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Departmental Reports

Dáil Éireann Debate, Tuesday - 1 May 2012

Tuesday, 1 May 2012

Ceisteanna (145)

Michael McGrath

Ceist:

205 Deputy Michael McGrath asked the Minister for Finance if he will provide a list of the measures implemented in his Department on foot of each of the 50 recommendations in the report of the independent review panel on strengthening the capacity of the Department of Finance, the Wright report, of 3 December 2010; and if he will make a statement on the matter. [21868/12]

Amharc ar fhreagra

Freagraí scríofa

As regards the recommendations for improvement to the budgetary process, to a large extent these recommendations have been superseded by the major reforms introduced since this Government took office in 2011. In the first instance, the establishment of an entirely separate Department of Public Expenditure and Reform introduces a new focus upon issues of expenditure management, and incorporates a unified focus upon public service reform and innovation. In the Medium Term Fiscal Statement of November 2011, the Government mapped out its fiscal plan on a multi-annual basis, setting out the overall level of budgetary consolidation it is estimated is required to adhere to budgetary targets as well as the split between revenue and expenditure measures for each of the years out to 2015. In the Comprehensive Expenditure Report 2012-2014 which was published by my colleague the Minister for Public Expenditure and Reform in December 2011, a new Medium Term Expenditure Framework has been established, with multi-annual expenditure ceilings laid down for all Departments. The expenditure ceilings, which are fully consistent with the Government’s agreed overall fiscal policy, replace the old-fashioned and incremental estimates processes which were subject to criticism in the Wright Report.

In July 2011, the Government established the Irish Fiscal Advisory Council ("Fiscal Council") on a non-statutory basis. The functions assigned to the Council encompass the proposals made in the Report. In the period since its establishment, the Fiscal Council has published two fiscal assessments and a report on strengthening Ireland's fiscal framework. Provision for the establishment of the Fiscal Council on a statutory basis is included in the General Scheme of the Fiscal Responsibility Bill published on 26 April 2012 in the context of the referendum on the ratification of the Fiscal Stability Treaty. The Fiscal Council is assigned the function of monitoring compliance by the Government with the budgetary rules set out in the Treaty.

A senior HR Manager was appointed to my Department in September 2011. Measures have been taken to increase the complement of skilled staff in areas such as economics, banking, financial services and policy analysis. Within the context of the Department's Employment Control Framework (ECF), my Department has examined the skill level of staff and has addressed the issue via a combination of direct employment and secondment. The Department is currently in the process of being restructured by the Secretary General, John Moran who was appointed on 6 March 2012, to meet the fiscal and economic challenges ahead. A revised Statement of Strategy has been approved and a new organisational structure is being rolled out that is focused towards the identification and implementation of measures that will contribute to enhanced confidence and delivering sustainable growth in our economy.

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