I thank the Chairman and welcome the opportunity to appear before the select committee as it considers the 2010 Estimates for Votes 2, 3, 4, 13 and 14.
Vote 2 relates to the Department of the Taoiseach. A total of €28.756 million has been provided in the Estimate for the Department in 2010, a reduction of 12% on the 2009 Estimates allocation and an increase of 18.6% over the outturn for 2009. That increase reflects provision for costs which may arise on the conclusion of the work of the Moriarty tribunal. Similar provision was made in the 2009 Estimate, and the decrease in the comparable 2010 Estimate reflects the overriding imperative of reducing expenditure over the course of the year.
My Department has a demanding brief which we must achieve in the context of significantly fewer resources. This means that we must manage our resources to get the maximum benefit. It also means doing more with less, sharing our resources and expertise, harnessing technology to increase productivity, and getting the best value for money in procuring goods and services. Because of its position at the centre of Government, my Department is involved in many, if not most, aspects of the work of the Government, generally in a supportive and facilitative role, while on certain priority issues the Department takes a lead responsibility. Much of my Department's work supports the activities of other Departments, so that its impact on final outcomes is often indirect and captured in the output of our sister Departments. The outputs to be provided by the Department are, therefore, typically expressed in terms of the management of processes and frameworks which involve close engagement with the work of associated Departments and offices.
During 2009 my Department has made significant steps in achieving greater efficiencies in line with requirements to reduce expenditure, while continuing to provide an efficient and effective service. Overall in 2009, administrative savings of €3.329 million were achieved, representing a 16% saving over the 2009 administrative budget allocation. The use of alternative purchasing channels, such as new central supply contracts and frameworks, enables us to avail of economies of scale and ensures better purchasing power with suppliers, in addition to reducing administrative overheads. Decisions not to procure certain services at all or at a significantly reduced level, as with consultancy and advertising services, negotiation with suppliers and specific initiatives such as energy efficiency programmes, have also had a positive effect.
In discharging its responsibilities, the Department does the following: manages a number of core procedures and mechanisms to support collective decision-making by Government, including the work of the Cabinet as a collective authority; facilitates the flow of information to support decision-making in respect of particular policy priorities through the work of Cabinet committees and their supports at cross-official level; promotes co-ordination and consistency through a number of key cross-departmental networks; engages with key stakeholders in respect of Government-wide issues, such as the social partners; and supports the communication of the policy and decisions of the Government and the Taoiseach to the media and the general public.
Significant savings have been realised in the Department's payroll, with staffing numbers in the Department decreasing by 7%, from 212 to 198 in the course of the year. This too has resulted in a greater focus on achieving greater efficiency through deployment of staff according to key business needs and levels of activity, restructuring workloads and processes and achieving greater productivity through exploiting new technologies and availing of shared service arrangements.
The 2010 Estimate will fund a range of activities to advance the objectives in the Department's strategy statement, reflected in the specific targets set out in the output statement for the Department. The Department supports me and the Government as we progress national priorities, including: promoting our interests in the EU and the wider world; steering economic adjustment in a period of lower growth through engagement with the social partners; achieving balanced development and a caring society; driving the modernisation of the public sector to secure higher levels of performance; and our key priority of securing lasting peace on the island of Ireland.
In the economic context, a central priority for the Government and for my Department is to ensure a coherent and focused approach across all policy areas to stabilising and renewing the economy. Much of the focus in the first part of 2009 was on responding to the crisis conditions that prevailed across the global economy, and recent turbulence in the eurozone is the most vivid demonstration of the necessity for the decisions we made and the effectiveness of the policies we pursued. At the same time, the Department led development and implementation of a cross-Government framework to support a return to sustainable growth by using the crisis to restructure and re-prioritise investment. The latest indicators are consistent with our expectations of a return to economic growth during the course of this year and the European Commission and OECD now project that Ireland's GDP will grow next year at 3% — double the euro area average.
My Department, through the work of the Cabinet committee on economic renewal, which I chair, has supported the implementation of the Government's framework for economic renewal and our jobs strategy. The committee was established to focus to the key policies and programmes necessary to ensure an appropriate and cohesive response to the scale of the challenges facing the economy. This includes overseeing development and implementation of the smart economy framework for sustainable economic renewal and other key Government strategies such as that outlined in the report of the high level group on green enterprise.
