Written Answers Nos. 21-30
21. Deputy Ruth Coppinger asked the Minister for Public Expenditure and Reform if he will provide the details of average cuts paid by his Department and State agencies under his aegis to recruitment and temporary employment agencies, that is the proportion of the fee paid from State funding to such agencies is received by the worker and the proportion by the agency. [42066/14]
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 arrangement with regard to the proportion of fees paid to the worker by the agency is primarily a matter for both of those parties and, quite often, my office would not have knowledge of the details of such arrangements.
The average proportion of the gross fee that the agencies receive for their administration in the Office of Public Works is in the region of 13% and the worker receives approximately 87%.
In 2014 the Institute for Public Administration paid a fee amounting to €527.96 to an employment agency which related to a salary paid to an employee amounting to €6,598.96.
The following table shows the fees paid by the Special EU Programmes Body (SEUPB) to recruitment and temporary employment agencies from 2011 to date:
Special EU Programmes Body (SEUPB)*
Fees paid to recruitment and employment agencies
|
Year |
Recruitment/Employment Agency Total Cost (€)
|
Total Amount Paid to Employees (€) |
Agency Mark-up Fee (€) |
Ancillary Costs **
(€) |
|
2011 |
€170,864 |
€109,353 |
€30,756 |
€30,756 |
|
2012 |
€144,867 |
€92,715 |
€26,076 |
€26,076 |
|
2013 |
€94,080 |
€60,211 |
€16,934 |
€16,934 |
|
2014 to date |
€43,650 |
€27,936 |
€7,857 |
€7,857 |
|
Total |
€453,461 |
€290,215 |
€81,623 |
€81,623 |
* 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.
**Ancillary costs are separate to the agency mark-up fee and the total amount of money paid to employees. Ancillary costs include holiday pay which is paid directly to the employee, National Insurance contributions passed on to the Revenue, and the cost to the agency of payroll processing costs.
22. Deputy Paul Murphy asked the Minister for Public Expenditure and Reform his plans to facilitate public sector workers on contracts of indefinite duration in progressing to more favourable permanent contracts. [42064/14]
View answerAs Minister for Public Expenditure and Reform I have overarching responsibility for recruitment to the Civil Service. Such recruitment is governed by the Public Service (Management and Recruitment) Act 2004. Under the Act, the method of appointment to a permanent Civil Service post is as a result of being successful in a competition run by the Public Appointments Service (PAS) or by another licence holder such as the head of a Department or Office. Selection processes are open to all eligible applicants who meet minimum entry criteria.
The mismanagement of a fixed-term contract may lead to an employee having an entitlement to a contract of indefinite duration. A contract of indefinite duration is an employment contract which is not defined by an objective condition such as arriving at a specific date, completing a specific task or the occurrence of a specific event. It should be noted that in the Civil Service context, entitlement to a contract of indefinite duration is not the same as being appointed as an established civil servant. A contract of indefinite duration may still be linked to a specific activity and can be terminated by notice as provided in the Minimum Notice and Terms of Employment Acts (1972-2005).
It is a matter for Human Resource Units in all Departments and Agencies to have procedures in place for dealing with the recruitment and employment of fixed-term employees and the management of their contracts. My Department issues Guidelines on "Best Practice for the Recruitment and Management of Fixed-term Employees in the Irish Civil Service". These are revised from time to time as required. The most recent version issued in April 2014 and took account of changes arising as result of the Single Pension Scheme and the Haddington Road Agreement. The Guidelines can be found on my Department's HR Management website. Any proposal from a Department for a change in the status of an employee from being on a contract of indefinite duration to a permanent employee would need to comply with the Public Service (Management and Recruitment) Act 2004 and be sanctioned by my Department.
Decisions on the filling of posts, permanent or otherwise, in other public service bodies are a matter for the employing bodies in the context of their business needs.
23. Deputy Ruth Coppinger asked the Minister for Public Expenditure and Reform his views on comments made by an official (details supplied) from his Department on 30 October 2014 that the idea of the sector being permanent and pensionable is not written in stone; and if he will make a statement on the matter. [42067/14]
View answerThe Taoiseach and I launched the Civil Service Renewal Plan on the 30th of October 2014. This Plan outlines a vision for the Civil Service and outlines 25 actions that will bring about practical changes in four thematic areas.
