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Thursday, 19 Nov 2015

Written Answers Nos. 73-85

Infrastructure and Capital Investment Programme

Questions (73)

Stephen Donnelly

Question:

73. Deputy Stephen S. Donnelly asked the Minister for Public Expenditure and Reform the monitoring process in place for the implementation of the capital investment programme; if there is an accountability mechanism; and if he will make a statement on the matter. [40744/15]

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Written answers

I am satisfied that appropriate processes are in place for monitoring implementation of the Government's capital investment plans consistent with the accountability framework in place relating to public expenditure. 

While my Department is responsible for setting the overall capital allocations across Departments, the management and delivery of individual capital investments within the overall Capital Investment Programme, and the timescales over which they are to be delivered, is the responsibility of each relevant individual Minister and Department.

My Department continually monitors all voted expenditure (including capital expenditure) throughout the year to compare drawdown of funds from the Exchequer against published expenditure profiles. There is regular communication with all Departments and Offices to ensure that expenditure is being managed within agreed allocations. I report a monthly analysis of spending trends to Government, and we publish information each month as part of the Exchequer Statement. 

Of course, as is normal in a programme of this length, there will be a Mid-Term Review of the Programme, which will take stock of progress to date and provide the Government with an opportunity to reaffirm priority projects. This Review will also provide the Government with an opportunity to consider the scope for increased levels of investment, should Ireland's economic growth and fiscal progress exceed the present forecasts and make this possible.

The Deputy may wish to note that consistent with the Programme for Government commitment and arising from the Report of the Independent Panel on Civil Service Accountability established by me and chaired by Professor Kevin Rafter of Dublin City University a number of significant measures are currently being implemented to strengthen civil service accountability under the Civil Service Renewal Plan.  These measures include:-

- the establishment of a Civil Service Accountability Board and the Civil Service Management Board;

- the introduction of a Performance Management system for Secretaries-General and the implementation of a new model for performance management for the Assistant Secretary Grade;

- putting in place strengthened corporate governance arrangements for Government Departments under a new Corporate Governance Standard agreed by Government earlier this week; and

- publishing a Framework of Assignments for all senior civil servants under the Public Service Management Act.

All of these measures are expected to further strengthen the legal structures, administrative arrangements, audit processes and reporting mechanisms already in place to secure greater accountability for expenditure of public funds. 

Drainage Schemes Status

Questions (74)

Éamon Ó Cuív

Question:

74. Deputy Éamon Ó Cuív asked the Minister for Public Expenditure and Reform the reason it is taking much longer to approve the urgent drainage works proposed for the Clare River in County Galway, given that it was indicated in parliamentary replies before summer 2015 that it was hoped to commence work there during the summer; when this project will be approved and work will commence on it; and if he will make a statement on the matter. [40942/15]

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Written answers

As the Deputy is aware, the Office of Public Works (OPW) has submitted the proposals for the Clare River (Claregalway) flood relief scheme for statutory approval or Confirmation by the Minister for Public Expenditure and Reform, as required by the Arterial Drainage Acts.

The issues raised in relation to the delay in obtaining approval by the Department for Public Expenditure and Reform (DPER) for the Claregalway Flood Relief Scheme were substantially addressed in my reply to the Deputy's previous Question dated 3 November 2015.

However, by way of update I can advise that the Minister for Public Expenditure and Reform, Brendan Howlin T.D., has now Confirmed the Clare River (Claregalway) Scheme. The Department of Public Expenditure and Reform has also placed advertisements in the local media and the Iris Oifigiúil notifying the general public of the scheme which is followed by an eight week period of public notice of the confirmation decision.

It is envisaged that following the period of public notice that works will commence on the scheme in the first quarter of 2016.

Flood Prevention Measures

Questions (75)

Denis Naughten

Question:

75. Deputy Denis Naughten asked the Minister for Public Expenditure and Reform his plans to implement the recommendations made in the Oireachtas Joint Committee on the Environment, Culture and the Gaeltacht's report on River Shannon flooding published in 2012; and if he will make a statement on the matter. [41050/15]

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Written answers

The July 2012 Report of the Joint Committee on the Environment, Culture and the Gaeltacht on Shannon flooding included eight proposals to tackle flooding on the Shannon. These proposals covered a number of issues across a range of Government Departments and State Bodies. The Office of Public Works (OPW) responded to the Committee by way of a written reply in September 2012, both welcoming the Committee’s Report and the OPW’s approach to addressing the specific matters within the OPW's area of responsibility.

The Shannon Catchment Flood Risk Assessment and Management (CFRAM) Study is the Office of Public Works' core strategy for addressing flood risk in the Shannon basin. I am advised that good progress continues to be made on the Study. A total of 66 locations along the Shannon, covering an area of 17,800 square kilometres, have been identified for further assessment under the Study, which is being undertaken by engineering consultants on behalf of the OPW with the involvement of relevant local authorities. A programme of local public consultation days on the draft predictive flood mapping for these locations concluded in April 2015. A national public consultation on the draft flood maps will commence tomorrow, 20 November and run until 23 December 2015.

