I thank the Chairman and colleagues. I welcome the opportunity to appear before the select committee as it considers the 2009 Estimates for Votes 2, 3, 13 and 14. I will give an outline of the Estimates for my Department, the Office of the Attorney General, the Office of the Chief State Solicitor and the Office of the Director Public Prosecution, and my colleague, the Minister of State, Deputy Carey, will make a statement on the Estimate for the Central Statistics Office.
Vote 2 concerns the Department of the Taoiseach. A total of €32.686 million has been provided in the Estimate for my Department in 2009. This represents a reduction of 27% on the 2008 Estimates allocation and of 1% on the 2008 outturn, which clearly reflects the imperative of reducing expenditure, improving productivity and doing more with less. That is a challenge faced across the public service. My Department has made significant steps in achieving greater efficiency and productivity. In 2008, administrative savings of €1.2 million were achieved, a saving of 5% on the annual allocation. A range of measures were identified to cut costs across all areas of administrative activity. These included improvements in procurement processes, greater use of technology and shared services, energy efficiency programmes, redeployment of resources and restructuring of processes. These resulted in significant savings, most notably reductions of 8.9% on travel costs, 11% on posts and telecommunications costs, 30% on office equipment related costs and 61% on consultancy costs.
Significant savings have also been realised in the Department's payroll budget arising from last year's decisions, with staffing numbers in the Department decreasing by 7% from 222 to 212 in the course of the year. Staffing numbers and costs are expected to fall further in the current year as a result of recent budgetary initiatives.
My Department has also participated actively in system-wide change and innovation. Among important recent specific examples are the implementation of a shared services financial system with the Department of Justice, Equality and Law Reform in Killarney, a shared library system with the Department of Finance and the roll-out of the e-Cabinet system across all Departments. I am confident, given our recent track record, that further savings will be achieved this year.
Regarding the Department's strategic priorities, within these tighter constraints my Department will continue to provide necessary services and meet the priority objectives set out in my Department's strategy statement and annual output statement. Those objectives are evolving as the external economic environment has been changing rapidly.
My Department is at the heart of Government and plays a pivotal role in supporting the day-to-day operation of Government and my work as Taoiseach in leading, co-ordinating and progressing Government policy. The annual output statement sets out the means by which my Department supports me in advancing the Government's priorities. These include supporting the processes of Government, the Cabinet committee system and social partnership, the operation of my office and that of the Ministers of State, the provision of policy advice and the co-ordination of complex cross-departmental matters. My Department also carries out important central Government responsibilities such as working with the Oireachtas, especially through the Office of the Government Chief Whip and the Government legislation committee, liaising with the Office of the President, providing an official protocol service, providing the Government Information Service and organising official State events and commemorations.
Broadly speaking, the resources of my Department are divided evenly between the three strands of supporting the Taoiseach and the Government, policy advice and co-ordination, and corporate support services. There is also an important emphasis on corporate governance and accountability to the Oireachtas and to the citizens. As the committee is aware, I appear very regularly in the Dáil to answer questions on all aspects of the Government's work. This is supplemented by extensive accountability via the media and through freedom of information requests, as well as through engagement with this and other Oireachtas committees. In its day-to-day work, my Department plays a key role in supporting the Government as it continues to progress national priorities, including the peace process in Northern Ireland and North-South co-operation; strengthening our role and promoting our interests in the European Union and the wider world; promoting sustainable and inclusive development of Ireland's economy and society; steering economic adjustment and maintaining industrial relations stability at a very challenging time, including through engagement with the social partners; and driving the reform and modernisation of the public services.
My Department has for many years now played a key leadership role across Government on the Northern Ireland peace process. Although we have seen enormous progress over recent years in Northern Ireland, important challenges remain. It is vital we maintain the political momentum and continue to build on the platform the peace process has provided. The next step is the devolution of policing and justice powers to the Northern Ireland Executive. After a difficult period last autumn, agreement was reached on a process for achieving this and the relevant Westminster legislation was passed in March. I hope the remaining steps in this process will be taken in the coming months.
The murders of two soldiers and a member of the PSNI in March of this year were a stark reminder to us all that the only way forward for Northern Ireland is through peace and agreement. The united response of all the parties demonstrated that there will be no going back. However, we will continue to be vigilant and ensure dissident criminal gangs face the full rigour of the law.
All of us on this island face challenging economic times. North-South co-operation and the island economy can make a significant contribution to economic recovery. Departments and agencies on both sides of the Border are actively working together to meet this challenge and to build up the all-island economy. We continue to develop practical co-operation through the work of the North-South Ministerial Council which is meeting regularly in plenary, sectoral and institutional formats and through the British-Irish Council, which is taking on additional work streams.
