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Thursday, 26 Oct 2023

Written Answers Nos. 156-175

Office of Public Works

Questions (156)

Paul Donnelly

Question:

156. Deputy Paul Donnelly asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the number of vacant full-time tiler, roofer and electrician posts within the OPW; and when he expects these vacancies to be filled, in tabular form. [47160/23]

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Written answers

Departmental Budgets

Questions (157)

Pearse Doherty

Question:

157. Deputy Pearse Doherty asked the Minister for Public Expenditure, National Development Plan Delivery and Reform for a breakdown of the departmental allocation of €708 million allocated for the existing level of service in budget 2024, for example, demographics, PSP deal, and so on; and if he will make a statement on the matter. [47182/23]

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Written answers

Budget 2024 continues the very high level of investment in our public health system by providing a total allocation of €22.5 billion. This includes an increase of €808 million in current core expenditure to address demographic, service and pension pressures. It also includes full year costs of previous new developments as well as funding for new developments in 2024.

The exact breakdown of this agreed allocation to meet existing level of service demand is a matter for the Minister for Health to address. I understand that a detailed breakdown of the existing level of service will be available once he has issued a Letter of Determination to the Health Service Executive (HSE) and following the subsequent conclusion of the National Service Plan by the HSE.

Public Sector Pay

Questions (158)

Ged Nash

Question:

158. Deputy Ged Nash asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the proposed funding allocation for potential pay increases across the public service in 2024; and if he will make a statement on the matter. [47199/23]

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Written answers

The current public service pay agreement, Building Momentum, is due to expire at the end of 2023. As such, Government and public service staff representatives are due to enter into discussions on a successor agreement in the coming period. The overall budgetary arithmetic takes into account that a public service pay agreement may be reached in 2024. However, the details of this are subject to negotiation and as such it would not be appropriate to comment further.

Flood Risk Management

Questions (159)

Ged Nash

Question:

159. Deputy Ged Nash asked the Minister for Public Expenditure, National Development Plan Delivery and Reform for an update on the flood relief work planned by the OPW in the Bettystown and Mornington areas of County Meath; and if he will make a statement on the matter. [47200/23]

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Written answers

There is an existing Flood Relief Scheme in place in Mornington, Co. Meath providing protection to 162 properties. The OPW has a programme of maintenance for this scheme.

After the recent flood event in the Mornington/Bettystown area a senior level group involving the OPW and Meath County Council was established to review the event and any additional measures in the Mornington/Bettystown area that may now be required.

A number of meetings have taken place between the OPW, Meath County Council and the engineering consultants RPS who are currently involved in designing further defences for some of these locations. 

The OPW instructed RPS to investigate both the cause and magnitude of the flooding events in Mornington in August of this year. This investigation will inform any appropriate short term measures that can be taken to manage the flood risk in this area and in the longer term the design for those further flood relief defences currently proposed.  Phase 1 of this report is currently being finalised. 

A further meeting is scheduled to take place on Thursday 26th October to review progress to date on the potential flood relief measures for Mornington/Bettystown

Northlands

The Northlands Flood Relief Scheme commenced in November, 2016.  Construction of this scheme, consisted of in-situ reinforced concrete walls and precast concrete “U-channels”, and was carried out by the OPW (direct works), and was substantially completed in Q1 of 2018. 

There is currently a Steering Group in place with representatives from the Office of Public Works, Meath County Council and a design consultant to progress a design for a culvert upgrade as an extension to the Northlands Flood Relief Scheme.

National Development Plan

Questions (160, 164)

Bernard Durkan

Question:

160. Deputy Bernard J. Durkan asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the degree to which he expects all Government projects being delivered under the national development plan to continue to be completed on time and within budget; and if he will make a statement on the matter. [47222/23]

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Bernard Durkan

Question:

164. Deputy Bernard J. Durkan asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if he will provide an update on the extent to which he expects the various targets in Project Ireland 2040 to be achieved on time and within budget; and if he will make a statement on the matter. [47227/23]

View answer

Written answers

I propose to take Questions Nos. 160 and 164 together.

