Wednesday 14 December 2016
In September 2015, the States of Deliberation acknowledged the need for significant change and endorsed a document called "A Framework for Public Service Reform".
At that time, it was agreed that an annual update on progress against that document should be given. I also undertook in my Statement to the Assembly in June to keep the States regularly updated. Rather than incurring the time and cost of preparing a Policy Letter which the States would only be asked to 'note', we have opted to provide a written update from the Chief Executive - circulated to States Members yesterday afternoon and will be published in full today - and also to make this statement.
The ambitious Public Service Reform programme goes beyond what was delivered previously by the Financial Transformation Programme (FTP) and aims to transform the organisation, management and delivery of public services.
The Policy & Resources Committee is providing the political oversight of, and assurance to, Public Service Reform - and I am leading that on behalf of the Committee.
Although the States is only one year into a lengthy journey, a great deal of work on transforming the delivery of public services is already happening.
It is vital that it succeeds - the increased efficiency and effectiveness will help us maintain services as demand increases, while at the same time controlling costs and expenditure.
It will help us to achieve the aims that we agreed last month in Future Guernsey, the first phase of the Policy and Resources Plan - sustainable public finances, and a community served by strong efficient public services.
I know that many States Members are directly involved in supporting this work, and I would encourage all Members to take an active interest in ensuring it meets the ambitious targets that have been set.
Whilst inevitably there will be greater opportunities in some areas than others, the transformation of public services is essential; simply making minor alterations to the way we are already doing things, will not be enough to secure the quality, affordability or sustainability of public services in the long term. I am confident that in working collaboratively both within Government and with the public service we can make the changes that our community needs.
Within 'A Framework for Public Service Reform' we have already committed to improving customer engagement and satisfaction while delivering and demonstrating value for money.
The public service is now working towards this in different ways: through re-designing services; piloting new ways of working; improving the services currently provided; and making day-to-day changes to the way things are done - there is no need or desire to put in place a project board to implement a good idea - JDI - Just Do It!
Public Service Reform is a sizeable initiative and has been divided into several programmes of work including health and social care, education and training, and justice and equality.
The programmes are supported by better use of property and technology.
Updates in areas such as health and social care and justice and equality will be provided to States' Members by the Committees involved in due course. This update covers progress on the following four States-wide initiatives:
- People Plan
- SMART Guernsey
- Property Rationalisation and
- Contribution and Taxation Services (CATS)
People Plan
The 'People Plan' will ensure that the public service's people resources are adequate, appropriate and fit for purpose. In other words, it is about ensuring that we have the right people with the right skills for the future
Over the last five years the overall size of the public service has reduced by over three per cent (ie by 171 posts), despite the requirement to increase in areas such as health.
However it is clear that we need to strike an even better balance between investment in the staff that provide our public services and management of the cost of staff across the whole of the public sector.
With the public sector going through significant transformation, there is a requirement and an absolute commitment to evaluate staff terms and conditions with a view to ensuring we have a pay system which is focused on our needs and objectives.
So this review will need to include evaluating the extent to which harmonising terms, conditions and pay spines across our multitude of staff groups, can lead to efficiencies and potential savings, whilst ensuring fair and equitable pay for the work that is done; and it will also need to review the impact of pay increments, which I referred to in my Statement to the Assembly in June. The aim will be to reduce the number of staffing groups to streamline future negotiations.
Proactively managing the cost of the public service pay bill (which amounted to £215m from general revenue in 2015) is absolutely critical, and measures are already being taken reduce this and will continue to be progressed in 2017. For example, earlier this year, I reported a number of measures being taken by officers to address the shortfall in revenue in 2016, and I can advise that £950k of the in-year savings signed off as a result of these measures, have been pay-related.
In the next ten years, over 30% of the public sector workforce will reach retirement age. The public sector has an annual turnover of its work force of 14%, which equates to approximately 750 staff. As public sector reform progresses, this staff turnover provides great opportunity to change and do things differently.
SMART Guernsey
SMART Guernsey is the name given to the digital work that is supporting Public Service Reform. In other words, the re-design of services, the automation of middle and back office activities, and increasing the number of transactions or service requests that can be completed on-line.
This shift from over-the-counter services to online processes, has the potential to significantly reduce costs, whilst increasing accessibility and service. However, this will not mean an end to face-to-face contact - it means that those who are able to use online services will be encouraged to do so, and staff can instead focus on supporting people who, for whatever reason, need personal assistance.
SMART Guernsey is also ensuring staff and customers have access to the right information, in the right format, at the right time, and in the right place. An example of this, is the revamp of the Gov.gg website during 2016, which makes it easier for our customers to access the information they have told us is most important to them.
A further example of a digital initiative which has already been implemented as part of Public Service Reform, is the introduction of Video Teleconferencing (VTC) technology in a number of States' locations. In Health & Social Care, this has already enabled patients in Alderney to be assessed by clinicians, without the time and cost of having to travel to Guernsey for an appointment. More than 2,700 flights were taken in 2015 by Alderney residents travelling to Guernsey for medical appointments, many of which were routine. A significant number of those consultations can now be safely and effectively carried out by VTC, as familiarity with the system increases. Further opportunities to use VTC are now being explored.
Property Rationalisation
Rationalising the States' property holdings has been a strategic objective for some time, and last week gathered pace with the tendering of significant work to upgrade Sir Charles Frossard House. This will not only support public service reform, but the work will be a boost to our local economy.
The States is committed to vacate two properties, Cornet Street and Grange Road House, by the end of 2017. Both properties will be made available to the States' Trading Supervisory Board and may be disposed of, which would provide a capital receipt, or let which would generate an ongoing revenue stream.
Other opportunities to rationalise the property portfolio to meet Public Service Reform, are part of the wider programmes of work being undertaken in the Transforming Health & Social Care programme and the Home Operational Services Transformation (HOST) programme. Updates on these initiatives will be provided by the relevant committees in due course.
Contributions and Taxation Services (CATS)
The aim of the Contribution and Taxation Services Programme is to create a combined service for the collection of income tax revenue and social security contributions, supported by an efficient organisational structure and IT systems. Combining the collection services will reduce cost and increase efficiency.
Work to develop the so-called 'Target Operating Model' for the combined function will commence in January 2017, with the output expected to come to the States for approval before the end of 2017. If approved, work on the transition to the new model should begin in 2018.
During 2016, a number of improvements in the services provided by the Income Tax Office have been delivered. This has enabled the number of individual registrations for online tax services to increase to almost 27,000.
A significant improvement in service has been realised, with around 60% of assessments submitted online, now being processed within 10 days, as they relate to customers whose tax affairs are straightforward and therefore require a minimal level of staff intervention.
The 'reform dividend'
The Public Service Reform document sets out the concept of a 'reform dividend' for transformation projects.
Initiatives which accrue financial benefits will bring a return on investment known - in other words the reform dividend - where cost savings (or income generated) can be used to:
- help eliminate any deficit
- replenish the reserves which were depleted over the period the States ran a deficit
- fund increased demand arising as a result of the changing demographic in services like social care
- be invested in new or improved services where these have been prioritised by the States
- or invest in capital assets to help deliver on the fiscal framework objective of 3% of GDP spending per annum
Since the end of the Financial Transformation Programme, the responsibility for the identification, delivery and reporting of cost reduction or efficiency improvement initiatives has been with individual Committees.
Work undertaken in the autumn suggests that almost £1.5m of cashable savings were made from over 60 different service-led initiatives between January 2015 and June 2016.
