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Budget Targets

Dáil Éireann Debate, Wednesday - 23 January 2013

Wednesday, 23 January 2013

Questions (36, 101, 102, 106, 107, 108, 109, 112)

Bernard Durkan

Question:

36. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which he expects to meet his budgetary targets in 2013 having regard to progress made to date and the options available to him; and if he will make a statement on the matter. [3056/13]

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Bernard Durkan

Question:

101. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which he has compared the performance of the various Government Departments and or bodies under their aegis in their respective endeavours towards public expenditure reduction; if he has identified any particular Department and or sectors capable of greater effort in this context; and if he will make a statement on the matter. [3294/13]

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Bernard Durkan

Question:

102. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the degree to which he has identified the Departments and or bodies under their aegis throughout the public sector that have so far contributed most towards meeting the budgetary targets set in the Memorandum of Understanding; if cognisance is likely to be taken of their efforts in this regard in current and future years; and if he will make a statement on the matter. [3295/13]

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Bernard Durkan

Question:

106. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which the targets in respect of public expenditure reform and or the elimination of waste and duplication throughout the public service have been achieved in each of the past three years to date; and if he will make a statement on the matter. [3299/13]

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Bernard Durkan

Question:

107. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which reforms throughout the public service have contributed to cost reductions in each of the past two years to date; and if he will make a statement on the matter. [3300/13]

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Bernard Durkan

Question:

108. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the degree to which pay cuts, reform and the elimination of waste have each contributed to cost-cutting required in accordance with necessary economies arising from the economic situation inherited from his predecessors; and if he will make a statement on the matter. [3301/13]

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Bernard Durkan

Question:

109. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform if he is satisfied that the various reforms, savings and cost-cutting undertaken to date are in accord with the expectations and approval of the Troika; and if he will make a statement on the matter. [3302/13]

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Bernard Durkan

Question:

112. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the factors featuring most prominently as being obstacles in his efforts to achieve savings throughout various Government Departments and their respective subordinate bodies or agencies; and if he will make a statement on the matter. [3305/13]

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Written answers

I propose to take Questions Nos. 36, 101, 102, 106 to 109, inclusive, and 112 together.

The Government is making good progress on achieving all of our targets and priorities, as articulated in the Government programme. We are bringing public expenditure back to a sustainable level and driving forward the public service reform agenda to ensure that efficiencies and reformed work practices play a full part in contributing to the overall budgetary consolidation effort.

The Government began the process of medium-term expenditure management with the Comprehensive Review of Expenditure (CRE) exercise in 2011, which was carried out by all Departments to identify ways of reducing expenditure, in line with commitments under the Joint EU/IMF Programme of Financial Support for Ireland, while minimising the impact on service delivery.

Ministerial expenditure ceilings for 2012 - 2014 were introduced on an administrative basis in the Comprehensive Expenditure Report, published in December 2011. The CRE exercise forms the foundation of these ceilings and is the basis for all subsequent decisions on expenditure. The precise composition of the 2013 budgetary consolidation was set out in the Expenditure Report 2013, published on 5 December, 2012.

As regards discussions with the Troika, there has been a series of meetings held with the Troika to appraise all the elements of the programme covering fiscal developments, the macroeconomic outlook, progress on commitments regarding restructuring of the financial sector and structural reform.

In keeping with an EU/IMF Programme commitment, the expenditure ceilings are to be put on a statutory footing, which will ensure that this reform measure becomes a permanent structural feature of Ireland’s budgetary framework. The necessary legislative change to introduce the Medium Term Expenditure Framework is included in the Ministers and Secretaries (Amendment) Bill 2012, which was published on 28 September. In essence, the Bill provides for the power of the Government to set out an overall ceiling for aggregate current expenditure for each of the following three years and for the aggregate ceilings to be apportioned into Ministerial expenditure ceilings. The annual Estimates of Expenditure must, in turn, not exceed the overall limits set out by the Government.

With reference to reform delivery, the Government’s ambitious Public Service Reform Plan was published in November, 2011 and sets out the basis for the comprehensive and strategic reform of the Irish Public Service. Effective structures to drive and monitor the implementation of the reform plan have been put in place. The Cabinet Committee on Public Service Reform is driving the reform agenda at political level.

Last September, a statement on the progress on the implementation of the reform plan was published. The Reform and Delivery Office is working closely with organisations across the Public Service and good progress continues to be made in the implementation of the reform plan. For example:

- The new approach to public procurement will involve integrating procurement policy, strategy and operations in one office; strengthening spend analytics and data management; much greater aggregation of purchasing across public bodies to achieve better value for money; evaluating demand levels to assess how demand (volume) can be reduced; and strengthening vendor and category management.

- Government approved the establishment of a HR Shared Service Centre for the Civil Service called PeoplePoint. The centre will provide routine high volume HR and Pensions Administration for 40 public bodies on one HR Management System. Pensions shared service will be integrated with the HR shared service. Following a baselining study on Civil Service payroll arrangements, a business case for the development of a Civil Service payroll is at an advance stage. Baselining of finance management and banking arrangements across the Civil Service is also underway.

-Following a Government decision last year, all proposed new services across the public service will be first tested for external service delivery before any approval to provide the service internally will be granted. A shortlist of potential major projects for priority implementation is being prepared and the main sectors are also developing their own external service delivery plans.

- The Croke Park agreement will continue to be an essential element in enabling the comprehensive reforms that are taking place across the system. The agreement is supporting a significant and sustainable reduction in payroll costs in the public service as well as supporting the implementation of measures aimed at reducing operating costs and generating greater administrative efficiencies. The implementation body has reported total savings in the order of €1.5 billion over the first two years of the agreement, which comprises of approximately €810m and €680m in pay and non-pay savings, respectively. This is happening in a climate of industrial peace in the public service, the value of which is often overlooked.

While good progress has been made on delivering savings and implementing change, it remains a matter for each Minister and their Departments to ensure that the Vote-level allocations are adhered to and at the same time ensure that they continue to provide essential frontline services and respond to increasing demands.

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