Written Answers Nos. 77-95
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Written Answers Nos. 77-95
77. Deputy Pearse Doherty asked the Minister for Public Expenditure and Reform the way in which the expenditure ceilings outlined in the Stability Programme Update 2021 will deliver commitments made in the Programme for Government and under the Climate Action Plan 2019; if he will disaggregate the cost of those commitments under the expenditure ceilings in the Stability Programme Update 2021; and if he will make a statement on the matter. [20534/21]
View answerIreland’s Stability Programme Update (SPU), published last week, is to be submitted to the European Commission before the end of April. The SPU sets out macroeconomic and fiscal projections for the period to 2025. Given the high degree of uncertainty with the virus, the draft SPU has been prepared on a technical basis.
In light of this, from an expenditure perspective, the amount of €87.8 billion included in the SPU for 2021 is on a technical no-policy change basis reflecting decisions by Government to date in relation to Covid-19 supports.
Looking beyond this year, the expenditure amounts in the draft SPU are prepared based on certain technical assumptions. Budget 2021 separately identified expenditure on core budgetary programmes and expenditure on Covid-19 related measures. On a technical basis, core expenditure in the SPU grows by c. 3½% per annum over the period 2022 to 2025. Furthermore, it is assumed that the additional expenditure in respect of Covid-19 provided for in Budget 2021 is fully unwound by 2023, apart from certain additional expenditure related to the operation of the automatic economic stabilisers. The phasing of the unwinding of this Covid-19 related expenditure will ultimately depend on the public health situation, taking into account the Government's commitment to support the recovery of society and the economy from Covid-19.
As we develop our fiscal strategy, there will be detailed consideration of the measures that will be required over the coming years to support this recovery in society and the economy. In this regard, recognising the important role improvements in our State’s infrastructure can play in enhancing economic capacity and promoting balanced regional development, the Programme for Government committed to bringing forward the planned review of the National Development Plan (NDP) from 2022 and to using it to set out an updated NDP for the period out to 2030. My Department recently published the Phase 1 Report - Review of the NDP following a detailed process of engagement. This report, which outlines the various strands of the review process, provides an evidence base to inform capital investment decisions to support economic, social, environmental and cultural development all across the country.
Given the technical assumptions used in preparing the draft SPU, all expenditure amounts will fall to be reassessed, with the level of resources to be allocated each year, and in particular in 2022, to be decided taking into account the situation with the virus, the medium term fiscal strategy, the NDP Review, Programme for Government priorities and with regard to progressing the Government's Climate Action goals.
78. Deputy Matt Carthy asked the Minister for Public Expenditure and Reform his plans for further review of the National Development Plan. [20043/21]
View answer86. Deputy Alan Dillon asked the Minister for Public Expenditure and Reform the status of the review of the National Development Plan; and if he will make a statement on the matter. [19670/21]
View answerI propose to take Questions Nos. 78 and 86 together.
Significant progress has already been made in delivering a range of both large and small infrastructure projects across the country.
The review of the National Development Plan was brought forward in order to ensure alignment with the new Programme for Government. High quality public investment will play an important role in supporting the economic recovery from Covid-19 and addressing challenges in areas such as housing, Transport, health and climate change, as well as balanced regional development in line with the National Planning Framework (NPF).
Crucially, the review of the NDP will also be aligned with the work being progressed as part of the Climate Action Plan and the National Economic Recovery Plan.
The review commenced in October 2020 and considers five fundamental elements: what the appropriate level of public investment should be over the next ten years; what the share of the budget should be across Departments; ensuring alignment with the policy priorities of the Programme for Government; ensuring regional development through alignment of investment with the National Planning Framework; and finally, assessing whether the structures and rules for the management, governance and oversight of projects can be improved in order to deliver on the ambitions of the new NDP.
The Phase 1 report of the review was published on 4th April 2021. The Phase 1 report draws together a range of technical preparatory work such as macro-economic analysis, infrastructure demand analysis, public capital expenditure analysis, and a National Planning Framework alignment analysis, as well as a summary of a review of Public Private Partnerships, and an independent review of public sector capacity to manage and deliver public infrastructure projects. Departmental submissions and the results of the public consultation were also summarised.
The material set out in the Phase 1 report provides an evidence base to inform Government decisions that will need to be made in phase 2 of the review which is now underway.
Currently, the National Investment Office in my Department is working on the revision of the National Development Plan and they are engaging with the Departments in relation to this.
