Wednesday, 23 Jan 2013

Written Answers Nos. 10-18

Departmental Websites

Questions (10, 13, 29, 37, 40)

Peadar Tóibín

Question:

10. Deputy Peadar Tóibín asked the Minister for Public Expenditure and Reform the number of complaints he has received regarding the new eTenders website; and if he will make a statement on the matter. [3059/13]

Pearse Doherty

Question:

13. Deputy Pearse Doherty asked the Minister for Public Expenditure and Reform the way the user experience element of the new eTenders website differs from the previous website; and if he will make a statement on the matter. [3061/13]

Aengus Ó Snodaigh

Question:

29. Deputy Aengus Ó Snodaigh asked the Minister for Public Expenditure and Reform the name and address of the companies involved in preparing and running the new eTenders website; and if he will make a statement on the matter. [3062/13]

Jonathan O'Brien

Question:

37. Deputy Jonathan O'Brien asked the Minister for Public Expenditure and Reform if he will provide an update in the Governments new eTenders website; the cost involved in preparing and managing the new site; the level of consultation that took place with interested stakeholders in advance of the new site being rolled out; the level of briefing that the Government has carried out to inform interested parties on the way the new site operates; if he will detail any problems that the new site has experienced; and if he will make a statement on the matter. [3058/13]

Pearse Doherty

Question:

40. Deputy Pearse Doherty asked the Minister for Public Expenditure and Reform if he is planning to hold any future briefing sessions for interested parties regarding using the new eTenders website; and if he will make a statement on the matter. [3060/13]

Written answers

Minister of State at the Department of Public Expenditure and Reform

I propose to take Questions Nos. 10, 13, 29, 37 and 40 together.

The Government website www.etenders.gov.ie is a fully managed electronic tendering system that meets Ireland’s requirements in relation to the European Union’s requirements to meet the EU target for achievement of 100% capability for electronic tendering.

This website is the official Government website for public tenders for goods, services and works. It serves as a repository for notices above EU thresholds and which must be advertised in the Official Journal of the European Union. In accordance with policy guidelines from my Department contracting authorities are also obliged to publish all tender notices for goods and services with a value greater than €25,000 on the eTender website. In 2012, there were 6,439 notices published on this site.

It was necessary in 2011 to go to the market for a replacement for the old eTendering system as the contract with the original service provider was coming to an end.

The tender for the new service followed an in depth market analysis by a cross-agency steering group, including representatives from the HSE and Departments of Finance and Justice. Research for the specification also included presentations of systems by some of the leading service providers in the market place.

The new site, as well as publishing contract notices has a wide range of additional functionality that in effect will allow other aspects of the procurement process to be completed electronically, including assessment, awarding and contract management. This additional functionality is improving and generating efficiencies for both the public and private sectors.

Following an EU wide tendering process, during which no Irish company submitted a tender, the contract to provide the service was awarded to a new service provider, a Swedish company EU Supply Holding AB, Arbetargatan 33, 112 45 Stockholm,Sweden. The cost of the new system is €677,459 over the five-year life of the contract. This works out at €33,873 per quarter over the lifetime of the contract, which is a considerable saving on the €57,690, which was paid to the previous service provider - for the previous service - in the last quarter of 2012.

Prior to launching the new site on the 12 of November 2012, apart from detailed user guides and briefing of their representative bodies, registered Suppliers were also informed about the proposed change of system at various Meet the Buyer events and other seminars. Training on the system was offered to all public sector Buyers before the new system went live and over 1,200 buyers availed of these opportunities. These training opportunities are ongoing. The service provider also provides personal support to the approximate 80,000 registered users of this site through a Helpdesk facility.

The new system went live on the 12 of November 2012. Even allowing for the trebling of the server capacity for the initial days following the launch, the volume of users accessing the system (10,000 users signed in that day where there would normally be a maximum daily average of 500 users) caused a delay in the server response times. Some incorrect server settings were also detected that day. These access and response issues were resolved that day and have not arisen since.

Separately users to the national portal informed the NPS during the week of 12 November of claims that they had received unsolicited marketing emails from the previous operator of the service, marketing a new service. This caused widespread confusion among public sector Buyers and Suppliers and resulted in a large number of calls of complaint to the Helpdesk. The NPS is in discussions with the Office of the Data Protection Commission and is aware that the previous operator has issued an apology to some users of the old eTenders website for using their contact details for this purpose.

