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Tuesday, 18 Sep 2012

Written Answers Nos. 486-500

Croke Park Agreement

Ceisteanna (486)

Micheál Martin

Ceist:

486. Deputy Micheál Martin asked the Minister for Public Expenditure and Reform if he has met the social partners recently in relation to the Croke Park agreement; and if he will make a statement on the matter. [36948/12]

Amharc ar fhreagra

Freagraí scríofa

Following the publication of the Second Annual Report from the Implementation Body in June last, together with the Taoiseach I met with the Body on 11 July. The Deputy will be aware the Body's membership includes representative from the Public Services Committee of ICTU. We took the opportunity to emphasise the need to accelerate the implementation of the various initiatives under the Public Service Agreement and to fully utilise the provisions of the Agreement to secure efficiencies and reforms. Both I and officials from my Department also meet with stakeholders including representatives of public service trade unions on a regular basis as part of routine consultation in the context of the implementation of the Agreement and the broader public service reform agenda.

Pension Provisions

Ceisteanna (487)

Joan Collins

Ceist:

487. Deputy Joan Collins asked the Minister for Public Expenditure and Reform the position regarding the application of the pension levy to civil servants (details supplied); and if he will make a statement on the matter. [37030/12]

Amharc ar fhreagra

Freagraí scríofa

The Financial Emergency Measures in the Public Interest Act 2009 introduced a number of financial emergency measures in the public interest including the making of a pension-related deduction (PRD) from the pay of public servants (including civil servants) who are members of a public service pension scheme or who have an analogous arrangement.

The deduction is calculated by reference to remuneration. Remuneration is defined at section 1 of the Act as emoluments to which Chapter 4 of Part 42 of the Taxes Consolidation Act 1997 applies or is applied and payable by or on behalf of a public service body to a public servant for his or her services as a public servant. This definition includes non-pensionable pay, including overtime, acting-up allowances and benefit-in-kind. The PRD is not a pension contribution and does not confer pension entitlements. As the Deputy will be aware, the Act was introduced in the context of the need to give priority to the stabilization of the public finances and to reflect the substantial benefits generally available to staff under public service pension terms. The provisions of the Act are subject to annual review.

Pension Provisions

Ceisteanna (488)

Michael Healy-Rae

Ceist:

488. Deputy Michael Healy-Rae asked the Minister for Public Expenditure and Reform the position regarding pensions (details supplied); and if he will make a statement on the matter. [37200/12]

Amharc ar fhreagra

Freagraí scríofa

The increase in State Pension age to 67, as provided for in the Social Welfare and Pensions Act 2011, is to take effect from 1 January 2021. Current public servants who are obliged to retire at age 65 in 2021 will be able to draw their public service occupational pension at age 65.

For public servants on modified PRSI, the change in State Pension age will have no effect on their pensions. But a fully insured public servant (i.e. paying full PRSI) has a pension which, like many other occupational pension schemes, is co-ordinated with social welfare benefits. The public service pension paid is therefore integrated with the pensioner’s social welfare benefits, which have been contributed to over the pensioner’s working life by the employer as well as the pensioner. This means the occupational pension paid is based on the assumption that the pensioner also receives the State Pension (Contributory).

Where this does not happen a discretionary supplementary pension may be payable under the relevant public service pension scheme to bridge the gap. One of the conditions for payment of a supplementary pension is that the pensioner, through no fault of their own, does not qualify for Social Welfare benefit or qualifies at less than the maximum personal rate. It is therefore necessary to claim any available Social Welfare benefits (and not only the State Pension (Contributory)) in order to receive a supplementary pension.

Public Procurement Tenders

Ceisteanna (489)

Dara Calleary

Ceist:

489. Deputy Dara Calleary asked the Minister for Public Expenditure and Reform his policy on public procurement; and if he will make a statement on the matter. [37424/12]

Amharc ar fhreagra

Freagraí scríofa

Public procurement policy is aimed at ensuring that all public sector purchasing is carried out in a manner that is legal, transparent, and secures optimal value for money for the taxpayer. The changed economic environment has meant that it is necessary to do "better for less", providing real value-for-money for the Irish taxpayer by maximising efficiency and eliminating waste. It is estimated that €9 billion is spent by public bodies annually on the public procurement of supplies and services. This is a very significant portion of overall spending and it is essential that the Public Service is achieving maximum value for money and operational efficiency in its approach to public procurement. It is for this reason that public procurement is one of the major pillars of key strategic importance under the Government's Public Service Reform Plan, published in November 2011.

