1. Irish Evaluation Network 24.09.04 David Doyle, Department of Finance

2. The overall policy context The overall policy context Why an evaluation culture is important Why an evaluation culture is important Some relevant examples Some relevant examples What is the public service role? What is the public service role? What is the Department of Finance role? What is the Department of Finance role?

3. Overall policy context Key policy goal overall Key policy goal overall Creating the conditions in which the economy can Creating the conditions in which the economy can –generate sustainable employment –improve living standards –promote social progress

4. Some key issues…. International situation in an open economy International situation in an open economy What we pay ourselves, how we compete What we pay ourselves, how we compete The skills our labour force has The skills our labour force has Education, Education, Education Education, Education, Education Work life training Work life training Enterpreneurial culture and incentives/thriving private sector Enterpreneurial culture and incentives/thriving private sector Investment in our infrastructure – getting goods to market, workers to jobs Investment in our infrastructure – getting goods to market, workers to jobs The list goes on……………. The list goes on…………….

5. Things Government has to do Private sector motivated by profit Private sector motivated by profit Government taxes, to raise funds to invest in public services, pay the bills Government taxes, to raise funds to invest in public services, pay the bills Tax in way which does not create disincentives to work, or make profits Tax in way which does not create disincentives to work, or make profits Tax in a way which is as progressive as possible Tax in a way which is as progressive as possible Government take about €40 billion Government take about €40 billion

6. Government interventions Investment about €5 billion Investment about €5 billion Social security system €11 billion Social security system €11 billion Our health services €10 billion Our health services €10 billion Education €6 billion Education €6 billion EU, Debt €4 billion EU, Debt €4 billion Rest €9 billion Rest €9 billion Total €45 billion Total €45 billion

7. Challenges going forward Retain strategic investment target 5% GNP Retain strategic investment target 5% GNP Underpriviliged, unemployed etc Underpriviliged, unemployed etc Services for the disabled Services for the disabled The aged, and social security. And Health The aged, and social security. And Health Education standards Education standards Competitive conditions in Ireland Competitive conditions in Ireland Rapidly changing world Rapidly changing world

8. Is more spending always the answer? Over time Government has to maintain equilibrium between income and outlays Over time Government has to maintain equilibrium between income and outlays Just like a household Just like a household If it spends more….. If it spends more….. It can tax more, or borrow more [deferred taxation] It can tax more, or borrow more [deferred taxation] What is the impact on the economy of these choices? What is the impact on the economy of these choices?

9. The answer is not always to spend more or tax less or more The public service needs to know: The public service needs to know: What is being achieved through the various interventions What is being achieved through the various interventions How things might be managed to deliver better outcomes from existing resources How things might be managed to deliver better outcomes from existing resources How additional resources would best be targetted How additional resources would best be targetted What challenges lie ahead, and how to prepare for them. What challenges lie ahead, and how to prepare for them. How best to structure taxes to maximum impact How best to structure taxes to maximum impact

10. Some examples Expenditure on Health services has expanded from €3.4 billion in 1997 to €10 billion now Expenditure on Health services has expanded from €3.4 billion in 1997 to €10 billion now There are 33,000 more public officials deployed in the sector There are 33,000 more public officials deployed in the sector There is widespread disattisfaction with the the service in some respects There is widespread disattisfaction with the the service in some respects Are there ways it could be managed better? Are there ways it could be managed better?

11. At the risk of……….. What is the most cost effective Irish hospital in terms of maximum output per million spent? What is the most cost effective Irish hospital in terms of maximum output per million spent? Who ranks hospitals? Who ranks hospitals? Who manages hospitals? Who manages hospitals? Who reports on hospitals? Who reports on hospitals? When was the last time the Govt Auditor did a value for money report across the hospital system? When was the last time the Govt Auditor did a value for money report across the hospital system? How could the management of hospitals be improved? How could the management of hospitals be improved?

12. Continuing……….. What specific targetted strategies need to be put in place in the private and public sector to prepare for ageing? What specific targetted strategies need to be put in place in the private and public sector to prepare for ageing? What is the most cost effective, relevant and productive third level education institution? What is the most cost effective, relevant and productive third level education institution? The least? The least? Therefore……………? Therefore……………? How relevant is education at all levels to tackling long term deprivation How relevant is education at all levels to tackling long term deprivation

13. And continuing Does the Department of Finance need 600 staff costing in excess of €30 million p.a.? Does the Department of Finance need 600 staff costing in excess of €30 million p.a.? Is investment in Forestry of over €100m p.a. justified? Fishing? Agriculture? Is investment in Forestry of over €100m p.a. justified? Fishing? Agriculture? Is investment in Broadband an appropriate intervention Is investment in Broadband an appropriate intervention Ask yourself about your own areas of activity Ask yourself about your own areas of activity

14. risk taking Investment in R & D Investment in R & D Programme of SFI launched 2002 now spending over €100 million a year Programme of SFI launched 2002 now spending over €100 million a year Concept sound, but difficult to pre-analyse Concept sound, but difficult to pre-analyse As programme rolls out, has to lead to positive outcomes. Clear evaluation required. As programme rolls out, has to lead to positive outcomes. Clear evaluation required.

15. What is being done The good things. The good things. Departments have statutory obligations under 1997 PSM Act - economy and efficiency, deploy resources to evaluate Departments have statutory obligations under 1997 PSM Act - economy and efficiency, deploy resources to evaluate Expenditure reviews Expenditure reviews General policy reviews General policy reviews Better information systems Better information systems Policy analysis training Policy analysis training

16. Could do better? Could do better? Policy analysis training Policy analysis training Are managers spending too much time operating and not enough managing? Are managers spending too much time operating and not enough managing? A critical part of managing is Oversight: evaluating what you are achieving, how to get better results, shift resources to other priorities A critical part of managing is Oversight: evaluating what you are achieving, how to get better results, shift resources to other priorities Another is Foresight Another is Foresight Do we as public officials do enough of this? Do we as public officials do enough of this?

17. I would love to meet The specialist journalist, the lecturer, the consultant, the teacher, the farmer, …….. who would point out The specialist journalist, the lecturer, the consultant, the teacher, the farmer, …….. who would point out –The expenditure programme affecting their area that should be scrapped –The improvements that could be made in their area by managing resources better –The tax incentives for their area that should be eliminated or reduced

18. And I would really love To see managers across Departments, public institutions and agencies building up their skills to ask probing questions and put forward innovative ideas To see managers across Departments, public institutions and agencies building up their skills to ask probing questions and put forward innovative ideas To see the use of consultancy firms drastically reduced. Departments alone spend €85 million on consultancies, and brilliant as they are, more should be done in-house To see the use of consultancy firms drastically reduced. Departments alone spend €85 million on consultancies, and brilliant as they are, more should be done in-house

19. To conclude The scale of Government is huge, The scale of Government is huge, The challenges facing Government and society are very significant The challenges facing Government and society are very significant Service provision and tax structure needs to be flexible and geared to meet current and future challenges. Service provision and tax structure needs to be flexible and geared to meet current and future challenges. Decision makers in an individual organisation, Department, or at Government need quality advice. Decision makers in an individual organisation, Department, or at Government need quality advice. We need to skill up to deliver this We need to skill up to deliver this We all need to manage our resources to best effect. We all need to manage our resources to best effect. Government, the Legislature and our citizens expect us to deliver on this. Government, the Legislature and our citizens expect us to deliver on this.