The objective for Government is that this plan will create a more unified, professional, responsive and open Civil Service. We want to ensure that our Civil Service is effective, efficient and ready to meet all current and future challenges.
Amongst the 25 specific action points are commitments to maximise the performance and potential of all Civil Service employees and organisations. The issue of 'permanent and pensionable' is obviously relevant in the context of addressing underperformance where, in certain instances, a more rigorous disciplinary procedure, up to and including dismissal may be necessary.
The capacity and capability of the Civil Service in effectively and efficiently performing its roles both for the public and for government is fundamentally dependent on the quality of its human resources. In implementing these actions we hope to maximise the potential of our staff.
24. Deputy Mick Wallace asked the Minister for Public Expenditure and Reform the criteria and the measures undertaken for the awarding of public contracts, with regard to ensuring that indigenous Irish companies receive fair access to this valuable work; and if he will make a statement on the matter. [42062/14]
View answerThe reform of the procurement system across the public service is a key element of the reform programme for the public service. Public Procurement savings enable public service organisations deliver much needed services within the tighter budgets that they must now operate within. The fragmented procurement arrangements across the public service have enabled suppliers to charge different public service bodies different prices for the same goods and services. This is not sustainable, as the State cannot afford to continue to purchase works, goods and services in a manner that undermines the level of services it can deliver.
Reforms are being carried out in a manner that recognises the importance of SMEs in the economic recovery of the country. The establishment of the Office of Government Procurement is a key element to bringing a more professional and whole of government approach to procurement. It will drive fair, transparent and open competition in the marketplace but also continue to work with business to ensure that government procurement policies are business friendly.
The State has immense purchasing power, spending in the region of €12 billion per annum on goods, services and works. This level of expenditure affords significant business opportunities for firms that can supply the products and services that are required by public bodies. The Office of Government Procurement estimates that approximately 95% of this annual procurement spend goes to Irish suppliers. It is clear therefore that public procurement activity is already a significant driver of employment opportunities and economic growth within the State.
Circular 10/14 issued in April of this year will open up opportunities for small businesses to bid for State business. It will also help to simplify and streamline the public procurement process, and reduce the administrative burden on businesses that want to tender for public contracts.
Businesses who are successful in winning public contracts often win repeat business and given the consistent nature of public procurement processes, are often well placed to win public sector contracts abroad. (The public procurement market in the EU is estimated to be valued in excess of €2.4 trillion annually.) As a Government we want to see Irish business being competitive and winning business both here and abroad.
25. Deputy Mary Lou McDonald asked the Minister for Public Expenditure and Reform his plans to introduce stronger measures to prevent conflicts of interest, favouritism and corruption in public procurement contracts, in view of the impending requirements under the new EU rules agreed in January 2014. [42058/14]
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.
Under existing public procurement rules, contracting authorities are required to ensure that staff involved in purchasing or placing contracts are familiar with the EU and national rules that apply in relation to public procurement. In particular Article 45 of EU Directive 2004/18/EC requires contracting authorities to exclude from tendering any tenderers who have been convicted of various types or categories of offence, including corruption, fraud, money laundering, and participation in a criminal organisation. The Directive also includes various permissible grounds for exclusion at the contracting authority's discretion, including bankruptcy, criminal conviction (where not attracting mandatory exclusion), grave professional misconduct, serious misrepresentation, and non-payment of tax or social security by the economic operator. These provisions been incorporated into Irish law under Regulation 53 of SI 329 and are reflected in the Model Tender and Contract Document which issued in 2011 and which cover the procurement of goods and general services.
For works, goods and services contracts, these provisions are contained in the Instructions to Tenderers and conditions of contract, where the standard forms of contract are used. These latter documents also require that any conflict of interest, or potential conflict of interest, on the part of a tenderer, individual employees, or agents or subcontractors of a tenderer to be fully disclosed to the Contracting Authority as soon as it becomes apparent. This may result in elimination from a competition or termination of a contract. The provisions also prohibit gifts, consideration or commission of any kind as an inducement or reward in relation to the award or performance of any public sector contract.
