The public sector could lose taxpayers' support if it does not embrace change and modernisation, the Government Chief Whip, Ms Mary Hanafin has warned.

Ms Hanafin said awards made under benchmarking had "sharpened public demand for change and modernisation in the public service". She was speaking at the Forum on the Workplace of the Future in Dublin Castle.

"Private sector companies and workers have to adapt to information and communications technology developments and new work methods to prosper and secure their long-term future. The more sheltered public service cannot be expected to be held to any lower standard".

"This is not a once-off requirement for change but a demand for the public service to demonstrate continuous improvements in its services, as well as value for money," she added.

"Public service management, staff and unions must respond to this challenge or risk losing the support of the taxpayer," she said.

The executive chairman of the National Centre for Partnership and Performance, Mr Peter Cassells, said the major challenge ahead was how "to reduce costs while at the same time motivating staff to embrace change for the future.

"Above all we have the opportunity to be one of the first countries in the world to fully embrace the knowledge economy and the knowledge society. To achieve this, we need to recognise that innovation, dynamism, adaptability and openness to change are the keys to business success and improved services in the 21st century," he said.

Ms Edna Jordan of the National Centre for Partnership Performance said public sector employees were responding to change.

She said research showed that 72 per cent were prepared to increase their responsibilities and 82 per cent were willing to improve their skills. But she pointed to problems in relation to communications, with only 33 per cent of public sector employees ever receiving "information about new technology".

Ms Hanafin said employees were now better educated and had new aspirations. "They want more responsibility, better access to learning, new rewards and a better balance between family and workplace responsibilities," she said.

"Up to now, policy development has focused to a very considerable degree on developing a supportive macro-economic framework, as well as on areas such as taxation incentives and infrastructure. There has been very little focus on the workplace or the particular features of the workplace that will underpin our future success," she added.