Shane Cassells
Ceist:36. Deputy Shane Cassells asked the Minister for Public Expenditure and Reform how he has deployed cash received from the sale of State assets; and if he will make a statement on the matter. [13073/16]
Other Questions
Sale of State Assets
It has been the consistent policy approach that funds released from State asset disposals should be used, as far as possible and when the fiscal rules allow, to support the economy and job creation, while also using some of the proceeds to reduce debt. Since the State assets disposal programme was agreed to by the Government, a number of significant announcements have been made of allocations of additional funding for capital investment to be funded from the proceeds of asset disposals. In this regard, I draw the Deputy's attention to the following. In July 2012, in its first infrastructure disposal programme, involving a total investment of €2.25 billion, the Government announced that on foot of the State assets disposal programme, it would undertake further Exchequer investment, including enabling works to support PPP projects. Almost €100 million has been made available for enabling works on roads and education PPPs. In June 2013 the Government allocated an additional €150 million for schools, energy efficiency and roads projects. In budget 2014 the Government announced that, with the €200 million already committed to the national children's hospital, some €200 million would be invested from the proceeds of the lottery licence transaction and used for a range of projects and programmes. In May 2014 the Government allocated a further €200 million. In budget 2015 the Government announced that €400 million of the proceeds to be received from the sale of BGE would be made available to support the Government's social housing programme. In 2015 the Government allocated the €335 million in proceeds from the sale of its shareholding in Aer Lingus to establish a connectivity fund.
In total, the Government has allocated over €1.5 billion from the proceeds of the State assets disposal programme and the sale of the national lottery licence to support jobs and economic development across the country.
Deputy Shane Cassells is not in the House.
The stability programme-----
Did Deputy Brendan Howlin want to come in?
Deputy David Cullinane should note that his question was skipped because the time for Priority Questions was up. The Acting Chairman has moved on to the next question, No. 36.
Regarding the moneys from the sale of State assets, particularly the €400 million arising from the sale of BGE, a very sizeable sum, does the Minister have-----
On a point of order-----
We are on Deputy Shane Cassells' question.
The Acting Chairman missed a question.
On a point of order, are Priority Questions not taken first?
Deputy David Cullinane's question was a priority question.
It was a priority question.
Yes, but I have moved on from Priority Questions to Other Questions.
We had two priority questions and there was no chance to respond.
There was another question, Question No. 35.
Yes, but the time for Priority Questions was up.
Under the old Standing Orders, if questions were not taken in the allocated time, one moved to Ordinary Questions.
I moved to Other Questions and advised that I was taking Question No. 36 in the name of Deputy Shane Cassells.
With respect, that is not what we were given to understand in terms of how Priority Questions would work. With respect, if we have two priority questions, we have a right to ask them and have the Minister respond to them. I have been denied that right. We tabled two priority questions. It is not good enough that the spokesperson is allowed one question. We will not get to any of our oral questions. It is just not acceptable that I am not allowed to put questions to the Minister.
I thank the Deputy; his point is noted. I have advised the House that I have moved to Other Questions. Question No. 36 is now being taken.
It will be rectified under Standing Orders this week.
The 30 minutes allowed for Priority Questions have elapsed.
On the €400 million from the sale of BGE allocated by the previous Government for social housing, will the Minister tell us whether any progress has been made in finding a suitable mechanism for the investment of that money? Will it be deployed in the building of social housing?
I am informed that the total amount involved is as I confirmed to the Deputy. It is €400 million from the sale of assets. With regard to a particular mechanism and how the fund will be made available for housing, I am not in a position to give the Deputy an answer now. However, I will identify one and respond to him by tomorrow.
The Minister might do the same on the money for connectivity projects.
I will.
I have two questions. Does the Minister have plans for other disposals of State assets during the lifetime of the new Government? Second, has all of the money associated with Aer Lingus, BGE and various other assets sold off, including the national lottery, been drawn down from the various purchasers?
To respond to the first question on whether I have further plans to dispose of State assets, the answer is currently "No".
Currently.
Yes. I will inform the Deputy if the position changes but I am not aware of any such plans.
As to whether all the funding has been drawn down, I understand it has been drawn down in the sense that it was handed over after the financial transaction took place. Was the Deputy referring to the release of the funding to achieve the objective for which it was intended?
Yes.
The answer to that will vary according to which element is involved. Funding has been available for the objectives of programmes that operated between 2012 and 2014. I will revert to the Deputy on how moneys connected with the sale of Bord Gáis Energy and Aer Lingus will be released. I understand the principles governing the establishment of the connectivity fund were agreed by the House. I will contact the Deputy on the level of funding, if any, released under the fund.