The reform plan includes specific measures to ensure that:

1. aggregated procurement arrangements are utilised across the public service;

2. public bodies have appropriately trained staff to implement reform and to ensure the State is getting value for money; and

3. greater emphasis will be placed on analysing what the State purchases in order to assess other savings that can be made through more efficient procurement methods.

In order to ensure that the necessary elements are in place to implement these ambitious reforms, my Department engaged Accenture to undertake a capacity and capability review of the central procurement function to identify the actions required to realise substantial savings in public procurement in the short and medium term. The final report on this review is available on my Department’s website.

Following the review, proposals were recently submitted to Government. These proposals represent a new consolidated and integrated approach to public procurement that includes: integrating procurement policy, strategy and operations in one office through the establishment of a National Procurement Office (under the aegis of my Department) which will be headed by a Chief Procurement Officer; strengthening spend analytics and data management; examining the specifications set out for goods and services; evaluating demand levels to assess how demand (volume) can be reduced; and strengthening vendor and category management.

These proposals have now been agreed by Government.

These reforms will lead to reductions in the cost of goods and services; better procurement services at lower cost; introduction of technical standardisation; greater attention to contract management and better problem resolution; greater levels of professionalism among staff responsible for procurement; and better performance management of the central procurement function.

Public Procurement Contracts Expenditure

Ceisteanna (490)

Michael Healy-Rae

Ceist:

490. Deputy Michael Healy-Rae asked the Minister for Public Expenditure and Reform the way non-commercial semi-State agencies avail of a Cabinet decision, which was made a number of weeks ago, to mandate Government Departments, local authorities, the Garda, the Defence Forces and the non-commercial State agencies to avail of national contracts to be put in place by the National Procurement Service (details supplied); and if he will make a statement on the matter. [37646/12]

Amharc ar fhreagra

Freagraí scríofa

While their usage is not mandatory for non-commercial Semi State bodies, such bodies may continue to avail of any of the national contracts put in place by the National Procurement Service (NPS).

Pension Provisions

Ceisteanna (491)

John Lyons

Ceist:

491. Deputy John Lyons asked the Minister for Public Expenditure and Reform if pensions payable to Ministers and sitting public representatives in the Houses of the Oireachtas are co-ordinated or integrated with the social welfare pension; and if he will make a statement on the matter. [38409/12]

Amharc ar fhreagra

Freagraí scríofa

The Pay Related Social Insurance (PRSI) contribution class applicable to Ministers and Members of the Houses of the Oireachtas, Class K, does not entitle them to the full range of social insurance benefits including the State Pension and, therefore, the application of integration to their occupational pensions does not arise.

Public Procurement Tenders

Ceisteanna (492)

Gerry Adams

Ceist:

492. Deputy Gerry Adams asked the Minister for Public Expenditure and Reform if it is the case that a recent tender process operated by the National Procurement Service on managed print services operated a criteria which effectively excluded more than 90% of potential tenderers on the basis of requiring a minimum average turnover of more than €10 million for the previous three years; his plans to make such tender processes less restrictive to allow small and medium enterprises to tender for State contracts; and if he will make a statement on the matter. [38462/12]

Amharc ar fhreagra

Freagraí scríofa

Managed Print Services (MPS) is a unique office print solution, where a supplier provides an all inclusive service based on an on-going per click charge, that includes the provision of print/imaging devices at no capital cost to the public sector body. The supplier in effect, provides the full infrastructure required for all day-to-day office printing. Research carried out by the National Procurement Service (NPS) has indicated that such an approach gives best value to the Irish public sector.

The majority of public sector bodies currently have ad-hoc print arrangements in place. A typical Government office has multiple print and imaging devices such as; photocopiers, scanners and faxes. These devices can potentially come from a wide range of different suppliers with separate supply and servicing arrangements. The ratio of print devices to staff is often in the region of 1:2 and in some cases as low as 1:1 where a large number of staff have their own desktop printer.

