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Tuesday, 12 May 2015

Written Answers Nos. 1-202

Nursing Home Services

Questions (190)

John Halligan

Question:

190. Deputy John Halligan asked the Minister for Public Expenditure and Reform if the power to investigate complaints will extend to all nursing home residents, whether self-funded or in receipt of a State subvention; and if he will make a statement on the matter. [18265/15]

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Written answers

Currently, the Ombudsman's remit extends to patients in public nursing homes only.  In accordance with the Ombudsman (Amendment) Act 2012, it is my intention to extend, by Ministerial Order, the Ombudsman's remit to private nursing homes whose residents are in receipt of state support or subvention.  By extending the Ombudsman's remit, greater accountability and assurance will be afforded to patients of these nursing homes and to their families.   

The State, through the Nursing Homes Support Scheme, provides financial assistance for those who require long-term nursing home care, with residents contributing a portion of the cost in accordance with their means.  In doing so, it funds 22,142 nursing home residents as of end March 2015.  This represents residents in public, voluntary and private long-term residential care receiving financial support.   

As prescribed by the Ombudsman (Amendment) Act 2012, I have begun a consultation process on the draft Ministerial Order extending the Ombudsman's remit.  This includes the Ombudsman, the Ombudsman for Children, the Oireachtas Joint Committee on Health and Children, the Oireachtas Joint Committee on Public Service Oversight and Petitions, the Health Service Executive, the Health Information and Quality Authority, and Nursing Homes Ireland.  Following this consultation process, I expect the Order will be in place by end June.   

A private nursing home which the Deputy describes as 'self-funded' and which has no residents in receipt of State support is not in receipt of public moneys and accordingly does not come within the remit of the Ombudsman as defined in legislation.  The Order will not extend therefore to such 'self funded' private nursing homes.   

Since 2009, all nursing homes, private, voluntary and public, have been  registered and inspected by the Health Information and Quality Authority.

Questions Nos. 191 and 192 answered orally.

Pension Levy

Questions (193)

Paul Murphy

Question:

193. Deputy Paul Murphy asked the Minister for Public Expenditure and Reform the steps his Department will take to abolish the pension levy on public sector workers; and if he will discuss this with public sector workers' unions. [18241/15]

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Written answers

It is understood that the Deputy's question refers to the public service Pension-Related Deduction (PRD), which applies to the pay of pensionable public servants.  PRD was introduced in March 2009 under the Financial Emergency Measures in the Public Interest  (FEMPI) Act 2009. It continues to provide very important revenue to the State, and as such remains a key constituent of the suite of financial emergency measures affecting public service pay and pensions which have been adopted under the FEMPI legislation between 2009 and 2013 in response to the financial crisis.

At my invitation, discussions begin today between officials of my Department and the Public Services Committee of ICTU on an approach to commencing the gradual unwinding of the FEMPI legislation.  The PRD falls to be considered in that context.

Public Sector Pay

Questions (194)

Ruth Coppinger

Question:

194. Deputy Ruth Coppinger asked the Minister for Public Expenditure and Reform his views on the need to increase public sector pay, following discussions with public sector workers and their unions; and if he will make a statement on the matter. [18227/15]

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Written answers

As indicated in previous responses, following consultation with my Government colleagues I issued an invitation to the representative organisations for public servants to enter discussions with public service management. Those discussions have commenced today, and I am sure that the Deputy will understand, in the circumstances, my reluctance to seem to be engaging in any negotiations in public. Further formal discussions will take place over the coming weeks and, although obviously I am not in a position to predict when the talks will conclude, early agreement will facilitate assignment of resources and budgetary planning in respect of 2016 and beyond.  

The Government considers that any pay agreement should be prudent, modest and sustainable in the overall budgetary context as now set out in the Spring Economic Statement. Through the  HRA and its predecessor the Croke Park Agreement, together with the FEMPI legislation, public servants have made a significant contribution to the fiscal recovery of the State including by way of  direct reductions in pay and pensions.  I want to make it clear that all public servants from the lowest paid to the highest have contributed. From 2009 to 2014 the cost to the Exchequer of public service pay was reduced by €3.7 billion, or more than 21%.  Notwithstanding our improving economy, because of the magnitude of these reductions, the Exchequer could not sustain the immediate restoration of such reductions.  I have stated previously that there need to be realistic expectations, on both sides, regarding what can be achieved in the forthcoming talks' process. The HRA reiterates the commitment to give priority to those public servants on salaries of less than €35,000 p.a. 

