Vol. 1027 No. 1
83. Deputy Catherine Connolly asked the Minister for Public Expenditure and Reform the actions that have been taken or that are planned following the analysis and conclusions of the spending review 2022 report entitled An Assessment of the Balance of Current and Capital Expenditure - OPW Estate Management Portfolio; and if he will make a statement on the matter. [48285/22]
I draw the attention of the Minister to the spending review carried out by the Irish Government Economic and Evaluation Service, IGEES. What steps is the Government taking with regard to the recommendations in that review and the data?
I also point out to the Minister of State that there is a serious misunderstanding somewhere in the media reports on the downgrading of the north-west region. Will the Minister of State come back to me separately either with an email or a letter on that?
I thank Deputy Connolly for raising this question. The Office of Public Works, OPW, has a significant and diverse office accommodation portfolio distributed throughout the country, comprising 890,488 sq. m at the end of 2021 and including a range of differing types of office provision, from heritage buildings to brand new grade A office accommodation.
The issue, which Deputy Connolly has raised with me before, of whether to buy, build or lease properties is a complex one and is subject to various factors, including the availability of capital funding, the availability of suitable buildings or sites, the prevailing market conditions at the time, the urgency and scale attached to the accommodation request, and the duration of the requirement. Due to the range of accommodation requirements across Government, there are a variety of solutions depending on the circumstances, and it is important to keep a dynamic portfolio available to the Government. The OPW’s preference is that functions of infrastructural importance or those viewed as a long-term commitment should, where possible, be accommodated in State-owned properties. This would include headquarters for central Government Departments, State security services etc.
The overall conclusion that can be drawn from the recently published spending review paper is that when the State is acquiring significant property for office accommodation, the new build or purchase options should be considered on a case-by-case basis in accordance with the parameters of the public spending code, particularly if there is a long-term requirement, subject always to the prevailing market conditions and available funding.
To meet its strategic objectives of modernising the estate and making it more efficient, the Office of Public Works constantly looks to appraise the potential of the existing owned accommodation portfolio for future redevelopment of sites, refurbishment opportunities and potential asset recycling prospects. This is done in parallel and in conjunction with ongoing appraisal, monitoring and managing of opportunities which arise from within the leasehold estate. The extensive research undertaken for the review provides the Office of Public Works with an important evidence base on which to ground decisions on the overall development of the portfolio into the future.
Under the National Development Plan 2021-2030, the OPW has been successful in securing funding for a broad range of projects, which include a number of office developments that will further enhance the balance of leased and owned accommodation. One of the major capital projects that is being funded within the project through Ireland’s national recovery and resilience plan is a deep retrofit of Tom Johnson House in Dublin 4, which will reduce the buildings primary energy use by 75%.
Additional information not given on the floor of the House
This will become the new headquarters of the Department of the Environment, Climate and Communications. The OPW will continue to appraise development and redevelopment opportunities on existing State-owned sites with a view to seeking additional funding for investments that will meet the operational needs of client Departments and agencies in modern energy-efficient buildings.
In addition to this, the OPW has an ongoing programme of fabric upgrades and energy efficiency retrofit projects in central government buildings to enhance the overall condition and performance of our buildings. This will ensure the enhanced performance of existing buildings and avoid the need to replace these buildings through the commercial office market.
The blended working policy framework for Civil Service organisations was published in March 2022, and Departments and agencies are currently in the process of finalising their departmental blended working policies. Inevitably, the decisions currently being formulated across each Department and agency on patterns of attendance in the office will have a direct impact on how the physical office space will be utilised into the future. The chairman of the OPW has recently written to all Secretaries General across government asking them to consider the use of their existing accommodation in the context of long-term blended working. Departments are being asked to account for the full optimisation of existing accommodation in the context of their blended working policies.
The spending review paper published by the OPW provides an evidence base for long-term decision-making on the future direction of the office accommodation portfolio. Every requirement will continue to be assessed on a case-by-case basis in the context of the urgency and scale attached to the accommodation request, the overarching OPW estate strategy, the duration of the requirement, and the availability of capital funding.
The Minister of State has acknowledged my earlier interest in this matter as I have followed up on this before because my experience in Galway has been dreadful. The health executive of the time leased a property for almost €1 million per year on a 35-year lease, and in the end it was cheaper to break the lease with a €1 million penalty. I have a particular interest and it would seem to me to make more sense to have State owned properties.
There is an acknowledgement of that on page 9 of this review in respect of the important structures and facilities for the Government, but this is a fascinating subject. The Office Public Works has 2,500 properties valued at €3.3 billion. Some 61% of the office space is owned and 39% is leased. The review looked at five properties and case studies. In every single case, the review found it was significantly cheaper to build. That was over a 40-year period and the cost of building accommodation in the five locations reviewed was between 29% and 38% lower than leasing. That is the context of my question.
As I said to the Deputy, on the previous occasion when we discussed this matter, I did not, nor does the Office of Public Works, disagree with her. We agree, in fact, but there are circumstances where we will have urgent needs. For example, if a tribunal is to be established and there is a requirement in the here and now for office accommodation, the OPW will not have the benefit of going through a rigorous planning process, dealing with all objections, judicial reviews, public procurement, the public spending code etc. because the tribunal will need to get up and running. There are occasions when we actually need to move.
