Over to you, Bruce

• Nation awaits plan on restructuring public sector

THE COUNTRY will hear tomorrow the steps to be taken by the Government in restructuring the public sector.

Naturally, many public sector workers are on tenterhooks and will be listening keenly to Prime Minister Bruce Golding as he makes his contribution to the Budget Debate. Many are bracing themselves for job cuts, but The Gavel believes we are too close to an election for Golding to send such a signal.

Instead, as he has done since taking office, we expect the prime minister to speak to the cost of the public sector and the need to reduce the country's wage bill.

One year ago, speaking in the Budget Debate, Golding said that the Public Sector Transformation Unit (PSTU) had completed its review of the structure of government - how ministries, agencies and functions can be rationalised for greater efficiency.

"The next phase involves determining how best to deploy the available human and material resources to support the effective operation of the structure," he said.

Well, we are at that stage now, and the test as to whether Golding believes anything he has been saying will come tomorrow.

Golding had told Parliament in a midnight September speech that Government had been spread too widely and that its tentacles had to be managed.

"We will have to make some radical decisions as to what are the functions of government, what are people entitled to expect of their government. We must, first of all, define and secure the core functions of government in relation to which our limited resources must be prioritised," he said.

He listed as functions of government, the provision of a safe and secure environment; an effective and accessible justice system; quality education; access to basic health care; social welfare for the disadvantaged and vulnerable; public infrastructure and related services; a healthy environment; efficient public bureaucracy; an appropriate policy environment and regulatory mechanisms and effective diplomacy.

Pension reform

We know that the matter of pension reform, as telegraphed in the Throne Speech by Governor General Patrick Allen, will be big on the prime minister's agenda when he speaks. We expect Golding will announce the introduction of a contributory pension scheme for the public sector.

When the PSTU presented its report to Cabinet last year, it not only mentioned pension reform, but also the issue of compensation in the public sector as well as leave arrangements.

"The success of a true transformation of the public sector relies significantly on the treatment of the sector's human resources. At the heart of this effort is the issue of how people are compensated and rewarded. It is, therefore, necessary that an effective compensation policy be determined which directs the manner in which people are attracted, paid and rewarded. A comprehensive review of the current compensation policy and practices is therefore recommended," the report said.

The Gavel supports this view of the PSTU and wholeheartedly embraces it. Sadly, however, the issue of reform is being approached from the wrong angle. It has been more about cutting or controlling the wage bill rather than achieving efficiency in the public sector.

We submit to Prime Minister Golding that the reduction of public sector wage bill as a percentage of gross domestic product is best achieved through a deliberate medium-term plan at the centre of which should be educating our people. For example, the promise by the prime minister in last year's debate to offer four per cent interest rates for Students' Loan Bureau borrowers who are pursuing studies in certain disciplines must be honoured.

Merely shifting around departments in ministries; privatising some entities and reforming the pension system is not a sustainable way of transforming the public sector. The time has come for greater use of technology in government offices. It is also critical that the energy consumption and the need to conserve be treated as a serious issue and given more than lip service.

Golding would have failed miserably in his bid to transform the public sector if he approaches it as merely cost cutting; and his desire to change the culture of the public service will ring as hollow as the Progressive Agenda if partnership and trust is not at the centre of the approach.