Further details on the Shannon CFRAM Study are available on the Study website www.shannoncframstudy.ie. Following the finalisation of the flood mapping and the assessment of appropriate flood risk management options, the final output from this important project will be integrated plans containing specific measures to address in a comprehensive and sustainable way the significant flood risk factors in the Shannon basin.

The Flood Risk Management Plans due to be completed by the end of 2016, will include a prioritised list of measures, both structural and non-structural, to address flood risk in an environmentally sustainable and cost effective manner. The Plans will be used to determine national priorities for State investment in flood defences, on a systematic and objective basis that takes into account social and environmental factors as well as economic criteria.

Pension Provisions

Questions (76)

Michael McGrath

Question:

76. Deputy Michael McGrath asked the Minister for Public Expenditure and Reform the role his Department has had in the arrangements for provision of pensions to former employees of Waterford Crystal; and if he will make a statement on the matter. [41058/15]

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Written answers

The issue of pensions provision for the former employees of Waterford Crystal who were not of pensionable age at the time of the wind up of the company pension schemes in March 2009 is a matter for the Department of Social Protection and I understand that Department is providing an answer to a similar question today.

Fiscal Policy

Questions (77, 78, 80, 81, 82, 84, 85)

Bernard Durkan

Question:

77. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which he remains satisfied that sustainable economic targets remain attainable, given the need to remain competitive nationally and internationally in the aftermath of the economic downturn inherited from his predecessors; and if he will make a statement on the matter. [41082/15]

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Bernard Durkan

Question:

78. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which he expects the measures that he announced in budget 2016 to continue the economic recovery and achieve the objectives set out; and if he will make a statement on the matter. [41083/15]

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Bernard Durkan

Question:

80. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which he expects the relaxation of budgetary restrictions imposed by the troika to manifest themselves in the context of increased demand and restructuring of the economy, and other steps taken in the context of budget 2016, by way of significant improvements and opportunities likely to emerge in the next two years; and if he will make a statement on the matter. [41085/15]

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Bernard Durkan

Question:

81. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which he remains satisfied that future Governments will not be allowed to undo the benefits accrued from the economic sacrifices made by the Irish people in the past seven years; and if he will make a statement on the matter. [41086/15]

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Bernard Durkan

Question:

82. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform if he is satisfied that he and his colleagues' efforts in relation to public expenditure and reform will continue to remain the guiding principles of management of the economy in the future; and if he will make a statement on the matter. [41087/15]

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Bernard Durkan

Question:

84. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which he continues to monitor the performance of all Departments and bodies under their aegis, with a view to ensuring the maximisation of the benefit achieved through the sacrifices of the Irish people in the course of the economic recession, with particular reference to the need to ensure continued economic good practice in the future; and if he will make a statement on the matter. [41089/15]

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Bernard Durkan

Question:

85. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which each Department and its subordinate bodies and agencies have continued to meet their objectives in the course of the efforts towards economic recovery and full employment in the future; and if he will make a statement on the matter. [41090/15]

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Written answers

I propose to take Questions Nos. 77, 78, 80 to 82, inclusive, and 84 and 85 together.

The broad programme of measures delivered in the area of public expenditure and public sector reform has and undoubtedly will continue to support sustainable economic growth and improved competitiveness.

For example, creating the necessary conditions to encourage growth in employment has been a key priority of this Government. The latest figures in relation to the unemployment rate show that it has been reduced from a peak of 15.1% in February 2012 to 8.9% in October this year The fiscal strategy underpinning Budget 2016 is designed to encourage continued sustainable economic growth and increase investment in public services in order to promote further employment growth. Increased employment results in more resources being available to deliver public services.  It is of course important to ensure that those resources are being allocated to best effect. The range of reforms that have been introduced by my Department to the budgetary cycles and processes help to support the efficient use of public funds to deliver effective services for citizens. 

In addition, Budget 2016 includes a significant measure in relation to childcare which has a clear potential to contribute to improved competitiveness and higher trend economic growth.  The Early Childhood Care and Education scheme is to be extended. Investment in childcare will have both social and economic returns.  It acts as a key labour activation measure, particularly for women allowing those who wish to work to take up work and it improves educational and social outcomes, by providing our children with the best possible start. In relation to capital expenditure, the Capital Plan recently published by my Department prioritises spending on those areas of greatest need as the economy continues its strong recovery.  

My Department has played a key role in ensuring Ireland met or exceeded its key fiscal targets in each year of the EU/IMF programme of financial support resulting in a successful exit from the programme in December 2013. Furthermore, as a result of the fiscal policies of this Government and the efforts of the Irish people, Ireland is due to exit the corrective arm of the Stability and Growth Pact (SGP) at the end of this year. With this improved fiscal position the Government has been able to implement increases in expenditure this year and to target further increases in 2016.

