April 1998
Department of Finance Strategy Statement 1998-2000

A Message from the Minister

I Mission

II Environment in which the Department Operates

III Strategic Priorities

- Economic and Fiscal Policy

- EU Participation

- Incomes Policy

- Public Service Change Programme

IV Linkages/Relationships with other Departments

V Supporting the Department's Strategic Priorities

Appendix Department of Finance: Organisation

The Public Service Management Act, which took effect on 1 September last, marks a major step forward in the strategic management process. By putting in place a modern framework of accountability, it provides Departments with a more robust, adaptable means of assigning and devolving responsibility at various levels and of ensuring that the necessary structures and systems are in place to support delivery of the outputs agreed between each Minister and the Secretary General of his or her Department.

In its Action Programme for the Millennium the Government stated that its aim is "to establish an inclusive society where all citizens have the opportunity and incentive to participate fully in the social and economic life of the country...and to share in the benefits of economic growth." It further stated that the Government would aim for tighter management of the economy so as to maximise the long-term potential for growth, jobs, social inclusion and improved living standards. A modern, proactive public service is central to the achievement of these objectives.

Increasing globalisation and economic integration are placing greater demands than ever before on the responsiveness of governments in all developed countries. It is imperative that we have a public service which not only moves with the times but which anticipates and makes adequate preparation for the challenges ahead. While we may be on the crest of an economic wave at present, we can never afford to lose sight of the fact that effective long-term management of the economy requires resilient, well-conceived strategies, strategies which will enable us to deal adequately with future uncertainties, the rough as well as the smooth.

If the Irish economy is to remain competitive in a European and global context and an attractive location for investment that generates output and jobs, the public service must strengthen its capacity to manage strategically and to respond flexibly and speedily to the needs of a modern market-driven economy.

This Statement of Strategy, which I have approved, when taken with those of other Departments, sets out the basis on which the public service will be managed to deliver a top quality service designed to promote and sustain the economic and social well-being of our nation.

Charlie McCreevy, T.D., Minister for Finance, April 1998

Foreword by the Secretary General

The production of Statements of Strategy by Government Departments, which started in 1994, has been placed on a statutory footing by the Public Service Management Act, 1997. This welcome development is focusing attention, not just on what Departments are doing, but also on the general environment and framework in which they are operating and the principal considerations which inform their strategies.

While such analysis has always been a feature of public management, it has generally not been as explicit or as systematic as it has now become under the Public Service Management Act. This new approach has the merit of opening internal management thinking and analysis to wider public scrutiny and placing our strategy before a wider audience. The Statement of Strategy constitutes a coherent, proactive agenda for the Department as a whole, and provides the framework within which the individual Divisions and Sections formulate and pursue their annual work programmes.

This Department has a central role to play, not just in the management of the public service but, through Delivering Better Government, in assisting with the implementation of a comprehensive programme of public service change.

The increased emphasis under the Strategic Management Initiative (SMI) on quality customer service and the timely delivery of agreed outputs will help to ensure that the objectives and activities at all levels are fully aligned with the Department's overall strategic direction. This will enhance both co-ordination within the Department and the quality of communication across the organisation as a whole.

This document reflects the development and updating of a number of earlier versions which have been prepared through a process of extensive internal consultation. Thus, it constitutes a team document, a common statement of intent by the Department as a whole.

Finally, I would like to acknowledge the very high level of commitment of our staff. However well developed the SMI may be, it can only ever become fully effective in an ethos based on commitment, diligence, open communication, and a will to succeed.

P H Mullarkey, Secretary General

I -- Mission

To promote an economy which will maximise growth, sustainable employment and social progress.

Introduction

The Department's 1997 Statement of Strategy has now been updated and refined to conform with the requirements of the Public Service Management Act, 1997.

The Department's strategic priorities take account of significant recent developments and future challenges, in particular An Action Programme for the Millennium, EMU -- which is scheduled to commence on 1 January 1999 -- and the future evolution of EU policies in general, the national programme Partnership 2000 for Inclusion, Employment and Competitiveness, the public service change programme, and the implementation of a medium-term framework for budgetary management.

Government Departments have a major role in advising and supporting the Minister for Finance and the Government on the economic and financial management of the State and on the overall management and development of the public sector. The mission of the Department of Finance, which occupies a central position in this process, is

to promote an economy which will maximise growth, sustainable employment and social progress.

