Written Answers Nos. 1 - 45
32. Deputy Willie O'Dea asked the Minister for Public Expenditure and Reform the progress that has been made in establishing an interdepartmental group, as indicated in correspondence (details supplied), to examine the issue of those who are forced to retire at 65 years of age but are not eligible for a pension until 66 years of age; and if he will make a statement on the matter. [18691/16]
View answerLast January the previous Government approved the establishment of an Interdepartmental Working Group to consider policy designed to support fuller working lives. The Group is chaired by an Assistant Secretary from my Department and includes senior representatives from the Departments of Jobs, Enterprise and Innovation, Social Protection, Justice, Health and Education.
The Group has examined the relevant issues in detail and has engaged with stakeholders. The report of the Group will be finalised shortly following which it will be submitted for the consideration of Government.
33. Deputy Thomas P. Broughan asked the Minister for Public Expenditure and Reform his priorities during the Slovakian European Union Presidency and how these priorities may have changed due to the result of the referendum on the United Kingdom withdrawing from the European Union; and if he will make a statement on the matter. [19718/16]
View answerThe programme of the Slovak Presidency of the Council of the European Union is based on four priorities: an economically strong Europe; a modern single market; sustainable migration and asylum policies; and a globally engaged Europe.
A key issue for which my Department has responsibility is Cohesion policy. The Slovak Presidency intends to lead a discussion on European Commission proposals that will assess the benefits of the reformed Cohesion policy and outline areas to simplify and streamline it. Representing a Member State with more than four decades experience of Cohesion policy, I am keen to share Ireland's experience of delivering programmes with a view to seeing a greater focus on the objectives of the policy and an increased simplification for all those involved in delivering it.
Ireland was successful in securing more than €1 billion of Cohesion funding from the European Regional Development Fund and the European Social Fund for the period 2014-2020, an increase of 8% over the period 2007-2013. This includes Ireland's contribution to the North South PEACE and INTERREG Programmes and the Ireland Wales INTERREG Programme.
Following the outcome of the UK Referendum on EU membership, the Government has made clear its commitment to the successful implementation of the programmes. Immediately following the Referendum result my officials contacted the Commission as well as representatives of the Northern Ireland Executive and the Scottish and Welsh Governments to underscore our commitment to the programmes and to discuss how they would continue to benefit from EU funding.
As regards the outcome of the UK Referendum on EU membership, we have advanced, and will continue to progress, comprehensive contingency work across Government in order to define our national interests and work out how best they can be protected during the negotiations process. As negotiations are unlikely to start for some months, there is time for the EU and its Member States to prepare.
The European Council will of course play the decisive role in the negotiations, making all the key decisions. The European Commission will also have an important role to play, and the final package will require the approval of the European Parliament, but the overall political direction of the process will be provided by the European Council.
34. Deputy Michael Healy-Rae asked the Minister for Public Expenditure and Reform if he will make available funds for the dredging of the Laune and Flesk rivers in County Kerry to alleviate flooding; and if he will make a statement on the matter. [19564/16]
View answerNeither the Laune nor the Flesk rivers form part of any Arterial Drainage Scheme which would fall under the remit of the Office of Public Works (OPW) under the 1945 Arterial Drainage Act. The OPW therefore has no responsibility for the maintenance of these rivers.
Local flooding issues are a matter, in the first instance, for each Local Authority to investigate and address, and Kerry County Council may carry out flood mitigation works using its own resources. The Office of Public Works operates a Minor Flood Mitigation Works and Coastal Protection Scheme. This administrative Scheme's eligibility criteria, including a requirement that any measures are cost beneficial are published on the OPW website, www.opw.ie. It is open to the Council to submit a funding application under the Scheme. Any application received will be considered in accordance with the overall availability of resources for flood risk management and the scheme's eligibility criteria.
The core strategy for addressing the significant flood risks nationally is the Office of Public Works’ (OPW) Catchment Flood Risk Assessment and Management (CFRAM) Programme. Glenflesk and Killarney are two of 27 Areas for Further Assessment (AFAs) in the South West River Basin District being assessed under the South West CFRAM study. The Programme, which is being undertaken by engineering consultants on behalf of the OPW working in partnership with the local authorities, involves the production of predictive flood mapping for each location, the development of preliminary flood risk management options and the production of flood risk management plans.