Supporting work is also being carried out, including a Climate and Environmental Assessment of spending proposals and an analysis of job creation from NDP investment.
The aim is to finalise and publish the new NDP in July 2021.
79. Deputy Marc MacSharry asked the Minister for Public Expenditure and Reform if all relevant Departments have developed action plans as part of the reform agenda as in the Building Momentum Public Service Agreement; and if he will make a statement on the matter. [20387/21]
View answerAction plans linked to the reform agenda outlined in Chapter 1 of the new public service agreement - Building Momentum - are currently in preparation. The plans will identify objectives and deliverables consistent with the overall reform framework set out in the Agreement. At this stage sectoral management have developed draft action plans and are commencing or about to commence engagement with the unions/representative associations that are party to the Agreement. The consultative process is due to be completed shortly. Once this phase ends, plans will be signed off by the relevant sectoral Secretaries General and published.
80. Deputy John McGuinness asked the Minister for Public Expenditure and Reform the action he is taking to ensure value for money is obtained for the significantly increased capital budget which will be at an all-time record level in 2021; and if he will make a statement on the matter. [20396/21]
View answerI should first explain that as Minister for Public Expenditure & Reform I am responsible for setting the overall multi-annual capital expenditure ceilings for each Ministerial Vote Group as set out in the National Development Plan and Project Ireland 2040. My Department is also responsible for maintaining the national frameworks within which Departments operate to ensure appropriate accounting for and value for money in public expenditure such as the Public Spending Code. The Public Spending Code sets the value for money requirements and guidance for evaluating, planning and managing capital projects. Management and delivery of investment projects and public services within allocation and the national frameworks is a key responsibility of every Department and Minister.
The Public Spending Code is not static and was updated in 2019 following an extensive consultation process. This update has strengthened the guidance to better align with the realities of project delivery and with a particular focus on improved appraisal, cost estimation and management. In line with the principle of proportionality, the requirements for smaller projects have been streamlined and the requirements for larger projects support a better consideration of options, risks, costs and deliverability.
The updated Public Spending Code brings a renewed focus to:
- Robust options appraisal to support identification of the most efficient and effective option to achieve the identified objective;
- Gaining a more developed view of costs, risks and timeframes before committing to proceed with a project;
- Tighter governance of key decision points during project preparation and delivery;
- Ongoing updating of the business case for a project as it proceeds through design and planning phases; and
- Continued scrutiny of affordability throughout the process.
As part of the ongoing reform of the Public Spending Code and as one of the work streams of the review of the National Development Plan, my Department is developing a strengthened assurance process for major projects with an estimated cost of over €100 million. This will involve an independent peer review of major projects at two key stages in the project life-cycle, specifically when the preferred delivery option is chosen and before approval is given to go to tender. The reviews will be conducted by independent experts in infrastructure delivery.
The reviews will consider key issues including:
- Robustness of planned delivery;
- Accuracy of cost forecasts;
- Consideration of risk; and
- Appropriateness of procurement strategies.
The detail of the process and arrangements for implementation will be delivered by summer 2021 with the review of the National Development Plan.
81. Deputy Peter Fitzpatrick asked the Minister for Public Expenditure and Reform the cost to date of all Covid-19-related payments in his Department to individuals and corporate entities; and if he will make a statement on the matter. [15409/21]
View answerThe information requested by the Deputy in relation to Covid-19-related payments by my Department and the Office of Government Procurement, which is also part of my Department, is set out in the tables below.
Department of Public Expenditure and Reform
|
Category |
2020 |
2021 (to March) |
|
ICT * |
€621,050 |
€30,020 |
|
Non-IT equipment and other costs |
€44,300 |
€5,600 |
|
Staffing |
€39,500 |
€25,550 |
|
Cleaning |
€24,600 |
- |
|
Personal Protective Equipment/Sanitiser |
€24,000 |
€250 |
* ICT costs include, for example, IT equipment, web services costs, additional IT security measures and costs related to the Covid-19 Tracker mobile app and the Vaccination Website
Office of Government Procurement
|
Category |
2020 |
2021 (to March) |
|
ICT * |
€182,600 |
€941 |
|
Non-IT equipment and other costs |
€43,900 |
€4,065 |
|
Personal Protective Equipment/Sanitiser |
€9,200 |
- |
* A portion of this is standard spend for new entrants at particular grades, a portion of it was a business decision to move away from replacing older desktops with laptops and the remaining spend was to enable OGP to work remotely and carry on business as usual during the pandemic
82. Deputy Neale Richmond asked the Minister for Public Expenditure and Reform the steps his Department has taken to improve the infrastructure of ports and airports due to Brexit; and if he will make a statement on the matter. [19967/21]
View answerAs a consequence of Brexit, physical infrastructure is required for customs, SPS and health checks and controls at Dublin Port, Rosslare Europort and Dublin Airport.