This mission involves:

• promoting Government policies which deliver international competitiveness and internal efficiency;
• managing the overall process of resource generation and allocation, as decided by the Government, to secure optimum social and economic benefits;
• achieving ongoing improvements in efficiency and effectiveness across the public sector.

Strategic Priorities

The review of our strategy highlighted the need, in view of the challenges facing the Department over the coming years, to focus on four priorities in pursuing the Department's overall mission:

• Economic and fiscal policy covering

• price stability;

• debt reduction;

• management and effectiveness of public expenditure;

• tax reform.

• Ireland's participation in the EU, particularly in regard to

• Economic and Monetary Union (EMU);

• EU budgetary issues, including Structural and Cohesion Funds;

• financial regulation.

• Incomes policy development in both

• the economy generally and

• the public service

by reference to competitiveness, a sound budgetary position and social partnership.

• The public service change programme which encompasses

• improved delivery of quality services;

• more efficient and cost-effective management of the public finances;

• enhanced accountability, flexibility and devolution of responsibility;

• improved human resource management;

• improved access to information.

Departmental Outputs

The primary and essential output which the Department will aim to deliver is the provision of high quality advice to the Minister and the Government in respect of the Department's overall mission and these strategic priorities.

This advice will help in shaping the following major outputs:

• the annual Budget Statement, the Finance Act and multi-annual budget projections;

• the annual Expenditure Estimates and Appropriation Act;

• implementation of the National Changeover Plan for EMU and the euro;

• preparation of the post-1999 National Development Plan, negotiation of the post-1999 Community Support Framework, and implementation of the present and post-1999 Community Support Frameworks;

• policy in relation to the exchange rate and debt management;

• determination and application of policy on public service pay and conditions;

• the Irish policy stance at EU and other international levels;

• the necessary legislative and administrative framework for public service organisation and management;

• participation in cross-Departmental formulation of policy;

• the conveying to Departments of sanction for expenditure;

• implementation of the Minister's role in relation to state bodies, including his role as shareholder;

• the necessary legislative framework for financial regulation.

While the work of the Department is predominantly of a policy nature, there are a number of services for which it is responsible, including

• the administration of a banking service to all Departments;

• the payment of pensions to retired civil servants;

• the provision of advice on borrowing and debt management to state bodies;

• the approval and certification of International Financial Services Centre and Shannon Zone project applications;

• the delivery of an IT, training and management consultancy service to the civil service.

The Department will aim to deliver a high quality and efficient service in each of these areas.

Measurement of Success

Performance measurement is critically important in evaluating progress towards the achievement of objectives. Accordingly, parameters have been specified against which success in managing the Department's strategic priorities will be measured.

In setting its objectives for achieving the Department's overall mission, which will be pursued at all times in accordance with Government policy, the Department has assumed that the international economic environment will continue to be generally favourable and that

- debt reduction

- tax reform

- efficient and cost-effective management of the public finances

- public service change

- full participation in the EU

- competitiveness

- social inclusion and partnership

will continue to be central aims of Government policy.

The development of our strategic priorities involved an analysis of the environment in which the Department operates, the results of which are outlined in the next chapter.

II -- The in which the Department Operates

Background

The Department operates in a complex economic and social environment. Its strategic priorities provide the backdrop for the sectoral development strategies pursued by most other Departments and by the public sector in general. This Statement of Strategy, which sets out the Department's proposed approach over the next three years, has regard to the many factors outlined below, as well as others identified in our analysis.

Clients and services

The Department's principal clients are the Minister for Finance, the Minister of State and the Government, through whom it serves the public at large and their elected representatives, as well as other Government Departments. Its services embrace budgetary policy, co-ordination and overall management of public expenditure, the negotiation and efficient management of EU resource transfers, preparations for EMU, the framework for financial regulation, incomes development, public service industrial relations, a Government banking service, and the promotion of efficient and effective management of the public sector.

Our business environment

The strength of the Department's position derives from its location at the centre of Government decision-making and its access to the network of international relationships which have a powerful influence on our economic well-being. The main favourable opportunities which exist at present are the positive economic environment, employment growth, the level of national consensus and EMU, while our main challenges lie in controlling the growth in public expenditure, issues arising from the introduction of a fixed exchange rate, and the maintenance of price stability. The uncertainties associated with the openness of the Irish economy and its continuing, if diminishing, reliance on trade with the UK, must also be managed, along with the possibility of economic shocks, the impact of strong economic performance on pay expectations, and the persistence of unacceptably high levels of unemployment, particularly long-term unemployment.

