I acknowledge the incredible network of people around the country that has been involved with PwDI. These people were very anxious to be part of a voluntary movement that gave a voice to people with disabilities. It is important when a decision like this is taken that the facts are given. That is why I am here tonight.
I thank the Senators for giving me this opportunity to explain the reasons it is necessary to cease funding to PwDI from 2012 and to elaborate on the alternative proposals that have been introduced that will ensure the voice and perspective of people with disabilities will continue to be heard in a more focused and cost effective way. People with Disabilities in Ireland Limited, PwDl, was set up in 2000. It is the successor organisation to the Irish Council of People with Disabilities and the Department of Justice and Equality is its sole funding source. It has a staff of eight in its headquarters in Dublin, two of whom are seconded from the Department of Justice and Equality. Staff under the CEO range from CO to HEO level. There are 21 regional networks around the country, with one in most counties, except for Kilkenny, Dublin, Longford, and Wicklow. The Cavan network started up very recently. The regional networks are made up from volunteers and have at least ten members in each. They are funded from PwDI headquarters on projects they complete for people with disabilities
There are a number of NGOs in the disability sector. However, due to initiatives since 2000, in particular, the new disability advocacy service being funded by the Department of Social Protection since January 2011, there is a huge overlap with the advocacy service provided by PwDI. The overheads to run this organisation were using up the majority of the allocation. The headquarters had administration costs relating to rental, light, heat and salaries, including board expenses. The networks have their own administration costs too, including travel and subsistence. I gave my approval in late September 2011 for officials in the Department to carry out a review of expenditure relating to PwDI to ascertain whether people with disabilities were getting value for money from the PwDI allocation.
The first thing that is striking is that the organisation has been unable to spend its allocation in recent years. In 2010 PwDI was allocated a budget of €1,465,000. The total request for drawdown of that fund was only €895,290. This is only 61% of the allocation. In 2011 the allocation was cut by 39% to €900,000 and towards the end of September 2011, the total drawdown of that fund is only €577,104 or 64%. It is unlikely that the organisation would have been able to spend the remaining €332,896 or 36% by the end of the year. The review showed that in 2010, headquarters allocated 28% of the budget to the networks, leaving €650,436 or 72% to be spent on headquarters. It is very striking how this €650,436 was spent. The bulk of the money, €540,906 or 83% was spent on overheads. A further €51,106 or 8% was spent on travel and subsistence, including board expenses. This left only €58,424 or 9% to be spent on projects for people with disabilities. When we compare 2011 with 2010, we can see that the percentages being spent on travel and subsistence, 9%, and overheads, 89%, are up on last year. The figure for overheads could have been much worse only for the fact that they were reduced by 10% due to the CEO getting rent abatement in 2011.
What is really striking is the percentage spent directly on projects for people with disabilities, which is 2% or €5,952. This means that 98% of all the money spent by headquarters was spent on overheads and travel and subsistence, including board fees.
Looking at the total amount spent by the networks directly on projects for people with disabilities, in 2010 the figure was €81,523 against its total allocation of €231,761. The percentage spent directly on projects for people with disabilities was just 35%. In the same period, the total amount spent on travel and subsistence by the networks was €66,718, or 29% of the total spend. The total amount spent on overheads was €83,519, or 36% of the total spend. This means that for every €100 of Exchequer funding spent in 2010, the networks spent €65 on overheads and travel and subsistence.
The trend in 2011 shows a slight improvement on that in 2010. This is down to a rigorous implementation of governance procedures by the Department and the headquarters of People with Disabilities Ireland and a small reduction in overheads due to the implementation this year of some of the recommendations made in previous value for money reports. However, the percentage of the total spend on projects for people with disabilities is still only 43%, with 57% going on overheads and travel and subsistence. It is unlikely that People with Disabilities Ireland will spend all of its allocation this year since it had only spent 64% of its allocation to the end of September. This means that for every €100 of Exchequer funding spent in 2011, the networks spent €57 on overheads, travel and subsistence.