Most of the complaints since the launch of the new site relate to the confusion caused by the previous service provider who had issued user names and password for their new Mytenders system. Many users tried to access eTenders using these usernames and passwords, but obviously could not gain access, leading to a lot of angry calls to the Helpdesk. By the end of the second week after going live, and after the confusion caused by Mytenders had been resolved, Helpdesk calls were down to less than 250 routine calls per day.

Data migration issues from the previous operator to the new operator of the eTender website also created problems for Suppliers to receive alerts within their area of business about new tenders published from Monday 12 November.

In relation to live tenders that transferred from the old system to the new system, over the weekend of 10 November, some data migration issues arose and were resolved within a few days.

The National Procurement Service communicated with all registered Suppliers and Buyers, in the days following the launch of the new site, advising them of the solutions to the issues that arose, apologised for the early problems and acknowledged the inconvenience arising.

Departmental Expenditure

Questions (11)

Charlie McConalogue

Question:

11. Deputy Charlie McConalogue asked the Minister for Public Expenditure and Reform the discussions he has had with Troika officials in respect of ensuring that departmental spending overruns are minimised; and if he will make a statement on the matter. [2816/13]

Written answers

Minister for Public Expenditure and Reform

For each of the nine quarters since the EU/IMF Programme of Financial Support commenced in late 2010, the Government has successfully met all of the targets. In the expenditure area, discussions with Troika officials have been proceeding satisfactorily with a focus upon the continued attainment of spending targets and the steps necessary to address particular areas of pressure. It may be helpful to present a summary overview of the type of issues and considerations that are relevant in this overall area at present.

The end-year underlying Departmental expenditure position, adjusting for PRSI receipts, has been kept on target, with only a 0.4% deviation from target. The majority of Departments were broadly on profile by end-December. There were net overspends in the areas of Social Protection and Health. The Social Protection overspend was mainly due to lower than expected PRSI receipts in 2012 and increased expenditure on unemployment related schemes. These pressures arise from a weaker than anticipated economic environment which has been factored into the latest forecasts underpinning Budget 2013.

As regards health, the key factors contributing to the 2012 expenditure overrun include: hospital activity levels in excess of service plan targets, lower than projected income from private health insurance companies, and medical card and drug scheme expenditures increased at a higher rate than previously anticipated. The Department of Public Expenditure & Reform will continue to work with the Department of Health in ensuring that health spending is managed within the agreed ceiling for 2013.

This Government's approach to addressing the management of expenditure over the medium-term has been clearly set out in the Comprehensive Expenditure Report 2012-2014 (CER) published by the Minister for Public Expenditure & Reform on 5 December 2011. The CER introduced fixed multi-annual expenditure ceilings for all Departments in line with commitments made under the Troika programme of support. The intention of this reform measure is to improve the focus on medium-term, structural and strategic planning of expenditure within each area and to prevent spending overruns where possible. Under this measure, multi-annual current expenditure ceilings are fixed for each Department in order to make clear, in advance, the resources available for each area and the level of savings required.

The ceilings were set out on an administrative basis in 2012 and the Expenditure Report 2013 published by the Minister on 5 December 2012 accounted for minor technical adjustments to these ceilings due to a number of social and economic developments over the past year. The ceilings will be put on a statutory footing in the coming months. This will ensure that the reform becomes a permanent structural feature of Ireland’s budgetary framework.

Freedom of Information Legislation

Questions (12)

Kevin Humphreys

Question:

12. Deputy Kevin Humphreys asked the Minister for Public Expenditure and Reform the way in which the designation of commercially sensitive information is arrived at; if his Department has specific guidelines in place for the designation of information as commercially sensitive; his plans to reform this area in future legislation; and if he will make a statement on the matter. [2838/13]

Written answers

Minister for Public Expenditure and Reform

I presume the Deputy’s question relates to the position pertaining under Freedom of Information legislation. Section 27 of the Freedom of Information Act sets out categories of information which are classed as commercially sensitive and are on that basis exempt from release under the Act. The basis to commercial sensitivity includes trade secrets, financial, commercial, scientific, technical or other information whose disclosure could reasonably be expected to result in a material financial loss or gain to the person to whom the information relates or prejudice the competitive position of that person in the conduct of his or her business or the conduct of contractual negotiations. The consultation procedures laid down in section 29 of the Act must be followed before making a final decision on disclosure of such records. In addition, commercially sensitive information may be released, for example, if the information, or similar information is already in the public domain or if the provider of the information was informed before providing the information that such information could be made available to the public. It is also very important to note that if in the opinion of the head concerned, the public interest would, on balance, be better served by granting than by refusing to grant the request, the issue of possible commercial sensitivity can be set aside and the relevant records released.