Under the South West CFRAM Study, draft predictive flood maps have been produced and were the subject of Public Consultation Days in Glenflesk on 21st October, 2014 and in Killarney on 23rd October, 2014. In addition, Public Consultation Days were held in Glenflesk and Killarney on 8th December, 2015 to present and discuss preliminary options to manage the assessed flood risks in these AFAs. The draft maps are now being finalised following the conclusion of the national statutory public consultation process on 23rd December, 2015.
Following the finalisation of the flood mapping and the identification of preliminary flood risk management options, the final output from this important project will be integrated Flood Risk Management Plans containing specific measures that can address in a comprehensive and sustainable way the significant flood risks identified along the South West River Basin District. The draft Plans will include a prioritised list of measures to address flood risk in an environmentally sustainable and cost effective manner. These Plans will be available for public consultation from mid 2016.
The Government recently announced increased levels of investment in the area of flood relief as part of the overall Capital Investment Plan 2016-2021 and this investment programme will allow for consideration of measures arising from the Plans.
35. Deputy Richard Boyd Barrett asked the Minister for Public Expenditure and Reform if he will consider speeding up the restoration of the public service pension so that pensioners revert to their pre-financial emergency measures in the public interest legislation pensions by 1 January 2017; and if he will make a statement on the matter. [19755/16]
View answerIn June 2015, Government approved proposals for a significant amelioration of pension reductions which had been applied under the financial emergency (FEMPI) legislation to all public service pensions above specified thresholds. This amelioration of the Public Service Pension Reduction (PSPR), which subsequently became law under the Financial Emergency Measures in the Public Interest Act 2015, provides for changes to occur in three phases, on 1 January 2016, 1 January 2017 and 1 January 2018.
On 1 January 2016, increases in the exemption thresholds for PSPR application were activated. These exemption threshold increases fully removed PSPR from a significant number of pensions with relatively lower values, while those pensions which continue to be impacted by PSPR received a boost of €400 per year.
On 1 January 2017, additional PSPR amelioration, acting principally via further exemption threshold increases, will fully remove PSPR from another significant tranche of public service pensioners, while at the same time boosting those pensions which remain affected by PSPR by €500 per year.
On 1 January 2018, the third phase of PSPR amelioration will ensure that all PSPR-impacted pensions with values up to €34,132 will be fully restored, meaning that PSPR will no longer affect such pensions, while those pensions which continue to be impacted by PSPR will get a boost of, in most cases, €780 per year.
These phased PSPR changes across the public service will cost an estimated €90 million on an annual basis and, when fully implemented, will ensure that only the top 20% higher value public service pensions will continue to be impacted by the PSPR.
In my annual report last month to the Houses of the Oireachtas under section 12 of the Financial Emergency Measures in the Public Interest Act 2013, I concluded that it was necessary to continue to apply the pay and pension measures under the FEMPI 2009 to 2013 Acts, including the PSPR. Consistent with that position, I do not plan to bring forward the pension restoration element due on 1 January 2018 to 1 January 2017.
40. Deputy Thomas Pringle asked the Minister for Public Expenditure and Reform if he will contact the high level forum on the community voluntary sector regarding the provision of a pension scheme for community employment supervisors; and if he will make a statement on the matter. [19558/16]
View answerThe issue referred to in the Deputy's question concerns Community and Employment Supervisors and Assistant Supervisors who are seeking through their union representatives the allocation of Exchequer funding to implement a Labour Court recommendation relating to the provision of a pension scheme dating back to 2008. In this regard the position has been that it is not possible for the State to provide funding for such a scheme to employees of private companies notwitstanding the position that those companies are or were reliant on State funding.
This issue has, however, remained under review and in this context the Community Sector High Level Forum has been reconvened in order to examine the matter fully, having regard to the implications for costs and precedent.
41. Deputy Pearse Doherty asked the Minister for Public Expenditure and Reform his plans to deal with capacity pressures within the public sector in the context of the Government's announced tax cut programme. [19752/16]
View answerThe Government recognises that economic and social progress go hand in hand. Therefore, the Programme for a Partnership Government sets out a clear strategy for increasing spending in a sustainable way built on stable revenues. A key focus of the Government is on providing the best environment for job creation. Unemployment has fallen from a peak of over 15% to 7.8% in May this year. The Government's ambition is to help create 200,000 new jobs by 2020, including 135,000 outside of Dublin.
