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Wednesday, 10 Oct 2012

Written Answers Nos. 11-16

Departmental Properties

Ceisteanna (11)

Michael Moynihan

Ceist:

11. Deputy Michael Moynihan asked the Minister for Public Expenditure and Reform the way he intends to ensure that greater cooperation is achieved across State agencies in the use of State owned land and buildings; and if he will make a statement on the matter. [43406/12]

Amharc ar fhreagra

Freagraí scríofa

The Government's Public Service Reform Plan sets out commitments relating to Property Asset Management to drive public service wide efficiency and ensure that optimal value for money is achieved in the management of the State's property portfolio.

The Office of Public Works chairs a Steering Group drawn from public service property interests to promote greater efficiencies and develop a property management plan with particular focus on office accommodation. The Government's rationalisation programme of state bodies and the reduction in public service numbers generally has resulted in reduced requirement for office space. Addressing these changes will involve a comprehensive review of public service accommodation policies particularly in relation to space norms, open plan accommodation and efficiency drivers. A cross-disciplinary committee in OPW is currently developing a set of standards for office accommodation and space norms in accordance with international practice.

The OPW is also defining a map-based Public Service property inventory and web portal for State property to facilitate data sharing. This web application will be used to integrate property data generated by a variety of public bodies to manage the State's property assets more effectively across the service.

In relation to energy consumption, Deputies will be aware of the “Optimising Power @ Work” initiative which began in 2008. This was introduced to raise awareness with employees on the importance of conserving energy. Over the past number of years the OPW has installed energy-logging equipment in all large State buildings. Expanding energy performance measurement and raising awareness of the importance of reducing energy consumption across the public sector will continue.

National Procurement Service Framework Agreements

Ceisteanna (12)

Billy Kelleher

Ceist:

12. Deputy Billy Kelleher asked the Minister for Public Expenditure and Reform the impact on small local enterprises from the centralisation of procurement within the public service; and if he will make a statement on the matter. [43394/12]

Amharc ar fhreagra

Freagraí scríofa

In light of the need to accelerate the reform agenda, late last year my Department published the Public Service Reform Plan. This plan identified procurement reform as a key instrument that can assist the public service to deliver services in an efficient manner.

The National Procurement Service (NPS) has put in place a number of national arrangements designed to secure better value for money from leveraging the public service’s buying power in relation to a range of goods and services that are commonly purchased across the public service. These national arrangements have benefits that include: cash savings; administrative savings from reduced duplication of tendering; greater purchasing expertise; improved consistency; and enhanced service levels. In some instances the take up of the NPS arrangements has been low. In order to increase the usage of the NPS arrangements and thereby secure best value for money, the Government decided that it should be mandatory for public service bodies to use specified national procurement arrangements.

My Department recently issued Circular 06/12 that implements the Government decision by making it a mandatory requirement that public service bodies avail of specified national arrangements put in place by the NPS. The list of categories subject to national procurement arrangements includes: electricity; natural gas; stationery and office supplies; paper; ICT consumables; managed print services; print media advertising; and motor vehicles. These national arrangements will secure best value for money and facilitate contracting authorities to maintain the delivery of services in the context of tighter budgetary constraints.

The Government recently agreed to the establishment of a National Procurement Office under the aegis of my Department. This Office will integrate procurement policy, strategy, training, and operations in one office. The primary objectives of the Office will be to improve public procurement capacity across the public service and to deliver increased value for money.

In order to encourage greater SME participation in public procurement as outlined in Circular 10/10, the National Procurement Service (NPS) recently established a Working Group on Small & Medium Enterprises to respond to public procurement issues arising for SMEs. The Working Group consists of representatives from the NPS, the Health Service Executive, the Irish Business and Employers Federation, the Irish Small and Medium Enterprises Association, Chambers Ireland, and the Small Firms Association. The Working Group will develop measures to highlight the scope that contracting authorities have under Circular 10/10 to encourage SME participation in public procurement processes. The National Procurement Service, as part of its education and development remit, also has an active programme to assist SMEs in how to participate effectively in the public service procurement process. To date the NPS has facilitated workshops and presented at seminars to over 3,000 SMEs nationwide. The next event in this programme will be a major 'Meet the Buyer' event in Kilkenny in November at which it is anticipated more than 400 SMEs will attend.

