Yes, that is correct. I am here to present a proposal for four Supplementary Estimates, two of which come under the Department of Public Expenditure and Reform Vote group and two of which come under the Department of Finance Vote group.
On the public expenditure and reform Vote group, there is a net Supplementary Estimate of €1,000, resulting in a gross Estimate of €5 million, in respect of Vote 12 - superannuation and retired allowances. There is a Supplementary Estimate of €470,000 in respect of Vote 17 - Public Appointments Service.
On the finance Vote group, a Supplementary Estimate of €21.2 million is required in respect of Vote 7 - the Department of Finance, and a Supplementary Estimate of €4.104 million is required in respect of Vote 9 - Office of the Revenue Commissioners.
With respect to Vote 12, pensions and lump sums paid under the pensions scheme for established civil servants make up just under 90% of gross expenditure on the superannuation and retired allowances Vote. The main driver of the annual cost is the number of established civil servants who retire during the year. There are a number of different reasons it can be difficult to estimate the number of retirements from one year to the next but the 2019 gross estimate for Vote 12 was €609.9 million euro, which was based on a forecast of 1,700 retirements. As a general rule, the once-off lump sum paid to each person who retires is three times the size of the annual pension. Accordingly, increases in retirement levels have a particular effect on subhead A.4, which is the main driver of expenditure variance on the Vote in any given year. At the end of October, €90.4 million had been expended from section A.4, compared with the original 2019 full-year Estimate of €101.6 million. Further expenditure of up to €25.3 million is estimated by the end of the year, resulting in an overall projected excess of approximately €14.1 million on the subhead. It is now estimated that total gross expenditure on the Vote may be in the region of €614.9 million, which is €5 million ahead of the gross Estimate as voted previously by the Oireachtas.
The committee should also note that the level of gross Supplementary Estimate being sought will be mitigated somewhat by anticipated increased levels of appropriations-in-aid. In 2019, these were estimated at €238.6 million, which was ahead of profile. Total appropriations are now projected to be €243.6 million, which is €5 million more than expected. This excess amount will act to reduce the net effect of the total gross Supplementary Estimate.
Moving to the Supplementary Estimate in respect of Vote 17 - Public Appointments Service, the Supplementary Estimate in respect of the Vote will bring the total 2019 Estimate for that Vote to €15.503 million, which is a 3.1% increase on the total allocation of €15.033 million.
The Supplementary Estimate for Vote 7 is to meet the cost of legal settlements entered into by the State following advice from senior counsel. The settlements are in respect of protracted legal proceedings arising from the air travel tax introduced in budget 2009 and agreements which were entered into following mediation with Mr. Justice Paul Gilligan.
The Supplementary Estimate for Vote 9 is to meet the 2019 costs associated with developing the Brexit infrastructure required as part of our no-deal preparations. The total cost to be met is €4.104 million.
In conclusion, I am satisfied that approval of the supplementary estimate of €1,000 net will confer the necessary legal authority to meet the pension entitlements of civil servants expected to retire up to the end of 2019. I am satisfied that approval of the supplementary estimate of €470,000 will enable the wider public service to prepare for future challenges through the Public Appointments Service. I am satisfied that approval of the Supplementary Estimates for the Revenue Commissioners and Department of Finance will allow us to deal with the requirements outlined in my address.