Public sector reform defined by fiscal constraints but vision for long term reform needed - Deloitte

Public sector employees need clear view of how their role shapes an efficient service

Budget 2010 outlines how the public sector reform will be achieved by reducing the public sector wage bill in addition to savings across a number of departments.

Commenting on this, Harry Goddard, Public Sector Partner at Deloitte said:

“The public sector pay bill was targeted as expected today. In conjunction with the pension levy and the early retirement scheme, the effect of this is that public servants are being asked to do more with less pay and fewer resources. In addition, any of the public sector reform initiatives that have been discussed by the government have focussed on work practice changes – likely to be further pain for the public service.

Given the country’s current balance sheet, it’s clear that the main driver of reform in the public sector needs to be driven from a cost perspective. While the news today was expected, the government needs to set out a vision for sustainable long term reform which can be achieved beyond just cost reduction. This needs to be in a manner that will provide employees in the public service with a clear view of their role in helping shape the service to be more efficient in the context of the revised fiscal framework.

Public sector workers now need a positive to focus on that will help them ensure a sustainable delivery of quality services. One of the major actions that now needs to happen is for this vision to be developed and communicated to those working in the public sector to help support employee morale and motivation.”

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