The MPS Framework offers all public sector bodies in the State access to a print solution that is strategic and cost efficient that can be tailored to the specific needs of their individual organisation. Following an open competition, advertised on e-tenders and in the Official Journal of the European Union (OJEU), the Framework Agreement for MPS was established on 8 February 2012. The Framework Agreement will be in place for two years, with an option to extend for a further two years. The minimum turnover requirement for entry into the Framework was an average of €10 million per annum for the three most recent years of audited accounts or where the date of establishment is more recent for each year the entity has been established.

The value of the Framework Agreement over two years was estimated to be €100 million. Taking into account the value of the Framework and the fact that suppliers are required to provide all of the print devices up front, from their own resources, the view was taken by the NPS that the €10 million minimum turnover requirement was proportionate. Tenderers who did not have the required turnover in their own right were invited to partner with other entities to satisfy this requirement.

Four of the successful tenderers are indigenous small and medium enterprises (SMEs) (MJ Flood, Bryan S Ryan, Hibernian Business Equipment and Ergo). One of the tenderers did not have the required turnover in their own right to qualify for the Framework and formed an alliance with a large manufacturer to satisfy the turnover requirement. Furthermore, the Framework Members have indicated in their tender submissions that they will use a further 11 indigenous SMEs in the delivery of MPS. The Framework for MPS stipulates that public sector bodies carry out mini-competitions between the Framework Members for MPS solutions. To date six mini-competitions have been completed and all six have been won by Framework Members who are indigenous SMEs.

Circular 6/12 specifies that the MPS Framework is mandatory from 1 September 2012. However, it is important to note that this Framework is only mandatory where a public sector body opts for an MPS solution. If a public sector body simply wishes to purchase a printer or a photocopier they do not have to use the MPS Framework. It is a matter for each public sector body to determine which route offers the best value for their organisation.

Petroleum and Gas Exploration

Ceisteanna (493)

Pearse Doherty

Ceist:

493. Deputy Pearse Doherty asked the Minister for Public Expenditure and Reform if he will provide an explanation for the €2,059,000 payment under the heading of Marathon Petroleum Ireland Limited in the July 2012 Exchequer statement. [38546/12]

Amharc ar fhreagra

Freagraí scríofa

The Exchequer statement records that €2.059m was received in royalty payments from Marathon (now PSE Kinsale (Marathon’s operations in the Kinsale field were taken over by Petronas, the Malaysian state-owned petroleum concern, in 2009 and renamed PSE Kinsale)). Under the 1959 Agreement made between the State and Marathon Petroleum, the company pays royalties at the rate of 12.5% of the fair market value at the wellhead of oil, gas or other petroleum substances produced. The level of royalties paid by the company is determined by the quantity of gas delivered to Bord Gáis and the price that the latter pays for it.

Property Valuations

Ceisteanna (494)

Brendan Smith

Ceist:

494. Deputy Brendan Smith asked the Minister for Public Expenditure and Reform if, in relation to a commercial crèche at a location (details supplied) the Valuation Office is considering the revaluation of this unit; the way the unit is currently valued – is it as, a crèche, an office, or a retail unit; if it needs a total revaluation to put matters right or is it just a matter of confirming its current usage; if the bill currently being sent to the crèche owner is a total bill for the entire building or just the space being occupied by the crèche; if the building is revalued, can the decision be retrospective and can rates be reduced for the past few years accordingly; and if he will make a statement on the matter. [38725/12]

Amharc ar fhreagra

Freagraí scríofa

The Commissioner of Valuation is independent in the performance of his functions under the Valuation Act 2001 and the making of valuations for rating purposes is his sole prerogative. The statute does not accord me as Minister for Public Expenditure and Reform any function in this regard.

I am informed by the Valuation Office that the subject property referred to is a ground floor unit in use as a crèche. It formed part of a mixed use infill development when fist valued for rating purposes in 2010. The commercial elements in the development, including the crèche, were valued, in accordance with the provisions of the Valuation Act 2001, by reference to the values of comparable properties appearing on the Dublin City Council valuation list and entered separately on that valuation list. The revaluation programme which began in November 2005 in the greater Dublin area is ongoing, the current emphasis being in the Dublin City Council area which commenced in May, 2011 involving the valuation of approximately 25,000 properties and which is expected to be completed in 2013.

The property will be revalued as part of the Dublin City Council revaluation and a proposed valuation certificate will issue later this year. The occupier will then be afforded an opportunity to make representations on the proposed valuation and will also have the right to appeal the valuation subsequently. The new valuation will have effect for rating purposes from 1 January 2014 without retrospection.

