I propose to take Questions Nos. 104, 105 and 111 together.
The previous government decided to reduce the number of VECs from 33 to 16 and on the merger of particular counties. I am anxious to ensure that progress continues to be made in the work on bringing about a reduction in the number of VECs.
The IVEA has recently responded to my invitation to them to submit alternative rationalisation proposals, following their expression of concerns regarding the configuration of the proposed new entities.
I will consider the IVEA's response and decide on the particular mergers in the coming period having regard to the potential for savings and to ensuring that the new structures will be fit for purpose.
It would be very difficult to accurately predict the savings which will arise from any one particular merger. Some of the likely savings from the restructuring of the VECs will come from the sale of existing VEC buildings. The potential revenue to be raised from the sale of these assets, however, is closely linked to the current state of the property market and it may not be possible to dispose of such buildings satisfactorily in the short term.
This reconfiguration can over time yield savings in the recurrent cost of the headquarter functions of VECs which at present is of the order of €42 million in total, primarily comprising pay provision. The Special Group on Public Service Numbers and Expenditure Programmes suggested savings of €3 million. I am satisfied that a saving of that order is a reasonable projection in the medium term.