I thank the Chairman and the committee for receiving the Estimates for the Department of the Taoiseach for 1999. I welcome the opportunity to meet with the committee to discuss the Estimates for my Department and the offices under its aegis.
I am accompanied by the Government Chief Whip and Minister of State at my Department, Deputy Seamus Brennan, who will deal with matters relating to the Central Statistics Office. The Minister of State, Deputy Brennan, is also Chairman of the National Millennium Committee.
The activities outlined in the Estimate for my Department reflect the central role it plays in advancing the priorities of the Government. I will outline to the committee the key strategic issues and objectives which are being progressed during 1999. The situation in the North remains of paramount importance to the Government. I met the British Prime Minister, Mr. Tony Blair, in the margins of the recent EU summit in Cologne. We agreed that we should concentrate all our efforts in a bid to break the current impasse on the implementation of the Good Friday Agreement. Intensive rounds of negotiations involving the two Governments and all the pro-Agreement parties are getting under way. These discussions, which I expect will be ongoing up to 30 June, will be conducted at various levels under the overall supervision of the Prime Minister and myself and we will be directly involved during the closing stages.
The two Governments have been in touch with the parties in recent days regarding the detailed arrangements for the discussions. I had separate meetings this week with the First Minister designate, Mr. David Trimble, the Deputy First Minister designate, Mr. Seamus Mallon and the Sinn Féin President, Mr. Gerry Adams. I have also kept in touch by phone with the Prime Minister Mr. Blair. All the parties must approach the discussions in a positive and constructive spirit.
It is just over a year ago since the people, North and south, democratically expressed their overwhelming support for the Good Friday Agreement. The onus now is on all the parties to give effect to the will of the people, and in this regard, it is crucial that the implementation of all aspects of the Agreement proceed without further delay. An acceptable basis for a breakthrough can be achieved by 30 June. All sides need to be aware of the serious consequences of not reaching agreement on the outstanding issues by that deadline.
My Department is involved in supporting a range of projects which aim to promote commemoration and reconciliation in these islands. In subhead C, an amount of £800,000 is allocated for grants under the Sailors and Soldiers Land Trust Act, 1988. Subhead E contains an allocation of £400,000 for commemoration initiatives.
Regarding the Sailors and Soldiers Land Trust, approximately £1.5 million was lodged to the Exchequer last year. To date, three grants amounting to almost £350,000 have been disbursed for projects relating to the Peace Park at Messines, the University of Liverpool and the Irish Peace Bell at Messines. In December last year, my Department advertised in the National, Northern Ireland and British newspapers inviting applications from organisations and/or individuals for funding for projects that promoted mutual understanding and reconciliation, or would sustain ventures/activities or promote the welfare of the Irish community in Britain.
In response to the advertisement, a total of 175 applications were received for projects totalling more than £16 million spanning a range of projects focussing inter alia on reconciliation, commemoration, welfare, research, Irish studies, heritage and culture. Of these, 59 applications were selected which best met the criteria for disbursement of the funds available. Included are a significant number containing cross community or cross tradition elements that provide opportunities for the Government to demonstrate, in a very practical way, the commitment made in the Good Friday Agreement to demonstrate respect for the different traditions on this island. All of the applicants have been notified of the outcome of their applications and it is intended that the grants will be disbursed from June onwards.
With regard to commemoration initiatives, it is envisaged that the allocation in subhead E will fund commemorations of different events or periods for which commemoration is appropriate or proposed from civil society. A grant of £25,000 has already been paid on foot of a commitment given by President McAleese in Australia last year, with my Department's agreement, to assist towards the cost of a famine memorial at Hyde Park Barracks, Sydney. A further £53,200 has been allocated to three projects with a strong commemorative dimension - The Cost of the Troubles Study, £24,000, The Royal Dublin Fusiliers, £24,000 and the Military Heritage of Ireland, £9,200. It is anticipated that these funds will be disbursed shortly.