The Office of Public Works on behalf of the Revenue Commissioners; the Department of Agriculture, Food & the Marine; the Department of Health; and the Department of Transport, Tourism & Sport has been developing infrastructure in these ports and airports for the past two years.
In the lead up to the end of the December 2020 deadline, significant inspection and parking facilities were completed to ensure that appropriate checks can be carried out in Dublin Port and Rosslare Europort. Since then, work has continued to develop further this infrastructure to ensure that adequate facilities are in place as necessary.
83. Deputy Marc MacSharry asked the Minister for Public Expenditure and Reform if he has received an update from the Department of Health in relation to the costs associated with the building of the new children’s hospital; and if he will make a statement on the matter. [20388/21]
View answerThe Minister for Health and his Department have oversight responsibility in relation to the National Children’s Hospital. An update on this matter is, I understand, due to be provided to the Government in the near future.
84. Deputy Thomas Pringle asked the Minister for Public Expenditure and Reform when he will commence publishing statements of Ireland's net worth along with State assets and liabilities; the timeframe for the implementation of this OECD recommendation; and if he will make a statement on the matter. [20149/21]
View answerIn 2019, the OECD published its report Financial Reporting in Ireland. The report was a wide ranging review of the present system of financial reporting in Ireland. It made a number of recommendations for wide ranging reform over a number of years. The main focus was to reform the accounting framework for central Government to align with an international standards-based accruals system. The report set out a road map to deliver this reform up to 2025. The report also noted that one of the many advantages of this reform would be to facilitate the generation of a whole of Government account, which would include better detail on Ireland’s net worth. However, the report envisaged that the change of the accounting framework would be a necessary first step. Government has accepted the broad thrust of this report, and work is now well underway in preparing for the introduction of new framework in central government based upon the international public sector accounting standards.
However, I should note separately, that the Department of Finance has also recently completed some work relevant to this issue. A Report titled, ‘Ireland’s Public Sector Balance Sheet’, was published on 15th April 2021 and provides the most comprehensive picture of public wealth to-date. It accounts entirely for what the State owns and owes by bringing together all the accumulated assets and liabilities, which the Government controls. As a result, it offers a broader picture of the public balance sheet beyond deficits and debt.
85. Deputy Christopher O'Sullivan asked the Minister for Public Expenditure and Reform if funding will be made available for tackling the increasing and accelerated coastal erosion in County Cork; and if he will make a statement on the matter. [20495/21]
View answerLocal Authorities are responsible for coastal erosion in their own areas. The Local Authorities may carry out coastal protection works using their own resources. If necessary, they may also put forward proposals to the relevant Government Departments for funding of appropriate measures. Intervention or hard defences has the potential to cause problems further along the coast, any proposed intervention measures are best developed in conjunction with a formal coastal risk management study that has carefully investigated the problem and explored the full range of management options.
To assist Local Authorities in managing the coastline for coastal erosion, the OPW has undertaken a national assessment of coastal erosion (including erosion rates) under the Irish Coastal Protection Strategy Study (ICPSS) and the results of this study have been published on the OPW website. This data enables Local Authorities to develop appropriate plans and strategies for the sustainable management of the coastline in their counties.
The OPW operates the Minor Flood Mitigation Works and Coastal Protection Scheme since 2009, under which applications for funding from local authorities for small localised works are considered for measures costing up to €750,000 in each instance. Funding for coastal risk management studies may also be applied for under this scheme. It is open to Cork County Council to apply for funding under this scheme. Funding of up to 90% of the cost is available for projects that meet the eligibility criteria including a requirement that the proposed measures are cost beneficial. It is a matter for each local authority to ensure that all the necessary environmental, statutory and regulatory approvals are in place prior to any works being undertaken.