Public Servants have made a significant contribution to the fiscal recovery through a number of productivity measures.  Without this productivity contribution, we would not be in a position to discuss any element of the unwinding of the Financial Emergency Measures legislation.  Reform is now a constant part of employment for public servants and is a central element of my strategy to deliver a public service that will, in turn, deliver improved outcomes for all stakeholders, including the business sector and citizens.  My intention is that any agreement reached will maintain and build upon the productivity and other reforms delivered through earlier Agreements including the Haddington Road Agreement and secure an Industrial Relations framework that will foster and support further productivity and change at the level of the workplace.

Question No. 195 answered orally.

Office of Public Works Projects

Questions (196)

David Stanton

Question:

196. Deputy David Stanton asked the Minister for Public Expenditure and Reform the progress that has been made to date by the Office of Public Works in forming partnerships with local heritage and community groups, since the announcement of the initiative in 2012; and if he will make a statement on the matter. [17538/15]

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Written answers

The Minister of State with responsibility for the Office of Public Works, in 2012 introduced the Community Involvement Initiative and, through public advertisement and publicity, sought applications from interested groups to participate. The objective of this project was to harness the enthusiasm for heritage in local communities around the country and to work with them to develop a capacity to present certain Heritage sites to the public at times when the OPW is not in a position to do so because of resource limitations or other constraints.

The OPW is responsible for the management and presentation of a large number of National Monuments in State care and some of these locations are among the best-known visitor destinations in the country. However, there are also a considerable number of sites where it is not possible to maintain a Guide service to present sites to visitors and it is in these cases where the Initiative sought to improve the position.

While the initial response to the Initiative was quite strong, with approx 100 groups applying, it was also apparent that there was a great deal of work involved in making sure that groups understand what is involved and the challenges posed in managing visitor sites. The OPW worked directly with approx 30 of the initial applicants to refine their proposals and to prepare them for the challenge. Contact is still maintained in many of these cases.

The Initiative was re-branded as the “Friends of Irish Heritage” in 2013 and again advertised. This did not result in any new substantial projects.

It is apparent from the experience to date that, while many local partners are prepared to engage with the project in its initial stage, and indeed a number of successful projects resulted, the commitment involved in bringing a project to fruition and to encouraging the development of a broadly-based movement of volunteer guide groups all around the country is a project that requires more work and a long term sustained commitment.

The OPW does not apply a universally generic approach to this issue and remains very open to suggestions about partnering with local communities in a variety of ways. It is ever mindful that, in many instances, it was the intervention and continuing contribution of these local communities that contributed significantly to the preservation of many of our Monuments. The tourism sector continues to be one of the main drivers behind Ireland's economic recovery and I am pleased that the OPW continues to engage in partnering with local communities and heritage groups to develop local tourism initiatives.

Semi-State Bodies Dividends

Questions (197)

Seán Fleming

Question:

197. Deputy Sean Fleming asked the Minister for Public Expenditure and Reform the policy that applies in respect of dividends from commercial semi-State companies; his plans to review this; and if he will make a statement on the matter. [18237/15]

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Written answers

Historically, there have not been comprehensive central guidelines for State companies regarding dividend policy although, over recent years, dividends of approximately 30% of profits after tax have been expected from most commercial State companies.

However, with the establishment of NewERA in 2011, the current Government began the process of reforming how the shareholder role in relation to the commercial State sector is managed.  NewERA now provides financial and commercial advice to the relevant Ministers in relation to the six key commercial State companies in the NewERA sectors of energy, water, telecommunications and forestry.  The companies in question are ESB, EirGrid, Ervia, Bord na Móna, Irish Water and Coillte.

As part of the reform, NewERA, in conjunction with the relevant Government Departments, has developed a Shareholder Expectations Framework to provide clarity and guidance for the companies in relation to the Government's strategic priorities, policy objectives, and financial performance and reporting requirements.  One of the key areas addressed as part of this Framework is dividend policy. 

To-date the boards of ESB, EirGrid, Ervia and Irish Water have respectively engaged with NewERA and the relevant Government Departments with a view to developing a new formal dividend policy, striking an appropriate balance between the payment of dividends and re-investment in the business.  The Boards of Bord na Móna and Coillte are also currently considering the development of a formal dividend policy, in consultation with NewERA. 

In this way, a new formal dividend policy has been or will be agreed for each of the NewERA companies, thus giving greater clarity and certainty in relation to the State's future expectations in this regard. 