The Deputy is correct in that the Office of Public Works accommodation portfolio is 60% to 40%, owned versus leased, which is quite different from the position in 1998. At the end of 1998, for instance, the OPW’s office accommodation portfolio comprised 960,000 sq. m, 56% of which was owned and 44% of which was leased. While this estate is 7.5% smaller now than it was in 1998, the number of people we are accommodating is 40,000 greater, which is an increase of 27%. On pound for pound delivery, I think the Deputy will find the OPW is actually doing quite a good job in this field for the Government.
As the Minister of State may know, I have the greatest respect for the Office Public Works and it does great work. There is a bigger policy decision here for every government as to the type of policy they will adopt in encouraging important entities of the State to rent or purchase. A clear message has been given here that it is cheaper to build in capital terms over a period.
Of course, I agree with the Minister of State that in the short term one sometimes needs to lease or rent. I have no problem with that but not when it is lost, like it was in Galway, where, as I mentioned, the property was rented for €1 million a year. I can think of many other buildings that are rented across the board. Perhaps the Office Public Works is doing better. I do not know, because I do not have the profile of all of the other buildings. For instance, in Galway, the city library is rented for as long as I can remember. That is completely daft. I am talking here about a policy. The OPW now has less space now with more staff, as I understand it, but we also have the blended work environment.
The Deputy is correct in that this will change even more in the next six, 12, or 18 months where we have a new blended working environment. We will now have situations, which we all have had already through the OPW-led campaign on energy consumption in public buildings, including this very building, where on some days we may have 10% to 15% occupancy. We will need to have very difficult conversations across our whole estate on whether everybody who works for the Civil Service, for instance, can continue to have the same sort of desk and office accommodation space they previously had while they are working 20% to 30% of the time in a remote location or at home and where in the meantime the State is keeping the lights on.
The Deputy is correct that this is an opportune time to have a discussion on this, but she is also correct in the context of what the Office of Public Works does. I would contend that, since 1830, when this office was established, the OPW's role has actually shrunk. Now I would say to my colleague, the Minister for Public Expenditure and Reform, that it is time to widen that remit in respect of the other State-owned Ireland Inc. buildings for which we are not responsible but for which we should be.
As the Minister of State may know, I also put in, before the summer, a whole series of detailed questions on this area of the OPW’s property portfolio. Since we returned to the House, frankly, I think we need to take a serious look at the management of that portfolio.
Another thing to add to this debate is that in one of the answers the Minister of State gave me before the summer recess, we discovered that the OPW has 108 unoccupied properties, most of which have been vacant since 2013, and a small number are empty for almost half a century. Some 70 of these are buildings and 38 are unused sites. Some 47 of these are Garda stations that were closed in 2012 and 2013 and still lie empty, including two in my own area: Kill of the Grange, Deans Grange and Dalkey Garda stations, and many other such stations litter the place. As to the question as to whether we should lease, buy or build, I ask what we are doing with all of this empty property and why are we not putting it to public use?
I presume the Deputy, as a great proponent of the public service, is not suggesting we would do anything else other than what Deputy Connolly said a while ago and that the Deputy is in fact on our side. I presume from his political and philosophical background that he is a great-----
Do not sell Dublin Garda stations-----
-----proponent of the Office Public Works. I will say, however, that in respect of disused Garda stations, the Office Public Works has written, rung and engaged with local authorities throughout the country on umpteen occasions to take these buildings off us. In many cases they are perfectly suitable for either local authority accommodation itself or for housing accommodation. Some of them have been taken and we have some very proactive local authorities, such as Leitrim County Council and Roscommon County Council, but I cannot say the same about many more. One would not think that there is a housing crisis in the country from the response of some of the local authorities. If there are specific properties where the Deputy believes we can offload it to a local authority, I would be delighted to hear about it, and for market value.
84. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which reform remains a fundamental feature in terms of public expenditure and budgetary management throughout all Departments; and if he will make a statement on the matter. [48272/22]
I seek to ascertain the degree to which reform can play a major part in cutting expenditure, eliminating delays and ensuring the best value for money is achieved in the shortest possible time as opposed to the longest possible time in respect of many projects.
Budgetary and expenditure reform remains a key feature in terms of public expenditure and budgetary management throughout all Departments. This important goal is progressed in a number of ways, including through day-to-day management of resources, regular engagement across Departments and the public service reform programme. It is also progressed through a range of important budgetary reform initiatives, including but not limited to: the public spending code; the national development plan; performance budgeting; equality budgeting; green budgeting; well-being budgeting; and the spending review process.
These reforms place an emphasis on broadening the approach to how public expenditure is appraised, implemented and reviewed, and also the impact of public expenditure across different cohorts of society and different categories of expenditure. They work in tandem with broader initiatives, such as the establishment of the Irish Government Economic and Evaluation Service, IGEES, to develop capacity and enhance the role of economics and value for money analysis in public policy making. While each reform may be considered in isolation, it is important to recognise that each represents one part of the overall reform process. Together, these budgetary reforms aim to provide a more comprehensive and thorough insight into how public services are supporting the Irish population. It is with this more complete understanding that policymakers can work towards the achievement of value for money objectives in the context of the entire budgetary process, and enhance the impact of policies and programmes on the lives of people in Ireland.
