Thursday, 22 Mar 2018

Written Answers Nos 64-74

National Development Plan Data

Questions (64)

Dara Calleary

Question:

64. Deputy Dara Calleary asked the Minister for Public Expenditure and Reform the GDP growth forecasts for each year up to 2027 upon which the national development plan is based; if these growth forecasts account for Brexit as outlined by both the ESRI report and the Copenhagen report on Brexit; the amount of the available fiscal space for 2019, 2020 and 2021 that has been used up from the national development plan; if the Exchequer borrowing requirement will be raised as a result of the national development plan; if the Irish Fiscal Advisory Council, IFAC, has been consulted specifically in relation to the borrowing requirements; and if he will make a statement on the matter. [11317/18]

Written answers

Minister for Public Expenditure and Reform

Macro-economic projections adopted in the Plan for the period 2018-2021 are detailed in Annex 3 of the Economic and Fiscal Outlook for Budget 2018. As set out in the NDP, a potential growth rate of 2% in volume terms is assumed over the period 2022 to 2027. This potential growth rate aligns with the most recent long-term growth projection from the European Commission for Ireland for the 2020s while being lower than the OECD long-term projection of almost 3% for that period.

The prudent approach taken to the macro-economic and public capital investment framework in the plan is confirmed in terms of Ireland’s historic growth performance averaging about 4½% over the whole of the period from 1966 – 2017. The 2% real growth assumption for 2022 to 2027 is supplemented with the conventional assumption that inflation will average 2% in line with the upper limit of the ECB’s inflation target yielding a 4% nominal growth projection over the period.

The projections used for the National Development Plan are appropriately prudent and conservative in light of the research carried out by the ESRI and Copenhagen Economics on Brexit. According to the Copenhagen Economics study, the more recent of these reports, in a scenario of a European Economic Area (EEA) agreement with the U.K. potential growth in the period 2030 is projected to be reduced to an annual average of 2%. Similarly, a hard Brexit is projected to reduce potential growth in the period to 2030 to an annual average of 1.7%. The baseline in that report is 2.2% growth in GDP per annum.

This is compared to the 2% projection underlying the NDP. Furthermore, the Copenhagen Economics study does not take account of the impact of the very substantial public capital programme contained in the NDP on the supply side of the economy and productivity – the key driver of long-term economic growth.

In terms of fiscal space, the NDP announced four new funds which will begin operating from 2019. The funds will be partly covered by an unallocated capital reserve in the first instance, leaving an additional cost, which will both pre-commit unallocated fiscal space and impact on the Exchequer Borrowing Requirement (EBR). The EBR and general government debt developments table will be updated in the draft Stability Programme Update for 2018 to be published in mid-April.

The estimated cost, in fiscal space terms, of the four funds is €144 million over the period 2019-2021 as follows:

€ - millions	2019	2020	2021
Fiscal Space Used	54	36	54

The Deputy may wish to note that the Economic and Fiscal Outlook published by the Department of Finance at Budget-time last year projected that Ireland will move from a small General Government Deficit as a share of GDP to a General Government Surplus approaching 1 per cent of GDP by 2021, inclusive of the projected infrastructure spending in the National Development Plan.

It is also important to state that this approach is fully in line with the fiscal rules. While my Department did not consult with the IFAC in relation to the National Development Plan, my Department did note IFAC's broad support for the Government's proposed approach to increased public capital investment, in its November 2017 Fiscal Assessment Report.

Public Private Partnerships

Questions (65)

Richard Boyd Barrett

Question:

65. Deputy Richard Boyd Barrett asked the Minister for Public Expenditure and Reform his views on whether the commitment to public private partnerships as a means to finance capital projects should be reconsidered in view of the collapse of a company (details supplied); and if he will make a statement on the matter. [4285/18]

Written answers

Minister for Public Expenditure and Reform

The Public Private Partnership (PPP) model is an internationally recognised model to design, build, finance, operate and maintain public infrastructure. In accordance with international best practice, PPP contracts typically include detailed provisions that apply in the event of the liquidation of a consortium member of the PPP company, or an entity under the contract, to ensure that the project proceeds to completion. The case the Deputy refers to highlights the prudential need for and value of such arrangements.

Under the terms of such PPP contracts, in the case of liquidation of a consortium member, or an entity under the contract, the PPP consortium’s funders and remaining shareholders are required to intervene and implement rectification measures to ensure that the project is completed to the satisfaction of the State.

