Written Answers Nos. 11-20
11. Deputy Sean Fleming asked the Minister for Public Expenditure and Reform if he is satisfied with the rate of progress of improving flood defences following last year’s severe damage; and if he will make a statement on the matter. [42047/14]
View answerThe Government Decision of 11 February 2014 allocated total funding of up to €69.5 million for clean-up, repair and restoration works in relation to public infrastructure that was damaged in the period 13 December 2013 to 6 January 2014. Of this sum of €69.5 million, up to €19.6 million was allocated for repair of existing coastal protection and flood defence infrastructure based on cost estimates and submissions made by the local authorities concerned to the Department of the Environment, Community and Local Government (DoECLG). This funding is being made available to the local authorities via the Office of Public Works (OPW) based on programmes of works submitted by the local authorities. The Departments of the Environment, Community and Local Government, Transport, Tourism and Sport and Agriculture, Food and the Marine are responsible for the approval of programmes of work and the disbursement of funding for repair of other damaged public infrastructure such as roads, piers, harbours and other community facilities and amenities.
In addition to the €19.6m funding for local authorities, an amount of €1.2m was also allocated under the Government Decision for repair of damage to OPW's own coastal protection and flood defence infrastructure.
Based on the programmes of works for repairs to coastal protection infrastructure that were submitted by local authorities, total funding of €19.0 million was approved by the OPW for 176 projects that were deemed to be within the scope of the works covered by the Government Decision. In this regard I would point out that the Government Decision did not allocate funding for strengthening or new coastal protection works. It applied to repairs of existing infrastructure only.
The prioritisation and progression of the repair works is entirely a matter for the local authorities. The progress made by local authorities in carrying out the repairs has varied from county to county depending on the particular circumstances prevailing and the scale and nature of the damage to be repaired in that area. Overall however, I am generally satisfied that the Councils have gone about the repair work in an efficient manner and I encourage them to continue to progress the works as expeditiously as possible.
I am satisfied that the OPW has made excellent progress on the repair of damage to the flood defence infrastructure, mainly embankments, for which it is directly responsible and that most of the required repair work has now been completed.
The question of improving flood defences through significant strengthening or upgrading of existing defences or new works is a separate issue to the programmes of repair works for which specific funding was allocated by the Government Decision. The requirements for such improvement or new works is being assessed in the context of the OPW's Catchment Flood Risk Assessment and Management (CFRAM) programme. The principal output of this important programme will be a series of integrated plans of specific measures to address, in a comprehensive and sustainable way, the significant flood risk factors in the main areas of flood risk throughout the country.
Good progress is being made on the six regional CFRAM Studies under the National CFRAM Programme. There are three main stages in the Programme each involving public consultation:
- Preliminary Flood Risk Assessment (PFRA) - finalised in 2011
- Flood Hazard Mapping - 2013 – 2014; informal public consultation on maps now underway and formal, statutory public consultation to commence early 2015
- Catchment Flood Risk Management Plans – draft Plans available by end 2015 with a view to having Plans finalised in 2016
12. Deputy Dara Calleary asked the Minister for Public Expenditure and Reform his plans to address the issues raised in the Comptroller and Auditor General's report in respect of waste of public money; and if he will make a statement on the matter. [42051/14]
View answerAs I outlined previously in relation to a similar question on the Comptroller and Auditor General's Report, the focus of the Department of Public Expenditure and Reform is on well-managed and well-targeted public spending, through modernised, effective and accountable public services. The recently published report on the 'Accounts of the Public Service 2013' is part of the wider accountability framework for the delivery of these services.
The report in question is concerned with the accountability of departments and offices in respect of their administration of public funds. As outlined by the Comptroller and Auditor General, it was prepared on the basis of audited information, where available, and other information, documentation and explanations obtained from the relevant government departments and offices.
