Vol. 897 No. 2
6. Deputy Sean Fleming asked the Minister for Public Expenditure and Reform the number of new State bodies and agencies that have been established since February 2011; the number that are subject to a sunset clause and that are currently being planned; and if he will make a statement on the matter. [40603/15]
I wish to ask the Minister the number of new State bodies and agencies that have been established since February 2011 that are subject to a sunset clause, or those that are currently being planned. I am not inquiring about the ones the Minister has abolished but about new agencies. I ask him to respond on that and make a statement on the matter.
In line with the public service reform plan, I have organised and reconfigured resources within my Department to establish the national shared service office. The office is responsible for delivering shared services projects in the Civil Service and for the operation of Civil Service shared service centres. As one of the key priorities set out in the public service reform plan, I established the Office of Government Procurement in July 2013.
The Government, as part of the sale of the lottery licence and as set out in the National Lottery Act 2013, established the Office of the Regulator of the National Lottery, which is under the remit of this Department. The overarching function of the regulator is to ensure that the national lottery is run with all due propriety, the interests of participants in the lottery are protected, and the long-term sustainability of the lottery is safeguarded. Subject to this, an additional function is to ensure that revenue for good causes is maximised.
As I have stated previously, State agencies play an important and legitimate part in implementing and advising on Government policy and delivering public services, including economic regulation, consumer protection, road safety, industrial relations and a host of other services in support of citizens and businesses. They are an established part of the modern state and will continue to feature prominently in the Irish administrative system. It is essential that this occurs in a structured and coherent manner, that it not repeat the unplanned and sporadic growth of the past and that agencies' impact and performance be understood, reviewed and managed.
One element in the updated code of practice for governance of State bodies includes a periodic critical review ensuring that the ongoing business case for State bodies, including those newly established, will be subject to periodic scrutiny and assessment.
I must address my comments to the Ceann Comhairle in the first instance. I asked the Minister the number of State agencies that have been established. He made no attempt to answer that. I am complaining to the Ceann Comhairle and I ask him to help me, as a Member, to get an answer on Question Time. I asked about the number of agencies subject to a sunset clause but the Minister chose not to even deal with the issue. To my first question this morning, on the Supplementary Estimates across various Departments, he made no attempt to answer.
I have tabled a couple of questions today and there has been no attempt whatsoever to answer them. What is the point in coming in here to listen to the Minister for Public Expenditure and Reform? When I asked him about additional expenditure in Supplementary Estimates across Departments - some of which are listed on the Order Paper today but without figures - he made no attempt to deal with it. On my second question, about the number of agencies, he has made no effort whatsoever to answer or deal with the issue of sunset clauses. Frankly, it is a waste of time asking this Minister questions because he is refusing to answer them. He either does not know the answer or is refusing to give it. Answer the question.
Let me deal with the two points made by the Deputy. On his first question, there are 13 Supplementary Estimates on the Order Paper. The rules of the House require that I do not pre-empt the discussion on Supplementary Estimates listed on the Order Paper.
The Minister never said that.
The Deputy knows that. He knows the Supplementary Estimates are listed on the Order Paper. The ones that are not on the Order Paper have not yet been dealt with by the Government. Thirteen of the 15-----
I ask the Minister to stick to the question.
The Ceann Comhairle works very hard to educate Deputies on the rules of the House but those who have been here a long time should know them.
On this issue, I have answered comprehensively on any agency within my ministerial remit. I am not answerable for every Minister in the Government. The normal procedure for the kind of information requested by the Deputy is to table a question to all Ministers that seeks information in tabular form. One does not ask individual Ministers for a cross-governmental answer to the these questions. Again, the rules of the House are crystal clear to the Deputy. He knows them well.
I thank the Minister for the reply. He is putting on the record, fairly and squarely, that he, as Minister for Public Expenditure and Reform, has no interest in dealing with these issues-----
I said no such thing.