The Minister indicated that income from the sale of State assets is being used to fund capital expenditure. Has he read a report from the European Commission indicating that the State is falling behind in terms of capital expenditure, especially on housing, health care, child care, water services and infrastructure? What plans does the Government have to increase capital expenditure? Given that IBEC has been making a similar argument to the Commission, it seems everybody except the Government recognises the need for capital investment.
The European Commission also acknowledged that Ireland's public finances have improved immeasurably. We have entered the preventative phase of deficit management. This is extraordinary progress when measured against the position we were in a number of years ago. I had hoped the Deputy would have acknowledged this progress when commenting on the need for capital investment. I have acknowledged the need to increase capital expenditure and the Government will work towards that end. However, we should take a different approach to capital expenditure. Rather than identifying how much additional money we want to spend and using this figure as a target to be achieved, we should identify what projects we want to deliver, work out their costs and complete them.
The European Commission identified target areas, including health and housing.
If we move to a position in which we seek to increase expenditure without identifying what projects are to be delivered, prices will rise and best practice in respect of cost-benefit analysis and the need to spend taxpayers' money wisely will not be adhered to.
Public Sector Staff Remuneration
Seán Haughey
Ceist:37. Deputy Seán Haughey asked the Minister for Public Expenditure and Reform if changes to the payment of allowances to newly recruited firefighters have implications for other public servants; and if he will make a statement on the matter. [13043/16]
What has been agreed to date with the representatives of firefighters in local authorities within the context of the Public Service Stability Agreement 2013-18 is an accord in principle on the delivery of a comprehensive range of productivity measures related to reforms in respect of the strategically important Keeping Communities Safe programme, the implementation of which is a matter for the fire service authorities at a national level. It is furthermore the case that the reform measures are to be implemented by the entire group of full-time firefighters.
The agreement regarding the firefighters' pay scale is the result of discussions within the terms of the Lansdowne Road agreement with unions that are fully signed up to the agreement, which remains the framework for public service pay.
Any further consideration of remuneration for any group of public servants, including issues relating to more recently recruited public servants, will fall to be examined within the provisions of the Public Service Stability Agreement 2013-18. Such arrangements will require compliance with the provisions of the Lansdowne Road agreement on the part of the staff interests. They will also have to comply with the terms of the Financial Emergency Measures in the Public Interest Acts 2009 to 2015 and their affordability must be underpinned through delivering enhanced workplace practices and productivity.
If Deputies agree, we will take their questions together before asking the Minister to respond.
That is fine. Will the Minister confirm that the template used for the fire service was used by the Teachers' Union of Ireland in negotiations? Will he reaffirm that only trade unions that have signed up to the Lansdowne Road agreement and their members will benefit if a similar template were used for other professions? Could this template, with its changes in allowances and so forth, be used in other professions, particularly for new entrants?
Is it the Minister's intention to punish trade unions, including ASTI, that have not signed up to the Lansdowne Road agreement? Will these unions continue to be threatened with the use of the financial emergency measures in the public interest legislation?
I welcome the changes to the payment of allowances to newly recruited firefighters. Could this mechanism be used by other categories of workers in the public sector? This issue is not addressed in the Lansdowne Road agreement. Is the Minister suggesting that workers use the agreement's mechanisms to deal with these issues? I am not referring to firefighters but other categories of workers who also have legitimate issues regarding the payment of allowances.
As I stated, this template was my parting gift to the Minister. It is very useful, not only for firefighters. Does the Minister agree it would be useful for getting the TUI over the line and for dealing with the Garda Síochána? Is it his intention that the provisions of the financial emergency measures in the public interest legislation will be applied to trade unions which are outside the Lansdowne Road agreement when the current Haddington Road arrangements come to an end?
It is not the case that a template has been created for dealing with firefighters. What has occurred is that the terms and processes of the Lansdowne Road agreement have been used to deal with this matter. As I stated, we will use the processes provided for in the agreement to engage with different sectoral trade unions to do what we can in response to the issues they are raising. However, all such responses must comply with the structures, timeframe and costs set out in the Lansdowne Road agreement.
To respond to Deputy Cullinane, I am not threatening or punishing any trade union.
That is not how certain trade unions see it.
I would not use such language.
It was used by the Secretary General of the Department.
We will have one voice at a time, please.