In addition, and in accordance with the Department's statement of strategy, officials are currently preparing the next phase of public service reform, to succeed Our Public Service 2020, which will incorporate priorities that were articulated in the recently published public service innovation strategy, Making Innovation Real, and sets its focus on the wider public service. My Department has also published an ambitious programme of renewal for the Civil Service. Additionally, the Office of the Government Chief Information Officer in my Department is currently finalising a new public service digital strategy. These new plans and strategies will strengthen the reform agenda further and ensure that we capitalise on the positive changes and learnings that we have witnessed since the onset of the pandemic over two years ago.
I thank the Minister for his comprehensive reply. I have in mind, for example, major savings that can be made in regard to the elimination of delays between the award of the funding in the first instance and the award of the contract. I know of situations, as I am sure the Minister does, where €20 million allocated ten years ago still has not been spent and is now only worth about €10 million in terms of achieving the target that was originally intended. The Minister has all the material at hand and he is focused on that particular area. I ask that he might review all those projections to try to ensure the nearest we can get to dead reckoning is achieved in the first instance, which will eliminate a lot of the debate that takes place afterwards. To proceed with the contracts in the shortest possible time will save a lot of money for the taxpayer and create a saving for local communities in terms of the delivery of a project they have been looking forward to.
I assume the Deputy is primarily referring to the delays in delivering capital projects. There is a balance to be struck between ensuring that we have proper oversight mechanisms in place, on the one hand, and, on the other, the speed of execution and getting projects on the ground. In the last couple of years, we have had significant underspends on the capital budget. While Covid was a significant contributory factor to that, there are other reasons and some of it is about process and the length of time it takes for a project to be delivered from conception to actually getting contractors on the ground. We are looking at the public spending code at the moment to see what opportunities there are to streamline the processes and to see if different stages can be done in parallel, rather than having to be done sequentially, for example. We are also seeking to devolve more responsibility and authority directly to line Departments in an effort to speed up the process, recognising there is that balance to be struck. We have to protect the interests of taxpayers and make sure we get value for money. At the end of the day, we want to deliver the national development plan and get our capital projects completed.
In fact, the delivery of elements of the national development plan are at the centre of the reason for putting down the question. In particular, I ask that the Minister would keep a close watch on what causes the delays. If a capital project is deemed to be good, healthy and necessary, why not proceed with it instead of having a situation where, in some cases, the relevant authorities seem to want to slow it down? If they achieve the result within ten or 15 years, it looks like an achievement, when it most certainly is not. The question of dead reckoning in the beginning would go an awful long way to eliminating the confusion that can arise afterwards and the vast amount of extra expenditure that has to be made in order to achieve the result that was originally intended.
Specifically on value for money, I want to ask the Minister of State, Deputy O'Donovan, about the planning permission notice that was put in the Irish Independent on 28 September by the Commissioners of Public Works to develop a science museum in Earlsfort Terrace, when there is a perfectly good Explorium in Sandyford that has been in receipt of PUP and EWSS but cannot reopen. It has had visits from over 30,000 children and 700 schools, with 250,000 visitors in its first year up to Covid. I cannot understand the budgetary management process. Was there a tendering process for any of that? Should there be a competitive tendering process? I have put in parliamentary questions on this, not just in September but back in June. I cannot understand the position of the Office of Public Works. I would be glad to hear the Minister of State's view.
I will take the first part.
The tabled question is Deputy Durkan's and the other is a supplementary.
It is entirely within the area of value for money, which the Minister has referenced.
I will respond to Deputy Durkan and it is a matter for the Leas-Cheann Comhairle if she wants to allow the Minister of State, Deputy O'Donovan, to respond to Deputy Carroll MacNeill.
Some Departments are quite adept at spending their capital budget. The Department of Education is very good at delivering school building programmes, extensions and new schools. It has well-developed processes and can navigate its way through the public spending code quite well. People will always raise issues about individual projects but, by and large, when I look at the performance in the round, I see a Department that is delivering and is spending its capital allocation, whereas other Departments are not achieving the same. They will point to problems in the supply chain, to recent construction materials inflation, to labour shortages and to an issue around capacity generally in the private sector in recent times. Having said that, as a Government, we have made a conscious decision to prioritise the public capital investment programme. The budget next year, with a carry-forward, will well exceed €12 billion. We want to ensure that the public service, working with the private sector, can deliver on that national development plan. I look forward to engaging with the Deputy on that.
There are set times for the questions. Deputy Carroll MacNeill might come in on another question. It has to be related to the question.
It is related.
In any case, we are out of time. I call Deputy Boyd Barrett.