-----or he is saying he has no authority to answer to the House on the number of State bodies that have been established.
What he said was that each Minister is responsible for his own area.
As the Deputy knows.
And I will put those questions to the Ministers.
To each Minister.
I asked specifically about sunset clauses. The Ceann Comhairle knows that, even on the second attempt to respond by the Minister, there was still no reference to the sunset clause issue. The phrase has not come out of the Minister's mouth here today. I expect that he will probably answer on the third attempt and I look forward to receiving that answer. The Minister is responsible for public expenditure and reform and the public service generally. He and the Taoiseach issued a document last year on how he was reforming the public service. If he is telling me he is not answerable for the public service other than for the few officials in his Department, he should say so and change the title of his Department to reflect his responsibilities.
The Deputy plays the game both ways. He knows the rules and normally asks questions seeking information in tabular form. I will happily answer questions on areas for which I am responsible. However, if the Deputy wants to ask specifically about legislation brought through this House to establish other agencies or bodies by my ministerial colleagues, he knows full well he must ask those Ministers. That is how this House has always operated. Therefore, let us not pretend the Deputy is in total ignorance as to how the House operates. He is a wily enough operator and knows full well that what I say is the case. I have answered in regard to the areas for which I have responsibility.
The shared service centres will be a permanent feature of public administration. They are proving to be very good. The Office of Government Procurement will be a permanent feature of public administration. There is a transformation in the way we do business and we are saving many hundreds of millions of euro in public procurement. The national lottery regulator will be a permanent feature for as long as the lotto operates.
7. Deputy Mick Wallace asked the Minister for Public Expenditure and Reform his views on the research carried out by Unite which found that in order to reach the mean of other European Union states with regard to public expenditure as a percentage of gross domestic product, Ireland would need to increase investment in public infrastructure by approximately €9 billion; the details of any recent discussions he has had with the Department of Finance in this regard; and if he will make a statement on the matter. [40614/15]
I would like to know the Minister's views on the research carried out by Unite that found that in order to reach the mean average of other EU states with regard to public expenditure as a percentage of GDP, Ireland would need to increase investment in public infrastructure by approximately €9 billion. Ireland's expenditure on public services is currently 16.9% of GDP while the mean in Europe is 21.6%. We are actually near the bottom of the scale.
I am not aware of the foundational basis of the analysis referred to in the Deputy's question or the basis for the specific conclusion relating to the level of public expenditure relative to that in other EU states.
As the Deputy will be aware, there are important issues relating to differences in the composition of public expenditure in different jurisdictions affected by such factors as, for example, the age profile of the population, the level of defence spending and the mix between public and private provision of particular services that need to be taken into account in seeking to make cross-country comparisons.
Direct comparisons with public investment levels in Ireland under previous capital investment plans also need to be treated with caution, particularly when such plans are oriented towards addressing long-term infrastructural deficiencies, as was the example in the case of the period up to 2008.
In addition, the capacity constraints and levels of tender price inflation will impact on the real, compared to the nominal, level of public capital investment. Reflecting these considerations, trends in public capital investment should preferably be examined over a much more extended time horizon. In this regard, the ESRI which is regarded as the definitive examiner of these matters has reviewed investment levels in EU member states over more than four decades, from 1970 to 2013. It has found that Ireland ranks third behind Sweden and the Netherlands in terms of state investment in national infrastructure as a share of GDP.
The Government's capital plan, Building on Recovery: Infrastructure and Capital Investments 2016-2021, announced an Exchequer capital spend of €27 billion in the next six years. Supplementing Exchequer-funded investment with investment planned from the wider semi-State sector and PPPs means that total State investment will amount to €42 billion in the next six years. At the time of publication of the capital plan, State-backed capital investment, therefore, constituted a forecasted average of 3.5% of GDP per annum over the relevant period.
