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Wednesday, 22 Jan 2014

Written Answers Nos. 1-14

Public Service Reform Plan Update

Questions (8)

Lucinda Creighton

Question:

8. Deputy Lucinda Creighton asked the Minister for Public Expenditure and Reform if he will provide an update on outsourcing in all Government Departments; and if he will make a statement on the matter. [2698/14]

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Written answers

The Government is committed to exploring alternative models for the delivery of public services, in the interests of providing better customer service and driving down costs. I have reiterated this commitment in the new Public Service Reform Plan 2014-2016, which I published last week. One of the four key themes in the new Reform Plan is the delivery of improved outcomes for service users through the use of new models of delivery, including the use of external providers where appropriate.

Good progress has already been made by Government in this area, as set out in the Second Progress Report on the Public Service Reform Plan, which I also published last week. In July 2012, we agreed a range of actions aimed at achieving a focused and integrated approach to the external delivery of non-core processes, with the objective of reducing costs and focusing staff resources on priority areas.

All new services must be tested for external service delivery suitability before any approval to deliver the service internally will be granted. For example, the Revenue Commissioners have appointed a third party call service centre to deal with queries on the Local Property Tax.

The major sectors of Health, Justice and Local Government have prepared and are now implementing detailed benefits-driven external service delivery plans. The Education sector; the Departments of Agriculture, Food and the Marine and Social Protection; the Office of Public Works and the Revenue Commissioners are finalising their plans, which will be brought to Government shortly, and we have made a commitment in the new Reform Plan that all remaining Departments and Offices will prepare and submit plans by the end of the third quarter of this year.

A cross-organisational evaluation of the Debt Management functions of a number of public bodies has been completed and the project board overseeing this process will be bringing a set of proposals for the future delivery of these services to Government shortly.

We are building capacity and capability through training programmes, workshops and seminars. An external service delivery handbook and preliminary business case template has been developed and distributed to public servants.

Question No. 9 answered orally.

Heritage Sites

Questions (10)

Sandra McLellan

Question:

10. Deputy Sandra McLellan asked the Minister for Public Expenditure and Reform his views on reports that the Office of Public Works may operate leases to commercial ventures at heritage sites; and the discussions he has had with the Office of Public Works in this regard. [51468/13]

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Written answers

The Office of Public Works (OPW) recently placed an advertisement in the national newspapers seeking expressions of interest from commercial entities and individuals to bring new and enhanced facilities to its heritage sites. Any agreement reached will be on the basis of a licence or concession, not a lease.

It might be noted that OPW currently operates several concessions, e.g., tea rooms, ice cream stands, bicycle hire etc., at a number of locations.

It is hoped that this initiative will result in commercial partnerships with private sector enterprises that will enhance the visitor experience at heritage sites throughout the country.

Question No. 11 answered orally.

Public Sector Management Remuneration

Questions (12)

Richard Boyd Barrett

Question:

12. Deputy Richard Boyd Barrett asked the Minister for Public Expenditure and Reform the number of persons in Government Departments, State agencies and semi-State bodies that are being paid over the recommended public sector salary cap, in tabular form; and if he will make a statement on the matter. [2696/14]

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Written answers

In June 2011, I introduced a general pay ceiling of €250,000 for future appointees to Chief Executive Officers of Commercial State Companies and a €200,000 pay ceiling for future appointees to higher positions across the public service, subject to certain exceptions. No approvals have been issued for new appointments in excess of these pay ceilings where they apply. 

Since the application of the pay ceiling, direct pay reductions, on a progressive scale starting at 5.5% and rising to 10%, have been applied by the Government to all public servants with salaries of €65,000 or more under the Financial Emergency Measures in the Public Interest Act 2013 from 1 July 2013.

Based on the information available within my Department regarding post holders in Government Departments, State agencies and semi-State bodies, the Chief Executive Officer of the National Roads Authority retains an approved salary level in excess of €200,000 as his appointment pre dated the imposition of the salary cap. I am also aware that there are staff in the Central Bank and the National Treasury Management Agency whose salary exceeds €200,000.  

There are also 2 Chief Executive Officers in the commercial state sector who are on salary levels above €250,000.  The appointment of the CEO of the Irish Aviation Authority also predates the salary ceiling decision.   

When introducing the general pay cap of €250,000 for Chief Executive Officers of Commercial State Companies, the Government decided that the CEO of the ESB would be paid a higher amount given the importance of the role. The CEO of ESB was appointed subsequently at an annual  salary of €295,00 which represented a reduction of 43% in the maximum of the scale that applied to the previous incumbent of the post.  

With regard to other classes of senior public servants,

- 5 persons in the Universities retain salary levels above the ceiling.

- At the time of the introduction of the pay ceiling it was indicated that the Minister for Health would address consultant salaries in the context of discussions arising in relation to the consultant contract under the Public Service Agreement. Following discussions with representative associations under the Public Service Agreement, a 30 per cent reduction in consultant rates for new appointees was implemented with effect from October 1, 2012. It is estimated that some 62 academic consultants are on approved salary rates above €200,000.

- Following the passage of the referendum on judicial pay in 2011 and of the subsequent legislation implementing the paycuts, certain members of the senior judiciary and the President retain pay rates greater than the salary ceiling.

As I have already noted, the salaries of all these public servants, with the exception of the President whose salary is afforded constitutional protection, were reduced under the recent legislation.  

None of these figures are reflective of any voluntary arrangement that the individuals concerned may have entered into, following the Government decision in June 2011 to seek voluntary waivers of salary of 15%, or by a lesser amount if the application of the full 15% reduction would bring the salary levels of such individuals to below the pay ceiling of €200,000 p.a. across the public service and of €250,000 within Commercial State Companies.

Questions Nos. 13 and 14 answered orally.
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