In view of the diversity of situations in which information which is potentially releasable under FOI can give rise to issues of commercial sensitivity careful examination is required of the individual circumstances applying in each case. Detailed guidelines are available from the FOI Central Policy Unit’s website www.foi.gov.ie on the interpretation and implementation of section 27 requirements relating to commercially sensitive information including from relevant custom and practice and case law in this area. In addition, the Office of the Information Commission publishes decisions on reviews on her website and special reports which provide extensive guidance to public bodies on how the Information Commissioner assesses decisions of public bodies in relation to FOI requests which would include records classed as commercially sensitive. The steps that may be necessary to strengthen and enhance current guidance to FOI for decision-makers more generally relating to the operation of the Act will be considered as part of the forthcoming operational and management review of FOI which is expected to commence shortly.

I do not currently propose to make any changes to section 27 of the FOI Act in relation to the exemption available for commercially sensitive information. In my recent discussion with the Oireachtas Finance, Public Expenditure and Reform Committee on my proposals for the reform and extension of FOI, I made clear however that in the context of the pre-legislative scrutiny process being carried out on the FOI legislation, I am open to any case that may be made relating to any matter encompassed by the proposed legislation.

Question No. 13 answered with Question No. 10.

Public Sector Reform Implementation

Questions (14, 24)

Alan Farrell

Question:

14. Deputy Alan Farrell asked the Minister for Public Expenditure and Reform if he will outline, as per the current Croke Park agreement, the structures that have been put in place by the Implementation Body for Departments that are underperforming; the penalties in place for such Departments; if the implementation process of the Croke Park agreement will be revisited in the negotiation process for 2014 to enhance the incentive for changes to take place on a more individual Departmental basis; and if he will make a statement on the matter. [2835/13]

Billy Kelleher

Question:

24. Deputy Billy Kelleher asked the Minister for Public Expenditure and Reform when the next report of the Implementation Body for the Croke Park agreement will be published; and if he will make a statement on the matter. [2811/13]

Written answers

Minister for Public Expenditure and Reform

I propose to take Questions Nos. 14 and 24 together.

Deputies will be aware that the Implementation Body is charged with driving the implementation of the Agreement across the public service. It is supported in its work by implementation groups established in each sector. Under the terms of the Agreement, sectorial managements submit Action Plans to the Body which set out the range of measures and reforms which are to be implemented. The Body monitors implementation of these measures and maintains contact with sectorial managements as part of this process.

The Body formally reports on its assessment of progress under the Agreement to the Government on an annual basis. The Body has conducted two annual reviews to date and has published two comprehensive Annual Reports outlining the progress made on delivering savings and reform under the Agreement.

The Implementation Body’s third annual review of the Public Service Agreement will get underway in the coming weeks and as with other reviews, it will assess the sustainable savings that have been facilitated under the framework of the Agreement in its third year (1 April 2012 to 31 December 2012). As before, it will also scrutinise the level of progress being made on implementing the reform measures set out in the Action Plans in each sector. I look forward to the outcome of that review which I expect will be published in March.

As Deputies are aware, discussions have commenced with public service trade unions on extending the Public Service Agreement and, it would not be appropriate to comment on possible future implementation arrangements whilst those discussions are ongoing.

National Lottery Licence Sale

Questions (15)

Timmy Dooley

Question:

15. Deputy Timmy Dooley asked the Minister for Public Expenditure and Reform his views on whether shopkeepers and agents for the National Lottery will be adequately remunerated for their services under his proposals relating to the sale of the National Lottery licence; and if he will make a statement on the matter. [2808/13]

Written answers

Minister for Public Expenditure and Reform

As the Deputy is aware, the Minister announced in April 2012 that there will be a competition for the next National Lottery licence. It is envisaged that the competition will take place later this year. It is the Minister's intention to safeguard the rates of commission paid to retailers under the terms of the next licence.

I acknowledge the concerns of retailers and the importance to them of income from National Lottery sales, particularly in the current economic climate. I am also aware of the central role which retailers have played in the great success of the National Lottery since its inception. It is envisaged that retailers will continue to be central to the operation of the National Lottery over the 20 year term of the next licence. I am confident that there will be strong growth in National Lottery sales under the next licence with an alignment of interests between the next licence holder, retailers and the State, reaping benefits for all concerned.

