Tuesday, 31 May 2016

Written Answers Nos. 1 - 46

Capital Expenditure Programme

Questions (35)

David Cullinane

Question:

35. Deputy David Cullinane asked the Minister for Public Expenditure and Reform for an update on Government plans for capital investment, given the desperate need for this in housing, health, infrastructure, public transport and so forth and in the context of the European Commission country report for Ireland 2016 which states that public investment under the capital spending plan for 2016 to 2021 is back-loaded towards the end of the plan's duration, as the Government has given preference to tax cuts and other expenditure increases at this time, and that in 2016 Government investment is actually projected to contract by 1.4% compared with 2015 levels; and if he will make a statement on the matter. [13251/16]

Written answers

Minister for Public Expenditure and Reform

The current Capital Plan "Building on Recovery: Infrastructure and Capital Investment 2016-2021", published last September, announced an Exchequer capital spend of €27 billion over a six year period. Supplementing this Exchequer-funded investment with investment from the wider semi-state sector (€14.5 billion), and PPPs (€500 million), brings total state investment to €42 billion over the period. Capital investment increased from €3.6bn in 2015 to almost €4bn in 2016. Based on the most recent figures published in the April 2016 Stability Programme Update Capital investment is projected to increase by 3.7% in 2016. This level of investment represents a forecast average of about 3.2% of GNP per annum over the period of the Plan.

The scale and profile of the Exchequer component of the Capital Plan published in 2015 was developed following a strategic review of infrastructural requirements and with reference to the Government's medium term economic growth forecasts, while also ensuring that it was fully consistent with both our national and European fiscal rules.

The Programme for a Partnership Government commits to a review of Government priorities within the capital plan as published, in the context of the Mid term review to be undertaken by mid 2017. This Review will also provide the Government with an opportunity to consider the scope for increased levels of investment, consistent with the fiscal rules. However, the Programme already provides for the Government to propose Oireachtas approval for a cumulative, additional €4billion in exchequer capital investment up to 2021 in the areas of transport, broadband, education, health and flood defences, to accelerate delivery of priority infrastructure requirements.

Questions Nos. 36 to 41, inclusive, answered orally.

Public Sector Staff Recruitment

Questions (42)

Robert Troy

Question:

42. Deputy Robert Troy asked the Minister for Public Expenditure and Reform if he has applied a moratorium on recruitment to any sector of the public service in 2016; the requests for additional staff he received, approved in full, partially approved and refused in respect of all Government Departments and agencies in 2016 to date; and if he will make a statement on the matter. [13049/16]

Written answers

Minister for Public Expenditure and Reform

The Moratorium on the Recruitment in the Public Service no longer applies. It was formally brought to an end last year. In 2015, public service numbers increased by more than 8,500 and so far this year, public service numbers have increased by more than 2,000. It is important to note that the increases recorded in 2016 are largely a result of Budget-day decisions to provide funding for more than 2,200 new teachers, 600 more Gardaí, and increased medical and health care staff in the health service.

In terms of employment control measures, all Government departments are now operating under new delegated staff management arrangements, which allows them to hire staff as needed, within the expenditure ceilings proposed by Government and voted on by the Dáil. It is a matter for each department to develop and manage similar delegated arrangements with their agencies. This new approach provides more local control of recruitment and staff allocation generally, giving managers increased flexibility to respond to service needs.

Underlying this is a requirement to implement reforms that improve how public services are delivered and that achieve savings which can be reinvested in frontline services. The Public Service has delivered significant productivity gains and service improvements over the last number of years, as set out in the recently published Annual Progress Report on the Public Service Reform Plan. We must build on this progress and it is essential that targeted recruitment and investment in public services is carried out in tandem with further reform. This includes, for example, more digital delivery of services and improved customer service and business processes.

