Written Answers Nos. 17-25
17. Deputy John Browne asked the Minister for Public Expenditure and Reform the number of initial expressions of interest in the National Lottery licence that have been received; the date on which the contract for advisors is expected to be signed; the prospective date on which the awarding process will be completed; and if he will make a statement on the matter. [43420/12]
Amharc ar fhreagraAs the Deputy is aware, I announced on 4th April 2012 that the Government has decided to hold a competition for the next National Lottery licence and that the licence will be for a 20 year period.
In July, my Department published a Request for Tenders (RFT) for Financial and Commercial Advice to the Department in relation to the next National Lottery Licence. The process of evaluating the tenders is now complete and a contract with the preferred tenderer should be finalised in the next few days.
When the advisors are in place, my officials will be working with them to establish the precise nature of the competitive process for the licence and the associated timelines. Developments in this regard will be made known to the market.
With respect to potential bidders for the licence, my officials have held initial meetings with a number of parties who may be interested in bidding for the next National Lottery licence. It would not be prudent of me to indicate at this time the precise number of parties who have expressed an interest in the next licence.
18. Deputy Clare Daly asked the Minister for Public Expenditure and Reform his views on the incentivised career break for civil servants in 2009 which finished in June 2012 in view of the fact that many of the staff have now been told that they will not be re-employed within their Departments for a period of up to twelve months but because of the PRSI contributions paid while they were out, they will not receive any social welfare either. [43238/12]
Amharc ar fhreagraAs the Deputy is aware, the Special Civil Service Incentive Career Break Scheme was introduced as a once-off measure that was included in the Supplementary Budget on 7 April, 2009.
A copy of the relevant Circular, 13/2009, can be viewed at the following link: http://circulars.gov.ie/pdf/circular/finance/2009/13.pdf
It is clear from the Circular that an officer who took a career break under this Scheme may have to wait up to 12 months following the end of the career break before being reassigned and that during that time the individual should contact the Department of Social and Family Affairs to ascertain whether they are entitled to any benefits.
The following paragraphs from the Circular deal specifically with the matter of civil servants returning to duty after the three year period.
Paragraph 20: An officer, who indicates s/he wishes to resume duty, will be assigned to the next appropriate vacancy to be filled following the expiry of the career break, with a guarantee of re-employment in a relevant grade (not necessarily in his/her existing Department) within twelve months of the expiry of the career break. An appropriate vacancy, for these purposes, is a fillable vacancy, in the officer's grade and Department, in the location in which he/she was serving immediately prior to commencing the career break. In the context of this Circular, "location" means geographic area, with the Dublin area being treated as one such location (save any change to such arrangements made in accordance with a collective agreement negotiated with the staff side).
Paragraph 22: Where an appropriate vacancy does not exist, the parent Department should contact the officer at once to notify him/her of the position, indicating, where possible, when it is likely that a suitable vacancy may arise. Where it is likely that the officer may be reassigned to another Department, his/her parent Department should alert him/her to that possibility. Officers, who are waiting to resume duty at the end of their career break, should be advised to contact the Department of Social and Family Affairs to ascertain whether or not they have any entitlements to jobseekers or any other benefits.
The Circular also advised civil servants to check out their own individual situations with the then Department of Social and Family Affairs prior to commencing a career break (paragraph 31 of Circular refers) and to check periodically as to the up-to-date position.
To ensure that staff were absolutely clear on the terms and conditions of this Scheme, anyone who took a career break under the Scheme was required to sign a Form of Undertaking, acknowledging that they understood the conditions of the career break as set out in Circular 13/2009 and that particular attention had been drawn to the paragraphs dealing with return to duty following the expiry of the career break.
As participants in the Scheme were not at work, I can confirm that no PRSI contribution was paid by them during the three year period of the Incentivised Career Break Scheme and it follows that no reckonable contribution was added to their record for that period. From the perspective of the Department of Social Protection, I understand that this does not preclude a person applying for Jobseekers Allowance.
