Speech by the Minister for Education and Science, Batt O’Keeffe TD, at the Annual Congress of the Irish Vocational Education Association, Clare Inn, Dromoland, Co Clare

A Uachtaráin, a Rúnaí Ginearálta agus a theachtaí. Táim an-bhuíoch díbh as ucht cuireadh a thabhairt dom labhairt libh ag bhur gComhdháil bhliantúil i Countae an Chlair.

Thank you for the invitation to be with you this afternoon.

As we face into a truly pivotal time in the history of this country, I’m pleased to be here to talk to you about some of the challenges we face.

When I joined you at your conference last year, we were in the midst of preparing for an early Budget.

People were genuinely shocked and angry by some of the measures that were introduced both in that Budget and the supplementary Budget in April.

Since then, radical policy responses by Governments in many countries have been required to deal with the near collapse of the global finance system and the impact of economic recession.

The impact in our own country has been particularly severe and as a Government we are continuing our efforts to restore our banking system to a position where it can provide credit to underpin our economic recovery and generate employment.

It’s clear that NAMA is the best solution to the issues facing the banks and the wider economy.

NAMA has been endorsed by the European Central Bank, the International Monetary Fund and the Organisation for Economic Co-operation and Development.

We are working closely with our European colleagues on the proposals.
The loan valuation process must be approved by the EU and the European Commission will have a role in auditing the loan-by-loan valuation process.

I believe that our economic difficulties would be much worse if Ireland were not part of the European Union.

Working together, the EU has provided interest rate cuts, €100 billion euros in liquidity to financial institutions as well as other interventions and supports to help counteract the effects of the global turmoil in EU states.

I believe the EU is critical to Ireland’s economic future and that it’s essential we remain at the heart of European decision-making.

As well as dealing with the banking crisis, the Government is also determined to continue to put measures in place to stabilise the public finances.

In Ireland we have a particularly difficult position in relation to our public finances brought about by a dramatic fall in our tax revenues and by the increased cost of unemployment benefits.

The level of borrowing required to fund the gap between spending and revenue is not sustainable.

In summary it is costing some €56 billion to run the country and provide public services while our revenue is about €33 billion.

Our capacity to fund the budget deficit in the short term through borrowing depends on our demonstrating to the international community that we are taking real steps to deal with this problem.

In short we cannot afford to continue to spend money on public services at the current level.

The reduction of €3 billion in expenditure that the Minister for Finance is seeking is essential to the process of dealing with our budgetary problem.

The Government began this process in last year’s budget and continued it with further measures in the emergency budget.

There is no easy way to cut public spending.

I am not pretending that all of the measures that we had to apply in the education sector were desirable or can be rationalised on any other basis but affordability.

The same will apply to the difficult decisions that lie ahead in the coming days.
In seeking cuts of €3 billion the Government has been provided with a menu of options by the Special Group chaired by Colm McCarthy.

In the weeks ahead as a Government we need to consider those options and any others that can be identified that will meet the imperative of reducing overall expenditure.

Social Welfare, Health and Education are the big spenders and are responsible for 80% of all expenditure.

While I can identify with many of the arguments about the desirability of investing in education it will simply not be possible for the Government to meet the targeted reduction without impacting on the major areas of expenditure including education.

We simply have to chart a sustainable course in terms of the public finances.
It is essential to economic recovery and to ensuring that we can sustain a reasonable level of public services into the future.

We have to work together to ensure that the resources available to us are used to ensure the best possible education outcomes for all our learners.

Before moving to talk about the future of your sector I want to anchor what I have to say by reflecting first on the past, where we have come from and where we are at.

Earlier this year, I had the pleasure of launching the publication of “A History of the Irish Vocational Education Association 1902 – 2002”, which was undertaken by Jim Cooke.

While the title of the book may imply that it is simply as a history of the association in reality it is much more.

It is a testament to the remarkable contribution you have made to Irish Education.

Let me be unequivocal about the enormous contribution of the VEC sector to the development, and indeed, the transformation of our education system.

Jim Cooke’s work is an authoritative record of progress and achievement and gives a balanced account of your sectors contribution to education.

The VEC system has a long and honourable tradition of providing high quality education and of placing a particular emphasis on meeting the needs of the most disadvantaged in our society.

It is a system that has been responsive and innovative.

It is a system that is always willing to accept the challenge of pushing out boundaries by developing new modes of delivery.

While adapting and changing through embracing curricular and other change in second level provision generally, your capacity to start from the ground up and turn policy intent into tangible delivery is most notable in the areas of adult and further education and through Youthreach and other atypical provision.

This tradition continues to the present day and, since my appointment as Minister for Education and Science, I have been struck by the enormous dedication and commitment to education within the VEC system.

But let me say also that, while we are right to recognise past achievements, we certainly cannot afford to stand back and admire them.

This is true in terms of all of our public services.

It is why the Government is seeking fundamental change and transformation of our public services.

The public service plays a major role in determining progress in our country.
An efficient and high performing public service is essential to ensuring a successful society and economic growth.