I have been very clear about how we speak to trade unions that are outside the Lansdowne Road agreement. The inflammatory language used by Deputy Cullinane-----
ASTI made that point.
-----is the type of language that makes these matters more difficult to resolve. I hope the approach of the House will be to examine how we can resolve these issues. In light of the support the Deputy expressed for the Lansdowne Road agreement, perhaps he will also acknowledge its benefits. What I and the Minister for Education and Skills, Deputy Richard Bruton, have said is that we must be fair to the unions that voted in favour of the agreement by ensuring the benefits and protections it offers are confined to them.
The Department threatened ASTI.
Programme for Government
Frank O'Rourke
Ceist:38. Deputy Frank O'Rourke asked the Minister for Public Expenditure and Reform to publish a costing of items in the programme for Government as soon as possible; and if he will make a statement on the matter. [13038/16]
The programme for a partnership Government sets out the ambition to build a strong economy and deliver a fair society. The programme identifies a number of policy challenges and for each of these challenges a clear, unambiguous, high-level ambition is also identified. Examples of these ambitions include meeting the target of building 25,000 new homes needed every year by 2020; creating 200,000 jobs by 2020, including, as Deputy Calleary noted, 135,000 outside Dublin; reducing waiting times in the health sector; and spending at least €6.75 billion more on public services by 2021 compared with 2016.
As stated in the programme, for every policy challenge, the new Government will ensure a balance is struck between addressing urgent priorities and engaging in long-term planning. As outlined in the programme, economic repair must be complemented by social repair. An essential foundation for delivery of this objective is sound public finances. Consequently, the Government is committed to boosting public expenditure in a sustainable way and will introduce budgets that will involve at least a 2:1 split between investment in public spending and tax reductions. In aggregate, the programme sets out a commitment to spend at least €6.75 billion more on public services in 2021 than it is spending this year.
The Government is also committed to providing a cumulative €4 billion in additional Exchequer capital investment up to 2021, over and above the amounts in the capital plan. Specific proposals for these increases will be made to the Oireachtas in due course.
Can the Minister provide a date for when the costings for the various proposals within this large document will be published? Surely every Minister, now they are three weeks in office, has had a chance to establish the position. The only specifics in this document relate to housing. The document proposes year one actions and ongoing action but there is no consistency in it at all. It has all of the hallmarks of the circumstances in which it was conceived, namely, up against a deadline. Can the Minister give us a commitment that a costing document for all of the proposals, both those within this document and within the facilitation agreement Fianna Fáil has with the Government, will be published before the summer recess?
I too would welcome that costings document. It is quite extraordinary that we have a programme for Government that is so vague and where it is not vague, there are no costings with many of the proposals. The Minister mentioned earlier in response to Deputy Howlin that €6.5 billion of extra investment was being put aside by the Government for public services and capital expenditure. Some €3 billion of that is "standing still" money. It is to do with changing demographics and public sector pay. Therefore, in net terms, only €3.5 billion will be used to improve services. This information is in the document, which states the provisions are inclusive of public sector pay, which is the Lansdowne Road agreement, and ageing or changing demographics. Therefore, in real terms, we will only see a €3.5 billion investment. That is perhaps why many of the measures in the programme for Government, which Fianna Fáil has signed up to, are not fully costed. I would welcome the bringing forward of the costings for the proposals as soon as possible.
I return to my original question as it is the most germane for those of us here to hold the Government to account. We are halfway through 2016, so what are the implications for this year's Estimates, for public expenditure and for the published revenue of the commitments made in the new programme for Government? Is the Minister saying there is no additional expenditure over what was signed off by the previous Government to be borne this year? He should know, halfway through 2016, what the implications are for 2016.
I have already answered Deputy Howlin's question but I am happy to repeat my answer, namely, that I will be reviewing the Estimates published for 2016 in light of where we stand now and will bring a recommendation to Government in that regard. As soon as I have Government support and agreement on the Estimates for this year, I will bring them before the Dáil. I am also conscious that given where we are in the year and the need for the Estimates to be passed, it is important we do this sooner rather than later, particularly before we move into the budget process for 2017.
In regard to the costings for the overall programme, I have already provided the House with the cost of the total programme, €6.75 billion. It appears I cannot win with Sinn Féin. On one hand, it accuses me of spending too much on programmes it believes will not make any difference while on the other, it accuses me of not spending enough. It is a political choice to respond to demographics. It is what needs to be done but it requires spending taxpayers' money. There is nothing automatic about that choice; it requires the decision of Government.
