Written Answers Nos. 1-29
13. Deputy Joan Burton asked the Minister for Public Expenditure and Reform his plans to move to a fixed price costing system in respect of public contracts in order to secure greater levels of certainty in respect of the profiling of costs for public projects; and if he will make a statement on the matter. [18019/19]
View answerThe majority of public works projects are currently delivered using fixed price, lump sum contracts tendered on a competitive basis, with clear risk allocation set out in the tender documents. These contracts represent the default tendering position for projects delivered under the Exchequer-funded element of the National Development Plan.
In line with Circular 33/06 in exceptional and rare circumstances, consideration can be given to amendments to the forms of contracts which should be submitted to the Government Construction Contracts Committee (GCCC) in advance for consideration and approval, as appropriate. A total of 12 derogations have been given by the GCCC since 2011 in recognition of the particular circumstances in which they are to be used.
Reviews of two key elements of cost oversight on the NDP are also currently under way. My Department is reviewing the Public Spending Code which is the set of rules, procedures, and guidance to ensure Value for Money in public expenditure across the Irish Public Service. The Capital Works Management Framework, which represents the procedures and conditions of contract that must be used in the engagement of consultants and contractors on public works projects, is being reviewed by the Office of Government Procurement.
The review of procurement policy for public works projects will deliver significant changes to the CWMF over the coming years. It will involve extensive engagement both with industry stakeholders and with the public bodies charged with the delivery of public works projects on a broad range of issues and will extend over the next 12 – 18 months.
Preliminary engagement and scoping has already been undertaken and, following further consultation, a range of position papers will be prepared throughout 2019 and 2020 on issues that are impacting on project delivery. These papers will be published to facilitate wider engagement with all those working on the delivery of public works projects.
A review of the public works contract carried out in 2014 noted that the successful outcome of a project is placed in considerable jeopardy by allowing the market to price the risk represented by inadequate definition in a competitive tender.
Therefore quality of information and enhanced risk management throughout a project’s lifecycle will inform all aspects of the review. Opportunities to further deploy digital technologies, such as Building Information Modelling (BIM), will also be explored with the aim of improving workflows and information management for public bodies, contractors and consultants.
14. Deputy Barry Cowen asked the Minister for Public Expenditure and Reform if an ex post analysis has been undertaken on demographics cost provisioned in each budget; if there will be a new analysis for the years ahead; and if he will make a statement on the matter. [17986/19]
View answerThe demographic figures used to inform budget negotiations are based on an ex-ante analysis carried out by the Irish Government Economic and Evaluation Service (IGEES). Demographic cost pressures from 2017 to 2027 are set out in the IGEES staff paper ‘Budgetary Impact of Changing Demographics 2017 – 2027’ published in September, 2016. This paper is based on figures from Census 2016 and focuses on the areas of Health, Education and Social Protection, which are particularly affected by the changing age profile of the population.
A new analysis is currently being undertaken by officials in my Department. Based on more recent data, this updated paper will examine expected changes in the structure of the population of Ireland and the impact that these changes will have on public expenditure, particularly in the areas of Social Protection, Health and Education. The paper will be published as part of the Spending Review, the third round of which is currently underway. The results of this analysis will inform Budget discussions in relation to 2020 and the medium term.
15. Deputy Joan Burton asked the Minister for Public Expenditure and Reform the restrictions imposed on recruitment and overtime in parts of the civil or public service for 2019; and if he will make a statement on the matter. [18020/19]
View answerSince 2015 it has been possible to provide for significant increases in Government expenditure, which have allowed for the recruitment of additional staff across the public service. At the end of 2014, there were 293,346 public service employees (on a full-time equivalent or FTE basis) and this increased to 330,576 (FTE) by end 2018. In particular a large proportion of these increases were in sectors that provide key frontline services. For example, over this period, numbers in the Health sector increased from 101,494 to 117,857 and numbers in the Education sector increased from 94,045 to 106,948.
It is a key responsibility of each Minister and Department to manage expenditure within the agreed allocations and, in order to provide enhanced scope for Departments to manage staffing levels and composition within their allocated financial resources, a policy of delegated sanction in relation to staff management was specifically introduced in 2015.
It is within this context, and taking into account the increase of 5.6% in the paybill for 2019, from €17.7 billion in 2018 to €18.7 billion, that individual Departments have responsibility for the management of all elements of their expenditure within the allocations voted by Dáil Éireann.
