Committee Reports > List of Committees > Dáil > 1986 > Committee on Public Expenditure > Report No. 20 - Schedule of recommendations relating to immediatelly implementable public sector savings and management improvement

APPENDIX II

SUBMISSIONS FROM THE BUSINESS ADVISORY PANEL

ENVIRONMENT

1. GENERAL

1.1Local Authorities should be required to provide audited accounts within 6 months of the end of the appropriate year. By timely monitoring of expenditure it is possible to make judgements about savings. The current system with up to 4 year time lags makes this virtually impossible.

1.2A management style change should be achieved in the public service with accountability and management control as in the private sector.

1.3Local Authority Budgets should be reviewed in the light of lower predicted inflation levels in a number of important areas such as oil related products etc. with a view to having the savings reflected in their forward budgets.

2. HOUSING

2.1Local Authorities should freeze purchases of land and should develop plans which should be financially attractive to them for disposal of part of their land banks up to a max. of 50% of current levels. To encourage the process Central Government should impute a charge equal to the Exchequer cost of borrowing on land held in excess of 50% of current land banks. Bearing in mind that current stocks of land held by local authorities represent, at current building levels, about 12 years plus of stock, this seems a necessary and reasonable initiative.

2.2Review housing plans in the light of probable future demand.

2.3Review rent and sale practices and get the balance of public and private housing and the balance of rented and tenant purchase more in balance.

Specifically the rent of a Local Authority house should be made to be equal at least to the cost of collecting the rent and the maintenance.

The loss of rentals as a result of reductions to unemployed tenants should be a charge on the Department of Social Welfare, not on the Local Authority. The scope for direct debit/central collection of rents should be investigated.

2.4Sales of Local Authority houses.

The formula for reviewing the sale to tenants should be reviewed to ensure that Local Authorities get a reasonable return. Subsidies should be related to need.

2.5Maintenance of Local Authority Housing:

Local Authority maintenance staff should be offered maintenance contracts for Local Authority houses for a specified period in a random sample of Local Authorities. The results should be available and analysed by the end of 1987. At the same time, Local Authorities should be allowed to claim DOE maintenance grants where they are seen to prevent future maintenance needs e.g. in replacement windows etc.

2.6Apply a zero rate of VAT on new houses and abolish the IR£2,000 grant for new houses. There would be consequential savings in administration, extra VAT on the buiding work and it would ensure that cash flow was transferred from the black economy to the taxable sector.

2.7Planning:

The DOE should consider higher densities in the light of modern design concepts.

2.8Test Joint Venture Schemes:

Each major Local Authority should have a JV scheme to test during 1987. It is essential that the land be provided at a nominal cost so that affordable homes can be developed.

3. ROADS:

3.1Rationalise road grants, assigning funds to County Councils only in 1987, and be on the basis that they would report on this expenditure early in 1988.

3.2Road Taxation:

Centralise and computerise this and make payment and administration of taxation possible through banks, post offices etc.

3.3Submit to tender all Local Authority capital projects, leaving direct labour to maintenance work only.

EDUCATION

1.Some standard unit cost of education at both second and third level should be established against which institutional and programme unit costs can be measured.

2.Some means of evaluating returns for money in education should be established; if three Arts graduates can be educated at a cost of one Science graduate, should it influence our output ratio of Arts to Science students.

3.Some proceduere must be adopted to evaluate research output from third level institutions and deduct this from the unit cost of students from these institutions.

4.Agricultural Science and Forestry, Veterinary Medicine and Dairy Science education at third level should be brought under the Education Budget with unit costs in line with other faculties.

5.Teacher training must stay in line with demands for teachers both for primary and second level; a significant reduction in numbers taking Higher Diplomas in Education, in particular, must be made systematically across all colleges on a quota basis, for example.

6.Some system of rationalisation must come into operation to restrict the repetition of similar programmes between institutions and, in particular, to restrict the launching of new programmes in an institution when abundant capacity exists already in the educational system for these programmes. Indeed given the large overhead costs associated with any programme, very often a marginal expenditure in an institution where the overhead infrastructure/administration etc., is already in place, would suffice to bring a programme on stream in contrast with the very significant expenditure which must be made to start a programme ab initio.

A minimalist criterion of social need must exist before bringing any new programme on stream, and a full justification through a cost benefit analysis should be considered.