This process is underway in the case of the Schools Bundle 5 PPP (as a consequence of the Carillion plc liquidation). Liquidation of a company such as Carillion plc is an unfortunate development but would impact all projects regardless of whether procured traditionally or by means of a PPP. The issue, therefore, is not PPP-specific.

The contractual mechanisms within a PPP project agreement are designed to limit the State’s financial exposure in such a scenario. An important feature of PPPs (which does not arise in traditional procurement) is that no payments are made until the facilities are handed over to the State and are operational. Once facilities are operational, payments to the PPP company are linked to service performance and availability of the facilities over the lifetime of the contract, and deductions apply when the facilities are not performing or are unavailable. The latter payment mechanism is not a feature of a traditional model which has regular milestone payments during construction.

PPPs continue to provide benefits to the State as a procurement method which enables the public sector to harness the innovation, commercial and management expertise and efficiencies of the private sector to design, build, finance, operate and maintain State facilities with a specified residual life on handback. PPPs will continue to be a procurement method available to the State for appropriately structured projects where they demonstrate value for money over a traditional procurement option.

As the Deputy may be aware I established an Inter-Departmental/Inter-Agency Group last year to review Ireland's experience of using PPP and to make recommendations on the future role of PPPs, in the context of the new 10 year capital plan. I would expect the Group's deliberations to take account of any implications for future national PPP policy of the development referred to in the Deputy's question. It is currently intended that the outcome of the review will be published alongside the new capital plan.

Flood Relief Schemes Status

Questions (66)

Aindrias Moynihan

Question:

66. Deputy Aindrias Moynihan asked the Minister for Public Expenditure and Reform when the catchment flood risk assessment and management programme and flood risk management plans for the upper Lee will be completed; and if he will make a statement on the matter. [11331/18]

Written answers

Minister of State at the Department of Public Expenditure and Reform

The core strategy for addressing areas at potentially significant risk from flooding is the Office of Public Works Catchment Flood Risk Assessment and Management (CFRAM) Programme. 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.

The CFRAM Programme is focussing on 300 Areas for Further Assessment (AFAs) including 90 coastal areas, mainly in urban locations nationwide, designated in 2012 as being at potentially significant risk of flooding. The flood risk for each of these areas has been assessed, through detailed engineering techniques to assess their risk and impact from flooding. This risk and the proposed feasible measures, both structural and non-structural, identified to manage that risk are outlined in the Flood Risk Management Plans.

In the upper Lee catchment, the following areas Inchigeelagh, Ballingeary, Macroom and Ballymakeera/Ballyvourney were designated as AFA’s and were assessed under the South Western CFRAM Study.

In relation to Macroom, a pre feasibility study of the flooding problem in the area has recently been completed by the OPW Design Section, which has recommended that a more detailed feasibility study would commence by the Summer of 2018.

A flood relief scheme for Ballymakeera/Ballyvourney is currently at outline design stage where the preferred options for the scheme are being finalised. The second Public Information Day will be held on 22 March, 2018 and this will be followed by a Public Exhibition of the preferred scheme in the latter half of 2018.

Proposed measures has been identified in the Flood Risk Management Plans for Inchigeelagh and Ballingeary.

In summer 2017, the OPW finalised all Plans and each Plan was submitted to the Department of Public Expenditure and Reform for an independent review of the environmental assessments. Having now received the outcomes of the independent review of the environmental assessments for the Flood Risk Management Plans, the Commissioners of Public Works are now submitting the Flood Risk Management Plans to the Minister for Finance and Public Expenditure and Reform for approval.

The National Development Plan 2018-2027 commits to almost €1 billion in funding for flood relief schemes, with annual Capital funding for the OPW doubling to €100m by 2021. This funding will support continued investment in schemes at construction and design. Once the Plans are approved, I intend to announce a prioritised initial tranche of schemes proposed by the Plans to progress to detailed project level assessment and that provide greatest return for Government investment.

Community Employment Schemes Supervisors

Questions (67)

Eamon Scanlon

Question:

67. Deputy Eamon Scanlon asked the Minister for Public Expenditure and Reform the status of the provision of a pension for community employment supervisors; if the failure to act on the Labour Court recommendation that a pension scheme would be provided will be addressed; and if he will make a statement on the matter. [13336/18]

Written answers

Minister for Public Expenditure and Reform

I refer the Deputy to my reply to Parliamentary Question no. 54985/17 answered on 16 January 2018.