The Government is committed to investment in infrastructure projects that will benefit everyone on this island. We are seeing significant progress, for example on the inter-urban routes from Dublin to Belfast and to the north-west gateway of Derry-Letterkenny. I continue to work closely with the British Prime Minister, Gordon Brown, and I greatly value the support of President Obama and his administration in this work. I also greatly appreciate the long-standing cross-party support in the House.
My Department supports me in my role as a member of the European Council and as Head of Government dealing with Ireland's role in European and international affairs. This involves close collaboration with the Department of Foreign Affairs and other Departments to promote and protect Ireland's interests in the EU and other international fora. It also seeks to ensure Ireland can contribute to the strengthening of the EU and the multilateral, rules-based system including the United Nations.
A key imminent challenge is the ratification of the Lisbon treaty. On the basis of the agreements made at the European Council last December and on the condition of satisfactory guarantees being finalised, I said I would be prepared to return to the public with the new package and to seek its approval of it. We are now engaged in the process of fleshing out those guarantees with our EU partners in advance of the European Council meeting later this month.
More generally, our research on the referendum result last June showed a lack of information or understanding about the Union. The Minister for Foreign Affairs is developing a new communications strategy on the European Union to address this problem which is widespread across the Union. This new strategy will be rolled out over the coming weeks and months. In April and in the context of budgetary pressure on all fronts, the Government announced that the National Forum on Europe will close. It is our view the Oireachtas should once again lead national political debate on issues related to membership of the European Union. The work of the Sub-committee on Ireland's Future in the European Union was very positive in demonstrating that. I thank the chairman of the forum, Mr. Maurice Hayes, and all who participated in its work over the past eight years.
Beyond the EU, my Department's main interest is in strengthening bilateral relations with non-EU states, especially regarding international trade and ensuring effective pursuit of Ireland's interests in international bodies and organisations, including the United Nations. International visits and summits form part of Ireland's strategic approach to further developing our bilateral political, economic and cultural relations. They serve to maintain Ireland's position at the forefront of international matters and raise our profile in terms of inward and outward economic and investment opportunities.
I visited China in October 2008, leading one of the largest ever trade missions with 100 Irish companies and organisations and the State's key economic agencies. I also met with Premier Wen Jiabao. I paid an official visit to Japan earlier this year to mark more than 50 years of diplomatic relations. I led a significant trade mission with more than 70 Irish companies along with the State's key economic agencies and held meetings with Prime Minister Aso and Emperor Akihito.
I participated in the annual meeting of the World Economic Forum in Davos in Switzerland at the end of January with more than 40 Heads of State or Government. In March, I led a successful trade mission to the United States. I had a very successful first meeting with President Obama in Washington as well as meeting the speaker of the House of Representatives, Nancy Pelosi, and leading figures in Congress.
In domestic policy, the absolute priority for the Government and my Department is to tackle the economic crisis and to set Ireland on a path to recovery. The severity of the international financial crisis and our particular exposure to it in Ireland is fully recognised. OECD economies are forecast to contract by approximately 4% to 5% this year, with particular implications for an Irish economy already coping with the difficult adjustment under way in our construction industry. Exports of goods and services represent around four fifths of national output, more than twice the European average.
We have been badly hit by the fall in the value of sterling against the euro. The severity of the economic contraction we are experiencing is without precedent in Ireland and has few international parallels. We are clear in our resolve to take the difficult decisions necessary to return the economy to being driven by sustainable, export-led growth. I firmly believe the Government's strategy for dealing with this severe economic crisis is the right one. We have a comprehensive framework in place for tackling the twin challenges of the banking crisis and the deterioration in the public finances.
It is clear that, although painful, the tough decisions we are taking are beginning to have a positive effect. We are also firmly focused on protecting as many jobs as we can, restoring competitiveness to the way we do business, and supporting viable but vulnerable enterprises. Crucially, we must position Ireland to benefit fully from the global economic recovery when it comes. That is why we produced our smart economy framework in December last, setting clear direction for Ireland becoming more competitive, productive and energy efficient. The Ireland of the future will be a smart, high-value, export-led economy. It will have some of the world's leading research-intensive multinationals, a number of which will be Irish-owned.
The lesson from severe global recessions in the past is that as well as weathering economic storms, countries need to restructure their economies to target the next wave of economic growth. We have a number of important strengths on which to build. We continue to invest billions of euro in research and we must ensure we get maximum return on this investment. We will intensify our efforts towards creating the best research, innovation and commercialisation ecosystem in Europe, marketed internationally as "the innovation island". We have one of the youngest and most globalised populations in Europe. We intend to develop an enterprise culture from schoolchildren upwards and right through the universities.
My Department supports the work of the Cabinet committee on economic renewal in driving policy to address the crisis. I chair that committee. We are also driving real action to tackle climate change and to participate in the new green economy. Through the Cabinet committee on climate change and energy security, which I also chair, the Government provides oversight for the development and implementation of effective policies and measures which meet the energy, environmental and climate change priorities set out in the programme for Government.