The Minister has quoted figures going back decades, but the truth is that since 2009 the level of public investment in infrastructure has fallen by 45%. Research carried out by Michael Taaffe who, I understand, is a member of the Minister's party shows that we will run into trouble if we do not start investing more in infrastructure. The Minister is well aware of the fact that there is a housing crisis and the lack of direct investment in social housing means that the crisis is not being dealt with. We have to re-examine the problem because we will not solve it until we are prepared to engage in much more extensive investment in infrastructure.
I would obviously love to be in a position to spend more, but we have defended investment in infrastructure and, more importantly, focused on it as best we can in the capital plan. Social housing was a feature of the budget I introduced 13 months ago. At that stage we allocated in excess of €2.2 billion for housing and re-established the spend on social housing for the first time in almost a decade. The previous Government did not believe in building social housing, preferring instead to buy it from developers, but we have reoriented public policy to ensure we will build social housing. The Deputy is uniquely equipped in the House to know that it takes a lead-in time to do this. We have to acquire land, make sure it is serviced and obtain planning permission, ensure tenders and builders on site, all of which takes from 18 months to two years. I agree totally with the Deputy that social housing provision is one of the most demanding social issues and it is a priority for capital investment.
The Minister has said the Government will prioritise the construction of State housing, but most of the money which he has stated has been earmarked for social housing will still involve social housing being provided by the private sector. The Government is not getting local authorities to build large numbers of social housing units, even though this is absolutely essential.
In response to a question from Deputy Sean Fleming, the Minister said France might break the rules in order to deal with its defence and security challenges. There is a housing emergency in Ireland. The idea that we cannot borrow money off the books to invest in social housing because it is outside EU rules needs to be challenged. It is outrageous that we are paying PPPs at a rate in the region of 15%, when the Government can access money at less than 2% when it sells Government bonds. That could be done in order to invest in an extensive social housing programme.
I have a quick supplementary question on something which is part and parcel of the issue. What submission has the Government made to the European Union to allow us some freedom in terms of the constraints under EU rules?
I agree absolutely with a lot of what Deputy Mick Wallace said. It is simple to rejig local authorities back into providing housing because that capacity was hollowed out of them for the past ten years. I spoke to housing officers, including those in our county. There was an annual trawl to find the correct sites and make sure they were serviced. There were a number of local authority estates to be built and so on. All of this evaporated, but we are putting it back in place. One of the first things I did last year was to remove any embargo on the hiring of key people at local authority level in order to do that. Change will not be instant, but once things are back in shape local authorities will be a very regular provider of social housing.
We are examining a variety of ways to deal with the issue, including but not limited to direct capital investment. There is no shortage of money. Rather, the problem is having the money spent on bricks to build houses. As the Deputy said, we also have PPPs to supplement this and I have devoted a special purpose vehicle, with a total figure of €400 million from the sale of BGE, for social housing. We are developing ways to utilise this and ongoing discussions with the Department of the Environment, Community and Local Government are taking place.
On fiscal rules, they are in place for a purpose, namely, to stop countries being profligate and destroying their economies by not having prudent expenditure profiles into the future. In a way, the Deputies are correct. The rules have yet to bed down and have to be tweaked and examined. Whoever is in government after the next general election will have a job of work to do to address that issue. We have already made submissions to the Commission on infrastructural needs that might be excluded from the fiscal space calculations. It is a dramatic work in progress.
The next question is in the name of Deputy Bernard J. Durkan who is not in the Chamber.
9. Deputy Patrick O'Donovan asked the Minister for Public Expenditure and Reform his plans to promote the Office of Public Works' heritage sites in counties which are along the Wild Atlantic Way; and if he will make a statement on the matter. [40402/15]
This question relates to the asset base under the control of the Minister's Department for the Office of Public Works in terms of national monuments and heritage sites. I refer, in particular, to those located in counties along the Wild Atlantic Way and Ireland's Ancient East, and how they can best contribute to the tourism industry, given the investment that has been made by the Minister's Department.