While a number of the categories of goods and services mandated under the Circular are suited to single supplier national arrangements – for example the supply of energy or gas - it should not be taken that single supplier frameworks are to be accepted as the norm. The greater use where appropriate of multi-supplier frameworks – for example the supply of managed print services- can address local supplier issues while also ensuring ongoing cost competitiveness of the framework itself. Such multi-supplier frameworks may also offer SMEs the opportunity to participate in national level contracts, thereby offering valuable reference work when competing for public procurement contracts in other jurisdictions.

Departmental Properties

Ceisteanna (13, 30)

Mick Wallace

Ceist:

13. Deputy Mick Wallace asked the Minister for Public Expenditure and Reform the number and location of empty buildings owned by the State; the cost to the Exchequer per annum of each of these buildings; and if he will make a statement on the matter. [43385/12]

Amharc ar fhreagra

Mick Wallace

Ceist:

30. Deputy Mick Wallace asked the Minister for Public Expenditure and Reform the cost to the State per annum of unused buildings owned by the State in terms of maintenance, security, insurance and any other relevant costs; and if he will make a statement on the matter. [43384/12]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 13 and 30 together.

The property portfolio of the State covers lands and buildings owned or leased by a wide variety of organisations, including local authorities, organisations such as the Health Services Executive and non-commercial State bodies such as the Industrial Development Authority and SFADCo. It would be necessary for the Deputy to obtain the information he requires from the different organisations concerned.

However, in regard to the civil service, I can inform the Deputy that the Office of Public Works’ property portfolio consists of approximately 2,200 buildings, of which some 60% are State owned and the remainder leased. The contraction in numbers employed in the public service generally has resulted in reduced accommodation requirements over the past number of years. This factor, along with the policy of the Garda authorities to close selected Garda Stations throughout the country, has resulted in a significant increase in the number of vacant buildings in the portfolio.

Currently, there are approximately 100 vacant State owned buildings in the Office of Public Works’ portfolio. Of these, 47 are former Garda Stations and the rest comprise mainly former custom posts and coastguard stations. These properties are currently being considered for alternate State use. If no such requirement arises they will be included in a disposal programme. Proposals for community use will be considered on a case by case basis. The Office of Public Works is, in fact, already engaging with the community in relation to these types of properties, as is evidenced by the recent licensing of the former Garda Station in Finglas to a community creche.

In the time available, it has not been possible to collate data on the cost of maintenance, security etc. for the individual vacant buildings in the Office of Public Works’ portfolio. However, if the Deputy had particular queries in relation to any specific building, the Office would seek to facilitate him in that regard.

Public Sector Staff Grades Review

Ceisteanna (14)

Brian Stanley

Ceist:

14. Deputy Brian Stanley asked the Minister for Public Expenditure and Reform his plans to include senior civil pay scales in his review of the grading structure of the civil service and public service. [43493/12]

Amharc ar fhreagra

Freagraí scríofa

Under the Public Service Reform Plan my Department is reviewing the grading structure of the Civil Service. The Review will examine the number and distribution of management grades across the Civil Service, the percentage of the pay bill accounted for by such grades and taking account of organisational needs and best practice, assess the scope to reduce the number of management grades. In line with the commitment in the Public Service Reform Plan, this review will be completed by end June 2013. Preliminary work has been commenced on the Review with a view to completing the assessment in conformity with the Reform Plan timetable. Review of the grading structures in other sectors of the Public Service is a matter for the relevant parent Department in each case.

Pay rates at senior levels in the public service have already been reduced by up to 15% and an additional progressive pension related reduction applied through the Financial Emergency Measures in the Public Interest Acts of 2009. Pay rates for senior civil and public service employees, as for salary rates for all public servants will continue to be addressed as part of the Government’s overall public service pay policy. In line with this policy, the Government adopted my proposal in June 2011 for the introduction of:-

- a general pay ceiling of €200,000 for future appointments to higher positions across the public service; and

- a general pay ceiling of €250,000 for future appointments to CEO posts within Commercial State Companies.