As the Estimates are made available on a year-by-year basis to deliver the programme for Government, I must bring them to the House. I will do that and aim to do that with the 2016 Estimates very soon.
Public Sector Pay
Jim O'Callaghan
Ceist:39. Deputy Jim O'Callaghan asked the Minister for Public Expenditure and Reform the status of negotiations with public service unions and representative bodies in regard to the implementation of the Public Service Stability Agreement 2013-2018, the Lansdowne Road agreement; and if he will make a statement on the matter. [13018/16]
Pay issues for public servants are currently determined within the constraints set by the Financial Emergency Measures in the Public Interest, FEMPI, Acts of 2009 to 2015 while the industrial relations environment is managed under the terms of the Public Service Stability Agreement 2013-2018, the Lansdowne Road agreement. The programme for Government contains a strong commitment to the Lansdowne Road agreement. This gives a framework for the next few years for the Government's proposals for ongoing public service reform as well as setting out an agreed pathway to pay restoration for public servants that is affordable to taxpayers.
I believe the agreement is the best way forward to meeting the needs of our public service in terms of pay policy while also continuing to reform work practices and deliver a public service that is fit for purpose. This policy also facilities the allocation of existing staff resources by the Government to essential front-line services to enhance service delivery and support existing public servants in the delivery of those services.
In regard to the public service pay commission, to which the Government agreed as part of Fianna Fáil facilitation, the Minister mentioned he will have discussions with the parties involved in the Lansdowne Road agreement. Will the Minister provide a timeline in regard to those discussions and give us some indication of when he will come back with proposals?
The Minister also spoke of a commitment to the gradual repeal of the FEMPI measures. Will he define what he means by "gradual"? Has the Government a timeline in mind as to how that will unwind? Retired public servants have also taken hits in regard to the various FEMPI cuts. Will the Minister engage with their associations in these discussions to the same level as with trade unions?
I gave qualified support to the Lansdowne Road agreement because at least it gave something back. However, the problem I have in regard to that agreement, which we would honour, concerns pay restoration. The Minister spoke about pay restoration but it is for those on over €65,000 in terms of what was taken from them through the Haddington Road agreement.
It is not. The Deputy is wrong.
It is. I am talking about the Lansdowne Road agreement. There was a separate proposal in the Croke Park agreement, a registered agreement that is being implemented as part of the Lansdowne Road agreement. For those on over €65,000, they get full pay restoration - in terms of what was taken under the Haddington Road agreement - over 2017 and 2018 and for those on over €110,000, they get full restoration in three instalments. The Minister may not be aware of that but I am certain of my facts. There is full pay restoration in terms of what was taken from those on over €65,000 over 2017, 2018 and 2019. What about those on salaries under €65,000? They had their pay chopped in 2009 by the previous Minister. Where is the pay restoration for them?
The previous Minister touched not a cent of anybody on under €65,000 but facts were never Sinn Féin's strong point. I have two questions. The cost of providing for the Lansdowne Road agreement for 2016 was €300 million. Has the Minister set aside any additional funding for additional public service pay restoration in 2016? In regard to pensioners, would the Minister agree that as the economy improves, pensioners should be the first to have full pension restoration?
The Minister may have some latitude in regard to time, provided he responds to the three Deputies as comprehensively as possible.
Will Deputy Calleary please repeat his first question?
I asked about the timeline in regard to the new commission. The Minister said earlier he was having discussions with the various signatories of the Lansdowne Road agreement.
On the timeline, I will begin discussions with the stakeholders of the Lansdowne Road agreement in regard to the public service pay commission in the coming weeks. When the commission will be set up will depend on the input I get from stakeholders and I will keep the Deputy apprised of that. I do not wish to prejudge what people may say on that.
In regard to engagement with pensioners and others in regard to their agreements, I do not envisage further contact with any groups in regard to future changes in public service pay or pensions because the agreement we have is in place up to 2018. The contact I will have with groups or individuals will be about how we implement the agreement as it is currently organised.
In answer to Deputy Cullinane's question, the benefit of the Lansdowne Road agreement is that it gives the strongest benefit to people on low and middle incomes. Given the way the last Government negotiated the agreement, which was led by Deputy Howlin and which focused on the cash amount made available to people on different salary tiers-----
The Minister has 15 seconds.
-----the percentage increase was largest for those on low and middle incomes.
I am talking about those earning €65,000.
Those on higher incomes received a lower percentage increase than those on low incomes.
They are having their pay fully restored.
Deputy Cullinane, the Minister is speaking.