The NDP will deliver total public investment of €165 billion over the period 2021-2030 and as Minister for Public Expenditure, NDP Delivery and Reform I have responsibility for setting the overall capital allocations across Departments. Management and delivery of individual investment projects within the allocations agreed under the National Development Plan (NDP) are key responsibilities of every Department and Minister.

However, the Government and I acknowledge that the significant investment under the NDP does not come without delivery challenges. As you know, delivery of some NDP projects has been adversely impacted over the past three years as a result of the pandemic and the war in Ukraine. I am also acutely aware of the challenges that the construction industry has faced in terms of material price inflation, labour supply constraints, and supply chain disruption.

Nevertheless, no-one is any doubt that the need to ensure timely project delivery must be part of the Government’s focus to respond effectively to the pressing challenges of our time, particularly in areas such as housing, health and climate. The renaming of my Department as the Department of Public Expenditure, NDP Delivery and Reform (DPENDR), has brought about a greater emphasis and mandate for the delivery of the NDP. In light of this new role, a review of the support structures and levers available across Government to maximise delivery of projects was undertaken. As a result, a series of actions and reforms were identified as priorities to improve delivery of NDP projects, including reducing the administrative burden on Departments charged with infrastructure delivery. Earlier this year, I secured Government approval for six priority actions which are:

• Significant changes to reduce the administrative burden in delivering major capital projects, through measures to streamline the Public Spending Code (to become the Infrastructure Guidelines);

• I am now taking a direct role in overseeing delivery of the NDP through chairing the Project Ireland 2040 Delivery Board;

• Capacity reviews of departments and agencies with significant delivery programmes to be carried out, where appropriate, to ensure that adequate resources for project delivery are in place;

• Additional reforms to the Capital Works Management Framework, which sets out the contracts used for public capital projects;

• Direct reporting to Government on NDP delivery on a quarterly basis throughout 2023 and 2024 and

• An independent evaluation of NDP priorities and capacity.

I am confident that the combination of the six priority actions will boost the delivery of the critical infrastructure we need to support a growing economy and higher living standards for those living here. In particular, I believe input of experts on the Project Ireland 2040 Delivery Board will highlight the key impediments to project delivery and I will work towards delivering mitigating actions to boost project delivery.

In addition, my Department will continue to work closely with the construction sector in order to improve efficiency and enhanced delivery through the Construction Sector Group. Important initiatives have been launched and supported through the Construction Sector Group to increase productivity in the sector.  These include the recently established Construction Technology Centre, known as Construct Innovate, to accelerate research and innovation within the sector; the Build Digital Project funded by my Department to support the sector in its transition to digital; the adoption of Building Information Modelling; and an analysis of the cost of residential construction which was recently published. These reforms, alongside ongoing engagement with the construction sector regarding capacity, will help ensure the effective delivery of Project Ireland 2040 on time and on budget.

The Government is also committed to continue to detail the delivery of the NDP at regular intervals into the future to allow for full transparency on the implementation of Project Ireland 2040. This will be achieved through regular updates of the Project Ireland 2040 capital investment tracker and map as well as the publication of annual reports and regional reports highlighting Project Ireland 2040 achievements. All such updates are available on gov.ie/2040.

National Development Plan

Questions (161)

Bernard Durkan

Question:

161. Deputy Bernard J. Durkan asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the degree to which he has identified specific issues that have a tendency to slow down delivery on the national development plan; the actions taken or proposed to address this issue; and if he will make a statement on the matter. [47224/23]

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Written answers

The Government has committed to €165 billion in capital investment through the National Development Plan (NDP) published in 2021. As a percentage of national income, annual capital investment is now among the largest in the EU. In 2023, almost €13 billion will fund vital infrastructure in areas such as housing, transport, education, enterprise, sport and climate action. Achieving value for money and reducing cost and schedule overruns is a vital part of delivering the NDP.

However, the Government and I acknowledge that the significant investment under the NDP does not come without delivery challenges. As you know, delivery of some NDP projects has been adversely impacted over the past three years as a result of the pandemic and the war in Ukraine. I am also acutely aware of the challenges that the construction industry has faced in terms of material price inflation, labour supply constraints, and supply chain disruption. As a result, in order to safeguard the delivery of key NDP projects, in January 2022, my Department introduced measures to address inflation for new contracts and tenders. Furthermore, in May 2022, a new set of measures to apportion additional inflation costs between the parties to public works contracts were introduced. 