Critical success factors

The factors critical to the achievement of progress include adequate resources, expert and committed staff, effective legislative support and political commitment. Success will depend also on the maintenance of an effective and productive working relationship with other Departments, public agencies, the commercial state sector and the social partners.

III -- Strategic Priorities

Strategic Priority 1 --

The Department's overall aim is to promote a strong, thriving economy, one which rewards enterprise and innovation and which, in an ever-changing global environment, can continue to respond successfully to the needs of the community. The Department will put forward an internally consistent series of policies in relation to economic, expenditure and taxation strategy and overall budgetary balance to create the conditions in which enterprise, investment and employment can prosper and in which other priorities, social and environmental, can be progressively addressed by Government.

The Department is also promoting changes in how the public finances are managed. The aim is that multi-annual budgeting will be further developed in 1998/99, enabling the Department to plan for more effective medium-term management of public expenditure. The system of administrative budgets for civil service running costs will also be developed to empower Departments further, while the Financial Management Working Group established under Delivering Better Government will advise on the introduction of a more comprehensive accounting system for Departments.

Objectives:

• Economic Policy

In order to promote the maximum sustainable rate of economic growth, the Department will aim to secure

• a high degree of price stability;

• entry into EMU from the outset at an appropriate exchange rate;

• overall levels of taxation and expenditure consistent with economic and social progress;

• international competitiveness;

• internal efficiency in the economy as a whole, including the public sector.

• Budgetary balance

The Department's aim is to secure the adoption of a budgetary strategy which will

• be consistent with the need to ensure a continued gradual reduction in the tax burden designed to underpin competitiveness and employment;

• deliver over the course of the economic cycle a budget position close to balance or in surplus in order to:

- continue reducing the burden of Government debt at a satisfactory rate;

- ensure compliance with the EU Treaty and the Stability and Growth Pact; and

- preserve scope for necessary flexibility, so that budgetary policy continues to contribute to stable progress.

• Taxation Policy

The Department's aim is to improve the structure of the taxation system in a manner which will

• promote a competitive economy through the reduction of tax rates and of the impact of taxation on employment and the productive sector, as well as by the better focusing of tax incentives;

• ensure that tax policy integrates with income support measures so as to maximise the incentive to work and promote social cohesion;

• promote greater equity in the tax system through measures to broaden the tax base, reduce the proportion of taxpayers on the higher income tax rate, and reduce the burden of tax on the lower paid;

• encourage entrepreneurship, technological innovation and the acquisition of skills;

• support a moderate pay regime.

• Expenditure policy

The Department's aims are

Aggregate expenditure

• to manage aggregate public expenditure within the limits set by overall Government parameters;

• within that limit, to give priority to spending which will assist the economy to achieve the maximum sustainable output of goods and services and, hence, of employment and of resources for social priorities;

• to ensure that the evolution of total expenditure on public service pay and pensions is consistent with these objectives.

Expenditure co-ordination

• in conjunction with other Departments, to ensure quality output and value for money from public expenditure;

• to ensure completion of the comprehensive programme of expenditure reviews being carried out by Departments, with the active involvement of the Department of Finance, in order to assist in ensuring that expenditure is prioritised to address evolving social and economic needs;

• to re-define, particularly in the context of the programme of expenditure reviews and the development of multi-annual budgeting, the Department's role in managing public expenditure to help ensure that responsibility and accountability for expenditure management is exercised effectively by Departments within the resources allocated to them;

• assisting the Public Accounts Committee in its work and co-ordinating the responses of Departments to reports of that Committee;

• to advise on Government policy regarding the control of numbers employed in the public service, to be implemented on a sector by sector basis by the responsible Departments.

Specific expenditure issues

• to optimise the use of available EU Structural and Cohesion Funds;

• to optimise the targeting of resources available for tackling social priorities;

• to pursue a debt management policy which minimises debt service costs over time;

• to contribute to cross-border initiatives which support sustainable economic and social development;

• in conjunction with the responsible Departments, to review on an ongoing basis the objectives and performance of the commercial and non-commercial state sectors and, in the case of the former, to set targets for company performance, taking account of the views of company boards and management.