Following the outcome to the referendum on remuneration for the Judiciary the Financial Emergency Measures in the Public Interest (Amendment) Act, 2011 was enacted. This Act provided for the application of the pay reduction and the pension levy to serving members of the judiciary and provided for reduced remuneration rates for newly appointed members of the judiciary with effect from 1 January 2012. The Act also made provision to bring certain Office holders (Comptroller and Auditor General and Chairperson of An Bord Pleanála) within the public service pay ceiling and for the reduction of remuneration for future appointees as President and the Office of Ombudsman. This legislation also formally provides for the reduction in the salary rates for members of the Government. Ongoing arrangements are being made on an administrative basis to implement the pay ceiling for future appointments where that is appropriate, for example within the Civil Service and the Heads of four Universities.

Performance Management and Development System

Ceisteanna (15)

Willie O'Dea

Ceist:

15. Deputy Willie O'Dea asked the Minister for Public Expenditure and Reform if he will subject the reformed Performance Management and Development System within the Civil Service to ongoing external monitoring and review; and if he will make a statement on the matter. [43411/12]

Amharc ar fhreagra

Freagraí scríofa

My Department is engaged in the ongoing review and reform of the Performance Management and Development System (PMDS) in the Civil Service.

A major external review of PMDS was carried out in 2005 by Mercer Human Resource Consulting (Mercer). Using best practice in the review and design of performance management systems, the Review of PMDS was a comprehensive evaluation that provided baseline information on how PMDS was working in 2005. The evaluation comprised feedback from a system-wide PMDS survey and a series of focus groups, interviews and workshops.

Since the Mercer evaluation, my Department reviews PMDS on an ongoing and comprehensive basis using both the survey instrument designed by Mercer and other methods of evaluation.

My Department ran a survey again in 2010, using the instrument designed by Mercer, across all staff in the Civil Service and the results of this survey - The Evaluation of PMDS Survey 2010 - are available on the Department’s website.

Other monitoring carried out by my Department on an ongoing basis includes:

- a review of the annual compliance with PMDS and the distribution of performance ratings across the Civil Service – also available on my Department’s website;

- feedback from the Secretaries General and HR managers on their perceptions of PMDS;

- focus groups and workshops on aspects of performance management including the management of underperformance.

The analysis of the results from The Evaluation of PMDS Survey 2010 and other reviews carried out by my Department identified that there are serious deficiencies in the approach taken to performance management in the Civil Service. In general, PMDS is not seen as an effective tool in the management of performance. It is seen as overly bureaucratic, with an emphasis on form-filling, lacking in fairness and consistency, with too many staff getting high ratings. The feedback also highlights that there is a widespread belief across the system that underperformance is not being managed.

The operation of the PMDS system has very recently been subject to independent scrutiny by the Comptroller and Auditor General and the 2010 Report contained a Chapter on Performance Management and Development in the Civil Service. The C&AG’s audit highlighted issues such as the consistency and quality of the PMDS assessment process; the extent of timely compliance with PMDS; whether increments are effectively linked to appraisal results and how well the system is contributing to competency development and performance improvement.

The conclusions of the C&AG were in line with the findings of my Department’s analysis of the failings of performance management in the Civil Service. I have on previous occasions stated that PMDS is not working well but that we are addressing the issues in a structured and coherent way. My Department has used the findings from The Evaluation of PMDS Survey 2010 and the C&AG’s Report to improve the design and operation of PMDS. Significant changes to PMDS have now been agreed between management in the Civil Service and the unions under the Croke Park Agreement.

In 2011, an initial phase of changes was introduced aimed at improving the operation of PMDS. This involved streamlining the paperwork associated with PMDS primarily to create space for more discussion about performance between staff and managers. Critically we have also increased manager accountability for managing performance by giving a low rating to managers who do not manage the performance of their staff proactively.

In July of this year, my Department, alongside management of the Civil Service and unions, agreed further changes to address the more fundamental issues that were identified in both The Evaluation of PMDS Survey 2010 and the C&AG Report in 2010 and, in particular, a perceived lack of fairness and consistency in the application of the system. These changes are:

- a new grade-based Competency Framework;

- a revised rating scale with improved descriptions of performance levels;

- reviews of performance will be decided by a process of calibration. This process is commonly used in many public and private sector organizations to assist managers in delivering a realistic and consistent approach to the assessment of performance;

- a more comprehensive process of internal review of ratings, with access to external review;

- a rating of ‘Fully Achieved Expectations’ will be required for the award of an increment.