Legislative Programme

Ceisteanna (495)

Patrick O'Donovan

Ceist:

495. Deputy Patrick O'Donovan asked the Minister for Public Expenditure and Reform when he hopes to bring forward a new valuation Bill in an effort to support small businesses; and if he will make a statement on the matter. [38731/12]

Amharc ar fhreagra

Freagraí scríofa

The Valuation (Amendment) (No. 2) Bill 2012 was published on 3 August, 2012. The primary purpose of the Bill is to introduce amendments to the legislation which underpins the rateable valuation system on which commercial rates are collected. The proposed amendments to the Valuation Act 2001 are designed to accelerate the valuation process and to streamline the appeal procedures available to ratepayers. As part of the efforts to accelerate the revaluation process the legislation will also provide the legislative basis for carrying out a revaluation based on self-assessment by ratepayers and also for the external delivery of elements of the valuation process.

The revaluation programme aims to provide up-to-date valuations for individual properties across all economic sectors that are subject to local authority rates. It is an important programme, especially given the significant changes in rental values following the economic downturn of recent years. The revaluation process is the mechanism whereby economic changes that take place in the property market are reflected in the valuation lists for rates purposes and in individual ratepayers' rates liabilities. Information in relation to the revaluation process is published on the Valuation Office website www.valoff.ie.

Public Sector Staff Increment Payments

Ceisteanna (496)

Terence Flanagan

Ceist:

496. Deputy Terence Flanagan asked the Minister for Public Expenditure and Reform if he will deal with the following matter (details supplied) regarding the public sector pay and pensions Bill; and if he will make a statement on the matter. [39261/12]

Amharc ar fhreagra

Freagraí scríofa

The publication of the Analysis of Exchequer Pay and Pensions Bill 2007 – 2012, has been delayed but will be published in early October. I will arrange to have a copy sent to the Deputy as soon as it is available.

National Parks Opening Hours

Ceisteanna (497)

Clare Daly

Ceist:

497. Deputy Clare Daly asked the Minister for Public Expenditure and Reform the plans the Office of Public Works has to reinstate the duck pond and the bridges which have been locked off for more that two years in Pearse Park, Rathfarnham, Dublin. [37162/12]

Amharc ar fhreagra

Freagraí scríofa

The Office of Public Works has placed a contract for the repair of one of the bridges that is currently closed off. This work is scheduled to be completed during October, 2013. A procurement process has been initiated for the erection of a new bridge to replace the other existing bridge that is beyond repair. The dredging of the pond is an item of work that OPW has scheduled to take place following the work to the two bridges.

Ministerial Advisers Remuneration

Ceisteanna (498)

Seán Fleming

Ceist:

498. Deputy Sean Fleming asked the Minister for Public Expenditure and Reform the names of special advisers for whom salary increases have been requested; the amount requested; the details of those granted increases and the amount by which they were increased; and if he will make a statement on the matter. [37163/12]

Amharc ar fhreagra

Freagraí scríofa

As I have advised in previous PQs since I appointed Anne Byrne and Ronan O’Brien as special advisors no salary increases have been requested in respect of either appointment. However, on appointment, Ms Anne Byrne was placed on the second point of the PO Standard non-PPC scale with effect from 10 March 2011. In accordance with the 'Instructions to Personnel Officers - Ministerial Appointments for the 31st Dail', dated 24 March 2011 which was issued by the Department of Finance and which states the following in relation to Special Advisers and Increments: 'Where a Special Adviser is placed on a salary point below the maximum of the scale he or she may be paid an annual increment until the maximum of that scale is reached .' Ms Byrne progressed to the next point of the scale with effect from 10 March 2012.

Departmental Staff Recruitment

Ceisteanna (499)

Mary Lou McDonald

Ceist:

499. Deputy Mary Lou McDonald asked the Minister for Public Expenditure and Reform the number of new recruits to his Department following its establishment and up to and including July 2012; the positions they hold and the annual salaries paid. [37164/12]

Amharc ar fhreagra

Freagraí scríofa

I understand that the Deputy's question refers to the period July 2011 and up to and including July 2012. During this period 28 new recruits have been appointed to my Department, including 5 fixed-term contract staff and 7 Administrative Officers who will be seconded to different Departments in the future. Details are as follows:

Grade

Number

Salary per annum

Status

Assistant Secretary

1

€139,898

5 Year Contract

Principal Officer

2

€85,957

3 & 5 Year Contract

Principal Officer

1

€96,295

5 Year Contract

NRP Accountant/Financial Analysis

1

€55,969

1 Year Contract

Employee Assistance Officer (HEO)

8

€52,189 - €59,335*

Administrative Officer

12

€29,922

7 for onward secondment

Administrative Officer

3

€33,247-€51,581*

* Salary based on previous civil or public service.

