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Wednesday, 21 Nov 2012

Written Answers Nos. 21-28

Oireachtas Members' Remuneration

Questions (21)

Mary Lou McDonald

Question:

21. Deputy Mary Lou McDonald asked the Minister for Public Expenditure and Reform if he intends to review allowances paid to Oireachtas members. [51543/12]

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Written answers

In 2012, I introduced a range of changes to the regime of allowances in the nature of pay which, under the relevant primary legislation, are paid to Oireachtas members. That has resulted in significant financial savings to the Exchequer. It is my intention to continue to ensure that the greatest value for money can be achieved in relation to payments made to members of the Houses of the Oireachtas on an ongoing basis.

Public Sector Reform Review

Questions (22)

Catherine Murphy

Question:

22. Deputy Catherine Murphy asked the Minister for Public Expenditure and Reform his views on whether there has been a substantial increase in recent years in the number of citizens who feel forced to make representations to elected politicians regarding their interactions with the public service; his views on whether several negative consequences are risked from this trend, in particular an increase in political clientelism; if, in the process of reform he is undertaking, he proposes to address any rise in clientelism between elected representatives and their constituents by improving the interface for the citizen when they engage with the public service; if he will detail these proposals; and if he will make a statement on the matter. [51560/12]

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Written answers

I do not have any data relating to the number of citizens making representations to politicians regarding their interactions with the public service.

A central platform of this Government’s reform agenda is to substantially improve the levels of openness, transparency and accountability in politics and in the public service. Significant progress is being made in this area in relation to, for example, the extension of the Ombudsman’s remit, establishing a legal framework for Oireachtas inquiries, reform and extension of Freedom of Information, regulation of lobbying and the introduction of comprehensive whistleblower protections on a pan-sectoral basis.

Similarly, the Government’s Public Service Reform Plan, published last November, includes five core commitments. One of these is “Placing Customer Service at the core of everything we do”. The Reform Plan sets out a range of actions to improve the citizen’s access to and interaction with Government services by providing more integrated services through more efficient and accessible channels, by reducing the information and administrative burden and by engaging with citizens and business customers in the design and delivery of services. It is also worth remembering that the demands on many public services are now greater than ever before, due to the current crisis and demographic changes.

It should be noted that engaging with the citizen and improving customer services are key and ongoing considerations for all Government Departments and Agencies. In this regard, the ongoing Customer Charter initiative involves a process whereby Departments and Agencies are required to consult with customers, to set service standards, to measure progress against those standards and to report publicly on their performance.

Commercial Rates Valuation Process

Questions (23)

Mick Wallace

Question:

23. Deputy Mick Wallace asked the Minister for Public Expenditure and Reform if he will consider amending the Valuation (Amendment)(No. 2) Bill 2012 to include an ability to pay clause based on economic hardship and an appeals system; and if he will make a statement on the matter. [51612/12]

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Written answers

The Government approved the publication of the Valuation (Amendment) (No. 2) Bill, 2012 on 3rd August, 2012 and the 2nd stage debate was taken in Seanad Éireann on 11th October, 2012.

The primary purpose of the Bill is to introduce amendments to the legislation which underpins the rateable valuation system on which commercial rates are collected. The proposed amendments to the Valuation Act 2001 are designed to accelerate the valuation process and to streamline the appeal procedures available to ratepayers. As part of the efforts to accelerate the revaluation process the legislation will also provide the legislative basis for carrying out a revaluation based on self-assessment by ratepayers and also for the external delivery of elements of the valuation process.

The revaluation programme aims to provide up-to-date valuations for individual properties across all economic sectors that are subject to local authority rates. It is an important programme, especially given the significant changes in rental values following the economic downturn of recent years. The revaluation process is the mechanism whereby economic changes that take place in the property market are reflected in the valuation lists for rates purposes and in individual ratepayers’ rates liabilities. The new features also include provisions for the streamlining of the valuation appeals process.

The Valuation Act, 2001 sets out the procedures and basis for assessing the valuation of properties for rates purposes. The Act does not deal with liability for rates, including the ability or otherwise of ratepayers to pay the rates, which is an area covered in rating and local government law and which falls outside the jurisdiction of the Commissioner of Valuation. The levying and collection of rates are matters for each individual local authority and does not come within the remit of the valuation system which is solely concerned with the determination of property valuations. Therefore, it is not proposed to include a provision in the Valuation (Amendment) (No.2) Bill, 2012 which would affect the rates collection system and its attendant aspects.

Public Sector Staff Recruitment

Questions (24)

John McGuinness

Question:

24. Deputy John McGuinness asked the Minister for Public Expenditure and Reform if he is concerned by the potential long term impact on recruitment and retention in the public sector from the range of reductions in pay scales and allowances for newly recruited staff; and if he will make a statement on the matter. [51645/12]

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Written answers

The reduction by 10% of the salary scale and fixed allowances for new entry grades to the public service was implemented by the previous government with effect from 1 January 2011 and remains in place. The stated purpose of the measure was to achieve a medium term structural reduction in the pay bill cost of the public service, and as a contribution towards improving Ireland’s competitiveness. The measure also had regard to the Public Service Agreement 2010-2014 (Croke Park Agreement) which provides for no reduction in the rate of pay of serving public servants.