The Summer Economic Statement (SES) estimates that there will be cumulative net fiscal space of €11.3 billion over the period 2017 to 2021. The distribution of fiscal space is consistent with commitments in the Programme for a Partnership Government including:
- At least a 2:1 split between public spending increases and tax reductions.
- To increase the level of current expenditure from its 2016 base level by at least €6.75 billion by 2021.
- To deliver an additional €4.0 billion in cumulative capital expenditure over the period 2017 to 2021. In fact €5.1 billion will be delivered.
- To provide for a rainy day fund. It is proposed to contribute €1 billion per annum to a rainy day fund from 2019 onwards.
Delivering public services needs people and as regards staffing, in both the 2015 and 2016 Budgets, provision was made for significant additional staff in the Health Sector; more teachers, Special Need Assistants and Resource teachers in the Education sector; and additional Gardaí. Overall staffing levels increased by some 7,000 (2.3%) in the Public Service in 2015 and is projected to rise by a further 8,600 (2.8%) this year.
During this time, as the Deputy will be aware, the moratorium on recruitment has been replaced with delegated arrangements which give Departments greater flexibility in managing staffing resources, including recruitment and promotion. Central to the arrangements are Departments staying within pay bill ceilings. We will of course continue to grow our public services over the medium term but the delegated arrangements will ensure that we do so at affordable and sustainable levels.
Investment in public infrastructure is vital for the medium and long-term competitiveness of the economy as well as for underpinning social cohesion through provision of vital services to the public. The public capital plan published last September set out an exchequer spend of €27 billion on capital investment over six years. Under the Plan key investments will be made in transport, education, health and enterprise. In every part of the country, these investments will boost our competitiveness, create jobs, and upgrade our social infrastructure. If we add investment from the wider semi-state sector, and off-balance sheet mechanisms such as PPPs, total state investment amounts to €42 billion over the period. The SES sets out total extra spending on capital investment of €5.1 billion over the period of the plan, an increase of 18.5% on the previously proposed Exchequer component of the plan. The allocation of this additional funding will be determined as part of the mid-term review of the Capital Plan in 2017 and will take account of key emerging priorities.
42. Deputy Mick Wallace asked the Minister for Public Expenditure and Reform if he is satisfied with the current proposed ratio of two to one public investment to tax cuts as set out in the summer economic statement, or if he believes that spending the entire fiscal space for 2017 on public investment is a better option in the long run; and if he will make a statement on the matter. [19730/16]
View answerThe Summer Economic Statement (SES) recognises that economic and social progress go hand in hand. Only a strong economy supporting people at work can pay for the services needed to create a fair society. A key focus of the Government is on providing the best environment for job creation. Unemployment has fallen from a peak of over 15% to 7.8% in May this year. The Government's ambition is to help create 200,000 new jobs by 2020, including 135,000 outside of Dublin.
The SES estimates that there will be cumulative net fiscal space of €11.3 billion over the period 2017 to 2021 with a 2:1 ratio between increased spending on public services and tax reductions. For 2017, this results in the allocation of €0.67 billion of total net fiscal space of €1 billion to expenditure increases.
However, this is the total additional spending planned for 2017. Some increases are already included in the base expenditure for 2017 arising from certain demographic pressures in Health, Social Protection and Education, the carry forward of Budget 2016 measures and the Public Capital Plan. When added to the €0.67 billion fiscal space, the full increase in gross voted current expenditure is €1.3 billion (2.5%) between 2016 and 2017 with gross voted capital expenditure increasing by €0.4 billion (10.5%).
The Deputy may also wish to note that the allocation to expenditure increases in 2017 of €0.67 billion set out in the SES exceeds the totality of the fiscal space amounting to €0.5 billion identified for 2017 at the time of Budget 2016 in October last.
The Government's intention is that by setting out the broad parameters of economic and fiscal policy over the medium term, the SES will help frame discussions with the Oireachtas on budget priorities for 2017.
43. Deputy Ruth Coppinger asked the Minister for Public Expenditure and Reform if he will reverse the two-tier pay and pension structures for new entrants to the public sector; and if he will make a statement on the matter. [19802/16]
View answerFor the majority of public servants 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 adjustment 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). It will also of course have to comply with the terms of the Financial Emergency Measures in the Public Interest Acts 2009 - 2015 (FEMPI), as well as its affordability being underpinned through delivering enhanced work place practices and productivity.