Nevertheless, no-one is any doubt that the need to ensure timely project delivery must be part of the Government’s focus to respond effectively to the pressing challenges of our time, particularly in areas like housing, health and climate. The renaming of my Department as the Department of Public Expenditure, NDP Delivery and Reform (DPENDR), has brought about a greater emphasis and mandate for the delivery of the NDP. In light of this new role, a review of the support structures and levers available across Government to maximise delivery of projects was undertaken. As a result, a series of actions and reforms were identified as priorities to improve delivery of NDP projects, including reducing the administrative burden on Departments charged with infrastructure delivery. Earlier this  year, I secured Government approval for six priority actions which are:

• Significant changes to reduce the administrative burden in delivering major capital projects, through measures to streamline the Public Spending Code (to become the Infrastructure Guidelines);

• I am now taking a direct role in overseeing delivery of the NDP through chairing the Project Ireland 2040 Delivery Board;

• Capacity reviews of departments and agencies with significant delivery programmes to be carried out, where appropriate, to ensure that adequate resources for project delivery are in place;

• Additional reforms to the Capital Works Management Framework, which sets out the contracts used for public capital projects;

• Direct reporting to Government on NDP delivery on a quarterly basis throughout 2023 and 2024 and

• An independent evaluation of NDP priorities and capacity.

This package represents a fresh approach to securing delivery as part of my Department’s enhanced remit around the NDP.

I am confident that the combination of the six priority actions above will boost the delivery of the critical infrastructure we need to support a growing economy and higher living standards for those living here. In particular, I believe input of experts on the Project Ireland 2040 Delivery Board will highlight the key impediments to project delivery and I will work towards delivering mitigating actions to boost project delivery. In addition, my Department will continue to work closely with the construction sector in order to improve efficiency and enhanced delivery through the Construction Sector Group.

State Properties

Questions (162)

Bernard Durkan

Question:

162. Deputy Bernard J. Durkan asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if the current discussions in relation to access to Castletown House and lands, which are in the ownership of the State (details supplied), are placing adequate emphasis on the absolute necessity to ensure the restoration of the link to the M4-N4 and the protection of Lime Avenue, Castletown House and lands, given that the entrance from main street, Celbridge, is no longer viable as it was designed for traffic volumes of another era; and if he will make a statement on the matter. [47225/23]

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Written answers

Castletown House is an eighteenth-century neo-Palladian country house built within an extensive estate.

In 1994, the Office of Public Works took responsibility for Castletown House and estate. Initially, this was only 13 acres of land with the house. It has long been the policy of the OPW to seek to reunite the historic Castletown estate. In 1997, one hundred acres south of the house was acquired. The farmyard adjacent to the house was acquired in 2001. In 2006, lands associated with the Batty Lodge were acquired with former Coillte lands to the north and east of the House acquired in 2007. Since 2008, the OPW has reassembled 227 acres of the original 580 acres of land which formed the historic demesne.

As part of the policy to seek to reunite the historic Castletown demesne lands with the house and lands in the care of the State, the OPW has sought on several occasions to purchase the lands from Janus Securities including when the lands were offered for sale on the open market in 2022. However, despite the very best efforts of the OPW, the State was out-bid in the open market process and ultimately, the lands were acquired by a private purchaser. 

The OPW remains committed to acquiring the additional lands that formed part of the original estate, where they become available, in order to reunite the historic demesne. The State tried to acquire these lands in 2022 and were outbid by the current landowner.  The OPW has been in commercial negotiations with the landowners for the past six months.  These discussions have included the purchase of a portion of the lands, the entire portfolio or alternatively, securing a renewal of the previous licence agreement.  

While the acquisition of these lands is important, it cannot be at any price. Any purchase must be delivered in compliance with the Public Spending Code and represent value to the taxpayer.

The OPW does not have any permission to access Castletown House and Estate from the M4 access road.