Indicators of Success

In general, the success of the Department's policies will be indicated by a competitive economic environment, relative economic progress, increased employment and improved social cohesion. Specifically -

• Economic:

• economic growth in excess of the EU average;

• employment growth in excess of the EU average;

• a rate of inflation close to that of the best performing members of the EU;

• investment which enhances capacity and increases competitiveness.

• Budgetary:

• a General Government position close to balance or in surplus in normal economic conditions so that it is always below 3% of GDP across a normal economic cycle;

• the General Government Debt to continue to decline as a proportion of GDP at a satisfactory pace.

• Taxation:

• meeting Government targets for tax rate reduction;

• reducing the proportion of taxpayers on the higher income tax rate;

• reducing the burden of tax on the lower paid;

• broadening of the tax base;

• a better focusing of tax incentives.

• Expenditure:

• year-to-year real growth in expenditure not to exceed that compatible with an appropriate overall budgetary position in the context of a taxation policy which underpins and promotes competitiveness and employment, while at all times respecting the parameters for expenditure control set out in An Action Programme for the Millennium;

• containment of total expenditure on public service pay and pensions;

• progressive implementation of a comprehensive programme of expenditure reviews across Departments;

• in conjunction with the responsible Departments, the setting of targets for company performance in the commercial state sector.

Strategic Priority 2 --

The Department of Finance plays a key role in Ireland's participation in the European Union. Over the period of this Statement of Strategy this role will be exercised against a background of major developments in the EU, notably the introduction of Economic and Monetary Union (EMU), negotiations on Agenda 2000 issues, notably enlargement and the next round of funding arrangements for the EU (including Structural and Cohesion Funds), and negotiations on the next round of world trade reform under the auspices of the World Trade Organisation. Our recent economic performance, which exceeded the EU average, has potential implications for the impact of these developments on Ireland. This combination of factors poses a significant challenge to the Department in its handling of European issues over the period.

Objectives

The Department's objectives are:

• General

• to continue to play a positive role in Ireland's contribution to strengthening the European Union, especially through the ECOFIN Council.

• EMU

• to promote the policies necessary for Ireland to qualify for EMU at the outset and to engage fully in the EU's preparation for EMU.

• to ensure that domestic preparations for EMU are adequate.

• to ensure that, after the commencement of EMU, Ireland makes an effective contribution through the Economic & Finance Committee and the ECOFIN Council to the formulation of exchange rate policy and of broad guidelines for economic policy in the euro area and the EU generally.

• to promote policies which support the effort to take full advantage from EMU membership and to meet successfully the challenges it may pose.

• to ensure that economic surveillance at EU level helps to provide a stable economic environment supportive of enterprise, growth and employment.

• Structural and Cohesion Funds

• to complete the successful implementation of the National Development Plan, 1994-1999.

• to secure a satisfactory outcome for Ireland to the negotiations on the next round of EU funding arrangements, particularly through the provision of Structural and Cohesion Fund assistance adequate to finance Ireland's continuing development needs.

• to produce an agreed post-1999 National Plan for the investment of public, private and EU funds in the light of the level of Structural and Cohesion Funds allocated to Ireland for the post-1999 period.

• recognising the potential of the EU's perspective and the EU Cohesion and Regional policies as agents of change and development to foster where appropriate, jointly with Northern Ireland, structures and programmes which can benefit the whole island.

• Efficient and Effective Management of EU Funds

• to promote sound and efficient management of EU funds (particularly the European Regional Development Fund and Cohesion Fund) across Departments.

• Financial Regulation

• to contribute effectively to the development of EU policy on the regulation of the financial system and to formulation of proposals for an effective and competitive system of financial regulation.

• Taxation

• to secure EU approval where necessary for relevant taxation initiatives.

• International Dimension

• to represent Ireland's interests and contribute to policy formulation in the International Financial Institutions (IFIs) in which Ireland is represented.