The OPW guidelines for funding applications under the Minor Flood Mitigation Works and Coastal Protection Scheme, together with a full list of funding approvals since 2009 is available on the OPW website at https://www.gov.ie/opw
The Government has established an Inter-Departmental Group on Managing Coastal Change to scope out an approach for the development of a national co-ordinated and integrated strategy to manage the projected impact of coastal change to our coastal communities. The Inter-Departmental Group is jointly chaired by the Department of Housing, Local Government and Heritage and the OPW and will bring forward options and recommendations for the Government to consider.
87. Deputy Barry Cowen asked the Minister for Public Expenditure and Reform the status of his Department’s work on the National Recovery and Resilience Plan; and if he will make a statement on the matter. [20398/21]
View answerWork is well underway on preparing Ireland’s National Recovery and Resilience Plan (NRRP), which is required to access funding under the EU’s Recovery and Resilience Facility (RRF). The Plan will set out the reforms and investments to be supported by the Facility.
The aim of the RRF is to mitigate the economic and social impact of the pandemic and make European economies and societies more sustainable, resilient and better prepared for the challenges and opportunities of the green and digital transitions.
Ireland is expected to receive €915 million in grants under the RRF in 2021 and 2022. A further set of grants is to be allocated in 2023, taking into account economic developments between now and then.
The Department of Public Expenditure & Reform, working together with the Department of the Taoiseach, the Department of Finance, the Department of Enterprise, Trade & Employment, the Department of Transport and the Department of the Environment, Climate & Communications, is responsible for preparing the Plan, with input from other Departments as necessary, and for ensuring coordination across Government.
The RRF is structured around six pillars: green transition; digital transformation; economic cohesion, productivity and competitiveness; social and territorial cohesion; health, economic, social and institutional resilience; policies for the next generation.
National plans must devote a minimum of 37% of expenditure to climate and 20% to digital investments and reforms.
They must strike a balance between reforms and investments and seek to address challenges identified in the relevant Country Specific Recommendations which arise as part of the European Semester process.
Ireland’s National Recovery and Resilience Plan will have a particular focus on: advancing the green transition; accelerating and expanding digital reforms and transformation; and social and economic recovery and job creation.
For 2021, Ireland’s National Reform Programme will be integrated into the National Recovery and Resilience Plan.
88. Deputy Verona Murphy asked the Minister for Public Expenditure and Reform the current position regarding the Enniscorthy flood relief scheme; when will the OPW officially sign off on the scheme for the River Slaney; and if he will make a statement on the matter. [20487/21]
View answer99. Deputy Paul Kehoe asked the Minister for Public Expenditure and Reform the status of the Enniscorthy flood defence scheme; and if he will make a statement on the matter. [19671/21]
View answerI propose to take Questions Nos. 88 and 99 together.
The Enniscorthy (River Slaney) flood defence scheme is being progressed by Wexford County Council (WCC), on behalf of the Commissioners of Public Works, as a scheme under the Arterial Drainage Acts 1945 and 1995. This is a significant scheme within the Office of Public Works €1 billion flood relief investment programme, from which the relevant funding for the Enniscorthy scheme will be made available. On completion, the Enniscorthy flood relief scheme will protect 236 properties in the town.
The Scheme requires formal confirmation from the Minister for Public Expenditure and Reform (MPER) to proceed. The Office of Public Works submitted the scheme and associated environmental assessments to the Department of Public Expenditure and Reform in Spring 2020 for statutory confirmation under the Arterial Drainage Acts, which now, under the recent European Union (Environmental Impact Assessment) (Arterial Drainage) Regulations 2019, also required the MPER to carry out an Environmental Impact Assessment (EIA) of the proposed Scheme. This involved, inter alia, a formal independent review by MPER of the Environmental Impact Assessment Report (EIAR) commissioned by WCC and recently submitted (along with a Natura Impact Statement) to MPER as part of the formal Confirmation process. DPER has now forwarded submissions from the public consultation, and the EIAR and NIS reviews, to the OPW, along with a request for supplementary information, to ensure that the design of the scheme complies with relevant environmental directives and regulations.
The OPW, Wexford County Council, and scheme consultants Mott Mc Donald have since been reviewing and compiling the supplementary information required, in order to formally respond to the points raised by the review of the scheme by DPER and their consultants. The relevant information will be forwarded to DPER by the end of April 2021. DPER and their consultants will then review the material submitted with a view to confirming the scheme. It is not possible to provide a specific timeline for a formal decision regarding confirmation in advance of that.