85. Deputy Richard Boyd Barrett asked the Minister for Public Expenditure and Reform the way that he intends to solve the recruitment crisis across the public sector in Dublin given the lack of availability of affordable rents and the high cost of housing; and if he will make a statement on the matter. [48394/22]
100. Deputy Richard Boyd Barrett asked the Minister for Public Expenditure and Reform the way that he intends to solve the recruitment crisis across the public sector, particularly in the major urban centres given the lack of availability of affordable rents or house prices; and if he will make a statement on the matter. [48310/22]
I am sure, or I hope, the Minister is aware that we have a major crisis in being able to recruit and retain teachers, nurses, other allied health professionals and people in the mental health area and many other key areas, such as construction and so on. At the back of all of this, as the reports coming out make clear if it was not already clear, is the lack of affordable housing for people, particularly in areas like Dublin and the epicentres of the housing crisis. I ask what the Minister is doing from a public expenditure point of view to address this recruitment crisis and the housing crisis that lies behind it.
I propose to take Questions Nos. 85 and 100 together.
The level of employment in Ireland reached more than 2.55 million people in the second quarter of this year, the highest level ever. Increased labour force participation has been a key factor behind the strong employment recovery. Despite some expected softening in the labour market over the next year or so, tight conditions and skills shortages for some sectors are likely to persist in the labour market. This creates challenges for all employers, including the Civil Service and wider public service. However, it is important to point out that, notwithstanding these challenges, the public service has continued to grow its staff numbers very significantly.
Between 2015 and 2021, for example, overall serving numbers in full-time equivalent terms increased from approximately 302,000 to 366,000, an increase of 64,000 or more than 20%. Over 2022 alone, the numbers employed are estimated to increase by almost 15,000, or 4%.
Pay in the public service has been governed by a system of collective agreements since the Croke Park agreement was negotiated in 2010. The Deputy is familiar with the background to this. In previous replies, I have put on record where we stand on extending the Building Momentum pay deal, which, if approved, will result in further significant pay increases of 6.5% between now and the end of next year, with 3% of that backdated to 2 February 2022. I understand that the public services committee of the Irish Congress of Trade Unions, ICTU, will convene later this week to aggregate the ballots of the different results by the unions. We have already had two results, with teaching unions confirming that they have ratified the deal. The extension will help recruitment in the public service but there is an issue, and not just in the public service. Across a range of sectors, including the private sector, attracting labour is a challenge. However, I would point to the overall numbers. According to a report that I saw in the Department recently, the number of staff at the end of quarter 2 had reached 370,000. In budget 2023, we have provided funding across the public service to increase that to more than 390,000 by the end of next year. This is coming from a base of 302,000 in 2015, so we have had a very significant expansion of the public service, but I acknowledge that we have challenges across a range of areas.
They are a hell of a lot more than challenges. There is one nurse to 14 patients on wards in St. Vincent's hospital. We have major shortages of staff across the healthcare system, including mental health services, and among special needs assistants, SNAs. Teachers are leaving Dublin - we have seen the reports - because they cannot afford to live here. Reeling off statistics about public sector recruitment will not cut it.
They are facts.
They may be facts but they do not explain why we have major staff shortages across our health service and, therefore, long waiting lists and a crisis in our emergency departments, and classes being cancelled because teachers have nowhere to live. What are we going to do about this?
I have a proposal. The Minister stated that we should not spend the windfall tax receipts on ongoing expenditure. He was right. Why do we not invest those receipts in buying more housing instead of letting the large investment funds buy up property and charge extortionate rents that teachers, nurses and construction workers cannot afford? Would that not be a sensible investment of that money?
As the Deputy well knows, the Government, through local authorities, approved housing bodies and the Land Development Agency, LDA, is embarking on the largest public house-building programme that this State has seen, and rightly so. The Deputy was correct in his outline of the scale of the challenge, which is most acute in Dublin but is present elsewhere around the country as well. For the reasons the Deputy raised, the Government introduced a cost-of-living budget. We are reducing childcare costs by a quarter next year, continuing for another year with the 20% reduction in public transport fares and the 50% reduction for young people, eliminating inpatient hospital charges across the healthcare system, reducing education costs at primary level, and increasing Student Universal Support Ireland, SUSI, grants at third level.
The Deputy is right about much of this coming back to housing. That is why we are focused on delivering on the house-building programme. Was it the Deputy's suggestion that the State step in to buy completed developments or individual units? He might wish to elaborate.
I do. I invite the Minister to drive with me along the N11 towards Cherrywood and down to Shankill. At the end of the road, he will find the LDA's first site, but there will not be houses there for another two years. Before we get there, he will see many large apartment developments that are nearing completion or have just been completed. Who will own them and who will live in them? Currently, international investment funds will own them. They will rent them for €2,500 to €3,000 per month, which none of the workers at St. Vincent's hospital or the schoolteachers who are leaving Dublin can afford. If the State uses the money it has in the rainy day fund to buy them and then designate some for affordable purchase and some for social housing, those teachers, nurses and construction workers who need to work and live in Dublin could afford to do so. Would that direct investment in housing people now not be better expenditure than paying large amounts on the rental accommodation scheme, RAS, the housing assistance payment, HAP, and leasing, which is ongoing current expenditure?