Indicators of Success

The key indicators of the success of the Department's policies in this area will be:

• effective representation of Ireland's interests at the ECOFIN Council;

• Ireland's qualification for membership of EMU from the outset and preparedness for participation;

• EMU arrangements which optimise the benefits of membership;

• that EU Structural and Cohesion Funds are fully committed, used effectively and drawn down for the 1994-1999 programme period and contribute to Ireland's economic and social development;

• that the EU Financial Perspective to be agreed for the post-1999 period, particularly the allocation of Structural and Cohesion Funds, are sufficient to help meet Ireland's continuing social and economic needs;

• a National Development Plan which contributes to Ireland's economic and social development for the post-1999 period in the light of Ireland's allocation of Structural and Cohesion Funds for that period;

• the further development of effective financial management arrangements for EU Funds;

• that practical and effective EU policies are developed on financial regulation;

• implementation of the Interreg and Peace Programmes;

• EU approval of tax initiatives, where appropriate;

• effective Irish participation in the IFIs.

Strategic Priority 3 --

Competitiveness is the major determinant of Ireland's economic growth, employment and social progress. The main aim of incomes policy is to contribute to competitiveness. Towards this end, the Department will continue to pursue pay moderation, a stable pay environment, social partnership, a supportive taxation regime, industrial peace and flexibility in the workplace.

The Department aims to promote and support the application of such an incomes arrangement in both the private sector and the commercial state sector. It also aims to have a similar arrangement governing the public service which takes account of the special considerations which apply to that area, such as the impact of the pay bill on the management and control of public expenditure.

Objectives

Subject to compliance with the macroeconomic principles which underpin the national programme, Partnership 2000 for Inclusion, Employment and Competitiveness, the Department aims:

• to support developments on pay and conditions of employment in the economy generally in accordance with the terms of the Partnership Agreement on Pay and Conditions of Employment;
• to ensure in relation to the public service that

• the terms and cost parameters of that Agreement, as it applies to the public service, are adhered to;

• related commitments to full and ongoing co-operation with change, continued adaptation and flexibility, including the modernisation programme for the public service, are fulfilled.

The Department also aims

• to process to finality claims and issues outstanding under the public service "local bargaining" clause of the Programme for Competitiveness and Work (PCW);
• to monitor the possible impact of pay developments on the arrangements to follow Partnership 2000 and to make a significant contribution to the determination of those arrangements;
• to play a full part in the consideration of the national minimum wage and union recognition issues under Partnership 2000;
• to develop and manage pensions policy across the public sector having regard to the emerging cost profile of pensions schemes and the report of the Commission on Public Service Pensions;
• to support the satisfactory operation of industrial relations machinery in the public service which reflects changing requirements;
• to promote industrial peace, thereby ensuring continuity in the delivery of public services.

Indicators of Success

The key indicators of the success of the Department's policies in this area, consistent with the macroeconomic principles underpinning the Partnership, will be:

• pay developments in all sectors which accord with the Partnership Agreement on Pay and Conditions of Employment;

• management and control systems in place to ensure adherence by each public service area to the public service pay cost parameters of the Agreement;

• compliance with the conditions of the Agreement provision for local level negotiations in the public service in 1999, including the requirements regarding progress on the modernisation programme for the public service;

• the satisfactory resolution, in terms of cost and increased efficiency and effectiveness, of claims outstanding under the PCW Pay Agreement;

• effective management of public sector pensions policy and the formulation of a Government response to the final report of the Commission on Public Service Pensions;

• satisfactory industrial relations machinery in operation in the public service;

• effective partnership arrangements and industrial peace.

Strategic Priority 4 --

Delivering Better Governmentis a comprehensive programme of change for the civil service aimed at enhancing accountability and the devolution of responsibility, improving the management of human resources and the public finances, providing greater access to information, delivering quality services, and managing more effectively issues which cross Departmental boundaries. Because of its overall responsibility for the management and development of the public service, the Department makes a significant contribution, through the Implementation Group of Secretaries General and the Co-ordinating Group, to advancing and developing the programme of change.

Substantial progress has been made in introducing the supporting legislation. In addition, key initiatives in human resource management, including a performance management system for the civil service, financial management and Government accounting, customer service, information technology, and the Information Society have been, or are being, introduced. Partnership 2000 for Inclusion, Employment and Competitiveness provides also for partnership structures in each organisation to engage management, unions and staff in developing and implementing action programmes to progress the change programme and to foster a new, participative approach to resolving issues and challenges.