I thank the Deputy for his question. The Wild Atlantic Way brand has successfully grabbed the imagination of many visitors to Ireland and proved to be a very popular proposition for attracting tourists. The OPW manages in excess of 716 national monument and heritage sites, a significant number of which are located on the route to which the Deputy referred. We are all familiar with sites such as Newgrange which attract large numbers and where the OPW provides a range of visitor services. However, on many more sites in State care these services are not provided and the majority of the monuments are in their natural state in the Irish countryside, a significant proportion of which are to be found on the route of the Wild Atlantic Way.
Understanding that a large proportion of visitors who come to Ireland want to experience cultural and heritage sites, the relevant agencies involved, namely, Fáilte Ireland, the Department of Arts, Heritage and the Gaeltacht and the OPW, are working actively together on a plan to better promote the Wild Atlantic Way. This project has as its objective the better promotion of the Wild Atlantic Way's heritage sites and will seek to promote them coherently within each of the six Fáilte Ireland zones which have been created for the purposes of marketing this important route.
The three agencies are working to examine all of the Wild Atlantic Way sites to establish what is available for visitors at the locations concerned and how the sites might be made more attractive to tourists. In broad terms, what is emerging through the study is that there is a series of "bundles" or "clusters" of sites which represent possibilities to enrich the visitor or tourist experience, drawing them into less visited parts of the country and keeping them there longer, with consequent benefits for local economies.
These offerings will be promoted internationally in targeted markets by Fáilte Ireland and its sister organisation, Tourism Ireland. The project is being actively pursued by the three organisations involved in an ongoing process that will continually be updated and redeveloped.
I welcome the Minister's reply. The Wild Atlantic Way route touches my county of Limerick, where we have OPW sites in the west of the county, in Askeaton, Adare and Newcastle West. On the other side of the county and in the context of the Ireland's Ancient East initiative, we have sites in Kilmallock and Lough Gur. Having holidayed at home this year, it seems the Wild Atlantic Way is really just a set of signposts, albeit an imaginative one. That signage has succeeded in drawing people into parts of country they might not otherwise visit. However, there are other sites close to roads used by hundreds of thousands of visitors, but these visitors may not even know they are there. We need to box clever in this regard by, for example, using new technologies. There is no doubt that when it comes to restoration and conservation, nobody does it like the Office of Public Works. It does a fantastic job. There remains a job to do, however, in telling people where particular sites are located and encouraging them to visit them. In many cases, they are free to enter and the visitor experience is fantastic. We must do more in the area of promotion. I encourage the Minister, through the OPW and in conjunction with the Department of Transport, Tourism and Sport, to avail of this massive opportunity, particularly in the counties through which the Ireland's Ancient East route will pass.
I agree entirely with the Deputy on the need to ensure visitors are informed about what there is to see in this country. The success of the Wild Atlantic Way took all of us, even Fáilte Ireland, by surprise. It was a good idea which was marketed very well. In the aftermath of The Gathering, it was a question of finding the next big idea and that big idea has been extraordinarily successful. We now need to consider how we can capitalise on it. Identification, notification, postering and proper preparation of sites are all essential and that work is ongoing, as I indicated. I would welcome suggestions the Deputy might have in this regard and will pass them on to the OPW.
As I said, the staff of the Minister's Department, through the Office of Public Works, do a fantastic job with heritage sites. They have seen increases in the number of visitors, including in my area. Staff have told me that one issue the office could look at is that of new technologies. For many visitors arriving in the country, one of the first things they want to do is download an app showing local visitor attractions. The provision of that type of application might be a more cost-effective way to go than riddling the country with more signs. Having said that, the Wild Atlantic Way initiative has, as I said, been innovative in its use of road signs from County Cork to County Donegal. That could be very easily enhanced by the OPW. There is a great willingness on the part of local authorities which will all be knocking on the Minister's door to seek an increased allocation from the local government fund to become involved in these initiatives. There is a great deal of potential in the case of the Ireland's Ancient East region which includes the Minister's county. Having used the Wild Atlantic Way route through County Donegal during the summer and having spoken to people there, it clearly has made a massive difference o a lot of local communities that heretofore did not have the benefit of this type of tourism product. I realise Newgrange, Dublin Castle and places like them are at the pinnacle of the OPW's portfolio, but there are hundreds of fantastic sites around the country with excellent guides who are only waiting to greet visitors on behalf of the OPW.
