Written Answers Nos. 82-90
82. Deputy Dominic Hannigan asked the Minister for Public Expenditure and Reform when he expects the recommendations of the two-year review of EU public procurement law, which was passed by the European Parliament this week, to be implemented by local authorities and Government bodies here; and if he will make a statement on the matter. [3013/14]
View answerThe Irish Presidency completed detailed, lengthy and complex negotiations with the European Parliament, and achieved agreement on the Public Procurement Package (Classical Directive, Utilities Directive and Concessions* Directive).
These Directives will make it easier for businesses and SMEs to tender for procurement contracts. Administrative burdens will be reduced, procurement procedures simplified, and costs related to tendering lowered by making procurement systems more transparent. The use of e-procurement will also simplify the processes and foster greater competition. It will strengthen the generation of jobs and growth, given that public authorities across the European Union spend approximately €2 trillion per annum (some 19% of EU GDP) on the procurement of goods, services and works.
Some of the measures included in the reform of the general procurement rules that will facilitate SME involvement include:
- Acceptance of self-declarations until the award stage and the promotion of e-procurement with mandatory electronic availability of procurement documents;
- Except in justified cases, turnover requirements are to be explicitly limited to two times the estimated contract value;
- Contracting Authorities will now have to comply or explain in relation to the division of contracts into lots;
- Member states will be required to provide the Commission with detail on SME participation. Such monitoring can support consistent application across all Member States and ensure that the objective of greater SME involvement is being delivered.
In addition, the new Directive on concessions will be ensure Union wide competition for high value concessions where the most efficient providers are given a fair chance of winning the contract. This will enable Irish business to have greater access to high value contracts within the EU.
Given current budgetary constraints it is vital that the public procurement market works effectively to deliver value for money. Inflexible procedures, which limit the ability to negotiate, have restricted the opportunities to promote innovation in public procurement. There will be a new innovation partnership procedure in both the Classical and Utilities Directives. The shortening of times limits and greater flexibility in the choice of procedure can facilitate delivery of value for money by contracting authorities alongside the provision of innovative solutions.
In summary, the package will promote simplified procurement, better access for SMEs, sound procedures and governance, and improved value for money. While the transposition of these new rules is a priority for Government, it is important to ensure that the transposition is carried out in a manner that maximises the aforementioned benefits. Member States have two years to transpose the three Directives. However, I am keen to ensure that Ireland can avail of the flexibility afforded by these Directives and with this in mind my officials are prioritising this area of work with the view to completion by early next year.
* Concessions are partnerships between the public sector and mostly private companies, where the latter exclusively operate, maintain and carry out the development of infrastructure (i.e. ports, water distribution, parking garages, toll roads) or provide services of general economic interest (energy, water and waste disposal).
83. Deputy Áine Collins asked the Minister for Public Expenditure and Reform if a new office for Government procurement will be set up in County Cork; and to set out how staff will be appointed to such an office. [3076/14]
View answerThe Office of Government Procurement (OGP) was established late last year as key element of the Public Service Reform agenda to reduce costs and achieve better value for money through reform of public procurement. The OGP's mission is to deliver sustainable procurement savings for the tax payer by optimising value for money across the public service.
The OGP will be head-quartered in Dublin. However, as there are public service staff in different locations across the country that have the necessary skills and expertise to make a positive contribution to the work of the OGP, it is planned to have a number of OGP offices in regional locations. In order to determine the right number of offices and their locations, the OGP has asked each sector to collate data to assist the OGP in identifying geographical locations where critical mass, skills, experience and expertise currently exists. The collation of this data is currently underway.
In terms of staffing, the OGP will need to attract experienced procurement staff from across the public sector to join it. In planning for this staff migration, cognisance is being given to both Croke Park and Haddington Road Agreements. Any expressions of interest / recruitment process will be coordinated across the Public Service by the Public Appointment Service aimed at filling as many of the posts as possible from existing public service employees. Only when this process is exhausted, and in the event that some posts remain vacant, will an external recruitment process be initiated.