Looking at the figures for 2010 and comparing them with those in for 2011, the following statistics come to light. Some networks have not spent any of their allocations in either year. One could assume that these networks are not active in reality. Five networks, although they have spent nothing on projects in 2011, have spent all of their allocations on either overheads or travel and subsistence or both. There are only five networks which have spent more on projects in 2011 than on overheads and travel and subsistence combined. Some 14 networks have spent the greater part of their allocations on items other than projects. Two networks have spent 100% of their allocations on travel and subsistence, while one has spent its entire allocation on overheads. Only two networks have spent more than 80% on projects.
To complete the review, People with Disabilities Ireland was asked for a document showing how it would spend its budget for next year, assuming it was allocated the same amount as in 2011, that is, €900,000. The conclusion that can be drawn from this document is that it is almost impossible for the organisation to reduce its overheads by any further significant amount. I know that the chief executive officer was instrumental in achieving cost reductions in as many areas as possible in the past two years, including on premises, insurance, audit accountancy, legal, etc., but one reaches a point where further reductions cannot be achieved.
Working on the basis that People with Disabilities Ireland would spend all of its allocation in 2012, which given its history is unlikely, it proposed in its submission to give the networks €302,000, or 33% of the total spend. This means that headquarters plans to spend 67% on overheads, including on premises, staff wages and travel and subsistence. We know from the 2010 full year statistics that the networks spend approximately 35% of their allocations on projects for people with disabilities. This would amount to a figure of approximately €105,700. Therefore, one can conclude that People with Disabilities Ireland proposes that for every €100 spent by the networks in 2012, only €35 will go on projects for people with disabilities and the percentage is going down.
Taking into consideration the overheads of headquarters, the proposed percentage figure for spending on projects by People with Disabilities Ireland as an organisation in 2012 is 11.7%. This means that People with Disabilities Ireland proposes that for every €100 of Exchequer funding spent in 2012, only €11 will be spent on projects for people with disabilities. This figure is slightly down from actual spend for the full year in 2010 when €15 out of every €100 was spent on projects for people with disabilities.
It can be seen that the money being spent directly on projects for people with disabilities has been decreasing steadily in recent years. When the total allocation over the three years is taken into consideration against the money spent in 2010-11 or proposed to be spent in 2012, the percentage spend on projects for people with disabilities averages at around 9% to 10%.
Since the Department of Justice and Equality is the sole funder of People with Disabilities Ireland, it is expected that it will have to cease operations in 2012. There will be redundancy implications for six of the staff working in head office. From the analysis given, it is obvious that this waste of Exchequer funds cannot be allowed to continue. It has been decided that funding to People with Disabilities Ireland must cease at the end of 2011. I thank the members of People with Disabilities Ireland and the staff for their efforts during the years, but in common with all aspects of Government spending, everything must be examined with a view to preserving in so far as possible front-line services.
It is my wish to ensure people with disabilities benefit directly from any moneys allocated to the sector. With this in mind, I am overseeing the finalisation of a major value for money and policy review of disability services in the Department of Health to ensure existing funds allocated for people with disabilities is spent to best effect.
I am also interested in hearing what people with disabilities have to say on issues affecting them. I have just set up and I am personally chairing a new national disability strategy implementation group to develop and progress the strategy. We had our first meeting today and it was most interesting. For the first time ever, people with disabilities told us what they wanted and how they wished their lives to progress. The new group will include representatives from a number of disability stakeholder organisations and also a number of people with disabilities who will be able to bring their lived experience directly to bear on this very important work. This will ensure the voice and perspective of people with disabilities will continue to be heard in a more focused and cost effective way.
The new disability advocacy service, being funded by the Department of Social Protection since January, provides trained advocates who bring about positive change for people with disabilities in supporting them to access social welfare, housing and improved living conditions. They help people to reintegrate into the community on leaving a residential institution and link them with local support services. They also have a policy remit in that they have a policy formulation function in this area.
The Government must ensure that in 2012 and continuing thereafter funding will be allocated for the maximum provision of services for people with disabilities, having regard to overall resource constraints which affect all sectors at this time. No Minister likes to withdraw funding entirely from any organisation, but it is incumbent on us all to ensure that where we spend substantial sums of money, people with disabilities benefit directly.
