Written Answers Nos. 112-131
112. Deputy Michael McGrath asked the Minister for Finance the estimated annual cost of removing the outsourcing restriction on the research and development tax credit; and if he will make a statement on the matter. [28619/18]
View answer113. Deputy Michael McGrath asked the Minister for Finance the number of companies that have availed of the research and development tax credit by companies employing fewer than ten, ten to 50, 50 to 250 and companies employing more than 250 employees, respectively; the associated annual cost for each classification of company based on the most recent data in tabular form; and if he will make a statement on the matter. [28620/18]
View answerI propose to take Questions Nos. 112 and 113 together.
I am advised by Revenue that information in respect of the additional cost of the credit that would arise if the outsourcing restriction was lifted is not available as there is no reliable basis from tax returns data to allow an estimate of the cost to be produced.
I am further advised by Revenue that details of the number of companies claiming the research and development tax credit by range of number of employees, together with associated annual costs, are published on the Revenue website at: https://www.revenue.ie/en/corporate/information-about-revenue/statistics/tax-expenditures/r-and-d-tax-credits.aspx.
Information obtained from these statistics outlining the cost and the number of companies claiming the R&D Tax Credit, by number of employees, is provided in the Tables below.
Table 1: Cost in Millions of Euro
|
Year |
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
|
Less than 10 (employees) |
33 |
38 |
46 |
44 |
39 |
38 |
|
11 to 49 |
41 |
46 |
153 |
45 |
47 |
48 |
|
50 to 249 |
55 |
57 |
68 |
60 |
62 |
61 |
|
250+ |
133 |
141 |
154 |
404 |
560 |
523 |
Table 2: Number of Claimants
|
Year |
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
|
Less than 10 (employees) |
505 |
549 |
549 |
528 |
502 |
470 |
|
11 to 49 |
497 |
554 |
584 |
563 |
560 |
550 |
|
50 to 249 |
292 |
313 |
326 |
341 |
330 |
334 |
|
250+ |
115 |
127 |
117 |
138 |
143 |
152 |
116. Deputy Lisa Chambers asked the Minister for Public Expenditure and Reform the number of information and communications technology specialists that have been hired in the Civil Service in County Mayo since July 2016; and if he will make a statement on the matter. [28441/18]
View answer117. Deputy Lisa Chambers asked the Minister for Public Expenditure and Reform the number of ICT specialists that have been hired in the Connaught region by county since July 2010; and if he will make a statement on the matter. [28442/18]
View answer118. Deputy Lisa Chambers asked the Minister for Public Expenditure and Reform the number of persons offered positions in the Connaught region following the two public service competitions for information and communication technology specialists that were run in 2016 in which regional positions were available; and if he will make a statement on the matter. [28443/18]
View answerI propose to take Questions Nos. 116 to 118, inclusive, together.
As the Deputy will be aware, I am responsible for employment in the civil service. Other Ministers are responsible for employment in other parts of the public service
PAS undertook competitions in 2016 for Executive Officer and Higher Executive Officer in ICT for the civil service, and approximately 240 staff were assigned from these panels.
I understand from PAS that no requests to fill ICT vacancies in Mayo was received for either ICT competition and that one request to fill a vacancy was received for Galway and one person was assigned.
Although PAS held a number of ICT competitions between 2010 and 2016 no one was assigned to the Connacht region.
119. Deputy Thomas P. Broughan asked the Minister for Public Expenditure and Reform if the issue of pay inequality for post-2010 entrants to the teaching profession will be resolved; if pay parity for primary school principals awarded in 2007 will be implemented; and if he will make a statement on the matter. [28461/18]
View answerThe Public Service Stability Agreement 2018-2020 (PSSA), provided that an examination of remaining salary scale issues in respect of post January 2011 recruits at entry grades would be undertaken within 12 months of the commencement of the Agreement.
Additionally this Government accepted an amendment at Section 11 of the Public Service Pay and Pensions Act 2017, that within 3 months of the passing of the Act, I would prepare and lay before the Oireachtas a report on the cost of and a plan in dealing with pay equalisation for new entrants to the public service.
This was a significant body of work and staff resources from within the Irish Government Economic Evaluation Service (IGEES) were assigned to collect, collate and examine the data and provide detailed point in time costs associated with the measure.
In accordance with the legislation I submitted a report to the Oireachtas on the 16th of March. This report, and the substantial amount of data and analysis underpinning it provide a valuable evidence base for consideration of this matter. The report shows that there has been strong recruitment since 2011 to the estimated 237 recruitment grades across the public service, with over 60,500 new entrants hired. This includes over 16,000 teachers and nearly 5,000 Special Needs Assistants. Full year costs based on a two point increment jump for those effected were estimated at approximately €200m.
