved are sufficient to justify the resources made available.

ACKNOWLEDGEMENTS

112.The Committee wishes to place on record its thanks to the Minister for the Public Service, Mr. John Boland T.D., to the Departmental Secretary, Mr. Kevin Murphy, and his officials, Mr. P. Gaffey, Mr. W.P. Smith, and Mr. Frank Dunlop, to Mr. David Algeo, Partner, Craig Gardner Company and to all those who assisted in any way in the preparation of this Report.

29 May, 1985.