In addition, there is no preclusion on civil servants seeking employment elsewhere while awaiting resumption of duty, subject to the avoidance of any conflict of interest between such employment and the person's continuing status as a civil servant.
19. Deputy Barry Cowen asked the Minister for Public Expenditure and Reform the expected total legal costs to be incurred in his Department in 2012; his proposals to reduce these costs; and if he will make a statement on the matter. [43391/12]
Amharc ar fhreagraThe expected total legal costs to be incurred by my Department in 2012 are estimated to be in the region of €88,600.00
In order to reduce the costs incurred where possible legal advice is sourced through the Attorney General’s office and the Chief State Solicitors Office.
The Deputy may also be interested in the fact that officials in my Department are undertaking a review of public expenditure on legal services. As a major consumer of legal services, it is essential to ensure that the State is both achieving maximum value for money for its own expenditure and is not acting to distort the wider market for legal services. The recently established Irish Government Economic and Evaluation Service is in the process of reviewing this area in order to identify scope to enhance value for money in the procurement of legal services. The review will also consider best international practice in this regard and potential reforms in the case of Ireland. The review is expected to be completed by the end of 2012.
20. Deputy Niall Collins asked the Minister for Public Expenditure and Reform the measures he is putting in place to deal with departmental spending overruns in 2012; and if he will make a statement on the matter. [43416/12]
Amharc ar fhreagraAs the Deputy is aware we are currently going through very challenging economic and fiscal conditions. During this period officials in my Department are rigorously monitoring all current and capital spending on a month by month basis to identify potential overruns.
The end-September, 2012, issues figures indicate that there are some pressures, most notably in the Social Protection and Health group of Votes. The pressures relate to the cyclical nature of the largely demand led expenditure of these Departments as well as the reclassification of PRSI receipts by Revenue at the beginning of the year.
It remains a matter for each Minister and their Departments to ensure that the Vote-level allocations are adhered to.
21. Deputy Charlie McConalogue asked the Minister for Public Expenditure and Reform the revised procedures he is putting in place for the 2013 estimates; if he intends that they would be referred to Oireachtas committees in advance; if details of proposed expenditure measures have been submitted to the EU/IMF and the European Commission; if he plans to maintain the confidentiality of these until such time as they are presented to the Oireachtas; and if he will make a statement on the matter. [43401/12]
Amharc ar fhreagraThe Comprehensive Expenditure Report 2012-2014, published in December 2011, introduced a range of reforms to the processes for settling the annual Estimates of expenditure. In particular I introduced a Medium Term Expenditure Framework (MTEF), with fixed multi-annual current expenditure ceilings clearly set out for each Ministerial Vote Group. The expenditure ceilings introduce greater certainty into medium-term expenditure planning. To underpin the Medium Term Expenditure Framework the Government published the Ministers and Secretaries (Amendment) Bill 2012 on 28th September 2012.
This Bill puts the Ministerial expenditure ceilings on a statutory footing. I look forward to discussing and debating this measure before the House in coming weeks.
The Comprehensive Expenditure Report also provided for a new “whole-of-year” budgetary process, whereby the 2013 Ministerial expenditure allocations would be open for scrutiny and discussion before the relevant Oireachtas Committees, well in advance of the detailed Estimates allocations being settled this autumn. Indeed I wrote to the Chairperson of all relevant committees in January of this year, inviting them to avail of this opportunity for ex-ante engagement. I understand that the practical issues involved are currently being considered by the various committees.
As regards the 2013 Estimates themselves, these are still under consideration by the Government. Once finalised by the Government in due course, the Estimates will be presented to the Dáil in the normal way. While discussions take place around broad policy options with the EU/IMF programme partners, the question of maintaining confidentiality in regard to the detailed Estimates decisions does not arise in this context.