Funding has been set aside for the Dunbrody project. The viability of this project is the subject of a consultant's report which is currently in preparation. A number of other applications have been received or are known to be contemplated for support for commemorative activities. These applications will be considered for funding in due course.
An amount of £80,000 has been allocated in subhead D. This is primarily intended to allow for the contingency of meetings and printing requirements of the Forum for Peace and Reconciliation. At this point, all of our focus is wholly concentrated on the implementation of the Good Friday Agreement. The question of future meetings of the forum will be kept under review.
Turning to economic and social policy, my Department continues to play a leading role in the implementation of Partnership 2000, principally through quarterly review meetings, detailed progress reports for consideration by the social partners and proactive engagement as appropriate on particular problems or concerns which arise from time to time. As indicated by the most recent progress report, which is available in the Library, Partnership 2000 continues to be thoroughly and systematically implemented across a wide range of priority issues. Important developments of note include the progress made in the areas of personal taxation, particularly in the last budget, in job creation, in public service reform and in the key area of trade union recognition, where both IBEC and ICTU have formally approved the report of the high level group which was set up to deal with this issue. This agreed report represents a very significant breakthrough in this highly complex area, not least in terms of creating the necessary climate of goodwill to see us through the negotiations on a new partnership agreement later this year. My Department will be centrally involved, as on previous occasions, in these negotiations.
Ireland has come a long way since the first social partnership agreement was concluded in 1987 and the positive effects of these achievements on the lives of tens of thousands of our people should not be understated, particularly in the areas of employment creation and unemployment reduction. For example, the Quarterly National Household Survey results published recently show that the number of people in work passed the 1.5 million mark in the second half of last year, that the unemployment rate had reached its lowest level since records began and that the rate of long-term unemployment had fallen to 3.1 per cent, comparing very favourably with a rate of 10.4 per cent in April 1988.
These positive developments could not have happened without the pursuit of measured and consistent policies in the areas of personal incomes, fiscal management and monetary aims. Headline indicators in that regard include: growth rates, estimated at 8.5 per cent last year in GNP terms, which have placed Ireland at the top of the OECD growth league for the past four years; a national debt-GNP ratio of 52.1 per cent last year, compared to a ratio of 125 per cent 12 years ago; a current budget surplus of just over £2 billion last year as against a deficit of £1.18 billion in 1987; and an average annual inflation rate of only 2.8 per cent since 1987 compared to an equivalent rate of 11.7 per cent in the preceding decade.
Social partnership has made a key contribution to this radical transformation of our economy and society, not least because of the stability and consistencies which flow from the process. It will continue to be of crucial importance as we seek to address the new challenges of managing our success, of improving our competitiveness, of responding to globalisation and the emerging knowledge economy, and of deepening social cohesion which is essential to our economic and social well-being. The Government looks forward to a constructive engagement with the social partners in the period ahead as, together, we seek to meet these challenges successfully in the new millennium. To succeed, realism as well as determination will be required of all sides.
A key function of my Department is the development of national economic and social strategy. Subhead B of the Vote provides funding of £464,000 for the NESC, while subhead 1 provides a similar amount for the NESF. The NESC has since its foundation in 1973 has played a key role in this process and will, over the next few months, have a pivotal role to play in laying the foundations for a new partnership agreement. Since its foundation in 1993, the NESF has made a significant contribution to the formation of a wider national consensus on economic and social policy issues.
Subhead H provides funding of £415,000 for the National Centre for Partnership, which was established in May 1997 in accordance with Partnership 2000. If partnership is to be successful it must work at the level of each workplace, where management, unions and employees can work in harmony towards commonly agreed objectives. The aim of the centre is to foster, directly and indirectly, partnership arrangements, involving the acceptance of employees as stakeholders, which will secure the competitiveness, viability and prosperity of enterprises and the modernisation of public services.