Drafts of relevant parts of the Report were sent to the departments and offices concerned and their comments were requested. Where appropriate, those comments are incorporated into the Report. As such, the Report itself contains information on the actions being taken across the relevant Departments on foot of the recommendations of the Comptroller and Auditor General. In this context, the majority of the recommendations made by the Comptroller and Auditor General have been agreed by the relevant Accounting Officers and indeed, where appropriate, by my own Department.
In due course, the Committee of Public Accounts will examine and report to Dáil Éireann on this Report and my Department will prepare a formal response to the recommendations, (the 'Minute of the Minister for Public Expenditure and Reform') in consultation with the departments and offices concerned.
13. Deputy Mary Lou McDonald asked the Minister for Public Expenditure and Reform his plans to increase the social dividend and community benefit from spending on public procurement contracts, in view of the impending requirements under the new EU rules agreed in January 2014. [42057/14]
View answerThe main purpose of the EU public procurement regime is to open up the market and to ensure the free movement of supplies, services and works within the EU having regard to Treaty of Rome principles including transparency, proportionality and equal treatment. This is the rationale that shapes the detailed rules (Directives) governing the regime.
The new EU rules comprise a suite of three Directives (Public Procurement, Utilities and Concessions) that repeal the existing rules governing the conduct of procurement across the EU but the basic architecture of EU procurement will remain intact. The changes in the new regime were agreed principally to streamline the public procurement process and to put in place more simplified and flexible rules to reduce red tape and to make the procurement process more efficient.
While most of the rules are mandatory for Ireland and all other Member States to implement into national law, there is some limited policy latitude permitted to Member States in transposing the new regime into national legislation. The Office of Government Procurement (OGP) is currently exploring policy choices as part of the transposition process. In this context, I launched on Friday last, 31st October, a public consultation on the new Directives. The document is available on the OGP website www.procurement.ie and written submissions are invited from stakeholders and interested parties on the issues raised in the consultation document by 12 December 2014. Consideration will be given to the responses received, (including those related to the environmental, social and labour law considerations article 18(2) requirements) when drafting the Statutory Instruments to implement the EU rules into national law.
Social clauses in contracts place obligations on suppliers to perform actions focussed on broader policy considerations. They 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 at tender stage and must not restrict participation by contractors from other Member States.
As the Deputy is fully aware, the Government has recently supported in principle a Private Members Bill put forward by her Party in relation to social clauses. The Government is not opposed to the principle of social clauses and sees significant merit in developing a social clauses framework. We believe however that the inclusion of social clauses needs to be done in a targeted manner and not in the "across the board manner" suggested by the Bill. The Government favours a targeted approach to the use of social clauses focussed on contracts where employers are likely to be hiring additional workers to deliver the contract. This is likely to mitigate the risk of displacing workers already in employment while offering the opportunity of assisting with labour activation measures for the long-term unemployed.
I should point out that, as the Deputy is aware, there are already a number of initiatives under way in this area.
A devolved schools programme is being administered by the NDFA on behalf of the Department of Education and Skills. This involves three contracts covering fourteen sites with the works comprising both stand-alone, new build and extensions/refurbishment works. Construction work started on all three of the contracts during Spring 2014. The aggregate capital value of the contracts is c. €70m. I understand that overall compliance in relation to the pilot clause has been good. The Department of Social Protection and its local Intreo offices are working closely with the appointed contractors to support the pilot initiative. There has been strong positive engagement from the contractors involved in each of the projects.
In addition on the 9th of June I announced the establishment of a Social Clauses Project Group to pro-actively look at projects with a view to including social clauses to ensure those awarded contracts contribute to employment or training opportunities for long term unemployed.
Specific projects that are currently in planning and are deemed potentially suitable for the inclusion of employment opportunities and social inclusion will be identified and targeted to maximise the potential opportunities from these projects.
I have asked the Office of Government Procurement to review this pilot project after 12 months and then to issue guidance.
Overall the Government believes that further debate and discussion is required as to the correct policy approach regarding enabling social clauses, mindful of the need to maintain flexibility and adapt to changing circumstances.
