Public Sector Reform

Water Policy

The need to address the deficit in public finances requires a reduction in public expenditure, but a reduction that does the least possible harm to the economy and to society. By increasing the productivity of the public sector, cuts in front-line services can be made less severe. Currently, the main means of delivering greater public sector productivity is through the reforms under the Croke Park and Haddington Road Agreements.

Highlights

Barriers To Outsourcing In The Public Service

Two aspects of Government accounting act as a wedge inhibiting outsourcing. First, unfunded public pension costs are ignored while private operators must include the cost of any pension benefit provided. Second, VAT increases the costs of procuring services externally, but the Exchequer will benefit by the amount of VAT paid.

The Present System Of Government Accounting Is No Longer Fit For Purpose

The failure to introduce a modern, accruals-based system of financial management in the public service has serious implications. There needs to be a system that will take account of the costs of accrued pension liabilities and depreciation of fixed assets in order to send the right signals to public sector management.

Yvonne Scannell On Planning

Public Policy, Independent Thinking on Public Decisions

79 Merrion Square, Dublin 2, Ireland
tel: 353 (1) 676 0414 | email: info@publicpolicy.ie
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