Following the outcome to the recent review by my Department of allowances in the Public Service, certain allowances will not be paid to new beneficiaries as no sustainable business case was made for continuation of the payment of the allowances to new employees. As part of the next steps of the review process, my Department has written to sectoral management instructing them to immediately engage with staff interests with a view to securing their early agreement to the elimination of those departmental allowances payable to current beneficiaries, where no business cases exists to pay those allowances to new beneficiaries. These measures will contribute to a continued and sustainable reduction in the public service pay bill in a period where pressure on the public purse and the need for cost reduction and containment measures is unprecedented. While recruitment to the public service is limited, the available evidence from recent recruitment campaigns indicates that employment in the public service continues generally to attract large numbers of well qualified applicants.

Public Sector Pensions Expenditure

Questions (25)

Mary Lou McDonald

Question:

25. Deputy Mary Lou McDonald asked the Minister for Public Expenditure and Reform if he intends to increase the public service pension reduction bands applied to high paid public sector pensions. [51542/12]

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Written answers

At present, the position is that the Financial Emergency Measures in the Public Interest Act 2010 provides for an average public service pension reduction (PSPR) with effect from 1 January 2011 of about 4% of pension, calculated in line with the following rates and bands:

Annual Public Service Pension (€)

Reduction Rate

First 12,000

0%

Between 12,000 and 24,000

6%

Between 24,000 and 60,000

9%

Between 60,000 and 100,000

12%

Balance above 100,000

20%

The existing reduction is estimated to save €100 million in a full year. It applies to pensions paid to some 130,000 public service pensioners. Last year, arising from my concern about large public service pensions, I amended the legislation to increase the reduction on pension amounts over €100,000 by introducing the 20% rate on this band.

As I have explained many times, I have been legally advised that further public service pension cuts could only be justified in the broad public interest. They would therefore have to make a meaningful contribution to the fiscal adjustment and would have to be designed in a similar fashion to the existing reduction. For example, a move to introduce a 100% rate of pension reduction on pension amounts over €100,000 could immediately run up against the likelihood of the courts finding that such a complete restriction of property rights would give rise to legal difficulties. Like all expenditure issues this matter is subject to constant review.

Parliamentary Inquiries

Questions (26)

Pearse Doherty

Question:

26. Deputy Pearse Doherty asked the Minister for Public Expenditure and Reform in the context of last year's rejection by referendum of increased powers for Oireachtas inquiries, his views on whether the proposed Houses of Oireachtas (Inquiries, Privileges and Procedures) Bill 2012 is the most appropriate approach to progressing this matter. [51556/12]

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Written answers

I am satisfied that the proposed legislation is the most appropriate approach on the basis, of the comprehensive analysis carried out in relation to this matter by my Department in consultation with the Office of the Attorney General, the January 2011 report of the Joint Oireachtas Committee on the Constitution reviewing the parliamentary powers of inquiry and the published views of several authoritative constitutional experts, as well as the research commissioned by my Department on the outcome of the 2011 referendum to allow Oireachtas Committees to undertake full inquiries.

In addition to providing legal certainty regarding the constitutionally permissible scope for Oireachtas inquiries, the legislation will provide an essential statutory framework for the conduct of inquiries by Oireachtas committees. The proposed legislation also provides for all necessary powers for an effective and efficient inquiry process as well as detailing the fair procedures required in relation to the conduct of any Oireachtas inquiry to ensure that constitutional rights are fully safeguarded.

Public Sector Allowances Review

Questions (27)

Brendan Smith

Question:

27. Deputy Brendan Smith asked the Minister for Public Expenditure and Reform the progress made in respect of reform of public sector allowances; the savings he expects to make in this area in 2012 and 2013; and if he will make a statement on the matter. [51624/12]

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Written answers

As part of the next steps of the Allowances Review process, my Department has written to sectoral management instructing them to immediately engage with staff interests with a view to securing their early agreement to the elimination of those departmental allowances payable to current beneficiaries, where no business cases exists to pay those allowances to new beneficiaries.

Departments have begun to respond to my Department on the request for prioritisation and engage with staff representatives on the issues. Given the process now underway, it is not appropriate to identify a specific target for savings.

Departmental Staff Remuneration

Questions (28)

Aengus Ó Snodaigh

Question:

28. Deputy Aengus Ó Snodaigh asked the Minister for Public Expenditure and Reform if he will consider withdrawing the special TLAC pension provisions of an additional lump sum payment of half a year's salary and up to ten added years enabling early retirement on a full pension uniquely awarded to a number of existing secretaries general and city and county managers. [51547/12]

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Written answers

As I said in previous replies on this matter, Secretaries General appointed under the TLAC process have exit arrangements which reflect the Government Decision applicable at the time of their appointment and these form part of their terms of employment. On 25 October 2011 this Government revised the exit arrangements to apply to Secretaries General newly appointed thereafter. Under the revised terms, Secretaries General appointed after that date no longer benefit from immediate payment of pension and lump sum at the end of their term (unless they have already reached pension age); nor will they benefit from notional added years for pension purposes. The previous terms continue to apply to currently serving Secretaries General who were appointed under those terms. As I said before, the advice of the Office of the Attorney General is that the Government does not have discretion to change those terms.

The TLAC exit arrangements do not apply directly to City and County Managers. However, the Government Decision of 25 October 2011 provided that their exit terms should be revised in line with the revised terms for Secretaries General. Accordingly, the Minister for the Environment, Community and Local Government, who has primary responsibility for the superannuation and severance arrangements of City and County Managers, made the necessary changes under S.I. 291 of 2012, to apply to Managers newly appointed after 26 July 2012.

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