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Thursday, 6 Nov 2014

Written Answers Nos. 31-40

Public Procurement Contracts

Questions (31)

Mick Wallace

Question:

31. Deputy Mick Wallace asked the Minister for Public Expenditure and Reform if he is satisfied that the system of awarding public contracts allows indigenous Irish companies fair opportunity in the tender process; if he has planned any particular initiatives that will help improve access for Irish companies to bid and be awarded public contracts; and if he will make a statement on the matter. [42063/14]

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Written answers

Public 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 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.

Civil Service Accountability

Questions (32)

Seán Kyne

Question:

32. Deputy Seán Kyne asked the Minister for Public Expenditure and Reform the work completed to date in implementing the recommendations of the independent panel on strengthening civil service accountability and performance; if the consultation events held as part of this process will be maintained as a mechanism for public sector workers to provide feedback on the performance of the service; and if he will make a statement on the matter. [42020/14]

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Written answers

The report of the Independent Panel on Strengthening Civil Service Accountability and Performance was published on 11 June 2014.  In the context of the development of a Civil Service Renewal Plan, I and my Department considered it and its recommendations. 

On 30 October, the Taoiseach, Mr Enda Kenny, T.D., and I launched the Civil Service Renewal Plan.  This Plan sets out a vision and a three year action plan for the Civil Service, and represents a fundamentally new direction for the Civil Service.  It brings together the outcomes of two separate but related streams of work; the work of the Independent Panel on Strengthening Civil Service Accountability and Performance, and the work of the Civil Service Renewal Task Force. 

The underlying focus of the Independent Panel's report to strengthen public trust in the administrative system and to ensure faster and more responsive policy delivery across the Civil Service is now reflected in the Civil Service Renewal Plan.  Recommendations from the Independent Panel Report have been integrated into the Civil Service Renewal Plan.  These include the establishment of a Civil Service Accountability Board chaired by the Taoiseach and with external membership, introduction of a performance review process for Secretaries General, and publication of "who does what and to whom they are answerable" for senior managers.  In addition, the Renewal Plan includes the Independent Panel's recommendation in relation to organisational reviews, greater flexibility in decision making by Departments, establishment and governance of agencies, and an accountability code and training for special advisers.

The extensive engagement and consultation processes, that occurred as part of the work of the Civil Service Renewal Taskforce and Independent Panel on Strengthening Civil Service Accountability and Performance, received contributions in excess of 2,000 from staff and stakeholders.  As the implementation phase of the Civil Service Renewal Plan is now being rolled out, further engagement from staff and external stakeholders is being sought. Officials at my Department have already convened a "Townhall" event for Civil Service staff today, Thursday, 6 November, and it is intended that further such events will be held in 2015.  My Department has also invited written feedback on the Civil Service Renewal Plan from both staff and from external stakeholders, through our internal and external webpages.  In addition,  one of the agreed actions in the Renewal Plan is to introduce an annual standard Staff Engagement Survey to involve staff at all levels in ongoing organisational improvement.

Public Sector Staff Recruitment

Questions (33)

Clare Daly

Question:

33. Deputy Clare Daly asked the Minister for Public Expenditure and Reform the areas of recruitment planned for the public service; the grades at which recruitment will take place; and if the local authorities will be included. [42004/14]

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Written answers

In my role as Minister for Public Expenditure and Reform, I have overarching responsibility for workforce planning and recruitment to the Civil Service. The following recruitment competitions for the Civil Service are currently in progress by the Public Appointments Service (PAS) or are scheduled to take place in 2015.

Competitions in Progress

A competition for Clerical Officer in the Civil and Public Service is ongoing and the first offers of appointment from this competition are currently being made. It is anticipated that approximately 300 will be placed on the panel for the Civil Service.

A competition for Graduate Economist in the Irish Government Economic and Evaluation Service closed in late October. A competition for Administrative Officer in the Civil Service and for graduate recruitment for the Local Authority Sector also closed in late October.