It is not my place to try to answer Deputy Boyd Barrett's question but I will propose a solution that I would like the Minister to listen to. I would make a case for my home of Limerick - I am sure that the Minister of State, Deputy O'Donovan, makes this case to the Minister daily - as a solution to the challenges facing Ireland. As Deputy Boyd Barrett outlined, it is difficult for people to purchase homes in Dublin. Dublin faces significant challenges - it is crowded and expensive. Limerick offers a solution. The much maligned decentralisation programme actually worked in Limerick, with Revenue and Irish Aid decentralising to there. Their decentralisation was successful. I encourage all Ministers to look to Limerick as a solution to Dublin's problems.
The LDA's Project Tosaigh will do much of what Deputy Boyd Barrett suggests. Recently, the Government discussed a developing situation whereby a significant number of sites had been earmarked for build-to-rent apartments but the private sector was unlikely to proceed with those developments because of changes in the interest rate environment. They can now look elsewhere for returns in non-property investments. For example, they can buy Government bonds and so on. The apartment model is probably less attractive now than it was six to 12 months ago. The LDA is positioned, is capitalised and has the resources to step in, purchase and develop out those schemes.
There is potential. Like the Deputy, we want a reduced dependence on current expenditure and rental supports and an increased emphasis on capital expenditure and building permanent homes.
86. Deputy Ged Nash asked the Minister for Public Expenditure and Reform if he plans to ensure that all contractors that are awarded State public procurement contracts pay all staff a living wage given the cost-of-living crisis; and if he will make a statement on the matter. [48279/22]
I will be brief. This question relates to the Government's plans, if any, to ensure that all contractors who are awarded State public procurement contracts pay all staff a living wage. I will clarify this question somewhat by acknowledging that the Government is in some ways powerless, given that there is no formal living wage in place. The National Minimum Wage Act governs this area. We have a national minimum wage and we are moving towards a living wage. I would appreciate the Minister of State's views on the living wage in the context of public procurement policy.
Public procurement procedures require applicants to meet certain standards when applying for public contracts, including declaring whether they have breached aspects of employment law. All public works projects that are delivered under the Exchequer-funded element of the Government's capital plan must be procured in accordance with the provisions laid down in the capital works management framework, CWMF. The suite of public works contracts, which is a key component of the CWMF, contains a detailed set of provisions on rates of pay and conditions of employment for all those engaged in the construction phase regardless of whether they are employed by the contractor or its subcontractors. Where these detailed provisions are not met, the contracting authority may withhold payment, make deductions from payments due and, ultimately, terminate the contract where evidence of a serious breach exists that cannot be remedied by the other means provided.
A sectoral employment order, SEO, fixes the statutory minimum rates of pay and other conditions, for example, sick pay and pension entitlements, for persons employed in a given economic sector. An employer in that sector has a legal duty to comply, at a minimum, with those terms. The 2021 SEO for the construction sector came into effect on 1 February of this year. It sets the statutory minimum rates of pay and other conditions, for example, sick pay and pension entitlements, for people employed in the construction sector. The lowest hourly rate of pay in the SEO stands at €14.93 per hour for new entrant general operatives. Apprentices' rates of pay are expressed as percentages of the craftsperson's rate, commencing at €6.84 per hour in their first year and rising to €18.47 per hour in their fourth year.
While the public works contract provides immediate remedies to evidenced breaches of employment law, the enforcement of employment law is ultimately a matter for the Workplace Relations Commission, WRC.
Regarding the inclusion of a living wage on public contracts, there is no current legal basis in Irish law or national agreements to make this a requirement on suppliers wishing to engage in public tendering. Wage rates which have a legal underpinning of course apply to all contracts, public and private. Additionally, at EU level, any attempt to try to set wage rates through public procurement is likely to be viewed as discriminatory and in breach of the EU treaty principles and the procurement directive.
I note, however, that my colleague, the Tánaiste and Minister for Enterprise, Trade and Employment, Deputy Varadkar, outlined in June 2022 proposals to introduce a living wage for every employee in Ireland, starting from next year and to be fully phased in by 2026, when it will be mandatory for all workers.
I thank the Minister of State for his response. I am very familiar indeed with the SEO system and the employment regulation order, ERO, system that gives effect to the decisions of joint labour committees and ministerial sign offs regarding statutory minimum rates of pay higher than the national minimum wage, which would apply, for example, to contract cleaners and security workers. There are, of course, ongoing attempts to undermine the security ERO, and there may be implications for State contracts in that regard.
Regarding the living wage, it is now a voluntary matter, while the statutory minimum wage is the statutory minimum wage. We would all prefer, certainly those of us on this side of the House, for there to be greater movement towards the living wage and a central focus from the Government in respect of improving people's pay and terms and conditions through the public procurement process. The Government has signed up to the idea of a living wage and it would be a good idea, notwithstanding the fact it does not have legal status now, for the Government to promote the idea of a living wage with those benefiting from the largesse of the State in the context of the procurement process.
It is Government policy that there should be a living wage for all Irish employees. I would like to see it too and we have a programme working towards that goal. The Deputy's question, though, asks if we can implement this through our public procurement policies and my understanding is that it is not legal to do that. It can be imagined that if we set a certain wage for a public procurement contract that we could then have people in another country, in a different jurisdiction with a completely different economic system, claiming they are being discriminated against and taking a legal challenge.