When framing Budget 2016 the Government was conscious of the need to continue to address the challenges that face Irish families. Our aim is to ensure that recovery is felt in every home and in every community across the country. With this in mind, resources were provided to allow for significant measures to be implemented across a number of sectors. An additional 2,260 teaching posts will be provided for in 2016 to cater for additional students, improve the staffing schedule and meet special education needs. A package of social protection measures was also introduced to protect some of the most vulnerable in society with increases in the State Pension as well as increases to Child Benefit and the Carer's Support Grant.

With Ireland moving to the preventive arm of the SGP in 2016, sustainable expenditure policy will be anchored in the future by adherence to new fiscal rules which aim to help ensure Ireland makes progress towards its Medium Term Objective (MTO) which is a balanced budgets in structural terms. The Expenditure Benchmark, a complementary measure under the SGP, is designed to regulate the growth in public expenditure in line with the medium term potential growth rate of the economy, thereby making sure that the level of spending is sustainable and can continue to be supported by the economy. 

As the economy continues to recover we will look to build upon and intensify 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 SGP obligations. 

Managing the delivery of public services within Budgetary allocations is a key responsibility of each Minister and their Department, and important measures are in place to help ensure that these budgetary targets continue to be met.  My Department is in regular communication with all Departments and Offices to ensure that expenditure is being managed within the overall fiscal parameters. The drawdown of funds from the Exchequer is monitored against the published expenditure profiles. There is regular reporting to Government on these matters, and information is published monthly, as part of the Exchequer Statement.  

Housing Provision

Questions (79)

Bernard Durkan

Question:

79. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which he may be further in a position to assist in dealing with the housing crisis inherited from his predecessors by way of government bond, as a means of ensuring the availability of the required funding in the housing sector; and if he will make a statement on the matter. [41084/15]

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Written answers

It is important to note that any funding that might be available using the mechanisms referred to in the Deputy's question would not meet the criteria necessary to potentially qualify as 'off balance sheet' in General Government terms.  As such it would not provide any additional funding capacity for further Exchequer expenditure without equivalent spending cuts or tax increases under the fiscal framework.

The scale and profile of the Exchequer component of the recently published Capital Plan was developed with reference to Ireland's fiscal targets over the coming years and within the parameters arising under both national and European fiscal rules, designed to ensure that growth in public expenditure reflects the underlying funding and output capacity of the economy. 

However, as is normal in a programme of this duration, there will be a Mid-Term Review which will take stock of progress to date and provide the Government with an opportunity to reaffirm priority projects and also to consider the scope for increased levels of investment, should Ireland's economic growth and fiscal progress exceed the present forecasts and make this possible.

Questions Nos. 80 to 82, inclusive, answered with Question No. 77.

Public Procurement Regulations

Questions (83)

Bernard Durkan

Question:

83. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which good public procurement practices continue to achieve savings in the public interest; and if he will make a statement on the matter. [41088/15]

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Written answers

The Procurement Reform Programme has been successful in establishing new structures for procurement across the State and bringing increased levels of collaboration and consistency to public service procurement.  There are now teams in place dedicated to sourcing goods and services at a whole-of-government level in key expenditure areas such as facilities management, legal services, ICT, etc.  There are also dedicated customer account managers in place and support structures to develop systems and processes. 

Since the start of the Procurement Reform Programme savings of €100 m in 2013 and 2014 have been reported by the OGP and its partners, equivalent to saving approx. 2,000 front-line jobs.  These forecast savings benefits represent only those cost reductions that can be estimated with a degree of confidence but are dependent upon public bodies using them.  The €100 m excludes €16.5 m in Utilities savings from OGP sourcing activity in 2014 as this would be regarded as a cost avoidance procurement benefit rather than a cash saving as the savings arise from beating inflation.

The 2015 procurement savings target is €150 m.  €80 m of this target is to be generated from OGP sourcing activity over the eight central categories.  The remaining €70 m is to be generated from Health, Education, Local Government and Defence sectoral procurement.  

The OGP and its partner sourcing organisations continue to identify and deliver procurement opportunities and assist customer organisations to better operate within their budget allocations while maintaining or improving services for the public.

There is strong potential for good procurement practice to deliver further financial benefits to the State.  The economic recovery sees the emergence of inflationary pressures that will need to be resisted and avoided on input costs.  Procurement can enable a non-cash savings benefit in the form of Cost Avoidance as, during periods of price inflation and/or currency volatility, it can proactively avoid a future cost increase by locking into a fixed price agreement with suppliers when prices are favourable.

There are also other less-tangible benefits arising from the Procurement Reform Programme such as building tendering skills in suppliers to help them win more private and public sector business at home and abroad.  The EU public procurement market is in excess of €2 trillion in value each year.  Working with Enterprise Ireland and InterTrade Ireland, and through programmes and events such as Meet the Buyer, Go 2 Tender and Taking Care of Business, the OGP continues to build awareness of, and skills in, public procurement among suppliers.  Increasing the application of professional procurement also reduces risk to the State, by identifying risk and establishing contractual arrangements to manage those risks, such as damages payments for non-performance. 

Questions Nos. 84 and 85 answered with Question No. 77.

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