14. Deputy Sean Fleming asked the Minister for Public Expenditure and Reform his views on the payment of bonuses and incentive pay at Irish Water and other semi-State agencies; and if he will make a statement on the matter. [42046/14]
View answerIn 2012 the Government reviewed the position on the payment of performance related reward schemes or bonuses for Chief Executive Officers in Commercial State Companies and agreed to continue with the policy which it introduced in 2011 of requesting the State Companies concerned not to award such bonus payments in light of the serious state of the public finances. Furthermore the Government agreed to continue with the practice of excluding the payment of bonus provisions in the employment contracts of newly appointed CEOs to such State Companies as well as in respect of contract renewals for incumbent CEOs.
The requirement to cease such forms of bonus payment together with other basic salary reductions introduced by this Government in respect of the CEOs in State Companies was necessitated by the very difficult financial and economic circumstances facing this country. The Government will accordingly continue to consider future policy developments in relation to performance related pay for the CEOs concerned in the light of prevailing circumstances.
I have no role in relation to the Performance Related Award Schemes for staff below CEO level in Commercial State Companies.
It is expected that the Boards of these organisations act responsibly in designing and implementing pay structures that drive performance in the competitive environment in which they operate, while ensuring that they are fully compliant with Government pay policy. In view of the fact that Irish Water is a newly created monopoly entity, it will be important that the organisation actively demonstrates that it is performing well for the people it serves before any additional award system can be shown to be merited.
With regard to the Non-Commercial State Companies, it is a matter of Government policy that Performance Related Award Schemes continue to be suspended on an indefinite basis. Access to such schemes is no longer included in the employment contracts for newly-appointed CEOs or in contract renewals for incumbent CEOs. It is a matter for parent Departments in the first instance to ensure that all bodies under their aegis are fully in compliance with Government pay policy in its application.
15. Deputy Dara Calleary asked the Minister for Public Expenditure and Reform if he expects members of the Irish diaspora to be appointed to strengthen State boards; and if he will make a statement on the matter. [42052/14]
View answerAs the Deputy will be aware the Government recently announced a revised model for Ministerial appointments to State Boards. In future, all appointments to State Boards must be advertised openly on the State Boards portal at www.stateboards.ie, which is operated by the Public Appointments Service.
My officials are currently preparing overarching guidelines on appointments for approval by Government, including issues related to diversity. As part of this process all Departments have been contacted seeking comprehensive details on all State Boards under their aegis.
It is envisaged that candidates for membership of State Boards will be required to meet specific and detailed criteria determined by the relevant Minister as necessary for the effective performance of the relevant role. Selection will be by way of a transparent assessment system run by the Public Appointments Service.
All candidates applying for membership of State Boards, including those from the group referred to in the Deputy's question, will be assessed against the specified criteria on a consistent and uniform basis.
16. Deputy Seán Kyne asked the Minister for Public Expenditure and Reform if consideration will be given to ensuring the reform of the public procurement under way here takes into account the local economic benefits criterion through the use of the multiplier methodology along the lines of similar stipulations which exist in other EU member states and which by all appearances do not contravene EU competition law; and if he will make a statement on the matter. [42021/14]
View answerPublic Procurement is governed by EU and National rules. The aim of these rules is to promote an open, competitive and non-discriminatory public procurement regime which delivers best value for money. It would be a breach of the EU rules for a public body to favour or discriminate against particular candidates on grounds such as nationality, organisational size, etc. and there are legal remedies which may be used against any public body infringing these rules.
The Government acknowledges the significant role that SMEs play in the Irish economy and is committed to ensuring that SMEs are fully engaged with public sector procurement and the opportunities presenting.
In April of this year my Department reviewed and updated existing guidelines and procedures aimed at promoting SME participation in public procurement. Circular 10/14 was issued and sets out new initiatives aimed at opening up opportunities for small businesses that want to tender for public contracts and also to ensure that engaging with government procurement is easy and low cost. The main thrust of the circular is as follows:
- buyers are advised to undertake market analysis prior to tendering in order to better understand the range of goods and services on offer, the competitive landscape, including the specific capabilities of SMEs, etc.