The centre's work programme is being actively pursued with assistance from IBEC, ICTU and other relevant organisations. Making partnership work at the level of the workplace requires effort and commitment from all concerned and the role of the centre in facilitating the process is critical. Translating partnership from a concept to a reality will play an increasingly positive role in workplace arrangements and overall national development.
The Department of the Taoiseach has undertaken a co-ordinating role in relation to the International Financial Services Centre since its establishment in 1987. The IFSC clearing house group, chaired by the Secretary General of my Department, brings together representatives from the financial services industry with the relevant Departments and agencies. The IFSC has been a remarkable success. More than 6,500 people are now employed in the centre and associated back-office projects. The original Customs House docks site is almost fully developed and the 12 acre extension is currently under construction. Last March, following a review conducted by the IFSC clearing house group the Government adopted a Strategy for the Development of International Financial Services in Ireland. This seeks to build on the success of the IFSC. The clearing house group will now oversee implementation of this strategy and report back to Government at the end of the year.
Good progress continues to be made under the strategic management initiative, the programme of change in the public service. The SMI division of my Department plays a significant role in this process. As set out in Delivering Better Government, the key objective is the achievement of an excellent service for the Government and the public as customers and clients at all levels, building on the good service already provided at present.
The preparation of new statements of strategy by Departments and Offices was a key requirement of the Public Service Management Act, 1997. In July 1998, the Government decided that the statements of strategy should be built on through the divisional business planning process, through the devolution of authority and accountability under the Act and through the establishment of partnership committees under Partnership 2000. All Departments and Offices have now completed their strategy statements and the business planning process and devolution arrangements are nearing completion. Departments are required to produce an annual report on progress, as provided for under the Act.
The pursuit of quality customer service remains at the heart of the change programme. The quality customer service action plans of Departments and offices, launched towards the end of 1997, are now in operation. A system to monitor and benchmark progress across the Civil Service is currently being drawn up to ensure that the momentum is maintained in this important initiative.
In addition, the Freedom of Information Act, 1997, came into effect on 21 April 1998. A considerable effort has been put into preparing to meet the requirements of the Act which has resulted in major changes in the culture and practices of the Civil Service. Taken with the publication of the strategy statements, a new and unprecedented climate of openness and transparency in the conduct of official business has been created.
Apart from the new legislation I mentioned, until now most of the effort in the strategic management initiative has been devoted to developing proposals in the key areas of Delivering Better Government. The SMI implementation group, which is driving the change programme in the Civil Service, has prioritised four main areas for action this year. These are human resource management, financial management, information technology and regulatory reform. The all-party committee on SMI continues to monitor progress. It is funded from subhead M of the Vote.
The Estimate for my Department includes an allocation of £1 million under subhead J in respect of the McCracken tribunal and £4.65 million in subhead L in respect of the Moriarty tribunal. As Deputies will be aware, the McCracken tribunal completed its work in 1997. However, funds are provided in the 1999 Estimates for the payment of costs awarded by Mr. Justice McCracken to parties who appeared before the tribunal. To date, claims from 19 parties have been received. However, there is still a number of parties who were granted representation before the tribunal who have not yet claimed their costs and provision is made for this. It is not possible to say with any certainty when all claims for costs in relation to this tribunal will be received, given the previous experience of the beef and hepatitis C tribunals. The Moriarty tribunal, established in September 1997, is continuing its work. The legal challenges to the tribunal in the High Court and Supreme Court have inevitably delayed its work. The tribunal has held a number of public sittings and is also engaged in extensive research and investigative work.
The Estimates for my Department also include an allocation of £45,000 for the Territorial Employment Pacts, which will be matched by EU funding. An allocation of £250,000 has been made for the All-Party Committee on the Constitution. The Estimate of the Office of the Attorney General, which provides for the operating costs of the office and includes a grant-in-aid for the Law Reform Commission, shows an increase over the 1998 outturn of £1.5 million. Key components of the increase are provision to fill vacancies in the office; normal upgrading and replacement of computer equipment; the provision of a new PABX for the office and provision to complete the first phase of the project to publish the Statute Book on CD-ROM, which will be available later this summer. In the case of the grant-in-aid to the Law Reform Commission, the increase is to meet the cost of the Commission's computerisation project and expenses related to the move to new premises.