A key challenge is for senior leadership across the Civil Service to demonstrate their own commitment to delivering a high performance culture and to fully engage line managers in the management and improvement of performance. My Department will continue to review how we manage performance in the Civil Service and on the basis of this we will continue to make changes aimed at improving PMDS as it is the primary tool for managing performance in the Civil Service.

Public Sector Reform Review

Ceisteanna (16)

Catherine Murphy

Ceist:

16. Deputy Catherine Murphy asked the Minister for Public Expenditure and Reform if, as part of a wider programme of public service reform, he will confirm that a detailed and rigorous analysis has been undertaken or is underway to identify redundant processes across the service in terms of achieving both staffing efficiencies and service provision efficiencies; if so, if he will describe the analysis in detail; if he will provide details of the results or expected results; and if he will make a statement on the matter. [43243/12]

Amharc ar fhreagra

Freagraí scríofa

The Government is making good progress on achieving all of our targets and priorities, as set out in the Programme for Government. We are bringing public expenditure back to sustainable levels and driving forward the public service reform agenda to ensure that efficiencies and reformed work practices play a full part in contributing to the overall budgetary consolidation effort.

As part of the Comprehensive Review of Expenditure (CRE), conducted in 2011, each Department, including my own, undertook an in-depth analysis of their spending programmes. The purpose of the CRE was to identify: expenditure programme savings; scope for savings arising from efficiency and other reforms; redundant and obsolete processes; proposals for reducing and/or merging of agencies; and associated reductions in staff numbers. The detailed reports of each Department as well as the final Comprehensive Expenditure Report 2012-2014 have been published, in line with Programme for Government commitments, on my Department’s website.

This fundamental re-assessment of spending priorities forms a key platform for the Government’s overall Public Service Reform agenda.

The Government has set a target of reducing public service staff numbers to 282,500 by end-2014. As of mid 2012, Public Service numbers stood at 292,000, which is 28,000 below the peak numbers level of 320,000 in 2008 and is comparable to the 2005 staffing levels. Service levels have been largely maintained notwithstanding these considerable staff reductions due to increased productivity/workplace flexibilities. The estimated reduction in the pay bill cost from 2009 to 2015 is €3.8 billion.

As the Deputy will be aware, this Government is committed to far reaching reform of the Public Service and providing better value for money in service delivery. The Government’s Public Service Reform Plan, which was published last November, outlines the priority actions and timelines for reform.

Implementation of this Reform Plan is being co-ordinated and monitored by the Reform and Delivery Office in my Department. Good progress has been made and last month I published a Progress Report setting out the achievements made to date against the major elements of the Public Service Reform Plan. I will be meeting the Public Accounts Committee tomorrow to discuss progress and will also be meeting the Committee of Finance, Public Expenditure and Reform in the coming weeks in this regard.

Major initiatives in the Reform Plan that are contributing to the achievement of efficiencies in both staffing and service provision include the increased use of shared services in all sectors which will mean that fewer staff and financial resources are required to perform those business functions as duplication is eliminated. Progress is being made on the consolidation of ICT across the Public Service, including a programme of data centre consolidation as set out in the Cloud Computing Strategy for the Public Service published in July.

In addition, we are in the process of examining activities which may be suitable for external service delivery, which has the potential to deliver more efficient and flexible services and to lower costs. The reform of the central procurement function, through the establishment of a National Procurement Office to be led by a Chief Procurement Officer, the recruitment process for which is underway, has the potential to yield savings in the range of €249 million to €637 million over a three year period depending on the approach taken.

Central to the delivery of the objectives of the Reform Plan is a strong focus on implementation and delivery. Government Departments and major Offices have produced Integrated Reform Delivery Plans, which place centrally driven initiatives in the context of organisational and sectoral reforms. Each sector is responsible for the delivery of their Sectoral Plans and progress made on these plans is being overseen by the Reform and Delivery Office, which is also driving an increased capacity and capability for change, both centrally and across the various sectors of the Public Service, to ensure that the focus is firmly on implementation and delivery.

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