The difficulties in our public finances, and the imperative of reducing public spending, means that no stone can remain unturned in our efforts to secure efficiencies in public service delivery.

The transformation in how we deliver public services is however not simply about saving money.

It is also about identifying and putting in place the policies, systems, procedures and structures that ensure our public service can deliver well for the citizen.

A key message from the review of the Public Service conducted by the OECD is that there is a significant gain in productivity, in value-for-money and in satisfaction of the citizen to be realised by Public Service organisations and employees working across organisational, professional, sectoral and geographical boundaries.

In the context of the transformation of public service delivery I had been giving consideration to the current configuration and number of VECs in any event before proposals for change emerged as a recommendation in the Report of the Special Group on Public Service Numbers and Expenditure Programmes chaired by Colm McCarthy.

I want to give you some sense today of how I am approaching this issue and the likely approach that I will be recommending to my colleagues in Government.

The particular context in which the Special Group considered the issue was the need to secure an expenditure saving.

I am more concerned with the wider need that is not simply to reduce expenditure, but to ensure that the VEC system is structured in a manner that enables it to best meet the challenges ahead.

The structure of the VEC system needs to be future proofed so that it can make the fullest contribution possible to the overall aim of transforming how all public services are delivered.

If we were starting with a blank canvass I do not believe we would create 33 individual bodies to deliver services within a vocational education system.

That is without even contemplating future challenges.

Equally I do not believe we would be well served by a small number of regional bodies.

There is a balance to be struck.

Large regional bodies would in my view endanger the county identity that has been integral to the system.

I believe it is possible to strike a good balance through a reasonable aggregation of counties to achieve a critical mass that can underpin better service delivery.

Individual county representation would be preserved in the composition of each new body.

The Report of the Special Group suggests a reduction in the number of VECs and that consideration be given to amalgamating VECs with local authorities.

That is effectively a proposal to abolish the VEC system in its entirety and subsume its functions into the local authorities.

I believe the separate identity of the VEC system, with its discrete focus on education, is why we can read such a long and proud history of progress in Jim Cooke’s book.

I intend to plan reform on the basis of change within the system and not the abolition of the system.

In any public debate others may have a different perspective.

Throughout the 1990s, the continuing policy approach of the main opposition parties was to reduce the role of VECs and make them effectively redundant while bringing in a new regional tier.

Since 1997 government policy has favoured retention of the system and I am proceeding on the basis that the overall thrust of our policy will remain the same.

I want to enhance your role.

I have already indicated to your President and General Secretary that I will consider any written submissions the IVEA and VECs might wish to make to my Department in the coming weeks as we finalise our thinking on the optimum reconfiguration of the system.

In making changes to the structure it cannot be change for change sake.
Aggregation clearly has advantages in some areas, both in terms of value for money and developing expertise.

As part of its overall public service transformation strategy the Government has set out the need to have a shared services approach in key support functions such as payroll, finance, human resources and IT and the Government has placed a renewed emphasis on public procurement to secure gains from combining the purchasing power of organisations across the public sector.

I believe that a restructured VEC system can contribute significantly to this agenda.

To do so successfully it will mean ceasing to do some things altogether because it will be more efficient to have them done elsewhere.

For example how the totality of the public service payroll function is delivered in future is one area currently under active examination.

A revised structure will better facilitate taking on new tasks.

In terms of securing the value of combined purchasing power through new procurement arrangements I believe the VEC system can have a role to play.

Each VEC has the potential to secure value for money in relation to essential purchases not just for its own institutions but for schools and colleges in each geographic area.

While this would have to be done in a manner that respects the separate patronage and management arrangements for other schools there may be significant advantages for example in having a VEC arrange draw down contracts for utilities, school supplies and services that can be availed of by all schools in an area.

There may be other areas where VECs could develop expertise.
I am particularly keen to look at administration and management issues that might ease the burden on individual school boards of management and school principals.

I can assure you that my Department will be open to looking at all creative and innovative proposals and suggestions for how a changed VEC system can be a dynamic part of the transformation that is needed.

Change is not just about ceasing to do things.

It is also about doing things better and about taking on new challenges.
One such challenge has been the development of the new Community National School model.

I am pleased that the two pilot schools, Scoil Ghráinne and Scoil Choilm, are making good progress.

I want to commend County Dublin VEC for their input in to the process to-date.

In order to fully evaluate the model in different settings, I want to extend the pilot to a number of new locations in 2010.

Conclusion
As a result of the financial turmoil and economic uncertainty across the globe, people everywhere have had to contend with dramatic changes and are continuing to do so.

To restore economic growth change is essential and securing Ireland’s future in a rapidly changing world means we must all be prepared to embrace change.

Yes transforming public service delivery will mean significant change for the VEC system but if we confront it successfully together I genuinely believe we can create a VEC system that is robust and fit for the future and ready to take on new challenges.

In concluding, I want to pay particular tribute to the IVEA, to your president Mary Bohan, and to your General Secretary, Michael Moriarty for your leadership role in the past number of years.

I want to acknowledge your continuing contribution to education and look forward to working with you in the years ahead.

Go raibh maith agaibh go léir.