My Department has also been working with other relevant Departments, reviewing the shareholder management and oversight arrangements applying across the wider commercial state sector.  The intention is to introduce a more structured and consistent approach to the management and oversight of these companies also, and thus the entire commercial State sector, modelled on the approach already adopted for the NewERA companies.  This will include establishing a Shareholder Expectations Framework for each such company, which will include the development of a specific and appropriate dividend policy for each such company.

Departmental Offices

Questions (198)

Brian Stanley

Question:

198. Deputy Brian Stanley asked the Minister for Public Expenditure and Reform his plans to provide permanent office accommodation for staff in the Department of Agriculture, Food and the Marine and the Department of Social Protection, who are now located in Portlaoise, County Laois, as part of decentralisation. [18128/15]

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Written answers

The majority of the Department of Agriculture, Food and the Marine's (DAFM) staff are currently accommodated in three locations in Portlaoise, in the State Owned Government Offices on the Abbeyleix Road and two leased premises.

OPW are continuing to work with DAFM to consolidate their staff into fewer locations. In this regard, a space audit of the State owned Government Offices on the Abbeyleix Road in Portlaoise is currently being undertaken. When this is complete, it will be evaluated to establish the potential to increase the occupancy of the building through the re-configuration of the space with a more modern open plan layout and furniture.

The provision of an extension to this State owned property will also be reviewed following completion of the space audit. The use of leased premises may prove part of the final proposals for the long term accommodation solution for DAFM.

The Department of Social Protection's accommodation in Portlaoise was not part of the Decentralisation Programme. They are currently in two locations in the town, the State Owned Government Offices on the Abbeyleix Road and a leased property and their current accommodation requirements are adequately provided for.

Pension Levy

Questions (199)

Ruth Coppinger

Question:

199. Deputy Ruth Coppinger asked the Minister for Public Expenditure and Reform his views on abolishing the pension levy for public sector workers. [18228/15]

View answer

Written answers

It is understood that the Deputy's question refers to the public service Pension-Related Deduction (PRD), which applies to the pay of pensionable public servants.  PRD was introduced in March 2009 under the Financial Emergency Measures in the Public Interest  (FEMPI) Act 2009. It continues to provide very important revenue to the State, and as such remains a key constituent of the suite of financial emergency measures affecting public service pay and pensions which have been adopted under the FEMPI legislation between 2009 and 2013 in response to the financial crisis.

At my invitation, discussions begin today between officials of my Department and the Public Services Committee of ICTU on an approach to commencing the gradual unwinding of the FEMPI legislation.  The PRD falls to be considered in that context.

Economic Growth

Questions (200)

Bernard Durkan

Question:

200. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform if he remains satisfied that targets in respect of savings and public expenditure reform will continue to be met in the context of economic recovery; if he has identified particular areas of conflict in this regard; if he remains satisfied that economic recovery and retention of public expenditure objectives are not mutually exclusive; and if he will make a statement on the matter. [18190/15]

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Written answers

Between 2009 and 2014, gross voted expenditure was reduced from a peak of just over €63 billion to €54 billion. In implementing expenditure reductions the Government was conscious of the need to balance the requirement to return the public finances to stability with creating the conditions necessary for sustained economic growth and job creation.

In Budget 2015, the Government was in a position to implement targeted increases in expenditure while at the same time achieving the fiscal target of a general government deficit below 3% of GDP required to ensure our successful exit from the Excessive Deficit Procedure.

The intervening period since Budget 2015 has seen the economic recovery continue to broaden out, with domestic demand increasingly contributing to economic growth. As outlined in the Spring Economic Statement (SES) a number of key economic and fiscal variables have been revised, with the combined effect of these changes lowering our forecast deficit in 2015 to 2.3%.

The SES has outlined fiscal space of between €1.2 billion to €1.5 billion for 2016, of which €600 million to €750 million will be directed towards expenditure increases. This will allow demographic pressures in key areas to be addressed and allow for new measures to further enhance public services.

As the economy continues to recover we will look to build upon the significant and wide-ranging public service reforms implemented over recent years. These have added efficiency and effectiveness to the way in which our public services are delivered and will continue to play a key role in supporting the rebalancing of the public finances and releasing further funds for reinvestment in key public services in a manner consistent with continuing to meet our EU obligations.

I will be publishing a new Capital investment programme next month will set out, for the period to 2020, the capital envelope to support continued economic growth and job creation.

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