Flood Relief Schemes Status

Questions (68)

Joan Burton

Question:

68. Deputy Joan Burton asked the Minister for Public Expenditure and Reform the OPW's plans to address the flooding issue in the Hazelhatch area of Celbridge, County Kildare; and if he will make a statement on the matter. [13480/18]

Written answers

Minister of State at the Department of Public Expenditure and Reform

The core strategy for addressing areas at potentially significant risk from flooding is the Office of Public Works (OPW) Catchment Flood Risk Assessment and Management (CFRAM) Programme. 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.

The CFRAM Programme focused on 300 Areas for Further Assessment (AFAs) including 90 coastal areas, mainly in urban locations nationwide, designated in 2012 as being at potentially significant risk of flooding. The flood risk for each of these areas has been assessed, through detailed engineering techniques to assess their risk and impact from flooding. This risk and the proposed feasible measures, both structural and non-structural, identified to manage that risk are outlined in the Flood Risk Management Plans.

Having now received the outcomes of the independent review of the environmental assessments for the Flood Risk Management Plans, the Commissioners of Public Works have submitted the Flood Risk Management Plans to the Minister for Finance and Public Expenditure and Reform for approval.

While the Hazelhatch area of Celbridge, County Kildare was assessed as part of the Eastern CFRAM Study the Plans have identified the need for some further study of the area before being able to identify any feasible option to manage the existing flood risk.

In the interim, the OPW understands that the more frequent flooding experienced in the area is due to a blockage of the culverts at Willow Dale and Willow Avenue. In this regard, I understand that Kildare County Council is considering lodging an application under the OPW Minor Flood Mitigation Works and Coastal Protection Scheme in relation to this flooding experience.

Harbours and Piers

Questions (69)

Tom Neville

Question:

69. Deputy Tom Neville asked the Minister for Public Expenditure and Reform if the sea wall will be extended at a pier (details supplied) in County Kerry; and if he will make a statement on the matter. [13516/18]

Written answers

Minister of State at the Department of Public Expenditure and Reform

The wall at the pier in question does not come within the responsibility of the Office of Public Works. Responsibility for the pier and its retaining walls most likely rests with Kerry County Council. The Council would be free to undertake works to the pier using its own resources. I understand also that funding for works such as this may be available from the Department of Agriculture, Food and the Marine under its Fishery Harbour and Coastal Infrastructure Development Programme, whereby the Department co-funds up to 75% of the total cost of approved projects with the Local Authority providing the balance.

If there is a flood risk at this location the OPW operates the Minor Flood Mitigation Works and Coastal Protection Scheme, under which applications from local authorities are considered for measures costing not more than €750,000 in each instance. Funding of up to 90% of the cost is available for projects which meet the eligibility criteria including a requirement that the proposed measures are cost beneficial. Full details are available on the OPW's website at: http://www.opw.ie/en/floodriskmanagement/operations/minorfloodworkscoastalprotectionscheme/

No application has been received to date by the OPW for the location referred to in this question.

Educational Projects

Questions (70)

Paul Kehoe

Question:

70. Deputy Paul Kehoe asked the Minister for Education and Skills the status of an agreement to develop a project (details supplied); and if he will make a statement on the matter. [13242/18]

Written answers

Minister for Education and Skills

A copy of a business case in relation to the project referred to by the Deputy has been received and is being considered by my Department.

Education Data

Questions (71)

John Curran

Question:

71. Deputy John Curran asked the Minister for Education and Skills when the nationwide demographic exercise involving all school planning areas will be completed and published; and if he will make a statement on the matter. [13259/18]

Written answers

Minister for Education and Skills

As the Deputy may be aware, in order to plan for school provision and analyse the relevant demographic data, my Department divides the country into 314 school planning areas. My Department uses a Geographical Information System (GIS) to identify where the pressure for school places across the country will arise. The GIS uses data from a range of sources, including the Central Statistics Office, Ordnance Survey Ireland, the Department of Social Protection and my Department's own databases. With this information, my Department carries out nationwide demographic exercises at primary and post primary level to determine where additional school accommodation is needed.

Where demographic data indicates that additional provision is required, the delivery of such additional provision is dependent on the particular circumstances of each case and may, depending on the circumstances, be provided through either one, or a combination of, the following:

- Utilising existing unused capacity within a school or schools,

- Extending the capacity of a school or schools,

- Provision of a new school or schools.

It is anticipated that decisions based on the nationwide demographic exercises will be announced in the coming weeks.

