by Richard Buckley, Editor, Business Eye

Northern Ireland’s public sector is facing huge financial challenges and bold decisions are needed now to change patterns of spend and ensure the future sustainability of our public services, according to a new report from Deloitte.   The State of the State 2018-2019 Northern Ireland: What next report, a supplementary report to the wider UK State of the State 2018-19 report, was commissioned to provide analysis of some of the opportunities that may exist to fundamentally rethink how public services are delivered.


 

The report notes that the public sector is operating in a challenging environment, one where the NI Executive has not met in almost two years and the ability to make decisions has been severely constrained due to the absence of Ministers.

 

The cost of delivering public services is also rising more quickly than the budget available, while growth in the Northern Ireland economy has stalled. Without cohesive political leadership and strategic direction, Deloitte expects the situation will continue to deteriorate.

 

This report looks at some of the major challenges that need to be addressed in the big spending areas.  Drawing on work already carried out by the NI administration and case studies from around the world, using Deloitte’s global network, it suggests some interventions for debate and consideration by future decision makers.

 

For example Estonia, which has one of the world’s most advanced digital governments has been able to tailor nearly every aspect of its systems to the online world, linked by a data exchange system called X-Road. Through it, citizens can easily prove who they are and conduct business with the government or private sector more efficiently.

 

Queensland in Australia made a point of asking citizens what digital services they want and how they should work. It has introduced a service mall One Stop Shop, a program developed to satisfy citizens who expect government transactions to resemble their other online transactions.

 

In 2010 Buenos Aires launched a mobile app that citizens could use to register complaints, or they could report issues via social media. The average time to resolve a complaint plunged 93% without additional budget, allowing the city to fix more problems in less time.

 

The case studies show what is possible with strong leadership, an innovative approach and determination to materially improve the quality and sustainability of public services.  Some of the interventions that have been identified will be more publicly and politically acceptable than others.

 

The intention of the report was to bring together a menu of possible options based on how other regions have successfully addressed similar challenges.  It also considers how other governments are responding to the fast-moving pace of emerging technologies and opportunities that digital service provision and transformation creates.

 

 

Jackie Henry, office senior partner at Deloitte Northern Ireland, said:

 

“Despite serious budgetary pressures public services here have remained surprisingly resilient. However, there has been a deterioration in a number of areas, and speculation about when the ‘cliff edge’ will come for some key services. The current pattern of spend is deemed to be unsustainable but we believe there is a way through this.

 

“Governments around the world are responding to their own particular challenges in different and innovative ways by, for example, reconfiguring services and developing smart cities and regions. Given the relatively small size of Northern Ireland, both geographically and demographically, it is feasible that many of the innovative technological and digital initiatives already employed elsewhere could be successfully introduced to manage or influence service demand, reduce costs and promote better outcomes.”

 

Malcolm McKibbin, former head of the Northern Ireland Civil Service and associate at Deloitte, said:

 

“The enormous potential of, and opportunity created by, emerging and digital technologies cannot be underestimated. Much of the success elsewhere has been achieved through the application of new technologies and digital transformation.

 

“Few, if any, governments can afford to transform services solely out of public funds. Tough choices will therefore be necessary.  Addressing the challenges will also require innovative thinking, courageous leadership, meaningful collaboration and partnership, and the capability to accelerate delivery.

 

“The intention was to bring together a menu of possible options based on how other regions have successfully addressed similar challenges. The successful case studies in our report are intended to give decision-makers confidence about what is possible and what is already happening across the world.”

 

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Pictured at the launch of the report, Sir Malcolm McKibbin, Former Head of NI Civil Service and Deloitte Associate, Jackie Henry, Senior Partner at Deloitte NI and Richard Moore, Senior Manager in Consulting at Deloitte NI.

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