It is important to note that the Lime Avenue was the sole vehicular road serving the estate from 1994- 2007.  During this time a significant conservation project was undertaken with a variety of contractors and services accessing the site through this entrance. It subsequently became the main entrance for all visitors to Castletown. Although it has been largely pedestrianised since then, it has been subject to daily traffic by OPW and local authority works vehicles.  The OPW envisages the Lime Avenue operating as a pedestrian priority road in line with current practice across numerous OPW sites such as St. Stephen’s Green and Farmleigh. It is necessary for the safe operation of the estate however that staff, contractors and service vehicles have unimpeded access to the demesne and the Celbridge gate is the only gate in State ownership which allows this access.

Public Expenditure Policy

Questions (163)

Bernard Durkan

Question:

163. Deputy Bernard J. Durkan asked the Minister for Public Expenditure, National Development Plan Delivery and Reform whether he remains satisfied that levels of public expenditure here are adequately proofed to ensure the best outcome for the Exchequer and taxpayer; and if he will make a statement on the matter. [47226/23]

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Written answers

All Irish public bodies are obliged to treat public funds with care, and to ensure that the best possible value for money is obtained whenever public money is being spent or invested.

My Department publishes the Public Financial Procedures manual, which is a comprehensive and practical guide to public financial management.  Public Financial Procedures provide the framework of accountability, responsibility and control of all public expenditure. The framework encompasses the duty and responsibility that extends to all stages in the planning, management and delivery of programmes and services to secure value for money in the use of public resources. 

The Public Spending Code is the set of rules and procedures that ensure that these standards in respect of value for money for public expenditure are upheld across the Irish public service.

In addition to the rules, procedures, frameworks and guidance issued by my Department to support value for money, my Department takes a leadership role in relation to driving analysis and evidence-informed policy-making across Government Departments. Evaluations of Government expenditure are a vital component of the public expenditure management framework, and are central to ensuring and demonstrating the appropriate use of public money.

The current formal process facilitating official evaluations of Government expenditure is called the Spending Review. Since 2017 a total of 177 formal Spending Review papers have been published, with more Departments routinely assessing key policies and programmes as part of the spending review processes.

The identification and selection of topics, project scoping, analysis, and drafting are all conducted at Department level, with each Department responsible for areas and policy questions that fall within their own remit, and for managing the execution of the analysis and the follow-up policy reforms, where relevant.  

My Department has a number of responsibilities in supporting the Spending Review process. These include at the highest level: managing the strategic direction of the overall process, coordinating the Spending Review oversight group, liaising with the analysts participating in the process, tracking the progress of evaluations across Departments, and organising quality assurance groups and publication.

In addition to this my Department directly participates in the process by undertaking research and evaluations of public expenditure. These evaluations consider a wide breadth of issues of strategic importance to my Department. 

Finally, my Department indirectly contributes to the evaluation landscape through the leadership of the Irish Governmental Economic and Evaluation Service. Established in 2012, IGEES is a cross-government network of policy-analysts, which is headed by the IGEES Central Unit in my Department. This unit’s remit is to develop the capacity for evidence-informed policy-making across the civil service, including enhancing the ability of Departments to undertake quality evaluations.

Question No. 164 answered with Question No. 160.

Public Expenditure Policy

Questions (165, 167, 172)

Bernard Durkan

Question:

165. Deputy Bernard J. Durkan asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the extent to which he continues to liaise with all Departments and their subsidiaries and agents with a view to achieving the maximum in terms of efficiency and delivery in line with best international practice; and if he will make a statement on the matter. [47228/23]

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Bernard Durkan

Question:

167. Deputy Bernard J. Durkan asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the degree to which he expects his Department to be in a position to positively influence economic growth while retaining prudent policy measures; and if he will make a statement on the matter. [47230/23]

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Bernard Durkan

Question:

172. Deputy Bernard J. Durkan asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the extent, if any, to which reforms throughout the public sector are likely to yield improved economic performance in the forthcoming year; and if he will make a statement on the matter. [47237/23]

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Written answers

I propose to take Questions Nos. 165, 167 and 172 together.

The Government's approach to public expenditure policy is set out in the Medium Term Expenditure Strategy (MTES) published in the Summer Economic Statement in 2021. The objectives of the strategy are twofold, to ensure that the level of core expenditure growth is sustainable over the long-term and that investment in expenditure protects and delivers improvements to public services. The framework under which the MTES is implemented must be responsive to the economic landscape and is reviewed throughout the year as part of the whole of year budget process.

