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Wednesday, 23 Jan 2013

Written Answers Nos. 110-116

State Indemnity

Questions (111)

Bernard Durkan

Question:

111. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which he has identified various forms of insurance cover affecting the State and or its institutions as a means of achieving savings to the Exchequer; the extent to which group insurance policies can be utilised for this purpose; and if he will make a statement on the matter. [3304/13]

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Written answers

Normal State policy, as advised in the Public Financial Procedures, is that the State is its own insurer and as such covers its own costs. State indemnity for personal injury and third party property damage was legislated for in the National Treasury Management Agency (Amendment) Act, 2000 where the management of personal injury and third party property damage claims against certain State authorities, and underlying risks, was delegated to the National Treasury Management Agency (NTMA). When performing these functions, the NTMA is known as the State Claims Agency (SCA).

Under the general rule of State indemnity enacted through the statutory provisions above, certain State bodies are indemnified by the Minister for Finance for the following:

- Personal injury to employees of the State;

- Personal injury to third parties (the public) – this includes injury resulting from medical negligence;

- Third party property damage – this includes claims arising from road traffic collisions (RTC’s);

Since 2001 the remit of the SCA has been expanded through various delegation orders based on a value for money analysis. More recently in 2010 the management of Health Service Executive (HSE) personal injury (non-clinical) and third party property damage claims was delegated to the State Claims Agency (SCA) under the National Treasury Management Agency (State Authority) Order 2009. 13 other State authorities claims associated with these risks were also delegated to the SCA in 2011.

Additionally, the following additional classes of claims were delegated to the State Claims Agency with effect from 7th February 2011:

- Bullying/harassment claims by state employees, which allege personal injury.

- Claims by members of the Defence Forces alleging personal injury whilst serving abroad – includes stand alone PTSD cases.

- In-cell sanitation claims by current and former prisoners

The National Treasury Management Agency (Delegation of Claims Management Function) (Amendment) Order 2012 formally delegated management of Thalidomide and Nimesulide (Aulin) claims to the State Claims Agency on 3rd April 2012.

In conjunction with the State, the SCA has a strong track record in reducing the cost of managing claims under its remit. For example, during 2012 the SCA achieved significant savings on claims and related legal costs associated with the management of the Clinical Indemnity Scheme (CIS). An independent actuarial assessment projected that €127.5 million would be required to satisfy CIS claims and related costs in 2011. The outturn for the year was €84 million, representing a saving of €43.5 million.

Prior to the delegation of the management of Employers Liability/Public Liability/Property Damage claims to the SCA, the HSE and 13 other State Authorities were paying in excess of €22 million in insurance premia per annum. Only approximately €2 million has been expended to date in the management of such claims since 2010, yielding a cash flow saving of approximately €64 million. Based on the current outstanding estimated liability associated with these delegated claims since 1st January 2010, a long term saving of at least €26 million will be achieved for the State by managing these claims on the “pay as you go” basis operated by the SCA.

Where Agencies have been dealing with their own insurance in many cases, it has been policy to encourage them to delegate the management of the risks and the processing of claims to the State Claims Agency. Analysis and experience has shown that the cost to the State of dealing with these risks and claims directly, through State indemnity managed by the SCA, is significantly lower than the premium cost of insuring these risks. My Department are currently preparing a delegation order and have been in correspondence over the last few months with Departments on this.

In addition, a State Legal Costs Unit is being set up in the SCA to deal with legal costs – initially to deal with Tribunal claims but with the intention of expanding this remit. Heads of a Bill have been cleared by Government with a view to the publication of legislation to underpin the SCA’s remit.

Question No. 112 answered with Question No. 36.

Public Services Provision

Questions (113)

Dara Calleary

Question:

113. Deputy Dara Calleary asked the Minister for Public Expenditure and Reform the number of non-core public service activities have been selected for priority outsourcing to Irish based companies; and if he will make a statement on the matter. [3401/13]

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Written answers

Evaluating the opportunity for the external delivery of some non-core public services is an action in the Public Service Reform Plan agreed by Government in November 2011. Last July, the Government agreed a range of actions aimed at achieving a focused and integrated approach to external service delivery of non-core processes with the objective of reducing costs and focusing staff on priority areas.

External service delivery leads have been appointed in every Department and Sector and, while the Reform and Delivery Office in my Department is overseeing the development and implementation of external service delivery policy for the Public Service, the testing and ultimate decision with regard to the outsourcing of any particular new service is a matter for the individual public bodies concerned in each case.