Discussions on this issue with public service trade unions and representative associations, commenced in October 2017, with a formal plenary meeting taking place on 27th of April last. Further discussions are ongoing as the parties continue to work through the various aspects of this issue.
I understand the issue regarding primary school principals raised in the question relates to one of the recommendations by the Public Service Benchmarking Body (II) in December 2007 based on a particular point in time public service pay review. The recommendation related to an increase in the allowance payable to principals of primary schools. Provision for payment of the recommendations of the Public Service Benchmarking Body (II) was made under the Towards 2016 – Review and Transitional Agreement 2008-2009. However, payment of the increases provided for under that Agreement were not paid as part of the then Government’s programme of measures to restore stability to the Public Finances and reduce the then existing deficit between income and expenditure.
The non-payment of general round increases under the terms of the Towards 2016 Agreement and certain other third party recommendations were not and have not been paid and were acknowledged under the Haddington Road Agreement as part of the substantial contribution made by public servants to the fiscal consolidation process at that time. Accordingly, I have no plans to implement the recommendations of the Public Service Benchmarking Body (II) made in 2007.
120. Deputy Joan Burton asked the Minister for Public Expenditure and Reform his plans to advance the project to create a pedestrian bridge and cycleway to connect the Phoenix Park to the War Memorial Gardens, Islandbridge; and if he will make a statement on the matter. [28579/18]
View answerThe original design for the Irish National War Memorial Gardens, by renowned architect Edwin Lutyens, orginally featured a bridge across the river Liffey with a formal entrance to the Gardens from Conyngham Road. The bridge was never constructed and therefore access from the north bank of the river was never realised. The Commissioners of Public Works are in continuing discussions with relevant stakeholders with a view to advancing the development of a modern pedestrian and cycle way bridge at this location which would be sympathetic to the original plans and would allow for connectivity between the INWMG and the Phoenix Park, subject to satisfactory funding arrangements being in place.
121. Deputy Robert Troy asked the Minister for Public Expenditure and Reform when applications were last open for the OPW approved asbestos consultant list to sufficiently qualified companies; the reason there is only one consultant accredited by a board (details supplied) on the OPW list; when the OPW approved asbestos consultant list will be opened to receive new applications from sufficiently qualified companies; and if he will make a statement on the matter. [28581/18]
View answerThe current OPW panel of asbestos identification consultants is in operation since 2012. There are currently five consultant companies on the panel which OPW engages to carry out asbestos identification surveys and air monitoring services.
OPW assessed the applicants on competency and experience in asbestos surveying and air monitoring and they were required to demonstrate that they hold the following accreditation:
- UK British Occupational Hygiene Society (BOHS) Certificate P402 in Building Surveys and Bulk Sampling for asbestos or national equivalent.
- Air monitoring to conform to UK HSE method.
OPW and the State Claims Agency are currently engaging with the Office of Government Procurement (OGP) in relation to progressing a new multi party asbestos identification consultant framework. I hope companies will be invited to apply for inclusion on the framework soon.
122. Deputy Barry Cowen asked the Minister for Public Expenditure and Reform when the mid-year expenditure report will be published; and if he will make a statement on the matter. [28604/18]
View answerWork on the Mid-Year Expenditure Report is ongoing in my Department. Last year, the report was published on July 19th. The exact publication date for 2018 has yet to be finalised, however it is intended that it will follow a similar timeline to 2017.
123. Deputy Barry Cowen asked the Minister for Public Expenditure and Reform the public procurement rules surrounding public construction contracts; his views on whether small and medium sized construction companies are being forced to bid too low and are being put at risk; and if he will make a statement on the matter. [28605/18]
View answerPublic Procurement is governed by EU legislation and National rules and guidelines. The aim of these rules is to promote an open, competitive and non-discriminatory public procurement regime which delivers best value for money.
All public works projects that are delivered under the Exchequer-funded element of the Government's capital plan must be procured in accordance with the provisions laid down in the Capital Works Management Framework (CWMF). The CWMF is mandated by circular and was developed to assist contracting authorities in meeting their ongoing procurement requirements. It provides an integrated set of contractual provisions, guidance material, technical templates and procedures which cover all aspects of the delivery process of a public works project from inception to final project delivery and review.