Objectives

The ongoing development and implementation of Delivering Better Government present major challenges for the Department and require that it works effectively with other Departments and delivers its services to best effect in supporting them.

The Department aims, therefore, in conjunction with other Departments:

• to continue to prepare necessary supporting legislation;
• to develop and implement initiatives to give effect to Delivering Better Government;
• to support the development of effective partnership structures in each Department in accordance with the principles of Partnership 2000;
• to provide, through the Centre for Management and Organisation Development (CMOD), effective advisory and support services in the areas of organisation development, human resource development and training, and information technology;
• to support, through the Central Policy Unit, the implementation of the Freedom of Information Act; and
• to contribute to the development of Strategic Result Areas, i.e. the key priority areas of national policy, particularly those crossing Departmental boundaries, which require a coherent and collective response by Departments.

Year 2000 Computer Problem

A further objective is to make existing computer systems Year 2000 compliant through the completion on schedule of the remedial work under way across the public service. This work is being overseen and monitored by an Interdepartmental Group chaired by the Department.

Indicators of Success

The key indicators of success will be:

• tangible improvements in performance, effectiveness and accountability;
• greater flexibility in the use of staffing and other resources;
• enactment and implementation of the necessary legislation;
• improvements in the provision of and access to information;
• development of effective partnership structures involving management, staff and unions in each Department and Office -- and similar arrangements for the wider public service -- to facilitate changes arising from the public service change programme and otherwise;
• progress on the development and implementation of action programmes under the public service modernisation provision of Partnership 2000;
• the ongoing development and implementation of change initiatives arising from Delivering Better Government;
• the development of, and a coherent, proactive response to, a set of Strategic Result Areas by Departments;
• satisfaction with the advisory and support services of the Department;
• the achievement on schedule of Year 2000 compliance for computer systems in the public service.

IV --  and Relationships with other Departments
Network of relationships

The Department can operate effectively only through a network of relationships extending across the civil and public sectors and, in many instances, into the wider economy. The strategic directions pursued by other Departments will generally require them to liaise, often quite closely, with this Department. The linkages and relationships between the Department of Finance and other Departments must therefore be fully aligned with the needs of strategic management.

The key role of the Department

The Department recognises that the economic and social challenges facing the country over the coming years will continue to require a coherent, co-ordinated response from the civil service. This will necessitate co-ordination of the objectives and strategies of Departments in areas of common concern, identification of the strategic objectives in key areas of Government activity, and improved communication at all levels within the civil and public service. The Department of Finance has a key role in this process.

The way we do business with Departments

The Department proposes to initiate a more open and collaborative approach on public expenditure, civil service staffing, and SMI developments aimed at further empowering spending Departments. The Department will aim at more open dialogue with other Departments on the allocation and utilisation of available resources. This will emphasize the primary role of Departments in managing their resources in conformity with the budgetary parameters set by Government.

There are other factors arising from Delivering Better Government which require the Department to reorient its role. Four in particular are relevant:

- Authority and Accountability:

Implementation of the provisions of the Public Service Management Act which will significantly change the way responsibility and accountability are assigned and put an increased emphasis on the way they are exercised at all levels in the management of resources.

- Financial Management and Devolution:

Devolution of greater accountability and responsibility to Departments for the management of the public finances.

- Human Resource Management:

The introduction of a comprehensive package of HRM initiatives, including enhanced performance management, which will devolve greater responsibility to Departments, and within Departments, for human resource management.

- Cross-Departmental Issues:

The increasing complexity of public administration, as well as the diverse and challenging nature of the strategies being pursued by other Departments, which will necessitate a strengthening of the structures for co-ordinating Government activity and advancing common or related objectives, e.g. Strategic Result Areas.

Developments in these four areas will in future require the Department to give greater emphasis to the development of policy initiatives in consultation with Departments, the promotion and monitoring of change, and the provision of advice to Departments.

V -- Supporting the Department's Strategic Priorities

The Department's Resources

- human resources

The Department has a staff complement of 508. As is the case with all Government Departments, total numbers are controlled in line with Government policy. Of this staff complement, 141 are in the clerical grades, 164 are in the grades of Administrative Officer, Higher Executive Officer and Executive Officer, and 166 are in the higher grades. The high proportion of staff in the higher grades relative to the civil service generally reflects the high policy content of the Department's work. Resources are reallocated from time to time in accordance with changing priorities. Details of the current administrative organisation are set out in the Appendix.