Competitions Scheduled for remainder of 2014

An Executive Officer/ICT Specialist competition for the Civil Service will be announced this week. Arrangements for an open Executive Officer competition are being finalised and will be advertised later this month.

Competitions Scheduled for 2015

In respect of Civil Service competitions to be held in 2015, plans are being made for an Assistant Principal Officer competition which will include both open recruitment and interdepartmental elements. In addition, an open Principal Officer competition will take place in the first quarter of 2015.

Recruitment plans for the public service more generally are a matter, in the first instance, for the Minister with responsibility for each of the relevant sectors of the public service.  In particular recruitment into the local authority sector is a matter for the Minister for the Environment, Community and Local Government within the overall framework currently in place to manage the public service pay bill and public service numbers.

Public Sector Reform Implementation

Questions (34)

Seán Fleming

Question:

34. Deputy Sean Fleming asked the Minister for Public Expenditure and Reform when the Haddington Road agreement expires; if he has indicated to the public sector unions if and when talks on a successor agreement will commence; and if he will make a statement on the matter. [42050/14]

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Written answers

The Haddington Road Agreement came into effect on 1 July 2013 and forms the cornerstone for public service pay policy over a three year period.  Over the first 15 months of its lifetime, the Agreement has been a key enabler in reducing the cost of the public service pay and pensions bill.  The cost reductions and productivity increases, and the reform dividend which the Agreement has facilitated, have allowed the Government the scope in 2014 to recruit additional staff to key frontline services. This demonstrates that the Agreement is delivering and is making a significant contribution to the Government's fiscal consolidation deficit  target of below 3% GDP by 2015.

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 public service and pension reductions to date, will also have to be addressed in that context.

Public Procurement Contracts

Questions (35)

Peadar Tóibín

Question:

35. Deputy Peadar Tóibín asked the Minister for Public Expenditure and Reform if he will provide the provisions in public procurement contracts that preclude contractors from engaging in exploitative work practices. [42061/14]

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Written answers

Public procurement procedures require all applicants to meet certain standards when applying for public contracts.  There are requirements placed upon contractors at each stage of the procurement process.

In this regard, at tender stage, applicants must sign a declaration in relation to their financial standing, their legal standing, their payment of taxes and social contributions; and a statement that none of the circumstances for exclusion apply.  The criteria upon which contracting authorities may exclude applicants from the award procedure of public contracts are set out in public procurement regulations and directives.  Before an applicant, in relation to certain breaches is excluded, the applicant may make a case and provide supporting evidence as to why it should not be excluded.  The contracting authority must consider this evidence before deciding whether to exclude or include an applicant.

In order to be considered for the award of contracts, whether works contracts for construction or service contracts for design team members, applicants must pre-qualify by meeting criteria which are designed to assess their competence.  Those who do not meet minimum criteria are excluded from further participation in a tender competition. 

At award stage, it is a condition of award of public contracts (above €10,000) that the successful applicant provides to a contracting authority either a current Tax Clearance Certificate or demonstrate a satisfactory level of subcontractor tax compliance in the case of the construction, forestry or meat processing sectors, who are subject to Relevant Contracts Tax (RCT).  The same tax clearance requirement applies to any non-resident contractor being awarded a public contract.

At implementation stage, the obligations under the contract take effect.  Clause 2 of the standard form of the public works contracts requires the contractor, his personnel and sub-contractors to comply with all legal requirements.  There is a substantial body of legislation that directly or indirectly governs construction activities, however two key pieces of industry specific legislation; the Safety, Health and Welfare at Work (Construction) Regulations 2013 and the Building Control Regulations 1997-2014 both place considerable responsibility not only on contractors but on all those involved in construction projects including designers, supervisors and individual workers. 

The ultimate sanction for serious breach of health and safety regulations is a criminal conviction and imprisonment. Compliance with health and safety regulations is separately assessed in a pre-qualification of a works contractor with supporting evidence required to demonstrate the applicant possesses sufficient resources and is competent to carry out the proposed works.  The Works Requirements which are a key part of the contract documents also set out detailed specifications on how regulatory standards are to be met.