One of the four action areas outlined in Building Ireland's Smart Economy is to develop the innovation or ideas component of the economy. The Department has supported the work of the innovation task force, which was established in 2009 to advise the Government on how to transform Ireland into a global innovation hub. The task force consulted widely as part of its deliberations and reported in March. It has set down a wide range of recommendations focused on supporting entrepreneurs and enterprise and developing the system necessary for a sustainable, innovation-led economy.
The Department also played a crucial role in progressing dialogue with the key stakeholders in the economy on the overall direction of policy, principally through the social partnership framework. It led to detailed negotiations with the social partners in early 2009 which culminated in agreement of a framework in January. While it was not possible to achieve a formal agreement at that stage, this process was useful in building understanding with regard to the scale and nature of the problems we faced and the responses required.
One of the most devastating effects of the global economic recession has been the loss of employment for many people. Finding alternative jobs, in sustainable sectors, will be the defining challenge in the coming years. We must ensure that we have the right incentives for employers to create jobs and that people on the live register are supported and incentivised to take up those jobs. A key priority has been to significantly increase job search and training capacity across the system.
As part of the work supporting the Cabinet committee on economic renewal, my Department chairs a cross-departmental senior officials group on the labour market, which seeks to ensure a joined-up approach across the relevant Departments and agencies. This work informed the extensive range of measures introduced in budget 2010. This work also informed my decisions on the restructuring of Departments earlier this year to provide a more effective and streamlined approach in the provision of activation, training and education services, through greater integration of relevant policy and delivery mechanisms.
My Department also plays a role in support of the development of policy in the area of climate change and the green economy. The Cabinet committee on climate change and energy security, which I also chair, provides oversight for the development and implementation of effective policies and measures which meet the energy, environmental and climate change priorities set out in the programme for Government. A major focus during 2009 was developing a shared Government position on the climate change negotiations at EU and international level.
The Department also supports the work of the Cabinet committee on health, which I also chair. The committee's role is to oversee implementation of the health service reform programme and to drive improvements in selected priority service delivery areas. It also has an important role in monitoring the provision of health services in the current financial and industrial relations, IR, environment.
The ongoing support of all Members of the Oireachtas for building and maintaining peace in Northern Ireland remains a cornerstone of the continued progress towards lasting peace and reconciliation. The agreement that was reached at Hillsborough in February provides the basis for the future stability and success of the democratic institutions we have all worked so hard to create and maintain.
The devolution of policing and justice was an essential step to secure peace, stability and security in the North and it consolidates the operation of devolved government and completes the transformation of policing and justice structures there. In recent months the institutions have moved on to focus on the day-to-day issues that concern everyone. These issues include the economy, jobs, health, education, infrastructure, social services, community safety and quality of life.
The next meeting of the North-South Ministerial Council takes place in early July when we will discuss the economic challenges being faced by all parts of this island and the potential for mutual benefit in tackling these challenges in co-operation. We will have opportunity at the plenary meeting of the British-Irish Council in Guernsey tomorrow, to discuss a range of issues that affect the people of these islands including economic and energy issues.
Civil society also has an important part to play and the Government recently facilitated two consultative conferences involving the social partners and other civil society groups from across the island. Participants came from all traditions, including representatives from business, the trade union movement, agriculture and the community and voluntary sector. There were wide ranging discussions on the role of civil society and its capacity to contribute meaningfully to cross-border co-operation. We hope that we will see progress in the coming months on a North-South parliamentary conference. We will continue to work for reconciliation, partnership and to enhance the new relationships that have grown from the peace process.
During the next decade we will have an opportunity to commemorate a series of events that shaped the foundation of this State and the history of the island in a way that acknowledges all the traditions on the island that draw their identity and collective memory from our shared history. I addressed a conference organised by the institute of British-Irish studies in University College Dublin on this theme in May. In the period ahead we will engage in a programme of outreach to all those who are interested in commemorating our history, in all its dimensions, with pride and respect. That will include all of the political parties on the island, as well as leaders of civil society and cultural institutions.
