PUBLIC BODIES could look at entering into joint ventures with the private sector for the provision of services and could share revenue received from charges applied, Minister for Public Expenditure Brendan Howlin has suggested.
He also signalled that as part of the Government’s expenditure review, public bodies could look at a graduated system of charges.
In this scenario, higher fees would apply where services were provided directly by staff and lower rates where self-service or electronic processes were used.
Mr Howlin made his comments in answer to a parliamentary question tabled by Sinn Féin TD Pearse Doherty.
The question followed a report in The Irish Times last month that the heads of Government departments had been told by the Department of Public Expenditure and Reform to consider bold and even unpalatable measures in their submissions to the comprehensive review of State spending.
In the letter, Department of Public Expenditure and Reform secretary general Robert Watt said departments should include in their proposals options to introduce “reasonable co-payment mechanisms to offset in part the costs associated with delivery of public services, especially (but not exclusively) in cases where lower-cost delivery channels are available”.
Mr Doherty asked the Minister for examples of such “reasonable co-payment mechanisms”.
Mr Howlin said in his parliamentary reply that his department had not been prescriptive in setting out specific examples of co-payment mechanisms that were expected to be considered by individual departments and their agencies as part of their overall review of expenditure in each area.
However, there was a wide range of possible mechanisms.
“For illustrative purposes, departments may be able to identify new sources of funding for their activities through levies or tolls that can be reasonably applied in the markets for the activities.”
Mr Howlin suggested that rather than committing expenditure upfront, public bodies may be able “to partner with the private sector to make the upfront investments in return for a reasonable application of some form of gain-share model”.
“Self-service or electronic channels may be free or lowest cost whereas staffed or manual channels may attract an administrative fee or higher service charges to assist the public service defray the cost to the taxpayer,” he said.
“There is no ubiquitously correct model which is why we have asked departments and public bodies to consider every possible option.”
The proposals put forward by Government departments into the comprehensive review of spending are expected to feed into the budgetary process and to be considered by the Cabinet in the autumn. Members of the public have also been asked by the Government for suggestions on where savings could be made.