Contractors are required to submit on-going certification under Clause 5.3 (Pay and Conditions of Employment) of the contract that they have complied in full with the requirements of that clause which covers aspects such as compliance with employment law, and deductions for social welfare.  Contractors are also required under this Clause to maintain records and timesheets in respect of all those engaged on the works. 

The management of the tendering process for a public contract is a matter for each contracting authority.  It is the responsibility of each contracting authority to ensure that tenderers comply with all the requirements of the process.  The contracting authority has the right to: audit specified documents; to withhold payment or part thereof if certification is not provided; deduct from payment if certification is proven to be incorrect; and has the right to terminate the agreement where the contractor fails to remedy the situation.

Enforcement of employment law is a matter for my colleague the Minister for Jobs, Enterprise and Innovation. The National Employment Rights Authority (NERA) have the necessary powers to compel employers to provide the documentary evidence to establish whether they may have breached employment law.  Contracting authorities should report any concerns they may have on compliance with employment law, tax and social welfare payments during the course of a project to the appropriate statutory bodies, such as NERA, the Revenue Commissioners, Social Protection, etc.

Oireachtas Joint Committee Reports

Questions (36)

Michael McGrath

Question:

36. Deputy Michael McGrath asked the Minister for Public Expenditure and Reform if he will require former senior public servants and executives of commercial semi-State companies to appear before Oireachtas committees investigating matters relevant to their actions while in the employment of the State; and if he will make a statement on the matter. [42054/14]

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Written answers

The Houses of the Oireachtas (Powers, Privileges and Procedures) Act 2013 amended and simplified the law on the compellability of witnesses to Oireachtas Committees that have the power, conferred by the relevant House or both Houses, to send for persons, papers and records.  This applies both to the conduct of parliamentary inquiries into matters of significant public importance, and to other committee business. 

This legislation allows an Oireachtas Committee to direct any person in the State to attend before it on matters relevant to its proceedings.  It also permits an Oireachtas Committee to request a person to make discovery on oath of documents in their control, or to make a statement in writing on certain matters. 

Former senior public servants and executives of commercial semi State companies are not exempted in this regard.  Any use of compellability powers by an Oireachtas Committee must be sanctioned in advance in accordance with the provisions of the Houses of the Oireachtas (Powers, Privileges and Procedures) Act 2013.  In relation to the conduct of inquiries, the House must pass a resolution in respect of the inquiry specifying whether the committee has or will have the power to send for persons, papers or records pursuant to the applicable rules and standing orders.  In relation to the conduct of other committee business, a committee to whom the House conferred the power to send to persons, papers and records shall not use its compellability powers unless it has the consent in writing of the Committee on Procedure and Privileges to do so.

Public Sector Staff Remuneration

Questions (37)

Mary Lou McDonald

Question:

37. Deputy Mary Lou McDonald asked the Minister for Public Expenditure and Reform in view of his recent announcements in relation to budget 2015, his plans to restore public sector pay for those earning €35,000 per annum or less; and the improvements in pay and conditions that public sector workers earning €35,000 or less per annum may expect in 2014-2015. [42055/14]

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Written answers

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.  The pay arrangements under that legislation 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. 

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.  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. 

Job Initiatives

Questions (38, 55)

Seán Ó Fearghaíl

Question:

38. Deputy Seán Ó Fearghaíl asked the Tánaiste and Minister for Social Protection the steps that have been taken by her Department to ensure that the JobBridge scheme is not abused by employers; if her Department has discovered situations in which employers have reduced the working hours of long-term staff and compensated by recruiting JobBridge personnel; if this situation is under constant review; and if she will make a statement on the matter. [42528/14]

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Robert Dowds

Question:

55. Deputy Robert Dowds asked the Tánaiste and Minister for Social Protection if she wil provide an update on JobBridge covering the number of people who have availed of JobBridge; the number of people who have moved from JobBridge to full-time employment; the number of people who have failed to get full-time employment from JobBridge; the approach of the Department where the scheme has been abused by employers; and if there are any JobBridge positions in the Civil Service. [42675/14]

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Written answers

I propose to take Questions Nos. 38 and 55 together.