- the circular promotes transparency in procurement by requiring supplies and general services contracts with an estimated value of €25,000 be advertised on the Government's electronic tendering portal, e-Tenders,
- it encourages suppliers including SMEs to fully use e-Tenders and avail of its facilities in relation to registration, e-tendering and automatic alerts in relation to future tendering opportunities
- buyers are encouraged not to set turnover thresholds at more than twice the estimated contract value and puts limits on insurance levels for suppliers, where possible
- promotes greater use of "open" tendering and less use of "restrictive" tendering
- it encourages SMEs to consider using consortia where they are not of sufficient scale to tender in their own right or where they may lack certain capabilities necessary to provide a compelling proposition
- it encourages Contracting Authorities to break large contracts down into lots where reasonable to do so and where it does not expose the State to undue risk or significant management overheads
The SME Working Group, established under the Government's Action Plan for Jobs, was consulted on the new Guidelines. The new Circular has been broadly welcomed by industry representative associations.
The Office of Government Procurement also supports the work of Enterprise Ireland and InterTrade Ireland in building awareness of public procurement and supporting training for small suppliers in bidding for public contracts. The OGP for example supported two "Meet the Buyer" events in Belfast and Dublin last year attended by approximately 1,000 suppliers. Approximately 1,700 are expected to attend similar events this year. In addition, the OGP supported the 'Go 2 Tender' programme run by InterTrade Ireland which was attended by 317 SMEs last year. This year InterTrade Ireland are also delivering a programme on Consortia Building to assist SMEs in developing understanding to enable them to jointly bid for state contracts.
The Office of Government Procurement is establishing structures for its sourcing teams around categories of procurement spend e.g. ICT, professional services, facilities management, etc. These specialised sourcing teams will work with representatives from Departments & Agencies in Category Councils to develop category-specific strategies that seek to establish the best commercial approach to the supply market that balances the need to achieve value for the money for the State with other objectives such as supply market sustainability, and other Government Policy objectives. The content of these strategies will vary depending upon the nature of the goods and services required.
Before any significant sourcing activity is undertaken, the OGP will conduct a full supply market analysis to establish a comprehensive understanding of that market on the appropriate national, regional or local basis. Part of this analysis would take into account the relative importance the scale of State business and the current market structures, and build the results of this analysis into the final strategy to maximise sustainable competition and opportunities for SMEs.
The reform of public procurement across the public service is on-going and will continue to provide opportunities to the SME sector to win business. The Office of Government Procurement will continue to work with industry to ensure that winning government business is done in a fair, transparent and accessible way and to ensure that government procurement policies are business friendly.
17. Deputy Joe Higgins asked the Minister for Public Expenditure and Reform his plans to reverse the pay cuts for lower-paid public servants as promised under the Croke Park agreement. [42068/14]
View answerIn relation to the pay and pension reductions imposed on public servants through the Financial Emergency Measures in the Public Interest Acts 2009-2013, the reductions were progressively structured so it is those on lower incomes who are least affected, with the highest reductions imposed on the highest paid. Significantly, the most recent pay reduction effected by the Financial Emergency Measures in the Public Interest Act 2013, was confined to those public servants on annual salaries of €65,000 or more only, and the core pay of almost 87% of public servants was not impacted by this pay reduction.
The Deputy will be aware that in seeking the most recent savings and reductions from the public service pay and pensions bill, public service employers and trade unions entered into negotiations and concluded a collective agreement, the Haddington Road Agreement. This three year Agreement, effective from July 2013, built upon and reaffirmed the existing overall commitments in the Public Service Agreement (Croke Park Agreement) including those in relation to lower paid public servants and sets the terms of pay in the public service until 2016.