The British Government published the Saville report which inquired into the events of Bloody Sunday on 15 June last. I was honoured to accept a copy of the report from the families and representatives of the victims of Bloody Sunday when I met them on the day after the report was published. The families conveyed their thanks for the support they received from successive Irish Governments and the support they also received from many members of the Oireachtas across all parties. The findings of the report, the reaction of the people of Derry and the brave and honest words of the Prime Minister Mr. Cameron at Westminster, can significantly advance the cause of healing and reconciliation.
We owe it to all of the victims of the Troubles and to our children to continue the great collective endeavour to build a better future for all of the people on this island. While dissidents remain active and dangerous, they will not succeed in their efforts. The people of Ireland voted overwhelmingly for the Good Friday Agreement. Support for the political institutions in Northern Ireland has never been stronger and people across the island want to work together to address the problems we all face. The criminal actions by so-called dissidents can cause damage and represent a serious threat to life. However, these individuals are marginal and their destructive agenda is contrary to the expressed will of the Irish people. The Government and the Executive and the police services North and South will continue to work closely together and we will do everything we can to stop those to whom I refer.
Progress continues to be made on advancing the change and transformation agenda for the public service, which remains a key priority for the Government. We are committed to a public service worthy of the best traditions of those who have worked to develop our State and its institutions over the decades. We believe the public interest and the long-term interest of public servants coincide in the creation of a public service of which we can be proud and, equally, one which we can afford, now and into the long-term future.
I chair the Cabinet committee overseeing implementation of the transforming public services, TPS, programme. Work is being progressed across the public service on a whole range of issues, including, for example, the greater use of shared services in areas such as finance and human resources, HR, more efficient public procurement and improving access to public services for citizens, as well as reviewing the capacity of all Departments and major offices. This year, my Department and three others will be reviewed as part of the organisational review programme, ORP. This review, which is being led by a senior official from the Department of Finance, will assess my Department's capacity to meet its challenges in the coming years. The outcome of the review will be published and will be accompanied by a follow-up action plan on the key findings.
The public service modernisation division of the Department, working closely with the Department of Finance, continues to support Government in driving, co-ordinating and monitoring progress on the implementation of the review programme, as well as supporting organisations across the public service in their transformation efforts. Earlier this year, we gave a strengthened emphasis to the direction and leadership of change in the public service. I appointed Deputy Calleary to be Minister of State at my Department and at the Department of Finance — in addition to his responsibility for labour affairs — to strengthen the political leadership of the change process under the direction of the Cabinet committee on transforming public services. The Government intends to appoint a public service board shortly. This will include members from outside the public service who possess the appropriate experience and skills and who will assist the board in bringing greater focus and energy to the transformation effort. The board will advise the Government on opportunities and priorities for transformation and efficiency and on the capacity of the service to lead change and deliver a high standard of performance. It will also inform the approach of the Government and public service management to the transformation process during the period ahead.
In the context of the current crisis, it is clear that the pace of reform must be accelerated. A dramatic level of change in the way we do business and in our work practices needs to be achieved and the implementation of the transforming public services programme and the recently ratified public service agreement is highly important in this context. The transforming public services programme provides a blueprint for a much more flexible, integrated and responsive public service. The implementation of the public service agreement will, with the commitment and agreement of management and unions, assist in advancing that programme. The Government is engaging with the public services committee of ICTU to finalise the membership of the implementation body, which has been given a role in driving forward the process of change and ensuring that any difficulties that may be encountered will be resolved in a fair and speedy manner, as provided for in the agreement.
The agreement is a comprehensive agenda for public service transformation and a framework for public service pay determination over the period to 2014 is provided. The agreement also provides confidence and stability in the public service to allow it to meet current and future challenges. This will result in significantly enhanced public services and a more cost-effective and better integrated public service. The agreement also provides certainty for public servants in respect of job security and income levels. The challenge of doing more with less requires a fresh approach to the design and delivery of public programmes and the management of the organisations responsible for them. The Government is confident that the Irish public service, at all levels, has the capacity for change and innovation, and that the terms of the agreement provide the means of realising that capacity to the full.
