THE NEW secretary general of the Department of Finance, John Moran, has warned that staff cuts and reduced resources in recent years have made it impossible to achieve goals set by Government.
Mr Moran will today outline how he intends to put his “ambitious” stamp on the department when he launches a revised version of Finance’s strategy plan until 2014, promising “bravery and inventiveness” in the development of policy choices.
The short-term strategies proposed to meet goals outlined in the report include formulating solutions to the problem of distressed mortgages, as well as “fair” resolution of the issue of excess personal debt.
However, Mr Moran’s report states that since 2008 departmental pay and non-pay costs have fallen significantly, reflecting a fall in staffing and associated supports, and cautions against continuing with this level of resources.
“This fall in investment in the department makes it impossible for us to achieve our overriding strategic goals set by ourselves and by the Government . . . To continue with such reduced resources is not sustainable or advisable given the greater challenges facing the economy and financial sector,” the report states.
“The Government has agreed that it is necessary to invest, given the importance of the ambitious goals we have set ourselves.”
The report acknowledges that in recent years the activities of the department have been dominated by the management of the economic and banking crises. It advocates a move away from crisis management and towards strategic planning for the future.
Mr Moran was appointed secretary general in March, replacing Kevin Cardiff who took up a post on the European Court of Auditors. Although described as an internal candidate, Mr Moran had worked in the private sector for much of his career.
From Limerick and a solicitor by training, he became head of banking in the department after the Fine Gael-Labour Coalition came to power. Prior to joining Finance, he worked as head of wholesale banking supervision at the Central Bank and as chief executive and a board member of financial firm Zurich Capital Markets. He also ran a chain of juice bars in France.
His report was presented to Cabinet recently, although publication was delayed while the requirement for translation into Irish was being fulfilled.
The document states the department must “work smarter” and make use of support available from the private as well as the public sector.
It promises to maximise the value of the State’s investment in banks, along with a reform and restructuring of the credit union sector.
A realignment of resources, along with a revision of existing structures within the department, is proposed in the document, which is described as “future-focused”.
The economic planning unit will be given greater capabilities, an enhanced project management unit will be created and the international division will be extended.