A strong public service that delivers core public services and prudent investment in our public infrastructure contributes positively to the economy as Government has done over the past decade. The careful management of our economy and the public finances in recent years has allowed the Government to;

• Provide increased resources for core public services as demand for services grows, investing in a better quality of life for Irish people,

• Deliver record investment in essential infrastructural projects through the National Development Plan; supporting employment, economic development and regional growth,

• Put in place considerable supports for households and business to help them overcome the Covid pandemic, and most recently the price pressures arising from global inflationary pressures.

The Government did this while also ensuring the public finances remained in a sustainable position without impinging on our economic prospects and economic growth. Budget 2024, which delivered an overall expenditure package in services and infrastructure of €12.3 billion, continues the trend of this sustainable investment in society.

In terms of the reform and management of public finances and liaising with Departments there are a number of budgetary process in place, in line with international best practice, that broaden the approach to appraising, implementing and reviewing policies. These include;

• the annual Spending Review process,

• Wellbeing and Equality Initiatives,

• Performance Budgeting and

• Green Budgeting.

These are in addition to the ongoing and regular expenditure management of agreed Departmental ceilings which are the individual responsibility of each Department and Minister. My Department engages on an ongoing basis with all Departments to ensure budgetary targets continue to be met and that expenditure is managed within overall fiscal parameters. Drawdowns of funds are monitored against published expenditure profiles and there is regular reporting to Government on these.

Additionally, I would also advise that my department engages regularly in international fora such as OCED working groups and committees to share knowledge and discuss best practice around budgetary reform and ensuring value for money for the taxpayer. In terms of enhancing the efficiency and effectiveness of policy delivery, improving and supporting the evaluation capacity within Departments is an important part of the reform programme. Supported by the Irish Government Economic and Evaluation Service (IGEES), this has led to the development of a number of additional processes and reports to support the budgetary process, such as the annual Spending Review. The IGEES network also supports civil service wide opportunities for collaboration and discussion of best practice in policy evaluation and evidence based policy making.

Public Expenditure Policy

Questions (166)

Bernard Durkan

Question:

166. Deputy Bernard J. Durkan asked the Minister for Public Expenditure, National Development Plan Delivery and Reform his preferred options to meet the ongoing social and economic requirements of the country in the context of current and capital expenditure in line with prudent management, while placing sufficient emphasis on important infrastructure such as social housing; and if he will make a statement on the matter. [47229/23]

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Written answers

In terms of infrastructure this Government has committed to €165 billion in capital investment through the National Development Plan (NDP) published in 2021. As a percentage of national income, annual capital investment is now among the largest in the EU. In 2024, almost €13 billion will fund vital infrastructure in areas such as social housing, transport, education, enterprise, sport and climate action. Achieving value for money and reducing cost and schedule overruns is a vital part of NDP delivery.

In terms of prudent management of capital projects, in March this year, I secured Government approval for six priority actions which:

• Brought significant reductions in the administrative burden in delivering major capital projects, through streamlining the Public Spending Code (to become the Infrastructure Guidelines);

• Saw the Minister for Public Expenditure, NDP Delivery and Reform take a direct role in overseeing delivery of the NDP through chairing the Project Ireland 2040 Delivery Board;

• Asked for capacity reviews of departments and agencies with significant delivery programmes to be carried out, where appropriate, to ensure that adequate resources for project delivery are in place;

• Saw additional reforms to the Capital Works Management Framework, which sets out the contracts used for public capital projects;

• Saw direct reporting to Government on NDP delivery on a quarterly basis throughout 2023 and 2024 and

• An independent evaluation of NDP priorities and capacity.

This package represents a fresh approach to securing delivery as part of my Department’s enhanced remit around the NDP.

In summary, there is a focus now on supporting and streamlining the delivery of NDP projects in a timely manner, while ensuring value for money for the taxpayer. These reforms will boost the delivery of the critical infrastructure needed to support a growing economy and to secure higher living standards for those living here.