16. Deputy Thomas Pringle asked the Minister for Public Expenditure and Reform the reason little progress has been made in the implementation of flood and coastal erosion measures along vulnerable coastal areas in County Donegal and which were announced by the Minister of State in May 2018; and if he will make a statement on the matter. [17780/19]
View answerVery good progress has been made on the implementation of new flood relief schemes in County Donegal since I announced, in May 2018, 29 Flood Risk Management Plans for all the main river basins. These Plans identified a total of 118 flood relief projects to protect the main flood risk areas throughout the country, 15 of which are in County Donegal These Plans and projects are a key part of the overall flood risk management strategy set out in the National Development Plan 2017 - 2028 involving total investment of almost €1 billion over the ten year time frame of that Plan. As it is not possible to implement all of the 118 projects at the one time, a total of 50 projects were prioritised for the initial tranche of investment and delivery based on the level of risk and number of properties to be protected.
Following consultation and discussions between the OPW and Donegal County Council, six of the 15 Donegal projects have been identified to be progressed in the first phase of implementation. Steering Groups for the projects have been established and much work is being done to make preparations for the appointment of consultants over the coming months for these projects. The OPW and Donegal County Council will work closely to ensure that the projects that are not in the initial tranche of projects to be progressed will be commenced as early as possible in the coming years and within the 10 year timeframe for the programme of investment.
17. Deputy Thomas Pringle asked the Minister for Public Expenditure and Reform if he will discuss the implementation of a pension scheme for community employment supervisors who have no access to an occupational pension scheme despite a 2008 Labour Court recommendation in their favour; the reason members of the Lansdowne Road agreement high forum have met only once since December 2017; and if he will make a statement on the matter. [17813/19]
View answer19. Deputy Jonathan O'Brien asked the Minister for Public Expenditure and Reform the status of community employment supervisors and provision of payments under a Labour Court recommendation of 2008; and if he will make a statement on the matter. [18055/19]
View answerI propose to take Questions Nos. 17 and 19 together.
This issue relates to a claim by community employment supervisors and assistant supervisors who have been seeking, through their union representatives, the allocation of Exchequer funding to implement a 2008 Labour Court recommendation relating to the provision of a pension scheme.
The matter was the subject of extensive discussion at the Community Sector High Level Forum which was reconvened to examine certain issues pertaining to the Community Employment sector and in particular to ensure that the matter was fully examined having regard to both costs and precedent. The implications arising from this claim extend beyond the CE Supervisors and Assistant Supervisors cadre and impact across the entire Community and Voluntary sector.
A detailed scoping exercise was carried out by my Department in 2017 in order to comprehensively examine and assess the full potential implications of the issues under consideration.
The scoping exercise clearly illustrated that this matter presents very significant issues for the Exchequer, with a potential cost exposure for the State of between €188 million per annum and €347m depending on the size of the sector which is difficult to ascertain, were consequential demands to be made to fund employer pension contributions for all similar State funded Community and Voluntary organisations. This excludes any provision for immediate ex-gratia lump sum payment of pension for those imminently retiring, as sought, which could, depending on the size of the sector, give rise to a further Exchequer cost exposure of up to €318 million.
The Forum met in the period subsequent to the conduct of the scoping exercise where relevant matters in respect of this issue were discussed in comprehensive detail with the members of the Forum. These discussions provided a clear understanding to each of the parties of their respective positions in relation to this matter and in this context the formal engagement process between the parties was accordingly concluded on this basis.
It continues to be the position that state organisations are not the employer of the particular employees concerned and accordingly it is not for the State to provide funding for occupational pension scheme provision.
18. Deputy Denis Naughten asked the Minister for Public Expenditure and Reform if he will incorporate green procurement into the public procurement code; and if he will make a statement on the matter. [17775/19]
View answerWork to promote the incorporation of social and environmental considerations in public procurement is being progressed under the National Public Procurement Policy Framework which is the overarching policy framework for public procurement in Ireland. Under this framework, proposals to implement environmental considerations in public procurement are being developed through the Social Considerations Advisory Group which is chaired by the Office of Government Procurement (OGP).
The OGP are currently developing a circular for Government Departments/Offices on promoting the use of environmental and social considerations in public procurement. The circular will direct Departments/Office to consider including environmental criteria in their procurements, where such clearly defined, quantifiable, verifiable and measurable criteria have been developed by the Dept of Communications, Climate Action and Environment (DCCAE). These criteria should, if they are relevant to that procurement, be met within a Department’s existing budget without impacting on service delivery.
An overarching objective of all public procurement is the achievement of value for money. In implementing environmental considerations in public procurement, it is crucial that an approach is adopted that will further Government policy while also ensuring a competitive market place where suppliers can compete aggressively resulting in the desired pricing outcome. In areas where the market is not yet sufficiently competitive, a phased approach to environmental considerations in public procurement may be necessary to encourage the emergence of new suppliers with innovative solutions. Care should also be taken to ensure that the addition of environmental considerations to public contracts is done in a manner that does not mitigate against small and medium sized enterprises (SMEs) as they may not be in a position to bear the additional costs or administrative burden.