I take the Deputy's point. Ensuring there is proper road-sign planning and signage and developing a sophisticated app are not mutually exclusive endeavours. We need to do both. Some people like to plan their tourism route in detail, in which case an app would be very useful. Others are more opportunistic, will see a sign and decide to visit a place. We do not want people to sail past particular locations because they do not know there is a monument or heritage site of some significance on that route. If people have a spare hour or half an hour, they might decide to have a look and could well discover a gem.
I thank the Deputy for mentioning the Ireland's Ancient East initiative. It is less developed as a concept than the Wild Atlantic Way and more work needs to be done on it. It is a little higgledy-piggledy in terms of its connectivity, for instance, but I am confident that tourists will embrace it. Ireland's unique selling point is its heritage, culture and tradition which one cannot find in some sun destinations and other places with which we are competing for the holiday euro or dollar.
Question No. 10 cannot be taken as the Deputy who tabled it is not present.
11. Deputy Catherine Murphy asked the Minister for Public Expenditure and Reform if he is aware, in so far as it relates to his public service and Civil Service oversight remit, of instances where compromise agreements have been offered to public servants who wish to avail of voluntary redundancy, in place of the traditional terms; if he is aware that previous determinations by the Labour Court have indicated that in order for a settlement or compromise agreement to be upheld, the terms of any waiver must be construed strictly against the party from which it emanated; that any agreement to waive statutory rights must be supported by adequate consideration and the waiver should arise from an agreement reached after meaningful negotiations and after professional advice has been sought and given; that case law in relation to section 13 of the Unfair Dismissals Acts 1977 to 2007 allows for employers and employees to compromise a claim under the Acts provided only that the employee has given full and informed consent; if all public sector employers are aware of this fact and if, at any stage, compromise agreements have been attempted with employees in contravention of statutory rights; and if he will make a statement on the matter. [40609/15]
My question relates to the offering of compromise agreements to public sector staff. An individual has approached me who claims the procedures set down in the Labour Court were not followed in that person's case. It was essentially a case of a gun to the head. I am concerned with establishing the views of the various Departments involved on this matter.
I note the Deputy submitted a similar question to my colleague, the Minister for Jobs, Enterprise and Innovation, on 4 November, in his reply to which he pointed out that it was up to an individual, following consideration of the terms on which voluntary redundancy was being offered, to decide whether to avail of voluntary redundancy. The terms that should apply in the case of redundancy of public servants are set out in Collective Agreement: Redundancy Payments to Public Servants, which was agreed between the Department of Public Expenditure and Reform and the Irish Congress of Trade Unions, ICTU, in June 2012.
Responsibility for deciding whether to offer a voluntary redundancy scheme in a particular agency rests, in the first instance, with the agency and its parent Department. In the event that these bodies consider it appropriate to offer voluntary redundancy, sanction for the financial terms of the scheme should be sought from the Department of Public Expenditure and Reform. It is expected that agencies will make sure they are satisfied that the non-financial terms of any scheme are in compliance with any legal requirement and that they will seek legal advice to the extent appropriate to the circumstances of the case. The advice of my Department is sought on myriad issues, but I am not aware of an instance of the nature referred to by the Deputy being raised with my Department in recent times. If the Deputy has a specific instance in mind, she might let me have the details and I can arrange for further inquiries to be made.