Public works contracts are awarded following a competitive process where tendering contractors, respond to an invitation to tender issued in accordance with EU or National rules. Projects up to €50,000 may be awarded following a direct invitation to at least 5 contractors, between €50,000 and €5.548m a contract notice must be published on eTenders, the national tendering portal. All projects with a value in excess of €5.548m must also be published on the Official Journal of the EU. In the case of the latter two, contracts are usually awarded using the open or restricted procedure.
In the case of the open procedure, the tenders of all contractors who meet the minimum pre-stated selection criteria will be considered for evaluation and award in accordance with the stated award criterion. In the restricted procedure, contractors respond to a request to participate notice, they are normally shortlisted by reference to selection criteria and only those who are shortlisted are invited to tender.
In all cases tenderers are provided with identical sets of tender documents which provide significant detail on the project. Tenderers, when arriving at their tendered price, must take into account the requirements of the project, the constraints within which it is to be built and the attendant risks allocated under the conditions of contract.
The management of the tendering process for a public works contract is a matter for each contracting authority. It is the responsibility of each contracting authority to ensure that tenderers comply with all the requirements of the process. Under the EU procurement directives contracting authorities are obliged to seek an explanation from tenderers where the price bid appears to be abnormally low in relation to the works defined in the tender documents. Having undertaken an examination of the make-up of the price, a contracting authority may only reject a tender where it is satisfied that the evidence supplied does not account for the low price taking into account:
- The economics of the construction method;
- The technical solutions chosen or the exceptionally favourable conditions available to the tenderer from suppliers;
- The originality of the works proposed by the tenderer;
Where the evidence suggests that the tenderer’s price is low because of non-compliance with labour or environmental law, or where the tenderer is in receipt of State aid then it must be rejected.
It is worth noting that recent studies undertaken in the United Kingdom, following the collapse of Carillion, have highlighted the meagre margins that main contractors earn on building projects. Given the commonality in approach between the UK and Irish construction industries there is every reason to believe it is prevalent in the Irish construction sector. This culture must be addressed within the industry if it is to service its client base in a professional manner.
There are consequences both to the contractor who tenders a price that is unsustainable and to the contracting authority who accepts that price. From the contracting authority’s point of view, poor quality materials and workmanship can often arise in these circumstances, claims and disputes may also arise and in cases where the contractor becomes insolvent it can lead to extensive delays to the project’s delivery. Where the contractor is concerned they may be operating without a profit (if not incurring a loss), may have very poor relationships with suppliers and, in the worst cases, may become insolvent as a result of a failure to properly account for real cost of the works.
There is a balance to be struck in deciding to award a public contract between value for money and a quality project outcome. From the taxpayers perspective it can be very difficult to justify a decision to reject the lowest price out of hand, particularly in the circumstances where the contractor who has bid the price is willing to undertake the project.
The impact of awarding contracts at low prices was highlighted in the Report on the Review of the Performance of the Public Works Contracts published in 2014. A range of measures was recommended in that report to discourage unsustainably low pricing, amongst other aspects. One of these measures, which has been implemented since 2016, requires contracting authorities to prepare a bill of quantities to a defined set of rules which accurately measures all the necessary works on larger projects. Tenderers are required to price all of the measured items providing a very detailed breakdown of the price bid meaning that low pricing can be identified.
A further measure identified in the Report is the development of a medium term strategy for the procurement of public works projects. Engagement with industry stakeholder bodies has recently commenced on that strategy which will outline the optimum means of procuring the necessary expertise to deliver Ireland 2040 in a sustainable, efficient and cost effective manner.
124. Deputy Danny Healy-Rae asked the Minister for Education and Skills if an application by a school (details supplied) will be responded to as a matter of urgency; and if he will make a statement on the matter. [28410/18]
View answerI wish to advise the Deputy that my Department received an application for additional accommodation from the school referred to within the last week. The application will be assessed and the school authority advised of the position once the assessment process has concluded.
125. Deputy Michael Healy-Rae asked the Minister for Education and Skills if a matter (details supplied) will be addressed regarding class sizes at primary level; and if he will make a statement on the matter. [28418/18]
View answerIn the last two years, we have hired 5,000 additional new teachers. It is the case that many teachers who would have carried out substitution work are now gaining permanent contracts.
The Statistics Section of my Department's website contains extensive data relating to class sizes at primary level. The most recent published information relates to the 2016/2017 school year. Statistics in relation to the current school year will be published later this year when the data has been compiled.
Budget 2018 marks the second year of major reinvestment in the education sector, as we continue to implement the Action Plan for Education, which has the central aim to make the Irish education and training service the best in Europe within a decade.