The Department's internal capability to realise its goals rests fundamentally on the quality and commitment of its staff. During 1997, through a series of staff workshops, an extensive review of the Department's human resource management policies and practices was conducted, including those relating to staff training and development. The changes emerging from this review, as well as those envisaged on foot of Delivering Better Government, will strengthen and consolidate the Department's skills base and provide a firm foundation for the years ahead.

- budget

The Department has a budget in 1998 of £37.12m. Of this, £21.27m constitutes its administrative budget of which the main component is staff pay (£14.65m).

- information

The Department also depends on the timely availability and analysis of information on performance in the public and financial sectors, as well as the economy as a whole. The internal systems and structures which support its activities are therefore of key importance in maintaining a flexible and responsive service and in ensuring that the needs of the economy are kept under review. The Department's Information Technology Plan is reviewed and updated regularly to ensure that its information management systems and facilities are keeping pace with the changing needs of the organisation.

SMI Work Programmes and Day-to-Day Activities

The Department recognises the need to ensure that strategic management informs and directs its day-to-day activities at all levels. Divisional and Sectional work programmes and objectives have been drawn up to help the Department achieve its strategic priorities and use its skills and resources to best effect. These are resulting in better and more coherent management of the Department's activities. They are also ensuring that the SMI process itself takes root in all areas, that closer working relations with other Departments continue to evolve, and that the Department's goals and objectives are being realised. The structures in place to support this process ensure that staff at all levels have an input into the Department's overall planning and direction.

Developments within the Department

Considerable demands are being placed on the Department by the increasing interaction and complexity of its activities and the pace of external change. The Department recognises the need to keep its performance and structures under constant review and to ensure that its staff resources, skills and information technology are being deployed to best effect.

Structures have been put in place to promote the aims of strategic management, including:

• arrangements at each level of management to strengthen communication, monitor the achievement of objectives and support the timely examination of strategic issues;

• groups at Assistant Secretary and Principal Officer levels to develop and review positions on general policy and organisational issues and to manage a number of staff-related matters;

• a Change Management Working Group, representative of staff at all levels, to work with Corporate Services Division and advise Management on an ongoing basis on the development of the SMI process, human resource management policies and internal communications;

• under the Department's Quality Customer Service Plan, the appointment of a Quality Customer Service Team to ensure that the Department's service standards are being observed and further improvements made in line with changing customer requirements. These standards include a commitment to improving the accessibility of our offices to persons with disabilities agus chun seirbhísí as Gaeilge a sholáthar in aon áit a bhfuil iarratas orthú.

Initiatives planned include the putting in place of:

• a performance management system to enhance staff development and support the development of work programmes;

• structures to promote and underpin the consultative and participative process established under Partnership 2000 for the implementation locally of Delivering Better Government and the management of change generally.

Organisation

The Department of Finance has responsibility under statute for the administration of the public finances of Ireland, as well as for the promotion and co-ordination of economic and social planning.

The work of the Department is carried out by six Divisions:

Budget and Economic Division deals with overall budgetary policy, taxation policy, economic policy and forecasting, and policy and certification for the International Financial Services Centre and the Shannon Zone.

Corporate Services Division is responsible for the internal staffing and systems of the Department, including information technology.

Finance Division deals with exchange rate and monetary policy, financial markets and banking; EMU policy and practical preparations; international financial institutions; EU policy co-ordination and the EU Budget; EU Structural and Cohesion Funds policy, monitoring and evaluation; and Exchequer accounts and payrolls.

Organisation, Management and Training Division deals with civil service organisational issues such as systems, structures, staff numbers, administrative budgets, Government accounting, the application of information technology, arrangements for ensuring Freedom of Information, and staff training and development.

Personnel and Remuneration Division deals with policy on public service pay and superannuation and on other conditions of service for the civil service, including recruitment, promotion and equality.

Public Expenditure Division deals with policy on public expenditure, aspects of policy towards commercial state bodies, and policy relating to Government contracts and the National Lottery.

MINISTERIAL OFFICES

Minister for Finance Charlie McCreevy, T.D.
Private Secretary Hannah O'Riordan

Minister of State Martin Cullen, T.D.
Private Secretary Gary Tobin

Department of Finance

LoCall: 1890 661010

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