Dáil Éireann Debate, Tuesday - 4 November 2014
351. Deputy Michael McCarthy asked the Minister for Finance the number of quangos set up since 2011 in his Department; the number of members of same; the cost and expense incurred to date including details of the briefs that they cover; and if he will make a statement on the matter. [42515/14]
View answerSince 2011, four bodies under the aegis of my Department have been established.
Irish Fiscal Advisory Council (IFAC)
The IFAC was established on an interim basis in July 2011 and was put on a statutory footing on the 31 December 2012 under the Fiscal Responsibility Act 2012. It comprises of five Council members.
In 2013, the Fiscal Council received a total of €499,939. So far in 2014, the Fiscal Council has received a total of €425,438. To facilitate payments from the Central Fund, the Fiscal Council has provided projected costs for the full year in 2014. The projected costs for 2014 are €732,020.
The costing of the Fiscal Council before it was established on a statutory basis (from July 2011 to end December 2012) is as follows; €222,008 for 2011, €408,920 for 2012.
The mandate of the IFAC is:
- To endorse, as it considers appropriate, the macroeconomic forecasts prepared by the Department of Finance on which the Budget and Stability Programme Update are based.
- To assess the official forecasts produced by the Department of Finance. These are the macroeconomic and budgetary forecasts published by the Department twice a year - in the Stability Programme Update in the Spring and in the Budget in the Autumn.
- To assess whether the fiscal stance of the Government is conducive to prudent economic and budgetary management, with reference to the EU Stability and Growth Pact (SGP). The SGP is a rule-based framework that aims to coordinate national fiscal policies in the economic and monetary union.
- To monitor and assess compliance with the budgetary rule as set out in the Fiscal Responsibility Act. The budgetary rule requires that the Government's budget is in surplus or in balance, or is moving at a satisfactory pace towards that position.
- In relation to the budgetary rule, to assess whether any non-compliance is a result of 'exceptional circumstances'. This could mean a severe economic downturn and/or an unusual event outside the control of Government which may have a major impact on the budgetary position.
Strategic Banking Corporation of Ireland (SBCI)
The SBCI was incorporated during September 2014 as a Companies Act Company. It is a permanent self-sustaining company where the profits from its commercial activities will fund its expenses into the future. It is not dependent on an annual expenditure vote from the Department's resources.
The SBCI was incorporated as an independent company during September 2014. It has three members of its board who do not receive compensation for being members of that board. The current board is an interim board whose brief is to successfully oversee the initial commercial operations of the company.
There has been negligible cost to the exchequer since it was incorporated.
New Economy and Recovery Authority (NewERA)
In September 2011 the Government announced the establishment of NewERA, initially on a non-statutory basis, within the NTMA. The NTMA (Amendment) Bill 2014, once commenced will put this function on a statutory basis. The core role of NewERA involves the oversight of the financial performance, corporate strategy, capital and investment plans of the following commercial State entities - ESB, Ervia (formerly Bord Gáis Éireann), EirGrid, Bord na Móna and Coillte. NewERA's role also involves, where requested, advising on the disposal or restructuring of State assets. In addition, NewERA works with relevant stakeholders to develop proposals for investment in energy, telecommunications, water and forestry to support economic activity and employment. A total of 13 NTMA staff were assigned to the NewERA function at year-end 2013.
NewERA is a business unit within the NTMA. Costs incurred by the NTMA in performing NewERA's functions are part of the NTMA's overall operating costs which are set out in the NTMA's published annual report.
Credit Union Restructuring Board (ReBo)
ReBo was set up on 1 January 2013 in accordance with Section 42 of the Credit Union and Co-Operation with Overseas Regulators Act 2012.
The Board of ReBo currently has 12 members and there are no vacancies. There are currently 11 staff members in ReBo.
ReBo's mission is to facilitate and oversea the restructuring of credit unions on a voluntary, incentivised and time bound basis so as to support the financial stability and long term sustainability of credit unions generally.
As per the draft accounts for the year 2013, total expenditure for the year end 2013 amounts to circa €700,000. The 2013 accounts are currently awaiting sign-off from the C&AG.