Since the economic crisis of the 1980s, my Department has played a pivotal role as the social partnership process first helped us emerge from that crisis and then provided a stability and problem-solving approach that helped deliver the unprecedented economic success of the past decade. The Government believes strongly in the continuation of social partnership as an essential ingredient of our success, both as an economy and a society. Times have changed and new challenges have to be faced and new approaches adopted. There has been a significant effort by all the social partners over recent months to reach an agreement which would assist in the restoration of stability to the public finances, the maximisation of short-term economic activity and employment and an improvement in competitiveness.
Despite the complexities of the issues in question, all the parties to the negotiations share a desire to seek to formulate an appropriate agreement in as speedy a timeframe as possible. The very substantial agreement between the Government and the social partners is reflected in the terms of the framework for economic renewal agreed at the end of January. This shared understanding further emphasises the case for continuation with the model. In this context, discussions have been ongoing over recent weeks to elaborate on the agreed framework in the form of a new agreement. I am hopeful a basis will be found over the next few weeks for agreement at this particularly challenging time for the country.
Substantial progress continues to be made on the change and transformation agenda for the public service. My Department has an important leadership role at the centre of Government, working closely with the Department of Finance and senior management across the public service. This transformation agenda is an important part of the overall economic recovery programme. I am determined that its implementation will be progressed and that the public service will continue to contribute in the most effective way possible to our economic renewal.
I chair the Cabinet Committee on Transforming Public Services which is overseeing implementation of this very ambitious programme of change. I recently established a programme office in my Department which is supporting organisations across the public service in their transformation efforts and will also support the Government in driving, co-ordinating and monitoring progress on implementation.
Last November, I launched the report of the task force on the public service and the associated Government statement on transforming public services. This transforming public services, TPS, programme provides the framework for a comprehensive new approach to the reform of the public service. Its recommendations represent a challenging agenda for change in the public service and will be implemented over a three-year timeframe. They are designed to address the immediate priority of securing maximum value for public spending and laying the foundation for a complete overhaul of how the public service is managed and does its business to ensure it is efficient and effective in meeting the needs of citizens.
Also in November, we published the first three reports of the organisational review programme, or ORP. This programme is focused on individual organisations and complements the wider system-level OECD review of the public service. The emphasis of the ORP is on capacities at organisational level. The pilot phase of the reviews under that programme was conducted throughout 2008 and it covered three Departments — Agriculture, Fisheries and Food; Enterprise, Trade and Employment; and Transport. Each Department has published an action plan to respond to the review findings. In 2009, a further five Departments and major offices are being reviewed. All Departments and major offices will be reviewed by the end of 2011.
Regulatory reform is also a key element of public service and broader economic reform. My Department promotes the better regulation agenda across Government in line with the action programme set out in the White Paper, Better Regulation. In particular, the better regulation unit is involved in supporting the use of regulatory impact analysis across the Government.
Work on better regulation extends to the existing regulatory framework and it is in this context the independent review of the economic regulatory environment was commissioned. The review, which has just been completed, addresses the comparative efficiency, effectiveness and accountability of key Irish economic regulators and is being considered by the Government.
This unprecedented crisis calls for unprecedented and imaginative change across the public sector as well as the private sector. In the course of the current social partnership discussions, I have stressed to the Irish Congress of Trade Unions the need for a comprehensive agreement where flexibility, redeployment of resources to priority areas, mobility across organisational boundaries and best practice are accepted so that we can see real improvements in how public services are delivered, especially through greater use of shared services and electronic delivery channels.
I wish to outline briefly the position on the Estimates for the independent legal offices for which I have certain administrative responsibilities and accountability to the House. The Estimate for the Office of the Attorney General is €17.5 million, of which €13.919 million is for the operating costs of the office and the remaining €3.581 million is provided by way of a grant-in-aid to the Law Reform Commission. The mission of the office is to provide the highest standard of professional legal services to the Government, Departments and offices. Its key programmes are the advisory counsel programme, the Parliamentary Counsel programme and the Law Reform Commission.
The 2009 Estimate for the Chief State Solicitor's office is €35.886 million. Its mission is to provide the highest standard of professional legal services to the Government, Departments and offices through the work of its solicitor services, which carry out a wide range of work in areas such as providing legal advice, litigation, representation of the State, assistance with property and other transactions and contract negotiations.
The Estimate for the Office of the Director of Public Prosecutions is €41.101 million. This provides for the salaries and expenses of the director and his staff, the cost of the local State solicitor service, fees to counsel engaged by the director to prosecute cases in the various courts and legal costs awarded against the State arising out of judicial review and other legal proceedings. The office's main objective is to provide a prosecution service that is independent, fair and effective.
I commend these Estimates to the committee and thank the committee members for their attention. I hand over to the Minister of State, Deputy Pat Carey, who will make a statement on the Estimates for the Central Statistics Office, for which he has ministerial responsibility.