Northern Ireland Office

Secretary of State, Peter Hain MP, has described the outcome of the Review of Public Administration as the greatest single challenge to the public sector in Northern Ireland in over 30 years. Today’s announcement in Belfast set out our proposals for the future shape of the public sector, aimed at putting resources where it was needed most – into front line services.

He said: “As a result of the decisions I am announcing today the total number of public bodies in health and social services, education and local government will be reduced from 67 to 20. This is a very significant reduction, shifting the emphasis from administration to front line services. This is a people agenda, not a Party agenda."

The Secretary of State said he was under no illusions about the size and scale of this radical reform programme and that he wanted to move quickly across a number of areas. He said: “Throughout the Review, we have been told there is an urgent need for change and we must now take decisions. For a place the size of Northern Ireland, 5,400 square miles with a population of 1.7million people, we are both over-governed and over-administered.  Public expenditure per head is nearly one third higher than in the UK overall.  But public spending is not matched in many areas by the levels of performance such spending should achieve.

“In the light of this announcement, all existing organisations and Councils will have a clear picture of the changes envisaged for them. The RPA has never been a cost-cutting exercise - the Executive made it clear that the objective is to provide better, more accountable services to citizens.  Nonetheless, I do expect the streamlining of structures to result in significant savings - estimates I have received indicate savings of up to £200m per annum are possible.  The money released will stay in Northern Ireland and will be available for reallocation to front-line services."

He continued: “This morning I have begun to set out a vision of change for public administration in Northern Ireland that will represent the greatest single challenge to the public sector here for over 30 years. Few parts of the public sector will remain untouched by these reforms. But if you believe, as I do, that Northern Ireland can truly be a world-class contender, then the reforms I have outlined must take place.  It will take strong visionary leadership in each sector, as well as by politicians, to make these vital reforms a reality.”

Mr. Hain confirmed that local Government in Northern Ireland would be based on seven Councils, stating that the time had come for a stronger, reinvigorated delivery structure. He said: “I have considered the evidence of the research commissioned as part of the Review, and the analysis of the further consultation. All this pointed to seven Councils as the optimum for service delivery and I have decided that this should be the model for the future. We also propose to bring back to Local Government a number of major functions such as planning, local roads, physical regeneration and local economic development.

“It is right that, as far as possible, services and functions which affect only the people in an area should come under the control of representatives elected by the citizens who live there.  But in addition to those functions for which they will have outright responsibility, I want Councils to also have the central role in delivering joined-up services in their area. That will be achieved through a new system of Community Planning with a statutory duty on Councils to develop and co-ordinate the delivery of a plan to address the requirement of their communities.”

The Secretary of State also announced that there should be a maximum of 50 councillors per Council and that legislation would be brought forward quickly after devolution to stop individuals being both an MLA and a Councillor.

Mr. Hain said that reforming health structures would lead to the improved delivery of services for patients, driven by, planned for, and responsive to, the needs of patients. A new Strategic Health and Social Services Authority will replace the existing four Health and Social Services Boards, which will be abolished. The new Regional Health Authority will have a responsibility for ensuring strong, system-wide performance management and the effective allocation of valuable health and social services resources. The existing 18 HPSS Trusts will be reduced to five.

Mr. Hain highlighted that fact that Education would provide the cornerstone for the future prosperity of the Northern Ireland economy and is the key platform upon which to build long-term peace based on mutual respect. He said: “The hub of future administration for education will be built upon a new single Education Authority which will bring together all the direct support functions currently undertaken by the five Education and Library Boards and the range of other organisations funded by Government. This body will incorporate curriculum and teacher support functions.”

He described the fundamental role of the Education Authority as to serve those at the front-line.  He also concluded that youth services should remain under the control of the Department of Education and that libraries should not transfer to Local Government.

Mr. Hain said he would also make a further announcement on the remaining Quangos and executive agencies within Departments before the end of March 2006 but noted that he expected this announcement to include the transfer of further functions to Local Government.

Full text of speech