The public service must demonstrate its commitment to sustainable development and use its influence to persuade others of the changes required to reduce our impact on the environment. By providing leadership in terms of environmental considerations in public procurement, public bodies can underpin the credibility of national environmental policy objectives and enhance Ireland’s image as a 'green' economy.
21. Deputy Willie Penrose asked the Minister for Public Expenditure and Reform his plans in respect of outstanding public sector pay restoration; his further plans for public sector dialogue between workers, trade unions and his Department; and if he will make a statement on the matter. [18022/19]
View answerThe process of unwinding the Financial Emergency (FEMPI) legislation commenced under the Lansdowne Road Agreement 2016-2018 and will be completed under the Public Service Stability Agreement 2018-2020 (PSSA).
The PSSA, which was negotiated in 2017, and the provisions of which were statutorily provided for under the terms of the Public Service Pay and Pensions Act 2017, allows for a continued, controlled unwinding of the FEMPI legislation. The unwinding process is progressively weighted towards those at the lower levels of pay (who will see their salaries increase relative to 2008), and is implemented on a phased basis.
By end 2019 salary rates up to €50,000 will be fully restored. By end 2020 salary rates up to €70,000 (over 90% of the public service) will be fully restored.
For public servants who have not achieved full restoration of the FEMPI reductions by October 2020 (i.e. the date of the last PSSA increase), restoration of the amount must be completed by way of Ministerial order. This order must be made on the following dates:
For those with a post-PSSA salary of under €150,000:
- Covered public servants: a date after 1 October 2020 but before 1 July 2021.
- Non-covered public servants: on 1 July 2021.
For those with a post-PSSA salary in excess of €150,000:
- Covered public servants: a date after 1 October 2020 but before 1 July 2022.
- Non-covered public servants: a date after 1 July 2021 but before 1 July 2022.
Officials of my Department are in regular, ongoing, contact with trade unions and staff representatives in relation to Industrial Relations matters including through the auspices of the Oversight Body of the Public Service Stability Agreement.
22. Deputy Charlie McConalogue asked the Minister for Public Expenditure and Reform the levels of capital expenditure which will be allocated for infrastructure projects for County Donegal; the timeframe for these allocations; the projects for which funding will be provided; and if he will make a statement on the matter. [17773/19]
View answer25. Deputy Aindrias Moynihan asked the Minister for Public Expenditure and Reform the amount of funding for capital projects allocated to County Cork for 2019; the particular projects which are being provided for in 2019, in tabular form; and if he will make a statement on the matter. [18058/19]
View answerI propose to take Questions Nos. 22 and 25 together.
I should first explain that as Minister for Public Expenditure & Reform I am responsible for setting the overall capital allocations across Departments and for monitoring monthly expenditure at a Departmental level. Responsibility for the management and delivery of the individual investment projects, within the allocations agreed under the NDP, rests with the individual sponsoring Department in each case.
Under the umbrella of Project Ireland 2040, the Government has allocated capital funding behind the national priorities set out in the National Planning Framework (NPF). The three Regional Assemblies are responsible for co-ordinating, promoting and supporting the strategic planning and sustainable development of their regions, by formulating Regional Spatial and Economic Strategies (RSES). The key role in leading development at county level rests with the relevant local authority in the first instance.
23. Deputy Jonathan O'Brien asked the Minister for Public Expenditure and Reform the number of post-project reviews and cost-benefit analyses of public private partnerships that have been completed and published to date. [18056/19]
View answerPPPs are subject to VFM tests at four stages when they are being procured and to comprehensive post project reviews once sufficient time has elapsed for their operational performance to be properly assessed. Post project reviews should be published as soon as possible, subject to the withholding of commercially sensitive information.
Responsibility for conducting post project reviews rests with the sponsoring agency. I have, nevertheless, had enquiries made from relevant Departments and I understand the position to be as follows.
Transport Infrastructure Ireland has completed post project reviews on ten PPP schemes, which are available on their website.
The Courts Service has advised that its first post project review was completed in October 2012 and is published on the Courts Service website. The Courts Service has further advised that a second post project review will commence later this year with completion and publication date yet to be determined.
The Pilot Schools mid-term review is on-going and due to be completed in Q3 2019. This review is the first formal post project review of PPP projects carried out by the Department of Education & Skills.
The HSE is in discussions with the NDFA about commencing the post project review of the recently delivered primary care centre PPP Project.
24. Deputy Charlie McConalogue asked the Minister for Public Expenditure and Reform if he has held discussions with the European Commission on the possible allocation of additional funding for the Border region in view of the particular challenges that will arise in that area due to Brexit and the need to improve infrastructure to assist existing businesses to remain competitive; and if he will make a statement on the matter. [17772/19]
View answerAs I am sure Deputy will agree, the EU-funded INTERREG and PEACE programmes continue to act as important drivers of regional development for the border region of Ireland and for Northern Ireland.