Schools Building Projects Status

Questions (72)

Paul Kehoe

Question:

72. Deputy Paul Kehoe asked the Minister for Education and Skills when a design team will be appointed to a school project (details supplied); and if he will make a statement on the matter. [13295/18]

Written answers

Minister for Education and Skills

The school in question is an ETB school.  The ETB was approved devolved funding in December 2017 to address an acoustic deficiency in its ASD Unit.

The tender process for the Consultant has been concluded by the ETB and the tender report has been submitted to my Department for review.  As soon as a decision on the tender outcome has been made the ETB will be advised accordingly. 

Teachers' Remuneration

Questions (73, 76)

Tom Neville

Question:

73. Deputy Tom Neville asked the Minister for Education and Skills if there is a roadmap to restore full equal pay for teachers hired after 2011; and if he will make a statement on the matter. [13307/18]

Jan O'Sullivan

Question:

76. Deputy Jan O'Sullivan asked the Minister for Education and Skills when the report on the examination of the remaining salary scale issues in respect of post-January 2011 recruits at entry grades into the public services in particular into the teaching profession, under the Public Service Pay and Pensions Act 2017 will be published and be presented to the Houses of the Oireachtas for adoption; and if he will make a statement on the matter. [13421/18]

Written answers

Minister for Education and Skills

I propose to take Questions Nos. 73 and 76 together.

The public service agreements have allowed a programme of pay restoration for public servants to start. I, together with my colleague the Minister for Public Expenditure and Reform, negotiated a 15-22% pay increase for new teachers. The agreements to date have restored an estimated 75% of the difference in pay for more recently recruited teachers and deliver convergence of the pay scales at later points in the scale.

As a result of these changes, the current starting salary of a new teacher is €35,958 and from 1 October 2020 onwards will be €37,692. If full equalisation was achieved the starting salary for a post-primary teacher from 1 October 2020 would be €43,879 and for a primary teacher would be €41,511.

To have gone further than the pay increases that have been negotiated for 2018 would mean I would have had less money available to hire over 1,000 extra SNAs and over 1,000 extra teachers. Differential pay scales were introduced by the then Government in 2010. It must be borne in mind that the pay reduction for post-2011 entrants applied to all public servants and not just teachers, and that any restoration of these measures in respect of teachers would be expected to be applied elsewhere across the public service.

In accordance with the Public Service Pay and Pensions Act 2017, the Minister for Public Expenditure and Reform recently laid before the Oireachtas a report on the matter of the pay of new entrants to the public service. The report assesses the cost of a further change which would provide a two scale point adjustment to new entrants recruited since 2011. The total cost of such adjustment across the public sector is of the order of €200 million, of which Education accounts for €83 million. The report also acknowledges that during the financial crisis there were policy changes which affected remuneration in different occupations across the public sector (including education). Addressing any issues arising from changes which are not specifically detailed in the report would give rise to additional costs over and above the foregoing figures.

Any further negotiation on new entrant pay is a cross sectoral issue, not just an issue for the education sector. The Government also supports the gradual, negotiated repeal of the FEMPI legislation, having due regard to the priority to improve public services and in recognition of the essential role played by public servants.

The Minister for Public Expenditure and Reform’s report will inform discussion on remaining salary scale issues with the parties to the Public Service Stability Agreement 2018-2020 in accordance with the commitment in the Agreement to consider the issue of newly qualified pay. That process commenced with a first meeting on 12 October 2017. The three teacher unions attended that first meeting.

DEIS Applications

Questions (74)

Dara Calleary

Question:

74. Deputy Dara Calleary asked the Minister for Education and Skills further to Parliamentary Question No. 133 of 7 February 2018, if the updated information has been received by his Department; and if the position of the school in respect of DEIS inclusion has been reassessed accordingly. [13418/18]

Written answers

Minister for Education and Skills

Further to my reply on 07 February 2018, the update of the identification model is continuing.  As previously advised, this will take account of updated school data as provided by schools for the current school year combined with the Pobal HP Index of Deprivation, based on CSO Small Area Population statistics derived from the 2016 National Census. It is envisaged that this process including a quality assurance process will be completed in the coming weeks.

Should this exercise reveal that any school, including the school referred to by the Deputy, which did not qualify for DEIS in 2017 meets the criteria applicable to schools with the highest concentration of disadvantage based on the updated information then additional schools may be included in the DEIS programme subject to available resources.