New entrants, including members of the Oireachtas, to all sectors of public service employment from 1 January 2013 onward are members of the Single Public Service Pension Scheme. This is a defined benefit scheme which operates under rules set out in the Public Service Pensions (Single Scheme and Other Provisions) Act 2012 with pension accrual based on career-average pay, not final salary, and a higher pension qualifying age in line with reforms in broader pension policy. I am satisfied that the Single Scheme provides fair and reasonable pension terms to its members and ensures that they will have adequate pension provision for the period after their employment.
44. Deputy Thomas P. Broughan asked the Minister for Public Expenditure and Reform if he will report on performance budgeting and performance management in the public service; his plans for key elements of development and reform; and if he will make a statement on the matter. [19719/16]
View answerThe performance budgeting initiative provides a single, coherent organising principle for public service information funded by the Exchequer. Over the last number of years, the initiative has been subject to ongoing review and improvement. One of the most significant developments in this area has been the reformatting of the Revised Estimates Volume to include performance information. This new design ensures that the information needed by decision-makers and those who scrutinise public policy is available 'at a glance'. This includes details of financial and human resources, outputs and public service activities, and context and impact indicators. This allows for examination of how public money is being spent, the services that are being provided and the impact that those services are having on our society.
The development of the performance budgeting initiative is an ongoing process, to enhance the information provided and build on international best practice and guidance. Following the publication of the Revised Estimates Volume for 2016, a detailed review of the performance information provided was carried out by my Department. Alongside this, a detailed guidance note on enhancing the quality of performance information has been developed and circulated to Departments. In line with this guidance note and based on the results of the review, detailed feedback has been provided to each of the main Government Departments, in order to assist officials in selecting and reporting on appropriate performance indicators. This feedback has been positively received and it is anticipated that, with ongoing engagement on the matter, there will be a significant improvement in the quality of performance information included in future publications.
In order to facilitate the Oireachtas in their ex-post scrutiny of budgetary measures and consistent with the recommendations of the November 2015 OECD Report Review of budget oversight by parliament: Ireland, I have proposed to submit a performance report to the Oireachtas by the end of Quarter 1 each year, starting in 2017. This report will provide information on the performance of each Vote and the linkages between results and allocated resources. It is intended that this will allow for meaningful and systematic engagement between the Oireachtas and Government Departments on resource allocation decisions and the impacts of public policies.
45. Deputy Dara Calleary asked the Minister for Public Expenditure and Reform the timeline for reversing the public service pension reductions introduced during the economic crisis; the cost of restoring cuts on pensions up to €50,000 and full restoration; and if he will make a statement on the matter. [19746/16]
View answerIn June 2015, Government approved proposals for a significant amelioration of pension reductions which had been applied under the financial emergency (FEMPI) legislation to all public service pensions above specified thresholds. This amelioration of the Public Service Pension Reduction (PSPR), which subsequently became law under the Financial Emergency Measures in the Public Interest Act 2015, provides for changes to occur in three phases, on 1 January 2016, 1 January 2017 and 1 January 2018.
On 1 January 2016, increases in the exemption thresholds for PSPR application were activated. These exemption threshold increases fully removed PSPR from a significant number of pensions with relatively lower values, while those pensions which continue to be impacted by PSPR received a boost of €400 per year.
On 1 January 2017, additional PSPR amelioration, acting principally via further exemption threshold increases, will fully remove PSPR from another significant tranche of public service pensioners, while at the same time boosting those pensions which remain affected by PSPR by €500 per year.
On 1 January 2018, the third phase of PSPR amelioration will ensure that all PSPR-impacted pensions with values up to €34,132 will be fully restored, meaning that PSPR will no longer affect such pensions, while those pensions which continue to be impacted by PSPR will get a boost of, in most cases, €780 per year.
These phased PSPR changes across the public service will cost an estimated €90 million on an annual basis and, when fully implemented, will ensure that only the top 20% higher value public service pensions will continue to be impacted by the PSPR.
The cost of amending PSPR as currently applied by increasing the threshold before PSPR is applied to €50,000 is estimated to incur a further cost of €90 million per year. The PSPR yield in this scenario would be reduced to less than €15 million per year.
The costs of fully restoring the PSPR cuts as currently applied is estimated to be in the region of €105 million per year.