With regard to social housing, this is a vital part of the Housing for All plan which has the aim of ensuring that everyone in the State has access to a home to purchase or rent at an affordable price. Budget 2024 allocated €4.1 billion in total to Housing for All. This funding will support the provision of an additional 28,000 households overall; meeting the social housing needs of an additional 21,830 households and supporting a further 6,400 to buy or rent at an affordable price. This shows the Government's commitment to prioritising housing as a cornerstone of its expenditure policy.

With regard to core current expenditure and the ongoing social and economic needs of the country, Budget 2024 raised the ceiling for core current expenditure to almost €79 billion for the coming year. This is an increase of 5.9 percent on 2023 and once again reflects the Government's clear vision for the continuous improvement and delivery of better public services.

The Government's expenditure policy and framework is set out in the Medium Term Expenditure Strategy (MTES), in the Summer Economic Statement 2021, and this articulates the prudent management within which current expenditure is managed. Being conscious of the pressures on households and business from inflation, that will remain with us until the end of the year and into early 2024, the Government had to balance the short term requirements of society with the medium term sustainability of the finances.

That is why Budget 2024 also included a package of temporary expenditure Cost of Living measures costing €2.3 billion that will benefit the most vulnerable households more. Making such measures temporary in nature means they are not built into the core and therefore do not roll into commitments in the following years.

The adoption of this dual policy approach to expenditure ensures sustainability into the medium term while also responding to emerging needs.

Question No. 167 answered with Question No. 165.

Public Sector Staff

Questions (168, 171)

Bernard Durkan

Question:

168. Deputy Bernard J. Durkan asked the Minister for Public Expenditure, National Development Plan Delivery and Reform to outline the full extent to date of current recruitment throughout the public sector; the expectation in respect of future recruitment throughout the sector by the end of the current year; and if he will make a statement on the matter. [47231/23]

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Bernard Durkan

Question:

171. Deputy Bernard J. Durkan asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the extent to which he sees recruitment in specific vital areas of the public sector becoming a policy initiative in the future; and if he will make a statement on the matter. [47235/23]

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Written answers

I propose to take Questions Nos. 168 and 171 together.

Despite a challenging recruitment market, data shows that staff numbers in the public service have continued to grow over the last number of years. Between the end of 2015 and Q2 of 2023 overall serving numbers in full-time equivalent terms (FTE) increased from about 302,000 to 385,000, a growth of 83,000 FTE or approximately 27%.

Public service staffing is largely managed through a policy of delegated sanction, which has been in place since 2015. Under this delegated sanction framework, Departments are permitted to fill vacancies through recruitment and/or promotion, in grades up to and including Principal Officer Standard or equivalent, subject to remaining within the overall pay bill ceiling. This paybill ceiling forms part of the annual budget agreement. 

As the Deputy may be aware, under the Public Service Management (Recruitment and Appointments) Act 2004, the responsibility for recruitment in each sector of the Public Service is a matter for the relevant Minister. In the case of recruitment to the Civil Service, for which I have policy responsibility, I am informed by the Public Appointments Service (PAS), that between 2022 and 2023, 168 competitions for civil service jobs were advertised, resulting so far in 7,309 assignments. A further 29 more competitions are in the pipeline for this year.

Brexit Issues

Questions (169)

Bernard Durkan

Question:

169. Deputy Bernard J. Durkan asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the degree to which his Department continues to monitor the impact of Brexit on the public and private sectors here, with a view to addressing any issues arising in the context of public expenditure and reform; and if he will make a statement on the matter. [47233/23]

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Written answers

The Government has made significant allocations across a range of sectors to counter the effects of Brexit since the UK withdrawal referendum in 2016, including through the European Union’s Brexit Adjustment Reserve (BAR).

The BAR provides support to counter the adverse economic, social, territorial and, environmental consequences of the withdrawal of the UK from the European Union. In order to be eligible for BAR funding, expenditure must fall within the BAR eligibility period for expenditure that runs from the 1st of January 2020 to the 31st of December 2023. The application for BAR funding must set out the negative impacts of the withdrawal of the UK from the European Union and how the measures carried out under the Fund alleviate the adverse consequences.

My Department continues to engage on an ongoing basis with those Departments who have sought funding from the BAR to address Brexit impacts.