JobBridge includes a range of control and monitoring measures. Host organisations must give undertakings to meet rigorous scheme criteria before participating, they must complete regular compliance returns during the course of any internship, internships cannot reduce paid positions, there are limits on the number of internships that any one organisation can host and cooling off periods are used to prevent successive use of internships. In addition Internships are monitored extensively and any allegations of abuse are investigated as a priority. To date, more than 15,000 host organisations have participated in the scheme, and out of this number only 45 have been excluded from participation for a range of reasons related to non-compliance with the scheme criteria. An independent evaluation of JobBridge found only minimal levels of displacement but the Department remains vigilant for any potential adverse impact of JobBridge upon the normal operation of the labour market.

As at 30th October, 2014, 34,636 individual internships had commenced since July, 2011, and 28,192 internships had finished. An independent evaluation of JobBridge found that 61% of former interns had moved into employment 5 months or more after the completion of their internship. This indicates that c 17,000 of the c 28,000 interns who have completed their internship moved into employment. I attach a table giving the number of JobBridge internships in the Civil Service.

Table 1. – Civil Service Internships

As at 15th October 2014

-

Finishers

Current Interns

Total Interns

D/Agriculture Food and Marine

16

0

16

D/Arts, Heritage and the Gaeltacht

9

0

9

D/Communications, Energy and Natural Resources

32

11

43

D/Defence

4

0

4

D/Education and Skills

8

1

9

D/Environment, Community and Local Government

15

0

15

D/Finance

4

0

4

D/Health

13

1

14

D/Jobs, Enterprise and Innovation

9

1

10

D/Justice and Equality

98

4

102

D/Public Expenditure and Reform

26

3

29

D/Social Protection

9

0

9

D/Taoiseach

6

2

8

D/ Transport, Tourism and Sport

7

1

8

Houses of the Oireachtas

8

0

8

Office of the Attorney General

5

0

5

Chief State Solicitor's Office

4

0

4

Comptroller and Auditor General’s Office

2

0

2

Ombudsman’s Office

3

0

3

Pensions Ombudsman's Office

5

0

5

Office of the Secretary General to the President

1

0

1

Revenue Commissioners

19

0

19

Valuation Office

3

0

3

Totals

306

24

330

Question No. 39 withdrawn.

Irish Water Administration

Questions (40)

Catherine Murphy

Question:

40. Deputy Catherine Murphy asked the Tánaiste and Minister for Social Protection if she has signed the order permitting the collection of personal public service numbers by Irish Water as a scheduled body under the Act; if it has been signed; when it was signed; and if she will make a statement on the matter. [42546/14]

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Written answers

The legal basis of the PPS Number and its use is contained in the Social Welfare Consolidation Act 2005 (as amended). Only bodies specified in statute or their agents can use the PPS Number. Section 262 of the Act allows the PPS Number to be used by a specified body in certain limited ways in the course of a "transaction" with a member of the public. The section requires that the service being supplied must relate to a "natural person", i.e., not a private function by a private company.

Persons are required by section 262 to provide their PPS Numbers to Specified Bodies for the purpose of a "transaction".

The section also allows the Minister for Social Protection to share a person’s public service identity (including their PPS Number) with a Specified Body for authentication purposes. Accordingly, as both the Minister for Social Protection and all Specified Bodies must operate in accordance with the provisions of the Act, there is no requirement for a separate order to be in place.

Section 20 of the Social Welfare and Pensions Act 2014, which was enacted on the 17th July 2014, added Irish Water to the list of Specified Bodies. Irish Water has advised that PPS Numbers will only be processed by it in relation to confirming eligibility for allowances and accurately calculating water charges. Irish Water has posted information about its use of the PPS Number on the Register of PPS Number Users which is available on the Department of Social Protection website.

The Department is in discussions with Irish Water with regard to the appropriate assistance that can be given in relation to validation of PPS Number data.

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