Budget 2018 provides for an additional 1280 teaching posts in the 2018/19 school year. This includes a one point improvement in the staffing schedule in primary schools which brings the position to the most favourable ever seen at primary level. These changes will come into effect in September for the 2018/19 school year.
It is expected that this one point improvement in the staffing schedule, when implemented in September 2018, will further improve the overall ratio of teacher to students. The latest figures in relation to pupil teacher ratio show an improved ratio of teachers to students from 16:1 to 15.7:1 at primary level when comparing the 2015/16 school year to the 2016/17 school year. Average class sizes at primary level improved from 24.9 to 24.7 in the same period.
126. Deputy Patrick O'Donovan asked the Minister for Education and Skills the reason the mileage rates for supervisors of State exams were reduced; and if he will make a statement on the matter. [28420/18]
View answerThe State Examinations Commission has statutory responsibility for operational matters relating to the certificate examinations.
In view of this I have forwarded your query to the State Examinations Commission for direct reply to you.
127. Deputy Margaret Murphy O'Mahony asked the Minister for Education and Skills when the expansion of the DEIS programme as part of the school completion programme will be announced in view of the fact that it was due to be announced in May 2017; and if he will make a statement on the matter. [28430/18]
View answerAs the Deputy is aware, following the publication of DEIS Plan 2017 in February of last year, DEIS was extended to a further 79 schools. Schools included in the DEIS programme have access to a wide range of supports including additional capitation in the form of the DEIS grant, reduced class size for Band 1 schools, access to HSCL scheme, priority access to a range of professional development supports as well as to the Centre for School Leadership and access to the Incredible Years and Friends Programmes.
One of the supports available under DEIS is access to the School Completion Programme (SCP). SCP focuses on targeting and providing supports to young people identified to be most at risk of early school leaving. Access to the SCP has not yet been extended to those 79 schools which were included in the DEIS programme last year. As noted in DEIS Plan 2017, supports under DEIS will be extended on a phased basis to those schools not already in receipt of these supports. SCP comes under the remit of my colleague, the Minister for Children and Youth Affairs. The Minister for Children and Youth Affairs and Tusla Educational Welfare Service are fully committed to the future of the School Completion Programme and will continue to work with colleagues in my Department to ensure that it will deliver the best possible outcomes for young people at risk of early school-leaving.
128. Deputy Michael Healy-Rae asked the Minister for Education and Skills if the issue of pay inequality among teachers will be addressed (details supplied); and if he will make a statement on the matter. [28447/18]
View answerThe 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.
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 an 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. Further talks began on the 27th of April with all public service unions in relation to new entrant pay. Further engagement is being arranged as the parties continue to work through the various aspects of this issue.
129. Deputy Paul Kehoe asked the Minister for Education and Skills the status of an application by a school (details supplied) for additional accommodation; when a decision will issue in regard to the application; and if he will make a statement on the matter. [28449/18]
View answerI can confirm to the Deputy that the school in question submitted an application for additional accommodation. The application will be considered and a decision will be conveyed to the school authority shortly.
130. Deputy Thomas P. Broughan asked the Minister for Education and Skills his plans to reduce primary class sizes in 2019; the estimated cost of a reduction by 1, 2, 3, 4 and 5 pupils per class, respectively; and if he will make a statement on the matter. [28455/18]
View answer131. Deputy Thomas P. Broughan asked the Minister for Education and Skills his plans to reduce primary DEIS classes in 2019; the estimated cost of a reduction in DEIS class sizes by 1 and 2 pupils, respectively; and if he will make a statement on the matter. [28456/18]
View answerI propose to take Questions Nos. 130 and 131 together.
From September 2018, class sizes in primary schools will be at their lowest ever level following the government decision to reduce the pupil teacher ratio in Budget 2016 and Budget 2018.
The criteria used for the allocation of teaching posts is published annually on the Department website. The key factor for determining the level of staffing resources provided at individual school level is the staffing schedule for the relevant school year and pupil enrolments on the previous 30 September. The staffing schedule also includes an appeals mechanism for schools to submit an appeal under certain criteria to an independent Appeals Board.
The staffing schedule operates in a clear and transparent manner and treats all similar types of schools equally irrespective of location.
Budget 2018 includes a further one point improvement in the staffing schedule in primary schools which brings the position to the most favourable ever seen at primary level. This budget measure delivers on a commitment made in the Confidence and Supply Agreement and Programme for Government to reduce primary schools class size.
These changes will come into effect in September 2018 for the 2018/19 school year.
Each 1 point adjustment to the primary staffing schedule is estimated to cost in the region of €16.5m per annum.