7.The need for the rapid development of new organisations and institutions in the area of training is questioned; could many of these activities not have been catered for within an expanded vocational education system. A streamlining of these operations and greater integration with the vocational education system is suggested to avoid much duplication which presently exists.

8.Replace grant system at third level with long-term loan system, repayable in a similar way to a house mortgage with similar or more attractive tax rebate mechanisms.

9.All second level schools (secondary, vocational and community/comprehensive) should be brought under the one system of administration in the Department of Education.

10.Greater public evaluation of teaching programmes and institutions must be solicited in order to raise efficiency without reducing their educational content.

11.The planning of schools must come under greater scrutiny; in particular, a greater intergration of age groups is necessary in housing development to avoid, on the one hand, the running down of schools in some areas and the excessive proliferation in others. Incorporating the social facilities in housing development plans must be obligatory and decisions to except these developments must embrace the provision of such facilities.

12.A tighter management system must be put into operation in primary and secondary schools in order to raise the financial and technical efficiency of their operations:

-obligatory management training for principals;

-the management and financial functions should both be within the control of the principal and the board of management. Teachers should be employed and paid by the board which is then reimbursed on a capitation basis;

-a more thorough and comprehensive set of terms of employment for teachers embracing all the necessary duties and functions in normal school activities;

-an objective set of standards and qualifications for the hiring of teachers for the various subjects;

-compulsory in-service training on a regular basis;

-an effective policing and upholding of academic standards particularly in secondary schools;

-responsibility over and above the normal duties should be assigned on the basis of competence to discharge the responsibility entrusted.

13.Reduce delays and increase efficiency of system of Leaving Certificate Examination by streamlining examination and involving all teachers in examination.

14.Abolish Matriculation examination which serves no useful purpose.

15.Amalgamate schools in small towns using a minimum size criterion, e.g., two or more schools below a certain size in one town must amalgamate.

16.Link community facilities, e.g., sports halls, swimming pools, public tennis courts, etc., with the requirements of schools putting future community facilities in adjoining school complexes.

17.The operation of maternity leave causes significant problems within the schools in particular with regard to the operation of educational programmes due to lack of continuity. In the interest of economy perhaps a 2 - 3 year leave of absence programme could be introduced for married lady teachers to enable them to start their family.

18.The operating costs of Vocational Schools have risen substantially and are significantly higher than the operating costs of Secondary Schools. This should obviously be thoroughly investigated before the estimates for 1987 are prepared.

FORESTRY

1.Implement the recommendations of the Review Group on Forestry.

2.Make it a condition of grant for private afforestation that all contract work is undertaken by registered contractors.

3.Make it a universal condition of contract work in State forestry either for FWS or harvesting work on behalf of timber buyers that all contractors are registered.

4.Take immediate steps to increase the amount of private planting to make up the 3000 hectare deficit in the overall goal of 10,000 hectares per annum.

5.Examine the marketability of immature plantations (say 5 to 25 year old) and the feasibility of selling these at prices which will represent an acceptable return on the State’s original investment. The proceeds could be used to fund new planting.

6.Drop the quota applying to sawmills outside the State.

7.Introduce a substantial charge for game licences issued by FWS.

7.Introduce a substantial charge for game licences issued by FWS.

8.Seek EEC support for private afforestation in Ireland outside the Western Areas.

9.Dispose of certain small non-forest commercial aspects of FWS.

10.Relate the IIRS forest products programme to a marketing strategy, accelerate the elements which offer immediate commercial benefits to the FWS and review others.

11.Review the process of securing funds from the EEC for Irish forestry generally with a view to ensuring that these are maximised and receipts are at the earliest possible date and go to the FWS without delay.

12.Assess the commercial efficiency of the FWS nurseries.

13.Where possible achieve savings by employing outside engineering consultants (mechanical and civil) rather than expand existing engineering staff.

14.The immediate introduction of a more cost effective system of financial reporting.

15.The introduction of controls to ensure that sawable timber is not pulped.

HEALTH

Improve capital budgeting and require consequential running costs to be detailed. Revise and update the hospital plan as a basis for new capital projects.

Revise eligibility limits for each category of patients with a view to reducing anomolies, cost and unnecessary use of GP services and drugs. A charge per prescription item should help category 2 have free hospital and pay for GP services. A charge on hospital services equal to a GP charge would restore the balance in favour of using the cheapest service. Category 3 on whom a charge applies for hospital services could be extended to all those contributing to VHI and claiming the tax allowance provided the concept of cost sharing applied.