Completion of the above tasks and the progression of the flood relief scheme is a priority for all parties. In parallel with the confirmation process, OPW and Wexford County Council have been working on the following activities to ensure as efficient progression of the works as possible once the scheme is confirmed –
- the Foreshore licence application public consultation has been completed, approval expected mid 2021
- a legal agreement with Irish Water for diversion of services has been agreed. The detailed design for these works is complete, and contractor tender documents are currently being reviewed prior to advertisement.
- Technical approvals have been received from Irish Rail regarding the rail line crossings, with the legal agreement well advanced.
- Archaeological excavations are ongoing as required.
- Removal of invasive species (e.g. Japanese Knotweed) are ongoing.
- The Pre-qualification tender process of the bridgeworks contractor is ongoing.
89. Deputy Thomas Pringle asked the Minister for Public Expenditure and Reform if he will report on the phase 1 review report by the National Investment Office focusing specifically on the climate action measures; and if he will make a statement on the matter. [20152/21]
View answerThe review of the National Development Plan was brought forward in order to ensure alignment with the new Programme for Government. Crucially, the review of the NDP will also be aligned with the work being progressed as part of the Climate Action Plan and the National Economic Recovery Plan.
The NDP review commenced in October 2020 and considers five fundamental elements: what the appropriate level of public investment should be over the next ten years; what the share of the budget should be across Departments; ensuring alignment with the policy priorities of the Programme for Government; ensuring regional development through alignment of investment with the National Planning Framework; and finally, assessing whether the structures and rules for the management, governance and oversight of projects can be improved in order to deliver on the ambitions of the new NDP.
The Phase 1 report of the review was published on 4th April 2021. The Phase 1 report draws together a range of technical preparatory work such as macro-economic analysis, infrastructure demand analysis, public capital expenditure analysis, and a National Planning Framework alignment analysis, as well as a summary of a review of Public Private Partnerships, and an independent review of public sector capacity to manage and deliver public infrastructure projects. Departmental submissions and the results of the public consultation were also summarised.
The Phase 1 report sets out how the role of public investment in delivering on Ireland’s climate targets is being assessed as part of the ongoing review of the National Development Plan. Climate was an important consideration in the development of the current National Development Plan and is also in the ongoing appraisal of projects and programmes. However, in recognition of the need for systemic change, there will be an overarching focus on climate action throughout the new National Development Plan. Departments will be required to assess their spending proposals/allocations against a range of environmental outcomes to ensure that their investment priorities are aligned with Ireland’s climate and environmental objectives. To complement this sectoral assessment of the National Development Plan, the whole of the National Development Plan will be assessed against a suitable climate/environmental methodology which is line with international good practices.
It is important to note that the National Development Plan is not a vehicle through which investment proposals are approved. All project and programme proposals included in the Plan are subject to the detailed rigour of the Public Spending Code. The Public Spending Code is not static. It is updated regularly to reflect lessons learned and international good practice. The Phase 1 report also sets out ongoing body of work underway in my Department to strengthen the Public Spending Code requirements and guidance in relation to the consideration of environmental and climate factors in project appraisal, planning and delivery. In particular, I anticipate altering the shadow cost of carbon that applies to all projects once the higher targets envisaged in the draft Climate Action Bill are adopted. This will ensure that the amount of emissions a project may give rise to is quantified and a value placed on those emissions that reflects the cost that society will have to bear to eliminate these emissions in the future. This in turn allows the appraisal to determine if this future burden outweighs any benefits the project may bring.
The material set out in the Phase 1 report provides an evidence base to inform Government decisions that will need to be made in phase 2 of the review which is now underway. The aim is to finalise and publish the new NDP by July 2021.
90. Deputy Mairéad Farrell asked the Minister for Public Expenditure and Reform his plans to compile a report on non-compliant Covid-19-related expenditure given the high volume of Covid-19-related procurement purchases which took place outside the standard competitive procedures. [20511/21]
View answerCompliance with the public spending code in the disbursement of public funds is a matter for each contracting authority and the Office of the Comptroller and Auditor General is charged with responsibility for auditing and reporting on the accounts of each Government Department in that respect. The Local Authority Audit Service performs a similar function for Local Authorities.
It is a basic principle of public procurement that competitive tendering should be used except in justifiably exceptional circumstances. The EU Directives acknowledge and allow for the fact that there can be legitimate reasons for awarding contracts without the use of a competitive process, such as extreme urgency brought about by unforeseeable events such as the onset of the Covid-19 pandemic. Consequently, a direct award of a contract without a competitive process can be compliant with procurement rules. The justification for using non-competitive procurement and compliance with procurement rules is a matter for each contracting authority.
