She told the audience:  

“The challenge we all face in sustaining front-line public services over the coming months and years is probably as tough as they come.

“The implications for the Welsh Assembly Government, local government and other public services in Wales will be far reaching. Delivering an effective response will be a big test for all of us and it has to be one that continues the drive to improve outcomes for our communities with the available finances. It will be about clear priorities and we will be focusing our priorities on reducing inequalities and fostering economic prospects to sustain the recovery from the recession.

“The challenges to be faced and the difficult decisions to be taken, impact as much on the Assembly Government as on other parts of the Welsh public service. I can assure you that the Assembly Government will play its full role in meeting the challenges and bear its full share of the difficult decisions we all have to take.

“We are committed to maximising investment in front line services and in those services that matter most to the people of Wales - protecting services in health and education makes sense to deliver these objectives.  

“Our commitment to social justice and equality is also driving our determination to protect Universal Budgets - free prescriptions, free school breakfasts, free school milk, free swimming and our concessionary fares policy.  

“We need to interrogate our budgets and constantly ask whether what we are spending is delivering for the citizens of Wales.

“I don't accept that providing first class public services need necessarily cost more money.  But it does mean making strategic investment decisions now to realise savings longer term. There is a need for change and radical action. Innovation must be the driver for efficiency in sustaining public services.

“Today’s event is a vital part of this. It is also why the Welsh Assembly Government is holding regular Public Service Summits and why we have established the Efficiency and Innovation Board, which I chair – made up of representatives from across public services, the trade unions and the third sector - to lead change.”

http://wales.gov.uk/news/latest/100415localgovernment/;jsessionid=4vDhLHHCTk2pSNhhjJLBkRHhQr9lQBf73QMGnM6kVRzcv74vVygt!565326005?lang=en