84. Deputy Michael McGrath asked the Minister for Public Expenditure and Reform the nature of the works currently under way at a facility (details supplied) in County Cork; the value of the contract; the tender arrangements that applied; the date works commenced on site; the expected completion date; and if he will make a statement on the matter. [3093/14]
View answerCastledonovan Castle, while it is a National Monument in private ownership, is in the care of the Office of Public Works (OPW). It is located near Drimoleague in Co. Cork.
The OPW has been engaged in an ongoing scheme of works at this castle for several years. This has been undertaken using the OPW's direct skilled labour force based in Cork and the issue of tendering out the construction work does not therefore arise, except in the case of certain supporting specialist requirements not available within the OPW.
The project commenced in 2001 and has now concluded, apart from a small amount of landscaping works and the provision of an Interpretative panel giving the history of the site.
The project cost, including archaeology, direct labour and all materials in the period 2001 to end 2013 is: €1.6 million approximately. Of this €36,000 plus VAT was expended on externally delivered scaffolding services.
A certain amount of the work was undertaken during the period when the Heritage estate was under the care of the then Department of Environment, Heritage and Local Government. This included a detailed and comprehensive archaeological investigation over three successive seasons which had to be done before any of the extensive conservation work could be undertaken onsite. The procurement of this element was, I understand, managed by the DOEHLG in accordance with normal procedures.
Although all the works carried out at Castledonovan were carried out by OPW's direct labour force based at Mallow, Co. Cork, it was also necessary to procure the services of a specialised scaffolding company for the supply for rent and erection of Tube and Fitting Scaffolding. Five companies were invited to tender for the provision of this service in 2010 and the company that submitted the lowest tender was awarded the contract.
This project has been technically very difficult and was hampered in the early stages particularly by the condition of the building which was fragile, structurally unstable and dangerous. Due to the nature of the work involved it was only possible to proceed on a seasonal basis, i.e, carrying out this sensitive restoration work when the weather conditions are generally favourable. Unfortunately the Castledonovan work was adversely affected by relatively poor weather over a number of summer seasons and this was exacerbated by the need, at times, to divert skilled labour resources away to other conservation and urgent maintenance projects ongoing in the region at the time. While the length of time taken to bring the work to completion may seem long, this needs to be viewed in the context of a project which was technically complex and, at times, made more difficult by circumstances.
It is intended to open the Castle to the public this summer and my officials are already in touch with a local community group with a view to maximising the visitor potential to the area from this new visitor destination.
85. Deputy Terence Flanagan asked the Minister for Public Expenditure and Reform the number of applications that have been made by Dublin City Council and Fingal County Council for funding towards flood alleviation and prevention measures; and if he will make a statement on the matter. [3007/14]
View answerDetails of the applications approved, refused or under consideration for funding under the Minor Flood Mitigation Works and Coastal Protection Scheme submitted by Dublin City Council and Fingal County Council from 2009 to date are outlined in the following tables.
Dublin City Council Minor Flood Mitigation Works & Coastal Protection Scheme Funding Applications Approved
|
2011 Project Location |
Amount of Funding Approved |
Date of Approval |
|
Dodder Estuary, Fitzwilliam Quay |
€400,000 |
25/03/11 & 06/10/11 |
|
Raheny Village & Harmonstown Road |
€135,000 |
29/11/11 |
|
2012 Project Location |
Amount of Funding Approved |
Date of Approval |
|
Carrickfoyle Tce, Millbrook Tce, Lady's Lane, Kilmainham |
€225,000 |
15/05/12 |
Funding Applications Not approved
|
2009 Project Location |
Reasons for Non-approval |
|
Wad River |
Funding provided by OPW to undertake a number of studies |
|
2010 Project Location |
Reasons for Non-approval |
|