Public Sector Reform Review

Questions (16)

Joe Higgins

Question:

16. Deputy Joe Higgins asked the Minister for Public Expenditure and Reform if he has estimated the deflationary impact if further reductions of €1 billion are imposed on the pay and conditions of public sector workers. [2909/13]

Written answers

Minister for Public Expenditure and Reform

Ireland is committed to reducing its general government deficit to less than 3% by 2015. To meet this commitment the Medium Term Fiscal Statement indicated that, in addition to the overall consolidation of €3.5 billion required for 2013, an additional €3.1 billion in savings and revenue raising measures must be identified for 2014 and €2 billion in 2015. If the public service pay and pensions bill at 36% of spending is to make a proportionate contribution to the necessary additional expenditure reduction currently identified as necessary for the next 3 years based on current economic forecasts, it will require a further reduction of some €1 billion in the cost of the pay and pensions bill.

Model simulations conducted using the ESRI’s HERMES suggest that a €1 billion reduction in the public service wage bill would reduce the level of economic activity by somewhere in the region of ¼ to ½ a percentage point in the short-run. The exact impact would, of course, depend on how the reduction was achieved. This impact on the economy must be balanced against the need to ensure that the fiscal deficit is reduced so that debt-to-GDP assumes a downward path from next year onwards.

Continuing to meet our fiscal targets can generate positive confidence effects, which can have a favourable impact on economic performance.

Public Procurement Contracts Tenders

Questions (17, 35)

Caoimhghín Ó Caoláin

Question:

17. Deputy Caoimhghín Ó Caoláin asked the Minister for Public Expenditure and Reform if social clauses will be added to public procurement contracts specifically targeting youth and long term unemployment. [3066/13]

Pádraig MacLochlainn

Question:

35. Deputy Pádraig Mac Lochlainn asked the Minister for Public Expenditure and Reform if he will include social clauses in all public procurement contracts for supplies, services and construction, clauses designed to tackle disadvantage through bringing young unemployed persons in particular into work. [3064/13]

Written answers

Minister for Public Expenditure and Reform

I propose to take Questions Nos. 17 and 35 together.

The matter of social clauses in public contracts is something that I have been examining closely recently.

Social clauses can be used in public procurement in cases where they are targeted at factoring into the procurement process consideration of social issues such as employment opportunities, equal opportunities and social inclusion. In order to be compatible with EU law, they must be made known to all interested parties and must not restrict participation by contractors from other Member States.

The European Commission issued guidance in 2010 that identified a range of social considerations that could be relevant for procurement including promoting employment opportunities for young unemployed or long-term unemployed and promoting compliance with core labour standards. This guidance stressed that when incorporating social considerations into the procurement process one of the key challenges is ensuring compliance with the EU Treaty Principles and the Procurement Directives. The EU procurement directive primarily envisages that social considerations may be included as contract performance conditions, provided they are not discriminatory and are included in the contract notice or in the contract documents and relate to the performance of the contract. For example, the EU Directive states that contract performance conditions may be intended to favour on-site vocational training, the employment of people experiencing particular difficulty in achieving integration, the fight against unemployment or the protection of the environment.

Challenges arise from the need to ensure that: value for money is not adversely affected; additional costs are not placed on domestic suppliers relative to other potential suppliers; and the targeted benefit is capable of being measured and monitored during execution of the contract.

The inclusion of social clauses in the procurement process would appear to be most suited to situations where the social benefit could be considered a core requirement and can be directly linked to the contracting authority’s policy or strategic plan. Experience in other Member States, would also indicate that social clauses will tend to be used for services and works contracts rather than supply contracts. A further consideration is the ability of contracting authorities to effectively monitor compliance with the social clause; this may be more difficult where some of the work is to be performed in another Member State.

The Government has a wide range of measures that it is deploying to facilitate job creation and support labour activation, with particular emphasis on assisting the long term unemployed people. Obviously, the main purpose of the public procurement process is to ensure that goods, services and works are purchased by the State in a manner that is legal, transparent and of high probity, and our key requirement is the achievement of value for money. Within this context, I have been looking with the Department and the National Procurement Service to see whether the use of social clauses as an additional means of supporting activation and we are seeking to identify the scope for the use of social clauses in parts of the capital area in particular.

Question No. 18 answered with Question No. 6.