The plan for the living wage is that it would be set at 60% of the median wage in any given year. In 2022, that would be €12.17 per hour, and this contrasts with the minimum wage now of just €10.50 per hour. It will, however, increase to €11.30 on 1 January 2023. The idea, therefore, is to phase this in over four years, so that by 2026 everybody in Ireland will be earning a living wage. This will be a floor and it will be mandatory for all employers.
Accepting that the Government is powerless and is governed by the National Minimum Wage Act 2000 and that the national minimum wage is not yet at €12.17 per hour, which is the current rate but which will, undoubtedly, go up, given the rise in the cost of living, when the living wage working group report is published later this year, one thing the Government could do concerns the small number of public sector workers who do not receive a living wage. For a cost of approximately €1.5 million to €2 million it would be possible for the Government to bring up the hourly rate of pay of all public sector workers to reach a living wage. A small number of public sector workers do not have a living wage now and the Government could try to do something about this group. It is a small minority of workers and it would be an initiative that would be very positive.
I think what the Deputy is saying is that a small minority of current public sector workers are earning the minimum wage but not the living wage.
They are earning under €12.17 per hour.
Yes, they are earning a rate below the living wage. The Deputy would like us to address this issue and I will discuss this with the Minister, Deputy Michael McGrath, and see what progress we can make on it.
88. Deputy Alan Dillon asked the Minister for Public Expenditure and Reform if he will outline progress on the Crossmolina flood relief scheme; and if he will make a statement on the matter. [48343/22]
People living and working in Crossmolina are anxiously awaiting final approval for the long-awaited flood relief there. The town was devastated by flood water from the River Deel sweeping through it on 15 December 2015. We are approaching the seventh anniversary of that happening this year and the community in the town faces another worrying winter of unknowns ahead. Will the Minister of State please provide an update on the progress of this scheme?
I thank Deputy Dillon for raising this issue again. In October 2020, the Office of Public Works, OPW, submitted the documentation for confirmation for the Crossmolina flood relief scheme to the Department of Public Expenditure and Reform, under the Arterial Drainage Act 1945, as amended. As part of this process, the Department sought and the OPW provided it with supplementary information in July 2021. The Department advised that a further public consultation would be appropriate, to include this supplementary information, and, as the Deputy will be aware, this public consultation was held between 6 May and 1 July 2022.
The Department of Public Expenditure and Reform has engaged consultants to examine the OPW confirmation documentation and the submissions received under the public consultation process. This work is ongoing. Upon completion of this work, the Minister for Public Expenditure and Reform will take into account all relevant information when deciding on whether to confirm the scheme in accordance with section 7E(1) of the amended Act.
The OPW remains committed to this scheme and has allocated funding and scheduled staffing resources to progress it subject to ministerial confirmation. The total budget for the scheme is currently estimated at approximately €15 million, with a construction time of four years. Under the OPW minor flood mitigation works and coastal protection scheme, €371,000 has been allocated to Mayo County Council in recent years to help manage the flood risk pending the scheme's delivery. This includes protection measures for up to 100 properties in the town of Crossmolina.
I thank the Minister of State for his response. As I said, this scheme has been ongoing for close to seven years now. While I welcome the update, does the Minister of State agree that urgent reform is needed regarding the planning system concerning these types of projects to avoid similar delays for future developments? What role is the OPW playing in driving reform in this area?
Regarding the process here, it is designed under the Arterial Drainage Act 1945, as amended, which is old but powerful and useful legislation to get infrastructure built on our rivers. In the OPW and in the Department of Public Expenditure and Reform, our parent Department, we have had some discussion around the assessment and consenting process that could potentially be used. I know this is the cause of frustration and people often wonder why the Department of Public Expenditure and Reform is doing the assessment and ask whether it should not be a planning agency. In my estimation, it should be a planning authority undertaking this task and we have had discussions regarding modernising this element. I refer to the assessment process being carried out by a planning authority such as An Bord Pleanála and the consenting authority remaining with a Minister, because this work ultimately becomes a charge on the Exchequer. Work in this sphere is progressing and we would hope that we will be able to bring proposals in this regard shortly.
I thank the Minister of State for that update, but, again, for the people of Crossmolina watching tonight they are still affected by a situation where a judicial review of a scheme in County Cork is jeopardising 116 properties in Crossmolina that have been subjected to repeated flooding. Those people's safety and livelihoods are at risk. I know the Minister of State, Deputy O'Donovan, and the Minister, Deputy Michael McGrath, are doing their level best to get this scheme progressed through the confirmation stage, however, and we would appreciate any further information that can be provided in the coming weeks to get these works progressed.
The OPW and the Department of Public Expenditure and Reform, to a greater extent, are in an invidious position here because while they are the consenting and assessment authority, they are also the paymasters. The Minister for Public Expenditure and Reform has made ample money available to us in the OPW to carry out the works, so that is not an issue in this context. The issue is that if this endeavour were to fall flat on its face by way of a judicial review, then the whole process would have to start again. The delay in the last 12 months has caused upset for the people of Crossmolina, which is natural because this scheme is very important for those living in the town. If we did not take the advice we got from our Department officials, however, to recommit the scheme to another round of public consultation and then submit that information to the Department of Public Expenditure and Reform, the potential to have a greater number of judicial reviews, above and beyond what we would normally expect anyway, would be enormous and the whole scheme would probably have fallen flat on its face. This is what we were trying to avoid.