INTERREG programmes funded by the EU exist to address the challenges encountered by border regions. In the case of Ireland, an additional and unique programme, the PEACE programme, addresses the challenges in the region arising from conflict.
The current INTERREG Programme has a total value of €282 million and is aimed at promoting economic, social and territorial cohesion. The current PEACE Programme has a total value of €270 million and aims to promote peace and reconciliation in Northern Ireland and the border counties of Ireland.
The Irish Government has been clear and consistent in its commitment to the successful completion of the current PEACE and INTERREG programmes and to a new programme post-Brexit. To that end my officials and I have engaged with the Commission at all levels.
I am pleased, therefore, that the draft Withdrawal Agreement would enable the two programmes to be completed without interruption or amendment. I am also pleased that, in the event of no agreement, the EU has now adopted a special regulation to allow the continuation of PEACE and INTERREG even in the event of a disorderly Brexit. This will provide confidence for those benefitting from the programmes that this important element of North South cooperation will continue to be financed from the EU budget, under current management structures and with funding levels unchanged, until the end of 2020.
As regards a future programme, the European Commission has responded to the Irish Government’s support for a future programme with a proposal for a special new PEACE PLUS programme that will build on and continue the work of PEACE and INTERREG into the future.
26. Deputy Barry Cowen asked the Minister for Public Expenditure and Reform the status of the next phase of the Public Service Pay Commission; and if he will make a statement on the matter. [17983/19]
View answer28. Deputy Joan Burton asked the Minister for Public Expenditure and Reform when the Public Service Pay Commission will complete its module 2 report on the matter of recruitment and retention in the Defence Forces; when it will issue its findings; if it has already completed its report, the findings of the commission; and if he will make a statement on the matter. [18021/19]
View answer29. Deputy Martin Heydon asked the Minister for Public Expenditure and Reform the status of the work of the Public Service Pay Commission in respect of members of the Defence Forces; and if he will make a statement on the matter. [18042/19]
View answerI propose to take Questions Nos. 26, 28 and 29 together.
The Public Service Pay Commission was established to advise Government on public service remuneration policy. In the current phase, the second phase of the Commission's work, it was tasked by its Terms of Reference to undertake an examination of whether, and to what extent, there are difficulties in recruiting and retaining staff in key areas of the public service identified in its first report.
The Public Service Pay Commission has adopted a modular approach to its work programme for its present exercise.
As the Deputies will be aware, the first module was published by the Commission in August 2018 and deals with issues relating to Nursing and Midwifery, Non-Consultant Hospital Doctors and Hospital Consultants.
In relation to the Defence Forces, I understand that written submissions have been received from both the Employer and relevant staff associations and more recently, on 5th March last, oral presentations were also made to the Commission by both parties. Following this, the Commission has indicated that it expects to complete its examination of recruitment and retention matters in the Defence Forces by the end of quarter two 2019.
27. Deputy Denis Naughten asked the Minister for Public Expenditure and Reform if he will increase the public procurement threshold from €25,000 in view of the impact this is having on SMEs; and if he will make a statement on the matter. [17774/19]
View answerAs stated in Circular 10/14: Initiatives to assist SMEs in Public Procurement, Public Sector Bodies are required to advertise all contracts for supplies and services with an estimated value of €25,000 (exclusive of VAT) and upwards on eTenders, the Governments National Tendering platform.
In May 2017, a proposal was put to the SME Advisory Group to raise the current threshold of €25,000 (exclusive of VAT) for advertising on the eTenders website. The SME Working (Advisory) Group, chaired by my colleague, Minister of State Patrick O’Donovan TD, meets on a quarterly basis in accordance with the Programme for Government, so that the voice of Irish SMEs can be heard by Government and the Office of Government Procurement (OGP). The membership of the group consists of officials from the OGP, the Department of Business, Enterprise and Innovation (DBEI), Enterprise Ireland (EI), InterTrade Ireland (ITI), the Competition and Consumer Protection Commission (CCPC), as well as representatives from the Irish Business and Employers’ Confederation (IBEC), the Small Firms Association (SFA), the Construction Industry Federation (CIF), the Irish Small and Medium Enterprises Association (ISME) and Chambers Ireland.
The proposal was discussed at meetings of the SME Advisory Group in September and December of 2017 and members were invited to submit their views to the OGP. It was clear from the discussion and the formal views expressed that the majority of members were against increasing the advertising threshold at that time. The OGP also took account of analysis of data on eTenders into their findings and decided in June 2018 that taking openness and transparency into consideration that the current advertising threshold of €25,000 (exclusive of VAT) should be maintained. The OGP will continue to monitor this issue and consult with the SME Advisory Group in the future.
