The public service is the back office of this country. It spends money hard earned by others. At its higher levels, it should be advising ministers, bringing forward initiatives and, indeed, restraining short-term political impulses. It is honest, impartial and full of good people. But it is now so protected by its unions that it has largely become a reactionary, inert mass at the centre of our economy. Its culture destroys ambition, resists change and is now so insulated from reality that information can be withheld from a minister, unfavourable reports are doctored and answers to parliamentary questions that come too close to the bone are masterclasses in dissemination and obfuscation, which can deny our TDs the information they need.

This culture protects the sacred inner sanctum where status quo is venerated and the mantra "men may come and men may go, but we go on forever" is frequently heard. One of the results of all of this is that many professional positions in the public service, like those in HR or internal auditing, are not filled by professionally qualified people, because promotion is all too often based on longevity, rather than ability or qualification, if indeed people with the necessary qualifications can be found.

As a consequence, there are far too many well-paid but unhappy square pegs in round holes throughout the public service. Furthermore, most state institutions are not subject to many of the controls and regulations which are hung around the necks of private individuals and commercial enterprises.

All state and semi-state bodies should be ISO compliant. Professional positions should be filled by professionals. All departments should be audited annually by external auditing firms reporting to the Comptroller and Auditor General's Office. All procurement, stationery, equipment advertising, etc, should be done through one office, again, under the control of the Comptroller and Auditor General.

I am particularly concerned by the fact that the public service continues to employ, adding more and more people who are almost impossible to let go, and who will in due course be getting inflation-proof salaries and pensions. In today's world, this is madness, if it was ever sensible, and I believe the government should tell the unions that the pay and conditions of new employees will be substantially different, thereby drawing a line under an arrangement that I consider an abuse of the taxes paid by the owners and workers in the private sector.

The State and its employees should broadly be subject to the same rules and regulations as everyone else. If this is not done, we are running a two-tier Ireland. We are reinforcing the belief that there is something exceptional, something a cut above the rest, about being an employee of the State.

That attitude, the lack of accountability, the lack of professionalism and the virtual impossibility of being sacked is destructive. It steals individuality, encourages arrogance, forces compliance to a culture, drains enthusiasm and denies the people, politicians and wealth-creators of this country the benefits of a modern, high-powered, creative arm of the state that is vital to our continued success. The public service has to be immediately, radically overhauled because we cannot afford it in its present form. Do we need to discuss FAS? Are there others that we will audit after more millions have bolted?

All of this, according to the press, has encouraged a group of civic-minded senior civil servants to take the unprecedented step of demanding change. They are right. They should keep it up, and we should stand up with them, and for them, and so should any of their colleagues who share their views.

If we continue to permit our public service to act in a Corinthian -- in both meanings of that word -- manner, we are binding the arms and damaging the morale of those who are driving this country forward. And I am not talking here about the people at the coalface -- the nurses, doctors, gardai, teachers and others who keep a failing system going.

For five years I sat on the Public Accounts Committee, with my businessman hat on, watching, with certain exceptions like the Revenue, a procession of representatives of boards and bodies peering into a series of financial black holes, completely unable to explain the mystery of it all, but content that no one would lose his job over it.

Featherless, but still plump, state hens, puzzled by what had happened when they tangled with swift, suave commercial foxes.

People who have never feared for their jobs, fought with their bank managers, worried about their businesses, confronted competition or battled with red tape, simply do not understand. Well-meaning, bright but inexperienced, they are unlikely to play a blinder for Ireland or understand how to help those who do. Meanwhile, the private sector complains of red tape, delays, unwieldy laws, lack of understanding and complacency from individuals and organisations whose job should surely be to support, encourage and assist.

But maybe something has happened. Ireland has created a new dance. You don't need to be nimble on your feet. In fact, activity is not encouraged, nor do you need to be creative, passionate or exciting. It's the very opposite of the tango; it's the quango. And you get paid for doing it, by the public, who are now becoming very doubtful about the purpose of it all.

We have far too many quangos putting bums on seats, instead of putting ideas and effort on the table. A significant number of them form the hidden scaffolding around the social partnership and that scaffolding should be torn down because, largely, it is not working, at least for the country.

Yes, I know the government, over time, established many of these organisations. We thought it was a good idea. It separated politicians from some things they could be blamed for interfering with. It wasn't a good idea. Our job is to interfere, question, control, take responsibility, give leadership, admit to mistakes and do u-turns when necessary. We should do a u-turn now.

I am tired of committees with big names and small achievements. I'm a businessman, I know about keeping it simple, professional and tight. I don't want to listen to or read ambiguous expensive consultants reports -- the wastepaper baskets of the world are full of them.

Members of the Dail are the Board of Ireland Ltd and the Government heads that board. Ours is the responsibility and we should not shy from it. Over the last number of years far too much power has been handed to virtually unaccountable bodies of one sort or another. Elites have grown up, some of which believe themselves to be beyond political influence -- think what that means -- and maybe even above political control.

In a rush of guilt to the head, because of a few bad apples, we gave away too much. We should now take it back. Ireland is not a bureaucracy. It should be run by the representatives of the people and they too should be sacked if they are not good enough.

There can be no equality in a country where a significant number of those who spend public money enjoy wages and conditions far more favourable than those who create the wealth of this country, protected by unions whose own self-interest is best served by keeping their members in golden cages, refusing to pull aside the blanket of protectionism so that they can participate in a world which may be more challenging, but will also be more exciting, enriching, and surprisingly gratifying than the protected, unrealistic space they currently occupy, at considerable cost to themselves, and the nation.

We will know that change has taken place, real genuine change, when there is a healthy two-way flow between all levels of public service and private-sector employment. That is the only benchmark worth having.

This is an edited extract from an address by the Minister of State for Trade and Commerce John McGuinness TD given at The Beverage Council of Ireland Annual Conference and AGM last Friday