My Department does not have a regulatory function in this regard but supports public bodies in meeting their public procurement obligations through a range of supports including guidelines and template documentation, through proactive engagement with Government Departments and Agencies, and through OGP's sourcing partners in the Health, Education, Defence and Local Government Sectors through the Procurement Executive.
Public procurement procedures undertaken without a competitive process to meet extreme urgency supply requirements brought about by the Covid-19 pandemic emergency will require to be reported under Department of Finance Circular 40/02 reporting obligations to the Office of the Comptroller and Auditor General (C&AG). Circular 40/02 places an obligation on Government Departments and Offices to report all contracts above €25,000 (exclusive of VAT) awarded without a competitive process to the C&AG by 31 March of the following year with a copy to be sent to the OGP. The C&AG publishes information on these returns in the annual Appropriation Accounts. Circular 40/02 further recommends that contracts awarded without a competitive process should be subject to an internal review in each relevant Department or agency, preferably by the Internal Audit Unit or alternatively by an appropriate senior officer who is not part of the procurement process.
91. Deputy Pearse Doherty asked the Minister for Public Expenditure and Reform his views on the findings made by a programme (details supplied) detailing the waste of public money in the Office of Public Works; the action that has been taken since within his Department; and if he will make a statement on the matter. [20535/21]
View answerThe Commissioners of Public Works, or I as Minister, would not accept that the recent programme referenced by the Deputy is an accurate portrayal of the very valuable work done by the OPW. The programme referred to an internal OPW Review of property transactions that was conducted between 2014 and 2017 and which raised a number of issues - though these mainly related to historical property transactions. In the context of the scale and complexity of the OPW’s property portfolio, there will always be issues that arise from time to time. The review provided an opportunity for the OPW to strengthen its governance, since then, and further improve how it conducts its business.
The Office of Public Works (OPW) has an extensive and diverse portfolio - comprising approximately 2,500 properties valued at €3.3bn. Properties range from Leinster House, to Skellig Michael, major office buildings to very significant flood relief schemes.
The portfolio includes
- office accommodation for all Government Departments
- the property estate for An Garda Síochána
- numerous properties for many State Agencies.
It includes specialised spaces such as
- public offices
- laboratories
- cultural institutions
- warehouses
- heritage properties
- visitor centres and sites
While the programme referenced the Thornton Hall site, this property is neither owned nor managed by the Commissioners.
The challenge for the OPW is to meet a wide, and ever-changing, range of Public Service property needs. This necessitates the maintenance and constant updating of a sufficiently agile and flexible portfolio of accommodation so that the OPW can respond effectively and efficiently to the emerging priorities of Government. To achieve this, the OPW has an extensive network of technical and professional property personnel. The nature of the work of the OPW requires the input of professional, technical and administrative staff working in multi-disciplinary teams across a wide range of Estate Management Functions, including managing the design and delivery of major capital projects. The roles cover professional managers, architects, engineers, mechanical and electrical specialists, surveyors, planners, financial advisors, property economists, project managers, supplemented by other various specialists as required. Estate Management includes many of these roles among a cohort of staff who are widely experienced in managing a diverse portfolio of properties.
It is important to note that, while the OPW operates within the commercial property market, there are differences in how the State and the private sector approach the management of property portfolios. Availability of funding or other practical, legal, governance or political factors will dictate what actions the OPW can take. A unique feature of the OPW property portfolio, compared to commercially held portfolios, is that it includes an extensive range of historic properties, parks and national monuments that form part of the public realm.
The OPW must always consider the long-term strategic needs of the State when taking decisions on property – either part of a heritage estate to be enjoyed by generations, or a strategic acquisition as part of a long-term masterplan and so on.
I have discussed the contents of the programme with my officials in the OPW. Contrary to what was portrayed in the programme, I know that value for money for the taxpayer is very much at the forefront of what the OPW does.
The OPW is a public body bound by structure and processes for decision making, and accountability. The OPW is not a property investment company nor a property development company. Our mandate is to provide and maintain appropriate accommodation solutions for our clients.
The OPW places a significant emphasis on corporate governance and on ensuring that an appropriate control environment is in place.
The Governance structures include
- the Board of Commissioners, (comprised of the Chairman and the two other Commissioners of Public Works)
- a Management Board
- the Senior Management Team
- and Committees and Working groups.