Glendhu Park, Ashtown |
Pluvial related – outside scope of Minor Works Scheme |
|
Camlough, Dingle Road & Drumcliffe Drive, Cabra |
Pluvial related – outside scope of Minor Works Scheme |
|
Ballygall Crescent, Fairways Ave & Griffith Road, Finglas |
Pluvial related – outside scope of Minor Works Scheme |
Fingal County Council Minor Flood Mitigation Works & Coastal Protection Scheme
Applications Approved
|
2011 Project Location |
Amount of Funding Approved |
Date of Approval |
|
Aspen, Swords |
€54,000 |
02/08/11 |
|
Rolestown East |
€153,000 |
02/08/11 |
|
2013 Project Location |
Amount of Funding Approved |
Date of Approval |
|
Portrane/Rush (Coastal) |
€57,800 |
25/02/13 |
|
The Grange, Malahide |
€93,600 |
13/05/13 |
Applications Not Approved
|
2009 Project Location |
Reasons for Non-approval |
|
Greenfield Road/Strand Road, Sutton (coastal) |
Did not meet Minor Works Scheme criteria- estimated cost is over the Scheme limit of €500,000 |
|
Rush to Portrane- Coastal Monitoring Programme |
The Council were asked in 2012 to resubmit under revised coastal criteria |
|
Strand Road, Baldoyle to Portmarnock (coastal) |
Did not meet Minor Works Scheme criteria- estimated cost is over the Scheme limit of €500,000 |
|
2010 Project Location |
Reasons for Non-approval |
|
Bloody Stream, Howth |
Did not meet the criteria of the Minor Works Scheme-Benefit Cost Ratio below the required minimum |
|
Eircom Telephone Exchange, The Grange, Malahide |
Did not meet the criteria of the Minor Works Scheme-Benefit Cost Ratio below the required minimum |
|
Spout Lane, Lusk |
Did not meet the criteria of the Minor Works Scheme-Benefit Cost Ratio below the required minimum |
|
Strawberry Beds |
Did not meet the criteria of the Minor Works Scheme-Benefit Cost Ratio below the required minimum |
|
Portmarnock Road Roundabout (coastal) |
The Council were asked in 2012 to resubmit under revised coastal criteria |
|
Golf Links Road, Portmarnock (coastal) |
The Council were asked in 2012 to resubmit under revised coastal criteria |
|
2011 Project Location |
Reasons for Non-approval |
|
Burrow Road Beach (coastal) |
Did not meet the criteria of the Minor Works Scheme-Benefit Cost Ratio below the required minimum The Council were asked in 2012 to resubmit under revised coastal criteria |
|
Strand Road, Portmarnock (coastal) |
Did not meet Minor Works Scheme criteria, estimated cost is over the Scheme limit of €500,000 The Council were asked in 2012 to resubmit under revised coastal criteria |
Applications under Consideration
|
2013 Project Location |
|
R127 Skerries/Balbriggan Regional Road (coastal) |
|
Malahide Town Centre (coastal) (Awaiting further details- to be submitted by the Council) |
86. Deputy Dominic Hannigan asked the Minister for Public Expenditure and Reform when the Construction Contracts Act will come into force; and if he will make a statement on the matter. [3060/14]
View answer87. Deputy Dominic Hannigan asked the Minister for Public Expenditure and Reform when he expect his officials to finish working on the code of practice for the adjudication procedure for the Construction Contract Act; and if he will make a statement on the matter. [3061/14]
View answerI propose to take Questions Nos. 86 and 87 together.
The Programme for Government contained a commitment to introduce new legislation to protect small building subcontractors that have been denied payments from bigger companies. My colleague, Minister of State Brian Hayes worked closely with Senator Feargal Quinn to develop the Senator's private member's Construction Contracts Bill into a robust piece of legislation. The Bill was signed into law on the 29 July 2013.
The key objective of the Construction Contracts Act is to ensure that cash flows down the supply chain on all construction contracts. This issue is addressed in the Act by providing statutory arrangements in relation to payments under construction contracts, including providing for interim payments. This will reduce the subcontractor's exposure to non-payment. The Act also provides the means for subcontractors to enforce these rights; by suspending their labour and by introducing a new mechanism for the swift resolution of payment disputes through a process of adjudication.
My officials have been working with stakeholders in the development of the code of practice that will apply to the adjudication process. I expect that this process will be concluded shortly. A Commencement Order to bring the legislation into force will be signed once a Chair and panel of adjudicators has been established.