I understand section 13 of the Unfair Dismissals Acts 1977 to 2007 render void a provision in any agreement which purports to exclude or limit the application of any provision of these Acts, although case law provides that section 13 does not preclude employers and employees from compromising a claim under the Acts, provided the employee has given "full and informed consent". I further understand the Labour Court has held that in order for a settlement or compromise agreement to be upheld, the terms of any waiver must be construed strictly against the party from which it emanated, any agreement to waive statutory rights must be supported by adequate consideration and the waiver should arise from an agreement reached after meaningful negotiations and professional advice has been sought and given.
I certainly will provide the Minister with the details of the case to which I referred. Essentially, there was no question of the person being offered any support or even guidance on the rights that should apply. That is the reason I tabled this question. We must prevent creeping erosion of employees' rights. In this case, the employee was told that if the offer was not signed by a certain date, it would be taken off the table. The Minister has said he will look at this issue. I ask that he not only examine it but that guidance also be given to the agency in question and a particular watch be placed on this matter. We must work to ensure there is no erosion of rights, not only for workers in this agency but also across the public sector.
I do not know whether the Deputy has indicated which agency or body is involved. I do not have any such information in front of me, but I certainly will look at any specific case she presents to me and ensure it is examined by experts in my Department. If there are broader implications for the conduct of any agency, we will certainly advise it to that effect. In addition, we will give broader advice across the public service should this be warranted by the information provided by the Deputy.
The agency is question is one associated with the Health Service Executive.
Question No. 12 has been tabled by Deputy Clare Daly who is not present in the Chamber.
13. Deputy Sean Fleming asked the Minister for Public Expenditure and Reform the procedures put in place by the Office of Government Procurement, OGP, to ensure recipients of State contracts, particularly in the construction sector, fully abide by all relevant laws and regulations including tax, social welfare, and health and safety; if this also applies to subcontractors engaged by the main contractor on State-funded projects; and if he will make a statement on the matter. [40604/15]
The enforcement of tax, social welfare and employment legislation, as well as health and safety and building control regulations, etc., apply equally to public and private sector contracts. Consequently, it is not for me, as Minister for Public Expenditure and Reform, to set out a separate policy for public sector contracts. It is the responsibility of each contracting authority to ensure contracts are awarded to compliant businesses through the standard procedures contained in the procurement process.
The public works contracts make provision for certain contractual remedies where a contractor's or a subcontractor's workers have not been paid in accordance with statutory requirements. The contracts also permit deductions to be made from payments in accordance with the legislation governing taxation. Health and safety legislation is also underlined and enforced throughout the contract enshrining legal requirements as conditions of contract to ensure serious health and safety breaches may be relied on as breach of contract leading to termination.
These are in addition to the remedies contained in law which are enforced by the appropriate statutory bodies which possess the necessary powers to investigate and to bring proceedings.
Will the Minister clarify who is the contracting party? I have put down several questions recently to line Departments about their role and the role of the OGP in awarding contracts. A line Department will say it is working in consultation with the OGP while the OGP says it is working with the line Department. There is a circular flow with everyone involved but nobody willing to say who is responsible. This is an issue that will have to be sorted out. I do not mind who is responsible as long as somebody is responsible.
It is ironic that we spent years discussing the Construction Contracts Act to ensure contractors would be paid. The Minister dealt with it for years and then fobbed it off to his colleague, the Minister of State at the Department of Jobs, Enterprise and Innovation, Deputy Gerald Nash. However, it is still not implemented which is a shame. The Minister of State was to appoint a panel of adjudication which was to go to the Public Appointments Service. I have been informed he has breached the law by picking a chairman unilaterally without having appointed a panel. I am told this could be subject to difficulties down the road.
As to who is responsible, the contracting body, if it is an agency or a Department, is the contractor. Obviously, they are aided and guided by the new OGP. It sets out overarching frameworks to ensure European and domestic laws are fully applied. Any contract is with the contracting party, which is the agency or the Department awarding the contract.