91. Deputy Neale Richmond asked the Minister for Public Expenditure and Reform if he will outline the cost-of-living supports announced in Budget 2023; and if he will make a statement on the matter. [48325/22]
I commend the Minister for Public Expenditure and Reform, Deputy Michael McGrath, and the Minister for Finance, Deputy Donohoe, on the €11 billion cost-of-living budget. I believe last week's budget achieved the right balance between helping people in the short term and planning for an uncertain future.
Will the Minister of State summarise the main cost of living supports within budget 2023?
It is Question No. 91 in the name of Deputy Richmond. We had a forewarning.
I thank Deputy Dillon for raising this question. Budget 2023 contains a significant response to support households, public and community services and businesses, with spending measures of some €4.5 billion in aggregate. The Government announced a €2.2 billion winter cost-of-living package for households, including a double week of social welfare schemes in October, a fuel allowance lump sum of €400, a once-off payment of €500 to those in receipt of carer's support grant and to people on disability allowance, blind pension and invalidity pension, a €200 living alone allowance lump sum, a €500 working family payment lump sum, a double child benefit payment, a once-off reduction in the student contribution fee by €1,000 for undergraduates and one third for apprentices, a €1,000 increase to the postgraduate tuition fee contribution grant, double payments to those eligible for Student Universal Support Ireland, SUSI, maintenance grants, a once-off payment of €500 for Science Foundation Ireland, SFI, and Irish Research Council, IRC, PhD researchers, €8 million for the Student Assistance Fund, and three €200 electricity credits, with two instalments in the new year. In addition, a Christmas bonus will also be paid to eligible social protection recipients in December.
Budget 2023 also includes new core permanent spending measures, focusing on the cost of living, with an estimated value of €1.3 billion, including a €12 weekly social protection rates increase for working age and pension payments and an increase in the universal subsidy on the national childcare scheme.
In recognition of the unprecedented rise in energy bills, the Government is also making available €340 million this year to provide further support to public and community services. In addition, to support businesses, Government is introducing a €200 million Ukraine emergency response scheme to be administered by the Department of Enterprise, Trade and Employment.
While the supports provided are substantial, the Government cannot protect all households and businesses against the full effects of inflation as to do so would lead to further inflationary pressures.
It can be simply said that families were the biggest winners in this year's budget, but also that there were a considerable number of measures for young people. Certainly, the once-off reduction in the student contribution of €1,000 for eligible students, the once-off €1,000 increase for the postgraduate fee contributions and a once-off double monthly payment for those in receipt of SUSI maintenance grants were substantial measures, especially for young people and their families. The extension of the 20% public travel fare reduction and the youth travel card discount of 50% on all operated services out to 2023 will certainly support sustainable travel ambitions and assist in achieving our climate targets.
I have one question of clarification. How exactly will the renters' €500 tax credit be put into operation?
The rental tax credit will be legislated for in the Finance Bill over the coming weeks. Once the Finance Bill has been passed by both Houses and enacted, I anticipate that individuals will quickly have the opportunity to register and claim the rental tax credit on the PAYE Anytime system, the Revenue's online system. The Minister for Finance, Deputy Donohoe, will outline the details of that.
I am aware particular issues and questions have been raised about the rental tax credit in relation to certain categories of tenants, licence holders etc. The Finance Bill will provide a good opportunity for all of those to be teased out. I know the Deputy and other Members of the House will engage in that process over the weeks ahead.
I thank the Minister for his clarification. This budget will make a substantial difference to thousands of households who will benefit from the once-off measures aimed at easing the cost-of-living crisis. The €1.1 billion income tax package will certainly put more money back into people's pockets, with tax savings of €800 a year for single earners and double that for households. Middle-income earners, pensioners and families with young children were among some of the biggest winners in this budget. I commend the Minister's work and that of the Minister, Deputy Donohoe.
I, too, commend the Minister, Deputy McGrath, on that work. I have a question on the practicalities of the business supports, on which there is a state aid clarification yet to happen. For example, a business in my area, a retail vegetable deli store in my constituency, received a bill for €6,982 for the last 62 days. It had been €1,300 the previous year. He has to pay that within 14 days. Will he be sure he can get some class of refund, and if so, how and when? The practicalities of the business supports offered by Government are just as important, as is providing as much clarity as quickly as possible, and certainly to this gentleman who does not want to go over his 14 days.
I thank the Deputies. In response to Deputy Dillon, we are conscious that the next number of months will be very tough for many people. Deputy Carroll MacNeill gave an example of a business utility bill. We are seeing them being brought forward as well by households and constituents, who are sharing with us details of the bills they are receiving. What we have done will certainly help to insulate people to some extent, although not entirely and not in every case. We have to be honest about that. We have tried to target as many of the resources as possible to those who need them the most. That was the right thing to do but it does not take away from the challenge and the difficulty that will be there for many over the next few months.
