I am pleased to appear before the committee to present for its consideration five Supplementary Estimates which arise under the Finance group of Votes. They are as follows: Vote 5 - Office of the Comptroller and Auditor General; Vote 10 - Office of Public Works; Vote 16 - Civil Service Commission; Vote 17 - Office of the Ombudsman; and Vote 44 - Increases in Remuneration and Pensions.
The first Supplementary Estimate for which the committee's approval is sought is Vote 5. The Office of the Comptroller and Auditor General is seeking a gross Supplementary Estimate of €800,000 to fund additional running costs of the office. This will be offset by applying surplus appropriations-in-aid of €799,000 which arise from the generation of additional audit fees due to progress made in tackling the arrears of financial audits, giving a net requirement for a Supplementary Estimate of €1,000.
These are the main reasons for the excess expenditure. The additional salary costs arise, inter alia, from the acceleration of the office’s arrears elimination drive. As a result, certain payments to contractors, met from this subhead, will mature for payment in 2003.
Travel and subsistence expenditure is a significant part of the office's costs and the Estimate in 2003 amounted to €731,000. The recent revision to the subsistence rates effective from 1 January 2003 will increase this subhead expenditure by €50,000.
The Office of Public Works advised that the Comptroller and Auditor General's accommodation at Harcourt Road required refurbishment. Following a tender process conducted by the Office of Public Works, the cost of the refurbishment has been estimated at €450,000.
The next Supplementary Estimate for which the committee's approval is sought is Vote 10 - Office of Public Works. A grant-in-aid of €750,000 to assist refurbishment works at Maynooth College was included within the Office of Public Works Vote in 2003. This was entered in the Revised Estimates Volume, 2003, as a "Grant-in-aid for Maynooth College Library". The refurbishment works are, in fact, being carried out on the college chapel. The purpose of this token Supplementary Estimate is to update the entry to "Grant-in-aid for Maynooth College Chapel" enabling the Office of Public Works to issue payment of the grant-in-aid to Maynooth College for the purposes for which it was originally intended.
The next Supplementary Estimate for which the committee's approval is sought is Vote 16 - Civil Service Commission. The Civil Service Commission is seeking a gross Supplementary Estimate of €350,000 to meet additional expenses arising within its Vote. The gross amount will be offset by additional appropriations-in-aid receipts of €170,000, giving a net requirement for a Supplementary Estimate of €180,000. The main reasons for the excess expenditure are as follows: payments due to the Office of Public Works in connection with moving to its new headquarters in Chapter House and undertaking open recruitment initiatives under Sustaining Progress.
The next Supplementary Estimate for which the committee's approval is sought is Vote 17 - Office of the Ombudsman. The Office of the Ombudsman is seeking a gross Supplementary Estimate of €120,000 to meet additional expenditure arising within the Vote. As an offset against this sum, the Estimate provision under subhead A7 will be reduced by €20,000, giving a net requirement for a Supplementary Estimate of €100,000. The main reason for the excess expenditure is as follows: during 2003 Mr. Kevin Murphy, the former Ombudsman, announced his intention to retire from office on 1 June. Under the Ombudsman superannuation (amendment) scheme 2003, he was entitled to a lump sum of one year's salary, €172,000, on his retirement. As the announcement of his retirement was made during the year and also because the Ombudsman superannuation (amendment) scheme 2003 did not come into force until 16 April 2003, it had not been possible to include provision for the lump sum in the 2003 Estimate.
The last Supplementary Estimate for which the committee's approval is sought is Vote 44 - Increases in Remuneration and Pensions. This is required to cover the cost of an agreed settlement to an equal pay claim on behalf of clerical grades in the Civil Service. This claim dates back to 1991 when the Civil and Public Service Union, CPSU, lodged claims on behalf of 26 female clerical assistants seeking equal pay with paperkeepers, a predominantly male grade while the clerical assistant grade was predominantly female. A further approximately 2,200 persons subsequently lodged similar claims in 1997. Both grades of clerical assistant and paperkeeper ceased to exist in late 1997 when they were amalgamated and absorbed into the clerical officer grade as part of a restructuring of clerical grades in the Civil Service.
The Labour Court found in favour of the claim on behalf of the original 26 claimants. While the finding was appealed to the High Court, discussions between the Department of Finance and the CPSU produced a settlement of the claims made by the original claimants and those who had lodged subsequent claims in 1997. Those serving in clerical grades in 1997 who continue to serve in these grades are also covered by the agreement. The agreement with the CPSU will result in each person covered by the agreement receiving €5,000 in settlement of the claim. Establishing the precise number who qualify for payment has proved very complicated but the total is approximately 6,900. When account is taken of employers' PRSI, the overall cost could reach €36 million, for which it is proposed to provide. Individual Departments will pay the settlement to each person covered and recoup the funds from this supplementary Vote in accordance with a practice established to cater for outstanding pay increases in previous years.
That completes my brief summary of the five Supplementary Estimates before the committee. I thank members for their attention and will do my best to deal with any questions they may wish to ask.