As provided for in the Haddington Road Agreement, and subsequently legislated for in the Financial Emergency Measures in the Public Interest Act 2013, the rate of PRD on the €15,000 to €20,000 band of pay received in a year was reduced from 5% to 2.5% on 1 January 2014. This rate cut is worth €125 annually in gross terms to most public servants, with those taxed at the standard rate enjoying the greater gain in terms of take-home pay boost.
The public service unions have indicated their intention, should the State's financial circumstances permit, to lodge a pay claim next year. If such a claim is made, the Government will of course have to consider it, in line with the prevailing fiscal position. As I have already stated, the legal position concerning the financial emergency legislation, which has underpinned the reductions to date, will also have to be addressed as part of putting in place more normal pay setting arrangements in the public service for the future.
Finally my colleague the Minister for Business and Employment is currently developing proposals to implement the Government programme commitment to establish a Low Pay Commission (LPC) on a statutory basis as an independent body to make annual recommendations to the Government about the appropriate level of the minimum wage and related matters.
I would anticipate that the Commission would also have to take into account low paid public servants as part of their considerations.
18. Deputy Éamon Ó Cuív asked the Minister for Public Expenditure and Reform the total amount of funding approved for works by his Department arising out of the storms last January; the amount claimed to date by local authorities; the amount expended to date by his Department; and if he will make a statement on the matter. [42022/14]
View answerThe Government Decision of 11 February 2014 allocated total funding of up to €69.5 million for clean-up, repair and restoration works in relation to public infrastructure that was damaged in the period 13 December 2013 to 6 January 2014. Of this sum of €69.5 million, up to €19.6 million was allocated for repair of existing coastal protection and flood defences based on submissions and cost estimates made by the local authorities concerned to the Department of Environment, Community and Local Government (DoECLG). This funding for repair of damaged coastal protection and flood defence infrastructure is being made available to the local authorities via the Office of Public Works (OPW) based on programmes of works submitted by the local authorities. The Departments of the Environment, Community and Local Government, Transport, Tourism and Sport and Agriculture, Food and the Marine are responsible for the approval of programmes of work and the disbursement of funding for repair of other damaged public infrastructure such as roads, piers, harbours and other community facilities and amenities.
In addition to the €19.6m funding for local authorities, an amount of €1.2m was also allocated under the Government Decision for repair of damage to OPW's own coastal protection and flood defence infrastructure.
Based on the programmes of works of repairs to coastal protection and flood defence infrastructure that were submitted by local authorities, total funding of €19.0 million was approved by the OPW for 176 projects that were deemed to be within the scope of the works covered by the Government Decision. The prioritisation and progression of projects is entirely a matter for the local authorities concerned.
To date, local authorities have submitted claims for drawn down of funding of €1.639 million in respect of projects that have been completed, are under construction, or where contracts for the works have been placed. The OPW has paid a total of €385,000 to date to the local authorities in respect of those claims. The balance of claims are being processed by the OPW and will be paid very shortly. The local authorities have indicated to the OPW that further substantial drawn down applications will be submitted by them before the end of this year.
Information on the drawn down of funding by the local authorities in respect of the storm damage allocations is provided on the OPW website . This information is updated on a monthly basis.
19. Deputy Clare Daly asked the Minister for Public Expenditure and Reform the steps he will take to tackle low pay in the public service. [42003/14]
View answerNotwithstanding the necessary imposition of pay reductions on public servants through the Financial Emergency Measures in the Public Interest Acts 2009-2013, terms and conditions including pay rates for public servants have traditionally been determined through collective bargaining processes with due regard to statutory provisions including the National Minimum Wage Act. Indeed, the Deputy will be aware that one of the first actions of this Government on taking office was to increase with effect from July 2011, the Statutory Minimum Wage rate, reduced by the previous Government in 2010, to its pre-existing rate. While the fiscal emergency which arose through the mismanagement of the economy by the previous Government gave rise to the exceptional statutory reductions in pay imposed on public servants, the process of collective bargaining has survived and has been highlighted by the concluding of difficult public service agreements including most recently, the Haddington Road Agreement, by staff representatives and their public service employers.