Regarding the Construction Contracts Act, I indicated it would not be appropriate for my Department, which is in charge of the OGP, to be the supervisor of contracts and yet the referee in disputes. That responsibility has moved to the Department of Jobs, Enterprise and Innovation. I will talk to my colleague, the Minister of State, Deputy Gerald Nash, to check about its status, which the Deputy raised again. I would be anxious, like him, that this Act will be fully operational. It started off as a Private Members’ Bill in the Seanad and it needs to be brought into force.
Some contracts are given to contractors outside the State which means there is a greater risk trying to ensuring compliance. What about a case where, say, an IT contract is given to a contractor in the State but it decides to outsource it to another EU country or even outside of the EU? What kind of mechanisms are in place to follow through with the OGP, in consultation with the relevant line Department, to ensure all appropriate laws are implemented in such contracts?
Any contractor on site in Ireland is subject to all the normal health and safety, taxation and other laws that apply. The agencies that supervise these contractors have full access to them and ensure compliance with these laws. There is no difference between a contractor sited and registered in the State and a contractor who happens to be outside of the State in terms of their legal responsibilities or the capacity of the oversight bodies to ensure these contractors fully comply with statutory provisions.
14. Deputy Mary Lou McDonald asked the Minister for Public Expenditure and Reform if he has given consideration to the inclusion of a social clause in capital public procurement projects to the value of €1 million or more; and if he will make a statement on the matter. [40611/15]
We support social clauses and are examining how they can be applied. Social clauses have been included in the contracts we have done under the stimulus package.
Additional information not given on the floor of the House
The Government supports the use of social clauses in a manner which can address issues such as social exclusion, long-term unemployment or provide enhanced opportunities through the provision of training.
While Government is convinced of the merit in using social clauses in particular circumstances, contracting authorities should not be compelled to use them on every contract since their deployment may disproportionately impact on SME's bidding for public contracts. They are used to best effect in a targeted fashion to tackle the identified causes of inequity or deprivation.
In order to ensure that social clauses do not discriminate, it is best to use general categories of beneficiary, for example, long-term unemployed, trainees and target the social benefits through supply-side activities such as training and job-matching services. Targeted social clauses are likely to be most effective in cases where they are actively supported by supply-side actions and by monitoring and evaluation processes taken by the public body with the relevant policy remit. The inclusion of social clauses imposes additional costs to the State and suppliers in meeting the requirements and demonstrating and verifying compliance. It is imperative that such provisions are enforced and independently verified; do not adversely affect value for money; do not place additional costs on domestic suppliers relative to other potential suppliers; and are only applied to contracts of a minimum scale so that they do not disadvantage SMEs.
Unemployment in the construction sector increased in inverse proportion to the decline in activity from 2008. In response, Government set out a range of actions in Construction 2020 aimed at increasing activity and has introduced a number of stimulus packages to increase activity and employment in the sector. Social clauses are included in the various contracts awarded under the PPP element of the €2.25 billion package announced in July 2012. These clauses require a minimum percentage of the time required to deliver the contract to be undertaken by those recruited from the ranks of the long term unemployed and apprentices.
The operation of this clause has already been successfully piloted and local Intreo offices have worked closely with the appointed contractors to support the pilot initiative.
The Office of Government Procurement is currently developing guidance on the inclusion of social clauses more broadly in tender and contract documentation.
I raised this question because of the slow progress in the roll-out of social clauses. It is over a year since the establishment of the social clauses project group. Only 11 pilot projects have been identified up to September 2015. I urge a continued focus and maybe a bit more urgency on this issue.
It is a matter in which I have taken direct interest. I have to avoid dislodging SMEs by putting in social contracts. It is a balance which we are examining with some great care. The operation of this clause has already been successfully piloted and local Intreo offices have worked closely with the appointed contractors to support the pilot initiative. The OGP is developing guidance on the inclusion of social clauses more broadly in tender and contract documentation, having regard to the experience we have had to date.