88. Deputy Luke 'Ming' Flanagan asked the Minister for Public Expenditure and Reform the reason the State's chief information officer (details supplied) resigned from the position six months after appointment by the Government; the steps that have been taken to replace the CIO and when a replacement will be appointed; if he is satisfied that the CIO was given adequate budget and resources to carry out the tasks; if he will consider that the work of Irish Water and the information technology systems it is developing and implementing should be validated by the CIO; and if he will make a statement on the matter. [3063/14]
View answerThe Government Chief Information Officer tendered his resignation for personal family reasons. We have commenced a recruitment process and I am confident that we will find a suitable replacement as soon as possible to ensure the continuity of our ambitious reform agenda.
In establishing the Office of Government CIO, the CIO identified the budget and resources required over the next number of years to carry out this role. The allocation identified for 2014 was negotiated through the annual estimates process. I am satisfied with this allocation which represents an increase on previous years. Allocation of additional staff has been agreed and additional resources will be allocated as the need arises.
In relation to validation of the work underway in Irish Water - the remit of the Government CIO extends to non-commercial public service bodies via their parent Departments. As such the CIO does not have a specific role regarding Irish Water which is a commercial public service body subject to the oversight of the C.E.R.
89. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform if he has any concerns regarding the ability of any particular Department to stay within budget in 2014; if he has in mind any remedial proposals in the event of any such failure; and if he will make a statement on the matter. [3162/14]
View answer90. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which he is satisfied that adequate provisions remain in place to ensure the ability of the State and semi-State sectors to remain within budget in the current year; and if he will make a statement on the matter. [3163/14]
View answer94. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform if he will provide, as a percentage of overall expenditure within each Department or its respective subsidiary agencies, the extent of savings or elimination of waste achieved; the degree to which this corresponds with projections and targets; and if he will make a statement on the matter. [3167/14]
View answer95. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform if he is satisfied regarding the extent to which core or front-line services continue to be maintained in the wake of budgetary constraints forced on his Department by virtue of the economic situation which he inherited; and if he will make a statement on the matter. [3168/14]
View answer97. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform if, in the wake of the exit from the bailout, any particular issues arise of a negative or positive nature with particular reference to maintaining targets previously identified in terms of savings and cutting of costs throughout all Departments and their subsidiary bodies; and if he will make a statement on the matter. [3170/14]
View answerI propose to take Questions Nos. 89, 90, 94, 95 and 97 together.
Each year the Budgetary Estimates are published on Budget day as part of the Expenditure Report, and further detail including agency statements is published in the annual Revised Estimates Volume (REV). These publications compare allocations with amounts for the preceding year. This information is also available at http://per.gov.ie/databank.
The 2014 Exchequer expenditure allocations were set out in the Revised Estimates Volume 2014 (REV 2014), published on 18 December 2013. Managing the delivery of public services within its Budgetary allocation is a core responsibility of each Minister and Department, and several measures are in place to help ensure that budgetary targets continue to be met. My Department is in regular communication with all Departments and Offices to ensure that expenditure is being controlled and we monitor their drawdown of funds from the Exchequer against the published expenditure profiles. Where necessary, my Department meets regularly with line Departments to review financial management. There is regular reporting to Government on these matters, and we publish information monthly as part of the Exchequer Statement.
Over the period since 2009, gross voted expenditure has been reduced from a peak of €63.1 billion to €53 billion for 2014. The General Government Deficit has been reduced from 13.7% in 2009, and we will bring it down to 4.8% this year and below 3% by the end of 2015. This radical improvement in the sustainability of the public finances has helped to achieve our successful exit from the EU-IMF programme of financial assistance on December 15 2013. It has been delivered through the efforts of all Departments and their agencies to seek savings, pursue efficiencies and manage within constrained budgets often while meeting increasing demands for the public services they deliver.
The Government is committed to making fundamental changes to the way the public service operates to safeguard the delivery of essential services in a way that is in keeping with the needs of a modern society while driving value for money for the citizen. The Public Service Reform Plan the second phase of which I launched last week together with the Haddington Road Agreement which is delivering important workplace efficiencies and enhanced productivity are critical in enabling us to achieve this.