In relation to buyers, employees in the public sector are required to adhere to ethical standards under the relevant legislation including the Ethics in Public Office Act 1995, the Standards in Public Office Act 2001 and the Prevention of Corruption Acts 1889 - 2005. Public procurers involved in procurement are required, under these legislative instruments, to operate to the highest ethical standards in public office. These requirements comply fully with the existing rules governing public procurement.
The new public Directives are generally similar to the existing rules with respect to exclusion, although with some additions. For example the grounds for mandatory exclusion have been updated and expanded to include human trafficking, etc. Breach of tax or social security obligations by the economic operator, established by "final and binding judicial or administrative finding" is now to be a mandatory exclusion ground, rather than discretionary. The permissible / discretionary grounds for exclusion are also extended compared with the current rules, to cover cases where: an economic operator has entered agreements aimed at distorting competition.
The Office of Government Procurement is currently exploring policy choices as part of the transposition process. In this context, on Friday last, 31st October, I launched 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 12th December, 2014. Consideration will be given to the responses received when drafting the Statutory Instruments to implement the EU rules into national law.
On foot of responses received from the public consultation and ongoing discussions with the Attorney General's Office, consideration will be given to any further appropriate measures for contracting authorities to take to prevent, identify and remedy conflicts of interest arising in the conduct of the procurement process. Issues around prior involvement of candidate or tenderers within the meaning of article 41 of the new Directive will also be considered.
If the Deputy has any concerns or information regarding potential ethical breaches, I would encourage you to raise the matter with the relevant contracting authority or enforcement body.
26. Deputy Michael McGrath asked the Minister for Public Expenditure and Reform if he has conducted an analysis of the costs and benefits of the voluntary redundancy scheme which operated in the public service in 2013; and if he will make a statement on the matter. [42053/14]
View answerAs I have mentioned in previous replies on this matter, before the Government decision was taken in respect of introducing Voluntary Redundancy in the Public Service, an analysis of the likely Exchequer impacts was carried out to estimate the cost of such a scheme, the payback period for the State and its overall net present value.
This analysis estimated that for every 1,000 employees who opted to participate in a Voluntary Redundancy programme there would be an estimated gross cost of approximately €109 million. The gross payroll savings for 1,000 employees was estimated at approximately €57 million every year. Therefore the initial cost of 1,000 employees leaving would be recouped within two years. The analysis also proposed that further savings would also be realised in the future when these employees reached retirement age because of their reduced pension entitlements.
In 2013, just under 500 staff left the Public Service under a Voluntary Redundancy scheme. This was largely in the Local Authority area (389), with small pockets in the Defence, Education and Semi-State sectors. It would have been the responsibility of local sectoral management to oversee the offer of these schemes, under the agreed standard terms.
It is important to note that:
- the approach to Voluntary Redundancy schemes has been to allow public service organisations to use it on a targeted basis in different areas where it makes sense and can be shown to offer value for money in the long run; and that
- Voluntary Redundancy is by definition not compulsory, and therefore people will only leave if that is what they want; equally there is no automatic right to redundancy. All applications are considered in the context of ongoing business needs and service provision priorities.
27. Deputy Éamon Ó Cuív asked the Minister for Public Expenditure and Reform the reason his Department has given permission to the Office of Public Works to prefund projects of a capital nature arising from the storm damage last January when similar expenditure arising out of same storm damage approved by other Departments is not allowed to be prefunded under the rules laid down by his Department; and if he will make a statement on the matter. [42023/14]
View answerThe Government Decision of 11th 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 13th December 2013 to 6th 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.
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.
Where the OPW is funding local authorities in carrying out flood defence or coastal protection projects, it is the practice of the Office to seek to enable those bodies to meet liabilities as they arise by providing funding where binding contracts have been entered into by the local authorities. This ensures that the local authorities can proceed with and maintain efficient progression of these projects without the risk of delays due to internal cash flow or financing difficulties. In the case of the projects on the approved programmes of repairs to coastal infrastructure, advances of up to 80% of the funding approved for these works may be made to local authorities on request provided the relevant Director of Services in the local authority certifies that specific conditions have been met, in particular that binding contracts have been entered into by the local authority for the works. Payment of the full amount approved is made on receipt of a statement by the Director of Services certifying that all the applicable conditions have been complied with, including that the works for which funding was allocated have been completed.