It is still the case that approval must be sought for additional posts at more senior levels (above Principal Officer level) and for new State bodies. I have the relevant information about such posts for the Deputy in hard copy, which shows that the number of requests for additional posts, over and above those announced by the Government in the Budget, is less than 100. The most notable request arising for new State Bodies was the approval for 21 staff for the new Policing Authority, which was established on 1 January this year.

Up to date information on current staffing levels across the public service is available on my Department's web site at http://databank.per.gov.ie.

Public Sector Staff Remuneration

Questions (43)

Bríd Smith

Question:

43. Deputy Bríd Smith asked the Minister for Public Expenditure and Reform the cost of repealing the financial emergency measures in the public interest legislation and public service pay reverting to 2009 levels; and if he will make a statement on the matter. [13013/16]

Written answers

Minister for Public Expenditure and Reform

From the period 2009 to 2013 the Financial Emergency Measures in the Public Interest (FEMPI) Acts introduced pay reduction measures. These measures, together with the Public Service Pension Reduction (PSPR) implemented in January 2011, are estimated to have resulted in over €2.2bn in direct reductions in public service remuneration and pensions annually.

The Government has now, through the negotiation and agreement of a financially prudent public service agreement on pay and related issues, provided for a gradual unwinding of the FEMPI measures as they apply to public servants. The terms of this agreement, the Lansdowne Road Agreement, are being implemented under the Financial Emergency Measures in the Public Interest Act 2015 with effect from 1 January 2016 at a full year cost of €844m to 2018. Additional provision has also been made for an amelioration of the PSPR for public service pensioners at an additional full year cost of €90m in 2018. This approach has also enabled resources to be assigned for the ongoing recruitment of additional front line public service staff such as Gardaí, Teachers and Health professionals to support the delivery of our vital public services.

The cost of repealing the remaining FEMPI pay reductions is estimated at some €1.4 billion.

Under section 12 of the FEMPI Act 2013, I am required to review the necessity of FEMPI legislation annually and cause a written report of my findings to be laid before each House of the Oireachtas. In that context, economic and fiscal progress in the years ahead will determine the scope and timing of the possible further scale-back or elimination of the financial emergency measures.

Strategic Infrastructure Provision

Questions (44)

Bernard Durkan

Question:

44. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform if he has examined strategic expenditure to address infrastructural deficiencies in areas such as housing, health, transport, communications and education with a view to identifying how best to address these issues while meeting off-Government balance sheet requirements; and if he will make a statement on the matter. [12992/16]

Written answers

Minister for Public Expenditure and Reform

A strategic review of infrastructural requirements was undertaken by my Department as part of last year's capital review. This culminated in the publication in 2015 of 'Building on Recovery: Infrastructure and Capital Investment 2016-2021', which outlines a €42bn framework for infrastructural investment across Ireland. The Plan prioritises spending on what were considered to be the areas of greatest need as the economy continues its strong recovery.

As always, to support traditional procurement, alternative means of funding were also explored which included 'off-balance sheet' methods allowed for under the fiscal rules. To support the €27bn Exchequer and €14.5bn commercial State sector investment elements of the plan, a new third phase of Public Private Partnerships (PPPs) to a value of €500m was announced as part of the capital plan. The projects chosen for this PPP investment were specifically targeted at addressing priority needs in three areas - education, health and justice - while Phase 2 of the PPP programme announced in Budget 2015 targeted social housing.

The Programme for a Partnership Government commits to a review of Government priorities within the capital plan in the context of the mid term review to be undertaken by mid 2017. The programme also provides for the Government to propose Oireachtas approval for a cumulative, additional €4billion in exchequer capital investment up to 2021, in the areas of transport, broadband, education, health and flood defences, to accelerate delivery of infrastructure requirements. In undertaking the mid-term review of the Capital Plan, my Department will work closely with line Departments to identify the potential for reprioritisation of existing resources and also potential areas to benefit from any additional funding available. The Government will continue to consider the potential for alternative financing mechanisms including off balance sheet PPPs.