An important part of the Government's efforts to increase competitiveness and support economic growth is the better regulation agenda. The better regulation unit in my Department plays a central role in driving efforts to ensure that optimum regulatory conditions are created and maintained. Earlier this year, I chaired the first meeting of an annual regulatory forum which allows the Government to engage directly with regulators on key priorities relating to the economy, competitiveness and competition issues. Arising from that meeting, Departments and key regulators have commenced work to stress-test the regulatory frameworks in their respective sectors with a view to presenting an overall report to the Government in the autumn.
The Department is also responsible for liaising with the OECD on the current review of Ireland's regulatory systems and processes. The review, funded by the European Commission, is part of a broader project encompassing all 15 original member states of the EU. It is expected to be completed in October and should provide added impetus for initiatives such as regulatory impact analysis and the administrative burden reduction programme being overseen by my colleague, the Minister for Enterprise, Trade and Innovation.
The EU and international affairs division supports me in my role as a member of the European Council and in dealing with Ireland's role in European and international affairs. The division works in close collaboration with the Department of Foreign Affairs and other Departments to promote and protect Ireland's interests in the EU and other international forums. It also seeks to ensure that Ireland can contribute to the strengthening of the EU and the multilateral rules-based system, including the United Nations.
Preparations for my participation in European Council meetings are coordinated by EU and international affairs division. Recent events in the EU and particularly the euro zone have brought home to all of us the need for better co-ordination of economic and budgetary policy. Much of the recent work of the European Council has focused on the economic crisis in the following three areas: regulation of the financial markets and the banking system; economic measures, including Europe 2020 and economic coordination; and mutual support among member states, such as the recent Greek loan package and the European financial stability facility.
Other major issues discussed over the past year at the European Council are the Lisbon treaty, including the Irish guarantees and the new arrangements under treaty, and major international issues such as climate change. With the entry into force of the Lisbon treaty, the format of the European Council has changed in several respects. To begin with, there is now a permanent President of the European Council, Mr. Herman Van Rompuy. Heads of State and the Government are no longer accompanied by foreign Ministers at meeting sessions, as was previously the case. Meetings of the European Council are normally prepared by the General Affairs Council.
While the European Council is expected to meet formally perhaps four times a year, there can also be informal or special meetings which are more ad hoc in nature and do not usually have formally agreed conclusions. To illustrate, since June 2008 there have been nine formal meetings and eight informal, ad hoc or special meetings, meetings of the European Council and meetings of Heads of State and the Government of the euro zone. I believe President Van Rompuy’s intention is to settle on a pattern of meeting on average every two months, which would be a reduction in the recent rate.
The European Union continues to grow in importance in terms of Irish public and private life. The combination of the entry into force of the Lisbon treaty, the extent of the economic difficulties of some member states and an increasing sense of declining EU influence on the world stage means we must work harder and more smartly to maintain our voice and influence. This will include increasing engagement with the European institutions, intensifying bilateral relations between Ireland and our EU partners, and improving internal coordination of EU business.
As a result of the entry into force of the Lisbon treaty, the role of the Oireachtas has increased in importance. This is true with regard to scrutiny, as parliaments for the first time have the power to send proposals back to the drawing board. It is also true with regard to the possible use of various clauses in the treaty for which the assent of national parliaments is now required. I note in that regard the important work going on in the Oireachtas Sub-Committee on the Review of the Role of the Oireachtas in European Affairs.
The interdepartmental co-ordinating committee on European affairs, chaired by the Minister of State at the Department of the Taoiseach, Deputy Roche, has a co-ordinating role with regard to EU issues, including ensuring that the timely and correct transposition of EU directives remains a priority for Departments. The EU and international affairs division of my Department provides the secretariat for that committee.
The internal market scoreboard monitors member states' progress on the transposition into national law of EU directives. In the last scoreboard, published in December, Ireland had a deficit score of 1%, achieving the target agreed by EU Heads of State and Government for the fourth consecutive time.
On the international side, my Department's main interest is in strengthening bilateral relations with non-EU states, particularly in respect to international trade, with a focus on emerging economies. As part of Ireland's strategic approach to further developing our bilateral political, economic and cultural relations with non-EU member states, I often meet international partners. Participation in international visits and summits serves to maintain Ireland's position at the forefront of international matters and raise our profile in terms of inward and outward economic and investment opportunities.