Public Procurement Contracts

Questions (170)

Bernard Durkan

Question:

170. Deputy Bernard J. Durkan asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the degree to which public procurement, and reform thereto, continues to be part of Government policy, with particular reference to the need to ensure maximum economic benefit while maintaining good procurement practice and indigenous resourcing; and if he will make a statement on the matter. [47234/23]

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Written answers

All public bodies are obliged to spend or invest public funds with care, and to ensure that optimal value for money is obtained in accordance with the Public Spending Code which sets out the rules and procedures to ensure that these standards are upheld across the Irish public service.

Public procurement directives apply to all Member States within the European Union. The aim of these regulations is to promote an open, competitive and non-discriminatory public procurement regime that delivers best value for money. The legislative basis for public procurement in Ireland is fully aligned with regulatory norms throughout the EU.

Public procurement reform is a key aspect of the overall public service reform programme. The Office of Government Procurement was established in 2013 to:

1. Ensure that the Public Service speak with one voice to the market for each category of expenditure, providing administrative savings, process efficiencies and eliminating duplication of effort across Public Service Bodies and economic operators (suppliers).

2. To leverage the scale of Public Procurement, aggregating the State’s buying power, establishing central buying solutions that deliver value for money, and provide for the inclusion of Government’s horizontal policy objectives.

3. To integrate Procurement policy, strategy, and operations into one office, delivering a cohesive set of policies.

4. To strengthen spend analytics and data management to provide greater transparency and reporting on spend management, and identifying new opportunities to deliver value for money.

The Procurement Reform Programme has achieved considerable success to date. Governance arrangements have been established to foster collaboration and cooperation across the main sectors of Central Government, Health, Local Government, Education and Defence. Through the development of a suite of centralised arrangements, the Government’s purchasing power has been leveraged by speaking to the market with ‘one voice’. 

In line with the Programme for Government: Our Shared Future, the focus now is to further develop the potential of strategic procurement, with an emphasis on sustainability and social considerations, public works reform and innovation.  While value for money remains a key consideration, the strategic use of public procurement will support green, social and innovation policies in line with the Programme for Government, international developments and EU priorities such as the Green Deal and digitalisation. 

Each Accounting Officer is responsible for the performance of public contracts under his or her remit and for ensuring that the public procurement function is discharged in line with the standard accounting and procurement rules and procedures efficiently and effectively to deliver maximum value for money for the taxpayer.

To assist contracting authorities in the conduct of procurement procedures, the Office of Government Procurement has published extensive guidance material for contracting authorities including the Public Procurement Guidelines for Goods and Services (the Guidelines), available at www.gov.ie/en/publication/c23f5-public-procurement-guidelines-for-goods-and-services/, and the Capital Works Management Framework (CWMF), available at: www.gov.ie/en/service/1d443-capital-works-management-framework/#.

The Guidelines outline the various stages of the procurement process from specification, selection and award stages to contract management stage. They provide comprehensive guidance on ensuring the specifications fully and accurately capture the requirement of the goods or services and identify the risks of poor specification and the challenges that this can cause contracting authorities when subsequently managing their contracts.

The OGP has also been proactive in the area of Strategic Procurement with the publication of Circular 20/2019: Promoting the use of Environmental and Social Considerations in Public Procurement and the Information Note on Incorporating Social Considerations into Public Procurement.  The interdepartmental Strategic Procurement Advisory Group was established in March 2019 to promote and facilitate the incorporation of sustainable procurement considerations, including environmental considerations, into public procurement projects. The OGP developed a new online GPP Criteria Search tool in November 2022 which will assist all public bodies in meeting their green procurement objectives.

Procurement Reform has delivered a programme of policy supports for SMEs, most recently with the publication of Circular 05/2023: Initiatives to assist SMEs in Public Procurement. This Circular provides measures to promote SME participation in public procurement competitions. Furthermore, my colleague, Minister of State Ossian Smyth TD, chairs the SME Advisory Group which provides a forum for Small Medium Enterprises to discuss procurement issues for the SME sector and to build awareness in industry of the opportunities arising from public procurement.

With respect to public works the Capital Works Management Framework (CWMF) contributes to efficiencies through standardising the documentation and processes associated with public works procurement to the greatest extent possible. There is a suite of guidance material covering all aspects of project delivery, including project-specific information, available under the CWMF.  