The OPW is satisfied that its current practice in relation to funding local authorities is appropriate and accords with the relevant guidance issued by the Department of Public Expenditure and Reform. The OPW is not aware of the specific funding procedures applied by other Departments in relation to the storm damage repairs.
28. Deputy Peadar Tóibín asked the Minister for Public Expenditure and Reform the actions his Department and the Office of Government Procurement intend to take to increase indigenous small and medium enterprises tendering for public procurement contracts. [42060/14]
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 new Circular has been broadly welcomed by industry representative associations. 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.
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 OGP 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.
29. Deputy Sean Fleming asked the Minister for Public Expenditure and Reform the breakdown by Department and allowance category of the savings in allowances in 2014; and if he will make a statement on the matter. [42048/14]
View answerFollowing the Government Decision in September 2012 on the Review of Public Service Allowances and Premium Pay, in cases where the review found that there is no business case for payment of an allowance to new beneficiaries, no appointee to a public service post since 31 January 2012 will receive that allowance.
Given in general allowances have been discontinued for new appointees to posts, the precise figures on savings to the pay bill in 2014 and future years depends on the rate of staff turnover across the public service. Where appropriate, savings arising have been incorporated into the pay allocations for 2014.
A number of the sectoral agreements incorporated into the Haddington Road Agreement in 2013, indicate the intention of the relevant sectoral management to review or amend certain allowances in payment to staff. The Agreement provides that there will be full co-operation with the Allowances review, taking account of the recommendations contained in Labour Court Recommendation 20448. It is a matter therefore for local management to advance the ongoing review and elimination as appropriate of allowances in each sector during the lifetime of the Agreement. The Haddington Road Oversight Group is keeping the matter under general review.
30. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which he and his Department continue to monitor the impact of fiscal and economic constraints imposed throughout the economy in the course of the economic downturn with a view to identifying specific targets for amelioration as part of the planned economic recovery; if he anticipates the further softening of measures taken at the beginning of the downturn; and if he will make a statement on the matter. [42045/14]
View answerThe banking crisis in 2008 and subsequent recession had a profound impact on the public finances necessitating the implementation of significant expenditure reductions over a six year period.
Gross voted expenditure has been reduced from its peak of €63.1 billion in 2009 to €54.5 billion in 2013. This represents a reduction of approximately 13½ per cent between 2009 and 2013. The gross voted expenditure allocation for 2014 is €53 billion.
The implementation of these expenditure adjustments has contributed towards a radical improvement in the sustainability of the public finances and 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.
Only now, after 6 years of fiscal consolidation, is our economy beginning to recover, with this economic recovery leading to an improvement in the fiscal outlook. Because of this, the Government can now achieve the key budgetary objective of bringing the deficit below 3% of GDP in 2015 without having to make further cuts to spending. Indeed, in the recent Budget we were able to provide for some targeted spending increases for areas of priority. The Comprehensive Expenditure Report 2015 - 2017, published on Budget day, shows that total gross voted expenditure for 2015 will be €53.6 billion, which is an increase of €0.6 billion over the allocation in the 2014 Revised Estimates.
When implementing expenditure reductions, the Government's priority has at all times been to protect our society's most vulnerable and support economic recovery to the greatest extent possible. In line with this priority, the increase in expenditure in 2015 is targeted at critical areas in Social Protection, Health, Education, and Housing, with capital investment targeted at providing more homes to those in need of support, and investment in vital infrastructure to underpin future economic growth.
My Department, through the implementation of successive Public Service Reform Plans has focused on the rationalisation of public sector bodies, implementation of shared services across Government Departments, increased evaluation of expenditure policies and programmes, and numerous other productivity-enhancing measures. This work will continue to ensure the ongoing delivery of expenditure efficiencies.
As outlined in the Comprehensive Expenditure Report, it is intended that expenditure will increase by further amounts in 2016 and 2017 to meet service pressures. The level of increases will be determined at that time taking into account our economic growth and our continued requirement to reduce the deficit and meet the requirements of the Stability and Growth Pact.
Our challenge as a Government over the coming years will be to ensure that the progress made in returning stability to the public finances is not undone by unnecessary profligacy. Decisions regarding the unwinding of measures taken during the fiscal crisis will be taken with due regard to the resource constraints which persist. We must use our recovery wisely through retaining and augmenting the benefits of improved efficiency, increased productivity, and enhanced fiscal discipline.
