THE FIRST review of the Croke Park agreement on public service pay and reform is expected to say that solid and measurable progress is being made in implementing the deal but that significant challenges lie ahead.
The review report, which is being brought to Cabinet today by Minister for Public Expenditure and Reform Brendan Howlin, says that payroll savings of €289 million have been realised since the agreement was signed.
The report, which was drawn up by the national body charged with overseeing the implementation of the agreement, says there has been co-operation from staff and unions. However, it points out that more urgency and ambition is required to enable services to be maintained for the public and to generate further significant payroll savings and cost reductions.
It points to challenges in the future, particularly arising from the forthcoming public service expenditure review.
The report says the target set by the Government for the reduction in payroll costs of €251 million – €28 million in local authorities and €223 million in the rest of the public service – has been exceeded.
Much of the €289 million in payroll savings has been generated as a result of the reduction of 5,349 personnel employed since the agreement was put in place. However, it also points to a reduction in overtime payments, costs of running medical laboratory services and a cut of about 2,000 in the number of posts attracting allowances for special responsibilities in the education sector.
The report also maintains that in addition to the payroll savings of €289 million, reductions of about €300 million have been realised on the non-pay side.
This includes savings of about €120 million in the health service and about €81 million in local authorities, as well as further savings generated by the Department of Agriculture, which has closed a number of local offices, and by the Office of Public Works in rental costs.
The report says about 16,500 staff have now left the public service since the moratorium on recruitment was put in place in March 2009.
