I move: "That the Bill be now read a Second Time."
The Houses of the Oireachtas Commission came into existence on 1 January 2004 under the Houses of the Oireachtas Commission Act 2003. The founding commission legislation had two principal consequences. First, the commission became the sanctioning authority for expenditure, for deciding on staff numbers up to the grade of principal officer and for the provision of services and related matters to the Oireachtas. Second, the system for the allocation of budgets to the Oireachtas changed from the annual Civil Service Estimates and Vote procedure to a different process involving a three-year budget drawn from the Central Fund. The new budget is set every three years following engagement and negotiations with the Department of Public Expenditure, National Development Plan Delivery, and Reform. The budget is approved at political level by the commission and by Government and Cabinet, and the amending legislation is passed by both Houses.
Under the terms of the inaugural Act, a three-year budget covering the period 2004 to 2006 was provided. Further Acts were enacted in 2006, 2009, 2012, 2015, 2018 and 2021, also providing for a three-year budget for the relevant periods. A new Houses of the Oireachtas Commission Act is now required as a matter of priority as the financing provided under the 2021 Act will expire on 31 December. If this Bill is not enacted by the end of the year, there will be no statutory basis for any payments by the Oireachtas from 1 January 2025. That would mean there would be no authority for the payment of salaries of Members of both Houses, no authority for salaries for our support staff, no authority for the salaries of the permanent employees of the Houses and no authority for the payment of any service, contractual, obligatory or otherwise, in the service of our parliamentary system.
As Deputies will be aware, the Houses of the Oireachtas Commission oversees the provision of services to the Houses and their Members by the commission Act. The primary functions are to provide for the running of the Houses of the Oireachtas to act as governing body of the service, to consider and determine policy in relation to the service and to oversee the implementation of that policy by the Secretary General. The commission is not responsible for the day-to-day management of the Houses. The Secretary General has overall responsibility for these functions. The commission does not set the level of remuneration payable to TDs and Senators. Responsibility for salaries, pensions and allowances is conferred on me in my role as the Minister for public expenditure. The commission is, however, accountable to the Parliament and presents annual reports on its work to both Houses together with Estimates and accounts of its annual expenditure.
I acknowledge the valuable role played by secretarial, parliamentary and administrative assistants in supporting Members and delivering a high-quality service to the Oireachtas. As a Member of the Oireachtas for over 13 years, I am acutely conscious of the high-calibre work that all of our staff do. We are dependent on them and grateful for their work, and I am confident that I speak for all of us when I say that. In this context, I note that the scheme for secretarial assistants is the mechanism under which secretarial assistants and others are engaged. Under the scheme, the Houses of the Oireachtas Commission has the power to regulate the provision of secretarial facilities to Members and qualifying parties. Secretarial assistants, administrative assistants, parliamentary assistants, administrators and chefs de cabinet are employed by Members and by qualifying parties but are paid by the commission. The commission also regulates the number of staff employed under the scheme and has oversight of the operation of the scheme.
Under the Houses of the Oireachtas Commission Act 2003, the commission must obtain the consent of the Minister for public expenditure before reaching an agreement with any person in respect of pay, conditions of employment or superannuation rights. This means that the commission advises on matters and submits proposals to me, as the relevant Minister, for approval. In that regard, I was happy to be able to agree to proposals to settle a pay claim in 2022 that included a regrading of all secretarial assistants to administrative assistants and the realignment of scheme pay scales under the terms of Building Momentum. The terms of the agreement have been implemented by the Houses of the Oireachtas service. I am glad that difficulties with recruitment and retention appear to have eased since the implementation of the agreement.
The Houses of the Oireachtas Service is the public service body which administers the Houses of the Oireachtas on behalf of the commission as the governing authority. The functions of the service are set out in legislation and can be broadly summarised as the provision of professional advice and support to the commission, the Houses and their committees. We need a modern, fit-for-purpose, well-resourced parliamentary system. I believe the allocation provided for in this legislation, €565 million between 1 January 2025 and 31 December 2027, will meet that aim.
My objective is to strike the right balance between sufficient and appropriate funding and showing by example in the management of this money our commitment to value for money. The funding envelope and the scale of the increase are broadly in line with the parameters agreed by the Government in the context of the budget. This figure comprises €205 million in 2025, with a balance of €360 million between 2026 and 2027. This is an increase of €102.25 million or 22.1% over a three-year period. Within the overall envelope, pay and pensions comprise €406.6 million, or 72% of the overall budget allocation. Members' allowances amount to €32.9 million. Non-pay expenditure comprises €125.5 million or 22% of the overall budget allocation.
With respect to pay, a key driver of expenditure relates to the prospective increase in the size of the Dáil. The next Dáil will see 174 Deputies representing 43 Dáil constituencies, an increase of 14 from the current 160 representing 39 constituencies. This will have impacts in a number of other areas. For example, these Deputies will be entitled to allowances already in place. However, it is important to clarify that the allocation provided for the period of this Bill makes no provision for general increases in the rates associated with existing allowances.
In order to safeguard Members and support the democratic process, in April I introduced an allowance in respect of security measures. The value and nature of the allowance was 50% or €5,000, whichever is the lesser, on a vouched basis. Following lower-than-expected take up, the Members' service of the Houses of the Oireachtas Commission has provided a revised proposal which I am currently reviewing. Any potential increase would need to be funded from the overall allocation proposed in this Bill. However, it is vital that we take reasonable steps to ensure that Members can safely go about their parliamentary business. I take this matter very much to heart and I will do what I can to assure Members that I will support them in the discharge of their parliamentary duties.
Another key driver of the increased spending relates to the implementation of the Oireachtas ICT strategy. This is to provide for new initiatives and emerging requirements such as cybersecurity and artificial intelligence, Al. We cannot in any sphere of public business afford to be complacent about the security of our digital work in this Parliament. There are bad actors out there who seek to discredit our parliamentary democracy. We must not let our Parliament fall behind in the use and understanding of Al. The proposed allocation will contribute to the replacement of two legacy systems across both the corporate services area and the procedural area.
Further contributory factors leading to the increase include costs associated with the forthcoming election and our forthcoming EU Presidency. We have a proud parliamentary tradition. A portion of the extra funding has been provided to support the ongoing work of parliamentary reform, for example with regard to Oireachtas committees.
In conclusion, the Bill has two key sections. There is only one substantive amendment to the Bill. Section 1 amends section 5 of the principal Act to provide funding for expenditure incurred by the commission from 1 January 2025 for three years. The amount of that funding is €565 million. Section 2 is a standard-form provision and sets out the Short Title, collective citation and a commencement date for the Bill.
This Bill provides for the proper and appropriate resourcing of our Parliament for our work. It seeks to get the right balance between adequately funding the Oireachtas and value for money. The work of the two Houses of the Oireachtas is central to the political and democratic development of our State and nation. I believe our future prosperity and welfare will make great demands on both the Dáil and the Seanad. We must equip ourselves for the mission entrusted to us by the Constitution and by the people.
I therefore commend this Bill to the House.