The Estimate for the Office of the Director of Public Prosecutions shows an increase over the 1998 outturn of approximately £1.1 million. The increase can be attributed in the main to the full year cost of an increase in fees to counsel arising from the March 1998 review of the fees structure applying to criminal cases coming before the courts. I welcome the first Annual Report of the Office of the DPP, which was published recently, and believe it will provide a useful and informative guide to all those interested in the workings of the office.
The Estimate for the Office of the Chief State Solicitor shows an increase over the 1998 outturn of £5.3 million approximately. This is accounted for in part by the increase in fees to counsel and other related costs associated with the large volume of Army deafness claims which were received in the past three years. While the number of new claims being received has decreased to about 100 a month, the costs of processing the 1997 and 1998 intakes are still being incurred. Specific provision has also been made for increases to local State solicitors arising from ongoing negotiations on the staff costs and expenses elements of their remuneration package.
Returning to my Department's Vote, subhead G provides funding of £550,000 for the Information Society Commission. The Information Society Commission has become one of the most important issues that we face at the end of the 20th century. It offers tremendous potential in the areas of economic growth and social inclusion, provided we act fast to embrace it. I am determined that Ireland should become a world-class location for electronic commerce. In January, I launched an action plan which sets out a framework of measures which Government and its agencies is taking to ensure implementation of the information society in a co-ordinated and comprehensive manner. The Information Society Commission will continue to play an important role as we move on with this implementation.
The high-tech world is constantly changing and new developments come on stream at unprecedented speed. It is vital that we keep abreast of these changes. The commission, which was established in 1997, is to continue to monitor and advise Government on the development of an information society in Ireland until the end of the year 2000. It published its second report in April last, highlighting e-commerce, awareness, adoption and access as priority areas for the coming year. The work of the Information Society Commission is an important illustration of the Government's firm commitment to the development of the information society in Ireland.
The largest allocation proposed in the 1999 Estimate for my Department is in respect of the millennium celebrations. The National Millennium Committee, chaired by my colleague, the Minister of State at the Department of the Taoiseach, Deputy Séamus Brennan, was established at the end of last year. Its remit is to make recommendations on proposals of major national significance for inclusion in the Government's millennium programme and to recommend a system for supporting locally based millennium projects. The work of the National Millennium Committee is being supported by a small millennium office, which has been established within my Department. This office will also be responsible for the co-ordination of the Government's overall millennium programme.
A total of £30 million of Exchequer funding is being made available through my Department's Vote for suitable millennium projects over the period 1999 and 2000. Out of this total, the sum of £14.9 million has been provided for in subhead M in 1999. The intention is that the millennium funding will lever out further matching funding for projects from the corporate and private sectors.
There has been a very large response to the public invitation to submit millennium projects with more than 550 project proposals received. The millennium committee is making excellent progress and has, to date, made recommendations on awards from the millennium fund of more than £5 million. The millennium committee is continuing to examine proposals and will make further recommendations on funding over the coming months.
The advent of a new millennium is a very special benchmark in the history of civilisation. Irish people have a huge interest in marking the millennium in a special way. In addition to the many celebrations which will take place all over the country, there is a very strong feeling that this event should be commemorated in a visionary, dignified and lasting way which provides every community in the country the opportunity of participation.
As we approach the new millennium, we can reflect on enormous achievements in all areas of national life in recent years. The Government is committed to continue to work to consolidate and build on those achievements. My Department, and the offices under its aegis, will continue to make a significant contribution to the Government's work in that regard. I therefore commend these Estimates to the committee.