The proposed Budgetary Reform Process which I announced with the Minister for Finance last week, also has a very important role to play in contributing to the assessment of capital investment priorities.

Public Sector Staff Remuneration

Questions (45)

Mick Wallace

Question:

45. Deputy Mick Wallace asked the Minister for Public Expenditure and Reform the measures he will take to address pay inequality in the public service and in particular the two-tier system that has developed in which newer entrants earn considerably less than their longer-serving colleagues; the timeframe for such measures; and if he will make a statement on the matter. [12597/16]

Written answers

Minister for Public Expenditure and Reform

The issue of addressing the difference in incremental salary scales between those public servants, who entered public service employment since 2011 and those who entered before that date was addressed with the relevant union interests under the provisions of the Haddington Road Agreement (HRA). Any further consideration of remuneration for any group of public servants, including issues relating to more recently recruited public servants, will fall to be examined within the provisions of the Public Service Stability Agreement 2013 -2018 (Lansdowne Road Agreement). Such arrangements will of course require compliance with provisions of the Lansdowne Road Agreement on the part of the staff interests. It will also of course have to comply with the terms of the Financial Emergency in the Public Interest Acts 2009 - 2013 (FEMPI), as well as its affordability being underpinned through delivering enhanced work place practices and productivity.

Under the Lansdowne Road Agreement the process of restoring public pay is commencing. An important feature of this is the flat rate increase which is being implemented. This is proportionately more valuable to those early in their careers.

The Programme for Government also states that Government will establish a Public Service Pay Commission to examine pay levels across the public service. The precise structure of such a commission and the technical aspects as to how it would operate have yet to be decided upon and would require broad consultation, including engagement with staff representatives as was committed to in the Lansdowne Road Agreement. My officials have begun to review international best practice in respect of public service pay determination models. This will help frame the Government's thinking on how to establish a fair, transparent and accountable process for determining public service pay, taking into account the views of all stakeholders.

Legal Costs

Questions (46)

John Curran

Question:

46. Deputy John Curran asked the Minister for Public Expenditure and Reform his views on the overall bill for legal services incurred by the State; if he is taking steps to co-ordinate actions to achieve greater value for money; and if he will make a statement on the matter. [13094/16]

Written answers

Minister for Public Expenditure and Reform

In recent years, with a view to achieving significant reductions in the State's legal costs, my Department has been actively engaged with the State organisations which have direct responsibility in the field, i.e. the State's Law Offices - the Office of the Attorney General (principally the Office of the Chief State Solicitor) and the Office of the Director of Public Prosecutions - and the Department of Justice and Equality.

Major reductions, varying between 8% and 12%, have been effected in regard to legal fees paid by the State. In addition, with the encouragement of my Department, the Chief State Solicitor's Office and the Office of the Director of Public Prosecutions have introduced enhanced mechanisms for rigorous examination of claims for fees.

The work of the Law Offices is, as you are aware, demand-led. The area has experienced a very significant increase in the work being handled by the Offices in terms of both complexity and size. However, due to the initiatives outlined above, it has been possible to maintain the overall allocations for counsel fees payable by the Offices at broadly the same level as pertained in 2011.

In tandem with the reduction of fees to counsel, the Office of Government Procurement in my Department is working on reducing the cost of solicitor services provided for the State. The Office intends putting in place during 2016 a National Framework for Solicitors Legal Services for Whole of Government.

This Framework will be underpinned by the following:

- Improved operational efficiencies and reduced costs;

- Discipline, continuity and consistency to the provision of legal services;

- Establishment of a supply base with broad service coverage and improved service quality;

- A framework structure which has the potential to impact positively on the Irish economy and society.

The Framework will provide an opportunity for public service bodies to leverage the full buying power of the State in delivering value for money in the legal costs area, reduce risk through standardised terms and conditions, and reduce their own administration costs.