Public sector reform earning millions

Patterson, Nicholas and Jones

'INCREASED revenue inflows', 'reduced operational costs', 'increased turn around time' ­ buzz words usually associated with the private sector ­ now aptly describe the reform process taking place in significant areas of the public sector.

Nowhere is this more pronounced than in the operation of the first four departments that have become executive agencies. After six months in operation they have earned $106 million, half of which has been remitted to the Consolidated Fund.

According to the government's news agency, JAMPRESS, one of the new executive agencies, the Administrator General's Department (AGD), invests about $400 million annually in government securities, as it carries out its function of administering the estate of persons who died without leaving a will.

The Office of the Registrar of Companies (ORC), the Registrar General's Department and the Management Institute for National Development (MIND) complete the pioneering group of executive agencies, which all approximated or surpassed their performance objectives for 1999/2000.

Commenting on the modest net revenue of $7.5 million earned by MIND, its chief executive officer, Maria Jones, says this was achieved through 'significant savings', pointing to the "competitive environment" in which the training institution has to operate.

"Achievement of the change mandate is evident in the overall positive change that MIND now enjoys among its clients and participants and, evidently, the general public," notes Mrs. Jones.

Claudette Morgan-Green, chief executive officer of the Office of the Registrar of Companies (ORC), reports that "despite the challenges faced, the ORC in its first year as an executive agency performed beyond expectations".

Disclosing that guaranteed delivery time to the public is achieved and in some instances is "greatly surpassed", says the ORC earned $74.1 million in the last fiscal year, 102 per cent of its operating expenses for the year.

"These results are important, not only for the direct savings made, but for the confidence they generate about the robustness of the revenue targets across all the entities under the Public Sector Modernisation Project (PSMP)," says Ricardo Corrie, who monitors the project from the Office of the Prime Minister.

Estimating that the project is likely to save about $1.3 billion, the OPM official believes that increased effectiveness and efficiencies will "comprise even wider benefits for the Govern-ment's fiscal state, the country's welfare and customer service."

The Citizen's Charter Program-me, a component of the public sector reform process, focuses on reorienting public sector entities towards 'putting the customer first' and satisfying customer's needs at a minimum cost.

Some 50 departments/agencies in the public sector are participating in the Citizens Charter Programme, by publicising their services, establishing clear standards for those services and introducing mechanisms for handling complaints and providing redress.

Under the programme comfortable reception areas have been created, staff trained to be professionals and helpful, mission statements are prominently displayed and directional signs have been erected in government departments/agencies.

"Public servants have become more aware of the need to focus on the delivery of service and to see the public whom they serve as customers," explains Carole Royes, senior director of the Standards and Monitoring Unit in the Cabinet Office. This, she adds, is resulting in a "gradual shift from the emphasis on inputs towards outputs and outcomes."

Attempts at reforming the way the Government does business have been far reaching, touching the local government system, tax administration, health administration, the administration of justice and the electoral system to name a few.

These various reforms, explains Prime Minister P.J. Patterson in a recent ministry paper. "represent the unequivocal commitment of the Government to establishing good governance as the most critical and fundamental enabling environment for achieving overall developmental goals."

Perhaps the most critical of the slew of reforms is the Tax Administration Reform Project (TAXARP), funded jointly by the World Bank and the Government of Jamaica to the tune of $1.0 billion.

Organised for decades according to tax types ­ income tax, general consumption tax, stamp duty and transfer tax ­ the local tax administration was characterised by duplication of effort in the areas of registration, audit, investigations and compliance. This resulted in increased compliance costs for taxpayers and the tax administration system.

Clive Nicholas, Director General for Tax Administration, says the tax system was reorganised according to functions to create improved levels of services to taxpayers, a broadening of the tax base and a higher level of tax compliance.

In addition, the tax administration has established several revenue centres, "where taxpayers can access a multiplicity of tax services in an efficient manner and in an atmosphere, which is far superior to what is in place before", notes Mr. Nicholas.

Citing survey results, he points to "substantially improved taxpayer satisfaction" at the revenue centres in Montego Bay and Spanish Town.

Some 2,110 persons have been retained/replaced under the TAXARP, says the director general, as the changes within the organisation create a demand for "more professional tax administrators with multi-skills".

Elsewhere in the public sector where the reform process is at work, significant efforts have been made to develop the human resource base of the sector. In this regard, the complement of human resource managers has been increased.

Technology also plays a role in the reform process. An Integrated Computerised Tax Administration System (ICTAS) is being implemented and will, among other things, allow for the payment of all types of taxes at revenue centres anywhere in the island.

The Human Resource Manage-ment Information System (HRMIS) has been introduced into the civil service to help provide data on training, succession planning, pension administration and personnel profile reports.

In the health sector the reform process has been manifested in the decentralisation of the management of the delivery of health services. Four regional health authorities have been established islandwide ­ the Western, North Eastern Southern and South Eastern.

"The authorities are autonomous bodies empowered to appoint regional directors to be responsible for the day to day administration of the region," explains Marjorie Holding-Cobham of the Health Reform Unit in the Health Ministry.

They have been given the responsibility to ensure an efficient, effective and integrated health service of high quality, she adds.

With the introduction of regional health authorities to manage the delivery of health services, the 'head office' operations of the Ministry of Health has been restructured to cover the setting of standards, quality control, regulation, strategic planning and policy making, Miss Holding-Cobham says.

Reform is also taking place at the parish council level. Following legislative and administrative changes local authorities are able to determine and charge realistic fees for their services, improve the quality and speed of service and reduce dependence on funds from central government. Also, the staff at parish councils have been trained, new members have been recruited and the office technology at the councils have been upgraded.

Through an ambitious and active legislative agenda, the justice system has undergone significant reform, including the training of staff and the revamping of administrative systems and procedures and compensation.

Far-reaching reforms have occurred in the area of national security, especially with the dipoliticisation of the Jamaica Constabulary Force and the separation of the policy-formulation function of the minister from the implementing function of the commissioner.

The reform will continue with the proposed established of additional executive agencies including the merger of JAMPRESS and the Jamaica Information Service, the transformation of JAMPRO into an executive entity and the creation of a National Environment and Planning Agency and a National Works Agency.

The latest move in transforming the public sector has been the granting of the power to hire and fire to permanent secretaries, who themselves have been formally required to undergo performance evaluations, effective April 1 this year.

Commenting on the new powers given to permanent secretaries, the Prime Minister says this is necessary if public sector managers are to operate as effectively as their private sector counterparts.

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