Management responsibilities are clearly defined in the OPW’s Governance Framework. Processes are in place to identify business risks and to evaluate financial and non-financial implications.
All property related decisions taken by the OPW are completed in compliance with internal corporate governance structures. These structures reflect the Public Spending Code to ensure value for money principles are applied. Any suggestion in the programme that the public financial procedures as established by Government, promotes a culture where money does not matter is untrue and wholly rejected.
Over the past 4 years the OPW has embarked on a very significant journey to further strengthen its processes and resource allocation. Through the strategic recruitment of property professionals, the deployment of new IT systems and the establishment of independent groups to oversee key decisions, the OPW is very well placed to aggressively manage what is possibly the largest and most complex property portfolio in the country. As Minister, it is my intention to ensure that the advances taken to date are further built on over the coming years – all to the ultimate benefit of the taxpayer and citizen.
92. Deputy John McGuinness asked the Minister for Public Expenditure and Reform the action he is taking to strengthen oversight of the capital budget; and if he will make a statement on the matter. [20395/21]
View answerI should first explain that as Minister for Public Expenditure & Reform I am responsible for the annual Estimates of Expenditure, and for the multi-year capital envelopes, which set the overall capital allocations across Departments; and for the ongoing monitoring of expenditure, both current and capital, that takes place across the Departments. Responsibility for the management and delivery of the Departmental capital expenditure programmes, and of individual investment projects, within these agreed allocations is the responsibility of the individual Department in each case.
In addition to the regular monthly reporting of progress on current and capital expenditure, Government has recently approved the introduction of quarterly sectoral reporting requirements on capital expenditure in relation to the Health, Social Protection, Education, Justice, Housing, Local Government & Heritage, and Transport sectors. This new requirement is in recognition of the significant increase in capital expenditure as part of Project Ireland 2040 and the key role that capital spending can play in mitigating risk, enhancing the resilience of the economy and raising our growth capacity. Quarterly sectoral reporting will allow for:
- a closer examination of spend against profile,
- improved monitoring of progress,
- highlighting any areas of risk, and
- facilitate timely decisions and interventions where needed.
My Department also publishes a major capital projects tracker, which sets out details of the key projects and programmes being implemented under the National Development Plan, including the location of the projects where possible. While the capital tracker does not provide an exhaustive list of all capital expenditure, the list of projects serves to highlight the diverse range of infrastructural investments being delivered across the country.
These actions build upon the suite of key reforms that have been introduced since 2018 to support the efficient implementation of Project Ireland 2040 and its objectives including:
- Establishment of a Construction Sector Group to ensure regular and open dialogue between Government and the construction sector;
- A Project Ireland 2040 Delivery Board of Secretaries General which meets regularly to ensure effective leadership of the implementation process;
- The establishment of an National Investment Office in my Department to coordinate reporting on the plan and to drive reforms included strengthened business case and project appraisal;
- A Capability Review of public sector bodies recently completed by my Department to ensure that the State’s delivery practices are of the highest standard; and
- The update of the Public Spending Code and review of construction procurement strategy as part of the ongoing reform of Ireland’s capital management systems.
93. Deputy Catherine Connolly asked the Minister for Public Expenditure and Reform the status of flood defences in the Spanish Arch and docks area of Galway city; if a public consultation will be undertaken in this regard; and if he will make a statement on the matter. [20510/21]
View answerThe Flood Risk Management Plan (FRMP) for the Corrib River Basin, launched in 2018, included a recommendation for a flood relief scheme for Galway City, which was one of 118 projects identified nationwide from the National Flood Risk Management Plans. The Plan proposed to protect approximately 940 properties from flooding with a preliminary cost estimate in the region of €10m. Following discussions between the Office of Public Works (OPW) and Galway City Council, agreement was reached that the City Council would lead the development of the scheme with technical advice and funding being provided by OPW.
Following a tender process undertaken by the City Council, consultants were appointed in November, 2020, to review and build on the initial proposals in the FRMP. Public consultation will be to the forefront during the development of options that will eventually lead to a preferred scheme to be brought though the Planning process. It is intended to hold the first Public Consultation Day before the end of May, 2021. This event will be widely advertised and is likely to be held online due to current Covid 19 restrictions.
