Written Answers Nos. 82-89
82. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform if he is satisfied that each Government Department's budget for 2014 meets his Department's requirements and at the same time, is sufficient to discharge the responsibilities of the respective Departments; and if he will make a statement on the matter. [50049/13]
View answer83. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform if he will indicate, based on previous years' performance, the Government Departments or bodies under their aegis which have performed best in terms of working within budget; and if he will make a statement on the matter. [50050/13]
View answer84. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform if he is satisfied that each Government Department is capable of meeting the guidelines set out in agreement with the troika entered into by his predecessors; and if he will make a statement on the matter. [50051/13]
View answer85. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the Government Departments that have tended to overspend in respect of their budget in each of the past two years to date; the extent to which corrections have been made; and if he will make a statement on the matter. [50052/13]
View answer88. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the total savings to date achieved through reform or limitation of expenditure in each of the past two years to date; the extent to which this is in line with targets set by his predecessors in the agreement with the troika; and if he will make a statement on the matter. [50055/13]
View answer90. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the degree to which he continues to take account of and have regard for the impact of wage restraint and cost-cutting throughout the public sector, with particular reference to the impact on individual public servants at all levels, in view of the impact of the ongoing economic situation; if he sees any particular options that might offer some relief in this area; and if he will make a statement on the matter. [50057/13]
View answer91. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform having regard to discussions with the troika and his EU colleagues, the extent to which it is recognised that the achievements made by his Department and the Irish people are in line with expectations and have substantially impacted on the restructuring budgetary measures required; and if he will make a statement on the matter. [50058/13]
View answerI propose to take Questions Nos. 82 to 85, inclusive, 88, 90 and 91 together.
The Comprehensive Expenditure Report 2012-2014 (CER) published by my Department on 5 December 2011 set out current expenditure ceilings for Departments for the period 2012 to 2014. The ceilings and savings measures contained in the CER were informed by the Comprehensive Review of Expenditure (CRE) carried out in 2011. The ceilings published in the CER form the basis upon which the detailed 2014 expenditure allocations were decided by the Government. The Comprehensive Expenditure Report also provided for a new “whole-of-year” budgetary process, whereby the 2014 ministerial expenditure allocations would be open for scrutiny and discussion before the relevant Oireachtas Committees.
The composition of the budget allocations for 2014 in respect of each Vote were set out in the Expenditure Report 2014 published on 15 October. The Government took account of a wide range of often competing considerations and policy priorities to decide on the distribution of the resources available in order to strike a balance between bringing sustainability to the public finances while protecting to the greatest extent possible, both the economic recovery and the most vulnerable in society.
To put this into context, gross voted spending has been reduced from its peak of €63.1 billion in 2009 to €54.6 billion in 2013. This represents a reduction of approximately 13.5% between 2009 and 2013. Estimated voted expenditure for 2014 will be in the region of €52.9 billion with a targeted general Government deficit of 4.8%, a significant reduction from the underlying deficit of 11.2% at the end of 2011. The management of the respective expenditure allocations for 2014 will continue to be a matter for each Minister in accordance with overall agreed Government policy.
In relation to the troika, the Irish Government's commitment to the EU/IMF programme of financial support was clearly illustrated by our sustained strong record in implementing the agreed policy frameworks and measures while meeting all quantitative targets. The EU/IMF programme was subject to policy conditionality which was set out in programme documents - the Memorandum of Understanding on Specific Economic Policy Conditionality (MOU), the Memorandum of Economic and Financial Policies (MEFP) and the Technical Memorandum of Understanding. The conditionality in these documents was subject to continuing assessment by the Irish Authorities and the EU, IMF, ECB (the troika) to ensure the broad programme objectives were met. Such assessments were undertaken at the quarterly reviews. Each update to the programme documents included the protraction or revisions to existing commitments along with new commitments.
As I am sure the Deputy is aware, the hard policy decisions this Government has made over the last number of years has enabled us to bring our finances back to a sustainable level and just as importantly, the Government decided on 14 November that Ireland is now in the best position to exit the EU/IMF programme of financial assistance on December 15 without the need to pre-arrange a new precautionary credit line from our EU and IMF partners.
86. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the degree to which all unions and management throughout the public service have met their targets on an annual basis over the past three years in respect of savings required in line with the troika agreement; and if he will make a statement on the matter. [50053/13]
View answer87. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which all unions and management have entered into the spirit of the Haddington Road agreement; and if he will make a statement on the matter. [50054/13]
View answerI propose to take Questions Nos. 86 and 87 together.
The Government's commitment to the EU/IMF programme of financial support remains firm as is clearly illustrated by a continued strong record in implementing the agreed policy frameworks and measures while meeting all quantitative targets. Indeed, data released in the Exchequer Statement of 2 October indicated that the Exchequer primary deficit target outlined in the EU/IMF programme was met for the twelfth consecutive quarter.
In order to achieve the general government deficit target of below 3% of GDP by 2015, all components of the public finances must make an appropriate contribution. In this context, reducing the Exchequer Pay Bill has been an important element in reducing public expenditure. Public Servants have made a significant contribution to the fiscal recovery of the State, through a number of measures which have helped to reduce the Public Service pay bill from its peak of €17.5 billion in 2009, to an estimated €14.1 billion in 2013.
Public Service management has worked with staff representatives to secure significant cost reductions and to deliver necessary reforms and work place changes, through the Public Service Croke Park agreement and most recently through the Haddington Road agreement. The benefits of the Croke Park agreement have been significant as evidenced by the final report of the Implementation Body. That report concluded that the agreement facilitated significant cost savings, amounting to €1.8 billion over its lifetime, comprising of almost €1 billion in pay savings and over €800m in non-pay efficiency savings. The Body also concluded that the vast majority of commitments around cost extraction, reforms and changed work practices had been substantially delivered.
More recently, the Haddington Road agreement, which came into force on 1 July, sets out a number of measures aimed at reducing the public service pay and pensions bill by €1 billion by 2016. In addition to these cost saving measures, the Agreement also provides for an additional 15 million working hours across all sectors of the Public Service. The additional hours will ensure that public service management is able to maintain service delivery while also enabling the delivery of the Government’s ambitious reform agenda.
It is the responsibility of Public Service managers across every sector of the Public Service to make full use of these additional hours and the other hard-won workplace flexibilities agreed in Haddington Road. In order to harness the full potential of these additional hours, it will be essential that public service management continue to evaluate innovative ways of utilising these hours over the next three years.
Where public service unions and the Government sign up to collective agreements, in this case the Haddington Road agreement, I am satisfied that both unions and management are committed to the delivery of the terms of those agreements.
Question No. 88 answered with Question No. 82.
Question No. 89 answered with Question No. 23.