The Reform and Delivery Office has also been engaging with Departments, Offices and Sectors to identify existing services that may be suitable for delivery by external providers with a view to selecting a number of major projects for evaluation. This process is ongoing and I expect to be in a position to update Government on progress in the near future.

Pension Provisions

Questions (114)

John Paul Phelan

Question:

114. Deputy John Paul Phelan asked the Minister for Public Expenditure and Reform the number of persons on State pensions from the public service in the bands, between €50,000 and €60,00, between €60,000 and €70,000, between €70,000 and €80,000, between €80,000 and €90,000, between €90,000 and €100,000 and over €100,000; and if he will make a statement on the matter. [3433/13]

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Written answers

The data provided below covers retired Civil Servants, the VEC/IoT sector and 7 smaller bodies and agencies whose pensions are paid on an agency basis by the Office of the Paymaster General.

Range €

Number

50,000

60,000

638

60,001

70,000

260

70,001

80,000

48

80,001

90,000

37

90,001

100,000

20

100,001 +

103

The above figures take account of the Public Service Pension reduction.

Details in relation to the pension of other Public Servants and in relation to State Pensions can be provided by the relevant Minister for each sector.

Departmental Strategies

Questions (115)

Seán Kyne

Question:

115. Deputy Seán Kyne asked the Minister for Public Expenditure and Reform if he will report on the progress made in creating a logistic and inventory management strategy for the public service which will reduce waste, obsolescence and duplication. [3459/13]

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Written answers

The approach to progressing this initiative will be set out in the Procurement Reform Implementation Plan that the incoming new Chief Procurement Officer will be preparing for Government by the end of Q1 2013. I understand that significant progress has already been made in the health sector where the Health Service Executive has implemented a range of measures to improve and streamline inventory and logistics management. This health sector experience will be very useful in progressing these aims across the broader public sector context.

Public Service Reform Plan Update

Questions (116)

Seán Kyne

Question:

116. Deputy Seán Kyne asked the Minister for Public Expenditure and Reform if consideration will be given to introducing or appointing a liaison officer or team in each Government Department and public body whose function would be to improve communication and consultation both within and between Government bodies and public bodies to ensure use of resources and best possible service delivery. [3460/13]

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Written answers

The Government’s Public Service Reform Plan, published in November, 2011 includes commitments to enhance communication within and between public bodies to ensure that resources are used as efficiently as possible and that the customer is at the centre of service planning and delivery.

The Government’s Public Service Reform Plan also places a strong emphasis on the need for effective governance structures to ensure delivery of the Reform Plan and to maintain oversight of the reform programmes of Departments and Sectors. 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.

Communication and effective governance structures are important in implementing the Public Service Reform Plan. An Advisory Group of Secretaries General has been established, which provides support and advice on strategic / policy issues to the Cabinet Committee on Public Service Reform. In addition, a Reform and Delivery Board, primarily comprising Assistant Secretaries responsible for leading reform in each Department / Office, meets regularly to oversee and monitor the delivery of Public Service Reform at a strategic level and provide assurance to my Department and to the Cabinet Committee that Public Service Reform is being successfully delivered. These structures, in addition to exiting cross-organisational groups and networks, facilitate communication and information sharing across Government.

The Public Service Chief Information Officer (CIO) Council was also established last year as a representative forum for senior managers responsible for ICT and/or eGovernment from across the Civil and Public Service. The Council discusses key ICT and eGovernment issues, and provides expert input to decisions and actions aimed at maximising the positive impact of these on public service modernisation and customer service. A separate group, the Data Sharing Clearing House, has been established to deal with issues as they arise on the improved access to and sharing of data across the system.

In line with best practice governance, Project Boards have been established for many of the projects which are being implemented under the Reform Plan, for example for the various shared services projects. In addition, each of the actions in the overall Reform Plan is assigned to a lead official, with Senior Responsible Owners appointed to lead the Major Projects which have been identified as being of major strategic importance.

In addition, each Department / major Office has its own Change Delivery Team to manage and drive the reform process at organisational / sectoral level.

The Reform and Delivery Office in my Department monitors the progress being made in making reform plans a reality, including driving cross-organisational cooperation on key projects. It also works closely with each of the main sectors to ensure that they have appropriate governance arrangements and structures in place to drive and support the delivery of their own organisational and sectoral reform programmes.

In conclusion, this Government is strongly committed to its ambitious programme of Public Service Reform and I believe that a robust governance framework is in place to ensure its successful implementation. Reform of our public services is an ongoing process and effective communications are essential to ensure the success of the reform programme.

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