In response to Deputy Carroll MacNeill, the temporary business energy support scheme will be legislated for shortly. It will be backdated to the beginning of September. The expectation is that the benefits of that scheme will begin to flow by way of payments in November. As the Deputy will be aware, the Revenue Commissioners will be directly leading operationally on that particular scheme. I know it cannot come soon enough for many businesses that need it urgently.
We will not have the full time for Deputy Griffin's question but he will have the 30 seconds and one minute.
93. Deputy Brendan Griffin asked the Minister for Public Expenditure and Reform the up-to-date position on the provision of a safer landing facility at An Blascaod Mór; and if he will make a statement on the matter. [48253/22]
107. Deputy Brendan Griffin asked the Minister for Public Expenditure and Reform the position on the preparation of a conservation plan for An Blascaod Mór and the provision of public conveniences at the same location; and if he will make a statement on the matter. [48254/22]
This is about An Blascaod Mór. I thank the Minister of State, Deputy O'Donovan, for visiting An Blascaod Mór in recent weeks. True to the Minister of State's word, when I raised it in the House earlier in the year, he said he would visit. I want to ask about the future of the landing facility, if a safer one can be put in place, and if there is any progress on that. Perhaps the Minister of State could update the House on the need for public conveniences for the island and on a conservation and heritage plan.
I propose to take Questions Nos. 93 and 107 together.
The OPW's involvement with An Blascaod Mór goes back to 1988 with Ionad an Bhlascaoid being developed with assistance from the locally based voluntary group, Fondúireacht an Bhlascaoid. The centre was first officially opened to the public in April 1994. The centre plays a critical role in the cultural life of Dún Chaoin and is an important facility for the local community. It is also an important heritage visitor experience, operated by the OPW, which celebrates and interprets the extraordinary literary legacy of the Great Blasket.
In 2020, as Minister of State at the Department of Public Expenditure and Reform with responsibility for the Office of Public Works, I opened a new viewing platform at the Ionad site in Dún Chaoin, on the cliff top overlooking the Blasket Sound. This project was funded by Fáilte Ireland and the OPW. As part of the strategic programme of investment with Fáilte Ireland, Ionad an Bhlascaoid itself was upgraded and I was delighted to open the new world-class visitor experience in June 2022.
The OPW will shortly invite tenders for consultants to devise a new conservation management plan, to which the Deputy referred, to continue to guide the development and care of the island into the future. The plan will consider the elements of conservation, heritage protection, archaeology, transport planning, marine biology and environmental ecology.
With reference to the provision of public conveniences on the island, this is an ongoing challenge given the unique nature of the island. The OPW is currently investigating options for the provision of public toilets and has discussed this matter with the landowners. The OPW is preparing to seek quotes from suitably qualified professionals to assess the suitability of potential locations on the island for such facilities. Toilets were successfully provided on Sceilg Mhichíl for the first time earlier this year.
I note the Deputy's continued interest in improved landing facilities where boats could embark and disembark passengers directly to the island. The issue of improved landing facilities is under serious consideration. These facilities are an essential element in the sustainable management of the island from a heritage, tourism, safety in particular, and environmental perspective. While ferry services are confined to licensed vessels with specific tender permits, it is challenging to manage access to and from the islands during the allowed season.
Additional information not given on the floor of the House
Planning permission for a pier was previously granted in 2003, but Kerry County Council has advised it is necessary to secure fresh planning permission, given there have been significant changes in the designated status of the island and in environmental regulations in the period since the original permission was granted. This will necessitate updated environmental and other reports to support such an application as well as the preparation of a detailed updated design for the project. The OPW continues to engage with the relevant stakeholders to consider the key challenges in undertaking this project.
My most recent visit to the island was on 19 September, where I was accompanied by the Deputy, and I will continue to work with the local community to continue to protect the island and in supporting sustainable tourism to share the unique culture of the island with visitors.
Fáiltím roimh an nuacht seo. Bheadh sé an-tábhachtach cé níos sábháilte a chur in áit do gach aon duine, ach go háirithe na daoine atá ag tabhairt cuairte ar an oileán.
Chomh maith leis sin, as the Minister of State will know, on the island there are also concerns about conservation issues and, particularly, visitors to the island who, whether unwittingly or not, disturb the seal population. I ask that signage be erected at the point of entry to the island, at the quay, in order that people would be aware that the seals are protected and that they should not come too close to them or interfere with them. Perhaps some engagement could take place also with the ferrymen and ferrywomen and the ferry providers to inform visitors before they come to the island of what is expected and what is appropriate behaviour when they visit the island.
As for the seals on the beach, which Deputy Griffin and I saw with the OPW when we were there, the OPW has a plan to improve the signage and to erect appropriate signage on the island ahead of the 2023 visitor season on foot of the requests made on the day we were there. The OPW has been in dialogue with the National Parks and Wildlife Service to make sure that this is done properly. As well as that, there will be a co-ordinated level of consultation and dialogue with the operators of the ferries, as the Deputy suggested.
As for the query about the landings on the island, aontaím leis an Teachta maidir le cúrsaí slándála ar an oileán. Cuireann sé isteach go mór orm, and I was very concerned when I was down there, to see that we are still landing people on an island of such global significance in the manner in which we are doing so. The risk is very high, and I have asked my officials to address it accordingly with Kerry County Council.