Deputy Cullinane's approach is clear. When I attempt to answer a question-----
Will the Minister address Deputy Howlin's question, please?
I do not want to do Deputy Howlin a disservice, but when I give Deputy Cullinane an answer that is different from what he wants, he does not want to hear it. I have already covered Deputy Howlin's question about pensions. I will not prejudge negotiations we might have in the future as to where benefits will go but we have an agreement in place until 2018. I have not set aside additional amounts on top of the sums to which the Deputy referred.
Lobbying Data
Michael Moynihan
Ceist:40. Deputy Michael Moynihan asked the Minister for Public Expenditure and Reform if he is satisfied with the application of the lobbying register; the action he will take in regard to non-compliance; and if he will make a statement on the matter. [13087/16]
The first two reporting deadlines for those who have lobbied designated public officials have now passed. Those who undertook any lobbying since 1 September 2015 were required to register and submit returns of their lobbying activity on the online register. I am very pleased with the level of compliance achieved in these initial return periods. There are currently more than 1,300 organisations and individuals who have registered and almost 4,500 returns have been submitted to the register. The information available on the register provides the public with unprecedented insight into the role that lobbying plays in contributing to policy and funding discussions and decisions. Communications between the political systems, public service and all sectors of society will be supported and strengthened by this register, leading to better informed policy and decision making. The overall level of compliance is a very positive indicator that there is an acceptance of the need for openness and transparency in lobbying. It is clear that the work undertaken by my Department and the Standards in Public Office Commission in building awareness and understanding of the Regulation of Lobbying Act has been effective and I am confident that this momentum will be maintained as this work continues.
Currently, Part 4 of the Regulation of Lobbying Act 2015, which relates to enforcement provisions, has not been commenced. This was a deliberate decision made to allay any concerns that stakeholders may have had about inadvertent non-compliance with the provisions of the Act and to allow those lobbying a period of time to become familiar with their legal obligations and the registration system. Given the success of the system, and the high levels of compliance, it would be my intention to commence these provisions early next year.
There is an obligation to review the Act this year and I want to give an idea of some of the inconsistencies within the Act. The Minister for Finance, Deputy Michael Noonan, had meetings with the banks last year on variable rate mortgages. Two of the banks with which he met declared them as part of their lobbying returns but two others did not. Even at that level, there seems to be confusion over the obligations of the Act. It may also be that because no enforcement is in place, people are not afraid of it. How early in 2017 will the Minister enact the enforcement procedures and what month in this year will the review of the Act get under way?
My objective is to commence the review of the Act in September this year and to finalise it by February 2017. The reason we built in a review period was to deal with the kind of issues to which the Deputy referred.
Appointments to State Boards Advertisements
Pat Casey
Ceist:41. Deputy Pat Casey asked the Minister for Public Expenditure and Reform how he will ensure greater transparency and independence in the appointment of persons to State boards; and if he will make a statement on the matter. [13066/16]
As the Deputy may be aware, significant advances were made in this area in 2014 when a radically revised system for State board appointments was introduced with the following key principles at its core: the promotion of wider access to opportunities on State boards; the establishment of detailed and comprehensive criteria for those roles; and the introduction of transparent and rigorous assessment of candidates against these criteria. In broad terms, the objective was to open the State boards appointments process to the largest possible pool of suitable candidates from across Irish society. This constituted the most far-reaching reform of State board appointments since the establishment of the State. My Department issued guidelines in November 2014 setting out how the new appointments process is to work in practice. Since then, 336 vacancies have been advertised for 82 boards and 215 appointments have been made for the 59 campaigns completed. Some 4,990 people are currently registered on www.stateboards.ie to be notified of vacancies arising on State boards.
In line with our commitments in the programme for Government, I now propose to further strengthen the process by requiring ministerial nominees for the role of chairs of boards to be assessed and have their suitability for appointment confirmed by the Public Appointments Service. In addition, nominees for chairs of State boards will, following confirmation of their suitability by the Public Appointments Service, be required to have their nomination ratified by the relevant Oireachtas committee prior to their appointment being made by the Government. My Department is also examining how the commitment to put the State board appointments process on a statutory footing will be most effectively achieved.
When does the Minister expect the changes to take effect? During the period of the last Government, only 20% of some 1,200 State board vacancies were filled through this public process. What target does he have for the new process?
I expect that all State boards covered by this Act will now be subject to its provisions. The first example of the new process will happen soon in the case of the Department of Health, where competent individuals will be put into important roles as chairpersons of State organisations in a transparent manner.
Written Answers are published on the Oireachtas website.