My Department will continue the enhancement and refinement of guidance, systems, reporting, and engagement to assist public procurement practitioners to effectively and efficiently deliver value for money on behalf of the State.

Question No. 171 answered with Question No. 168.
Question No. 172 answered with Question No. 165.

Small and Medium Enterprises

Questions (173)

Claire Kerrane

Question:

173. Deputy Claire Kerrane asked the Minister for Enterprise, Trade and Employment if he has plans to support small and medium businesses with costs (details supplied); and if he will make a statement on the matter. [47132/23]

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Written answers

The Increased Cost of Business Grant (ICOB) was a measure announced as part of Budget 2024 for small and medium sized businesses who operate from a rateable premises. It is intended to be paid at a rate of up to half the enterprise’s commercial rates bill in 2023, subject to a prescribed limit. The grant is intended to aid firms but is not intended to directly compensate for all increases in wages, or other costs, for every business. It is also a grant – rather than a rates rebate or waiver – and firms should continue to pay their commercial rates as normal.

The technical details underpinning the ICOB scheme and the mechanism for delivering the payment are currently being developed. My officials will work together with officials from the Department of Housing, Local Government and Heritage will work together with the Local Authorities to finalise the details of the grant in the coming weeks. 

It is important that I clarify that the scheme is a once-off grant provision and is not a form of commercial rates waiver, such as that present during the years 2020 to Q1 2022. In essence, the ICOB will have no bearing on the commercial rates paid by firms. It is also not intended to benefit multinational or larger firm. The grant will be paid through local authorities and will be paid in the first quarter of next year.

In line with the recommendation of the Low Pay Commission on the 2024 National Minimum Wage, the rate will increase by €1.40 from €11.30 to €12.70 on January 1st 2024. While I am cognisant that this will represent an increased cost for business, this is a positive measure for workers. This represents a significant increase in the National Minimum Wage and is designed to increase the pay of minimum wage workers, in line with the Government’s decision to introduce a National Living Wage by 2026 set at 60 per cent of the median hourly wages in the economy. It is estimated that the National Minimum Wage, relative to median wages across the whole economy, will increase from 51.8 per cent in 2023 to 55.1 per cent of the forecast median wage in 2024.

It is important to be clear that the ICOB scheme is not designed to be an offset for increases to the minimum wage. I am not planning any scheme specific to the National Minimum Wage increase.

Departmental Meetings

Questions (174)

Paul Donnelly

Question:

174. Deputy Paul Donnelly asked the Minister for Enterprise, Trade and Employment when he last met the CEO of the Corporate Enforcement Authority; and when he is next scheduled to meet the CEO. [47159/23]

View answer

Written answers

The Corporate Enforcement Authority (CEA) was established as an independent statutory agency  on 7th July 2022 under the Companies (Corporate Enforcement Authority) Act 2021. Section 944D (4) of the Companies Act 2014 (as amended by 2021 Act) provides that the CEA shall be independent in the performance of its functions. 

Liaison meetings are held on a quarterly basis between officials of the Department of Enterprise, Trade and Employment and the CEA (CEO and senior management team). The most recent meeting was on 20th September 2023.

Recent Engagements 

The CEO of the Authority, accompanied by some of the Authority's senior management team, presented to the Secretary General and Management Board of the Department of Enterprise, Trade and Employment on 16th October 2023 as part of a routine annual agency presentation.

Minister Coveney visited the CEA and met with the CEO and all of the staff at their office in Parnell Square on 12 July 2023.

Minister Calleary provided the opening address at the inaugural conference of the CEA at King's Inns on 19th September 2023 where he met with the CEO and staff of the CEA.

There are no meetings currently scheduled between the Minister and the CEO of the CEA.

State Examinations

Questions (175)

Paul Kehoe

Question:

175. Deputy Paul Kehoe asked the Minister for Education if there is a mechanism for junior certificate students to receive the percentage grades of their results to assist them in determining future subject choices; and if she will make a statement on the matter. [47033/23]

View answer

Written answers

The State Examinations Commission has statutory responsibility for operational matters relating to the state examinations.

In view of this I have forwarded your query to the State Examinations Commission for direct reply to you.

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