In relation to the pay reductions imposed on public servants through the Financial Emergency Measures in the Public Interest Acts 2009-2013, the reductions imposed have been progressive, thereby ensuring that reductions imposed impacted on low paid workers least and that higher reductions were imposed on the higher paid. Significantly, the more recent pay cuts applied to public servants under the Financial Emergency Measures in the Public Interest Act 2013 and the Haddington Road Agreement apply only to those higher paid public servants on annual salaries of €65,000 or more. The core pay of 87% of the workers in the public service was not reduced by the legislation.
The Haddington Road Agreement sets the terms of pay in the public service until 2016. The fiscal targets in Budget 2014, which the Government is committed to achieving, are based on the reduced remuneration rates as well as on the revenue accruing from the Pension Related Deduction and Public Service Pension Reduction as provided for under the Financial Emergency Measures in the Public Interest Acts.
In order to continue the recent encouraging evidence of progress in relation to the public finances, any amelioration in the impact of the Financial Emergency measures, and public service pay policy generally, will continue to have regard to our overall fiscal targets including achieving a deficit of less than 3% of GDP by the end of 2015. Nevertheless, the Government has acted to begin an amelioration of the measures. As provided for in the Haddington Road Agreement and subsequently legislated for in the Financial Emergency Measures in the Public Interest Act 2013, the rate of PRD on the €15,000 to €20,000 band of pay received in a year fell from 5% to 2.5% on 1 January 2014. This rate cut is worth €125 annually in gross terms to most public servants, with those taxed at the standard rate enjoying the greater gain in terms of an increase to take-home pay.
The public service unions have indicated their intention, should the State's financial circumstances permit, to lodge a pay claim next year. If such a claim is made the Government will of course have to consider it, in line with the prevailing fiscal position. The legal position concerning the financial emergency legislation, which has underpinned the reductions to date, will also have to be addressed as part of putting in place more normal pay setting arrangements in the public service for the future.
20. Deputy Paul Murphy asked the Minister for Public Expenditure and Reform if he will provide an annual breakdown of the fees paid to recruitment and employment agencies by his Department and those under his aegis. [42065/14]
View answerIn response to the Deputy's question I can confirm that my Department does not use the services of recruitment or employment agencies. The Department has used the services of the Public Appointments Service, "PAS" in all our recruitment requirements and related advertising. PAS has a budget allocation for this purpose. The Department would only be required to pay additional costs in cases where we have requested advertisements to be placed in specific publications or with requirements above the PAS general standard/format. Since my Department was established in July 2011 I have not incurred any additional costs.
The following table is a list of bodies under my remit that paid fees to recruitment and employment agencies from 2011 to date:
|
- |
Fees paid to recruitment and employment agencies |
Fees paid to recruitment and employment agencies |
Fees paid to recruitment and employment agencies |
Fees paid to recruitment and employment agencies |
|
Office / Body |
2011 (€) |
2012 (€) |
2013 (€) |
2014 to date (€) |
|
Special EU Programmes Body (SEUPB)* |
€170,864 |
€144,867 |
€94,080 |
€43,650 |
|
Valuation Office |
€108,306 |
|
|
|
|
Institute of Public Administration (IPA) |
|
|
|
€528 |
|
Office of Public Works** |
€237,223 |
€207,962 |
€255,601 |
€227,595 |
|
Totals |
€516,393 |
€352,829 |
€349,681 |
€271,773 |
* The costs incurred by the Special EU Programmes Body (SEUPB) represent total costs funded by both Northern Ireland and Ireland. In the time available for responding it was not possible for the SEUPB to apply a North South split to these costs. Where necessary, an exchange rate of £1 = €1.278 has been used.
** Established personnel in the Office of Public Works are recruited via the Public Appointments Service and Industrial Personnel are recruited directly by the Office.