A project website will go live in advance of this Public Consultation Day, which will continue to provide up-to-date information on the project as it moves forward through its development. There will, of course, be several such public engagement events throughout the course of the project, both with the statutory and non-statutory stakeholders and the general public before the final design is chosen in order to keep those living, working and visiting the city fully informed of developments.
94. Deputy Ruairí Ó Murchú asked the Minister for Public Expenditure and Reform his views on the perceived regulatory weaknesses in Ireland’s public procurement regime which have been brought to the fore during Covid-19; and if he will make a statement on the matter. [20540/21]
View answerEU public procurement rules apply across all Member States within the European Union. Directive 2014/24/EU on public procurement (goods, services and works) has been transposed into Irish Law in the form of corresponding Regulations under SI No. 284 of 2016 which form the legal basis for the national rules governing public procurement. Accordingly, the legislative basis for the public procurement in Ireland remains fully aligned with procurement regulations throughout the EU.
Under EU law, public contracts above a certain value must be advertised EU-wide and awarded to the most competitive tender in an open and objective process. These rules aim to promote an open, competitive and non-discriminatory public procurement regime which delivers best value for money.
The procurement regulations include provisions allowing contracting authorities to enable the continuation of much needed services at time of extreme urgency such as those brought about by COVID-19. The pandemic had the dual effect of putting pressure on the supply of contracted goods and services while giving rise to new, previously unforeseen but highly sought after requirements. The Regulations acknowledge that there can be legitimate reasons for awarding contracts without the use of a competitive process, such as extreme urgency brought about by unforeseeable events. In such cases, the rules provide for options to directly award, use accelerated timescales or to extend or modify a contract during its term.
The Office of Government Procurement (OGP) published an Information Note in March 2020 to support contracting authorities in managing procurements where urgency arising from Covid-19 was required. Where procurement is unaffected by Covid-19 related issues, contracting authorities are required to ensure that their procurements continue to use competitive processes to obtain value for money, transparency and equal treatment, as detailed in our national public procurement guidelines.
95. Deputy Jim O'Callaghan asked the Minister for Public Expenditure and Reform the estimated level of public expenditure for 2021; the extent to which the level 5 restrictions in place since the end of 2020 have impacted on the forecasts he made in Budget 2021; and if he will make a statement on the matter. [20389/21]
View answer125. Deputy Jim O'Callaghan asked the Minister for Public Expenditure and Reform the cumulative additional public expenditure undertaken to meet the challenges posed by the Covid-19 pandemic since the beginning of March 2020; and if he will make a statement on the matter. [20390/21]
View answerI propose to take Questions Nos. 95 and 125 together.
Budget 2021 provided for an overall expenditure ceiling €87.8 billion this year. Of this funding, €75¾ billion was allocated to core expenditure programmes with €6½ billion allocated to Departments for measures related to Covid-19. Further to this, €5.4 billion was set aside in reserve to ensure Government has the flexibility to respond to the evolving situation with the virus during the year with specific, targeted measures. These reserve funds bring the provision for measures to respond to Covid-19 this year to almost €12 billion.
All told, across 2020 and 2021, we will have provided over €28 billion for Covid related spending. This substantial additional funding is a result of the exceptional circumstances arising from this pandemic, with focus on implementing measures to support our people and businesses experiencing extreme difficulties and on ensuring that our health service has the resources to respond to the crisis.
The scale of these supports is clear when expenditure for the 12 months to the end of March this year is compared to the same period to last year. In the 12 months to the end of this March, total gross voted expenditure reported in the Exchequer returns amounts to almost €87.8 billion. This is over €18.3 billion higher than the previous 12 months and represents an increase of over 26%.
The impact of the Level 5 restrictions is evident from expenditure in the Department of Social Protection. In the first three months of this year, €1.8 billion has been spent on the Pandemic Unemployment Payment (PUP) against an allocation of €0.6 billion in the Revised Estimates for Public Services (REV) 2021. At the end of March, expenditure of €1.2 billion on the Employment Wage Subsidy Scheme (EWSS) was only slightly higher than the REV provision. With Government having agreed to extend these supports to the end of June, the additional expenditure on these supports will place a significant demand on the €5.4 billion of Contingency Funds set aside in Budget 2021.
As we move towards June, we will bring proposals forward to ensure that the necessary supports are in place to support the economy, workers and society to recover from the impacts of the pandemic. Consequently, policy decisions in particular relating to the PUP and EWSS for the period after June would most likely require an increase in the overall expenditure amount for 2021.