My Department provides direct support for me in respect of international visits and associated meetings. It works closely with the Department of Foreign Affairs and other Departments and agencies in assessing the strategic political and economic aspects of my international engagements. Over the past 12 months, these have included a meeting with the United Nations Secretary General to discuss the millennium development goals, attendance at the UN summits on climate change in New York and Copenhagen, a visit to New York as part of the St. Patrick's Day celebrations, and attendance at the EU-Latin America and Caribbean summit in Madrid.
Continued support for a whole-of-Government response to the challenge of economic recovery will again dominate the work of the Department in 2010. It is in the nature of the Department of the Taoiseach to maintain and develop its capabilities to support the Government's response to emerging issues and to ensure that procedures and communications are effective in that regard.
I will outline briefly the position on the Estimates for the independent legal offices for which I have certain administrative responsibilities and accountability to the House.
The Office of the Attorney General is focused on the need to provide legal services to its wide range of clients and is constantly alive to the need to ensure that its lawyers are best equipped to do so. This involves making sure that legal staff are fully expert in their areas of legal work and have at their disposal all resources to do their work to the highest standard required by the Government. Law is constantly changing, as we know, through case law and new legislation, and is constantly re-interpreted. New areas of law develop, including through international bodies and courts outside our jurisdiction, such as the law of the European Union, the Union courts and the European Court of Human Rights, and international law. This means that the lawyers and administrative staff in the office must work together to ensure high levels of legal expertise and high standards of service delivery to its clients.
The office has continued to embed and enhance its client service initiatives, has fully rolled out its case and records management system, ACME, has implemented its statement of strategy for the period 2008 to 2010, has made significant progress in modernisation under the terms of Sustaining Progress and Towards 2016, and has implemented the recommendations of the Sullivan report, as well as giving advice on key legal cases and drafting critical legislation, frequently at short notice.
For 2010 the Office has a net administrative budget of €15.2 million, compared to an outturn of €15.5 million for 2009. As is usual in the Office of the Attorney General, a significant proportion — close to two thirds — of the budget is allocated to salaries. This high proportion reflects the fact that the office is a legal professional organisation providing legal services to the Government and Departments and does not have expenditure programmes. The next largest expenditure is €2.3 million, representing 15% of the budget, for the Law Reform Commission, which is channelled through our Vote as a grant-in-aid.
The need to effect savings in public expenditure is fully appreciated by the office. In the past two years it has reorganised staff to operate within the financial parameters set down by Government while maintaining the expected high level of service. Finances and other resources such as staff will be restricted for the foreseeable future, and the office's main challenge will continue to adapt to ensure it meets the demands of its clients.
Vote 13 is for the Office of the Chief State Solicitor. The Estimate for that office is €36.415 million. Salaries, wages and allowances in the office account for €15 million. A total of €920,000 has been allocated to office machinery and other office supplies and related services. Included here is the cost of upgrading the computer hardware housing the case and records management system and financial management systems in use in the office, which are shared with the Office of the Attorney General. The maintenance and support of these systems is also funded from this amount.
A figure of €17.9 million is allocated for the payment of fees to counsel and other general legal expenses. These figures show a substantial decrease over the 2009 provisional outturn. The remaining €3.449 million is attributable to the general running costs of the office and includes provision for items such as training, security, cleaning, utilities and upkeep of offices. Appropriations-in-aid are estimated at €1.6 million euro and will include costs recovered by the office along with the recoupment of the pension levy.
The Estimate for the Office of the Director of Public Prosecutions, Vote 14, is €43,240,000. This provides for the salaries and expenses of the director and his staff, the cost of the local State solicitor service, fees to counsel engaged by the director to prosecute cases in the various courts and legal costs awarded against the State arising out of judicial review and other legal proceedings. This provides for the salaries and expenses of the director and his staff, the cost of the local State solicitor service, fees to counsel engaged by the director to prosecute cases in the various courts and legal costs awarded against the State arising out of judicial review and other legal proceedings. The office's main objective is to provide a prosecution service that is independent, fair and effective.
I commend these Estimates to the committee and thank the members for their attention. I now hand over to the Minister of State, Deputy John Curran, who will make a statement on the Estimates for the Central Statistics Office, for which he has ministerial responsibility.