Appointments to State Boards

Ceisteanna (500)

Gerald Nash

Ceist:

500. Deputy Gerald Nash asked the Minister for Public Expenditure and Reform the number of appointments that have been made to positions available on the boards of semi-State companies and statutory agencies following public advertisement; if he will provide details of the names of persons who have been appointed under this initiative and the agencies on which they now sit; and if he will make a statement on the matter. [37165/12]

Amharc ar fhreagra

Freagraí scríofa

In response to the Deputy's question the following appointments were made to bodies under the aegis of my Department.

An Post National Lottery

Name of Appointee

Date Appointed

Mr. Donal Connell - Chairman

re-appointed

February 29th 2012.

The position to which Mr. Connell was re-appointed by me as Minister for Public Expenditure and Reform was not advertised as under the National Lottery Act 1986, the majority shareholder of the National Lottery Company (i.e. An Post) nominates the person to fill this position. On 22 November 2011, I re-appointed Mr Connell as chairman until 29 February 2012 in order to allow him time to appear before the Joint Oireachtas Committee on Finance Public Expenditure and Reform. Mr Connell appeared before the Committee on 14 December 2011 and his re-appointment as Chairman has been ratified with effect from the 29 February 2012.

Civil Service Arbitration Board

Name of Appointee

Date Appointed

Mr. Turlough O'Donnell, S.C. (Chair)

Appointed

Mr. Gerard Barry

1 July 2011

Mr. Tom Wall

Mr. George Maybury

Date Appointed

Mr. Hugh O'Flaherty

In accordance with the Government’s decision, the new procedures for appointment to State Boards dictate that expressions of interest are invited from persons interested in being appointed to the boards of State Bodies and Agencies operating under the Department’s aegis. Persons being proposed for appointment as chairpersons of State Bodies/Agencies may be required to make themselves available to the appropriate Oireachtas committee to discuss the approach which they will take to their role as chairperson and their views about the future contribution of the body or Board in question and, following that discussion, decisions will be taken by either the Government or myself, as appropriate, to confirm the nominee as chairperson.

In the case of the Civil Service Arbitration Board the new procedures were not used and the Chairman was not interviewed by Oireachtas as the conciliation and arbitration scheme for the Civil Service, the Permanent Defence Forces, the Garda and Teachers sets out the nomination process for the Board and its appointment by Government

Public Appointments Service

Name of Appointee

Date  Appointed /Re-appointed

Mr. Eddie Sullivan, Chairman

1st September 2011

Mr. Des Dowling, Assistant Secretary - Department of the Environment, Community and Local Government

Dr Deirdre O’Keeffe, Assistant Secretary - Department of Justice and Equality

Ms. Patricia Coleman, Director - Department of Public Expenditure and Reform

Mr. Seán McGrath - National Director of HR in the HSE (has since resigned)

Ms Judith Eve – former Chairperson the Civil Service Commissioners, Northern Ireland

Dr. Eddie Molloy – Management Consultant

Mr. Dan Murphy, former General Secretary of the PSEU

20th March 2012 – on appointment as CEO

Mr. Bryan Andrews as CEO of the PAS holding office on an ex officio basis.

Replaced by Ms. Fiona Tierney, CEO, PAS

The appointments were not made using the new procedures and the previous Chairman was reappointed to the role on the new board. The reason for not following the new procedures in relating to board appointments is that the Public Service Management (Recruitment and Appointments) Act, 2004 states that I, as Minister for Public Expenditure and Reform (in consultation with Minister for the Environment, Community and Local Government, the Minister for Health and the Minister for Justice, Equality and Defence) should appoint members of the Board of the Public Appointments Service.

The Board is meant to be representative of our client base. The majority of the board is therefore civil or public servants, nominated by the relevant Minister. There is also a union representative nominated by ICTU. I reappointed the outgoing Chairman and the two external members were appointed by me because of their expertise in strategic change and public service recruitment respectively.

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