22. Deputy Micheál Martin asked the Minister for Public Expenditure and Reform the length of time it will take to realise the saving in respect of the annual value in allowances that will not be paid to new beneficiaries which he has stated as being in the region of €475m; and if he will make a statement on the matter. [43398/12]
Amharc ar fhreagra23. Deputy John Browne asked the Minister for Public Expenditure and Reform if he will outline the breakdown by Department and allowance category of the savings of €3m in allowances in 2012; and if he will make a statement on the matter. [43421/12]
Amharc ar fhreagra41. Deputy John McGuinness asked the Minister for Public Expenditure and Reform if he intends to conduct a further review of public sector allowances in 2013 to ensure that the current target savings are achieved; and if he will make a statement on the matter. [43405/12]
Amharc ar fhreagraI propose to take Questions Nos. 22, 23 and 41 together.
The immediate savings arising from the recently announced reforms in 2012 are expected to be in the order of €3.5 million. Of this amount, Government Departments identified savings of some €1.5 million, the majority of which is related to the abolition of qualification allowances in Education.
Further to this, the Department of Public Expenditure and Reform identified allowances which it considers not to have a valid business case, and which will not now be paid to new beneficiaries. The immediate abolition of these allowances is expected to generate savings of €2m in 2012. The largest classes of allowance responsible for these savings are rent allowances. There are also savings expected in Education and Defence through the abolition of allowances relating to living in Gaeltacht regions, on islands, and for teaching through Irish.
Significant medium term savings are achievable by precluding the payment of unjustified allowances to new beneficiaries, with the cost of allowances reducing as those in receipt of them leave, or by each public service sector reviewing the allowances paid to ensure that sufficient value is achieved from them.
In the interests of bringing these savings to the paybill forward, my Department has written to sectoral management instructing them to immediately engage with staff interests with a view to securing their early agreement to the elimination of those Departmental allowances payable to current beneficiaries, where no business cases exists to pay those allowances to new beneficiaries. In addition, Departments have been asked to identify other allowances, including legacy allowances, for elimination from current beneficiaries.
It is intended that, rather than conduct a further central review, these sectoral discussions will result in further improvements in procedures, extract greater value from those allowances that continue to be paid, and the elimination of a number of allowances for which no business case exists, leading to further savings for the Exchequer.
24. Deputy Michael McGrath asked the Minister for Public Expenditure and Reform the number of pension schemes taking part in the pensions insolvency scheme; his plans for the future development of the scheme; the amount of State resources that are available to support it; and if he will make a statement on the matter. [43403/12]
Amharc ar fhreagraTwo pension schemes are taking part in the Pensions Insolvency Payment Scheme (PIPS). These are the Waterford Crystal Staff and the Waterford Crystal Factory schemes. The trustees of the two schemes paid €40.8 million in total to participate in PIPS.
The State has now taken over responsibility for making future pension payments to those persons who were already pensioners of the two Waterford schemes at the time the company wound-up. The price paid to enter PIPS is intended to cover all future payments to these pensioners and also the administration costs of the scheme. Pricing was carried out by the National Treasury Management Agency on a basis that is cost-neutral to the Exchequer. No additional State resources are therefore needed to support the PIPS scheme.
Under PIPS the Exchequer has been able to provide pensions at a lower cost than would a commercial enterprise. As a result PIPS will reduce the pensions shortfall facing the deferred pensioners of the two Waterford schemes while being cost neutral to the Exchequer.
A review of the operation of PIPS will be carried out by early 2013.
25. Deputy Dara Calleary asked the Minister for Public Expenditure and Reform the measures he is taking to address the under spend in the Exchequer capital in 2012; and if he will make a statement on the matter. [43419/12]
Amharc ar fhreagraThe actual roll-out of capital expenditure is a matter for line Departments, operating within the delegated sanction arrangements issued by my Department that cover not only capital investment this year but contractual commitments for the next three years.
The end-September Exchequer returns show that capital expenditure by line Departments is running at 13.6% behind profile overall so far this year. This compares with 11.5% at end-September 2011. A variance of between 10% and 12% is not unusual. Departments have indicated that they do not expect any significant savings by year end and so I expect a return to profile at that stage.
As the Deputy will be aware, capital spending has general characteristics which influence the allocation drawdown pattern. Expenditure on capital projects typically occurs in large tranches at fixed milestones, unlike current expenditure which is generally continuous throughout the year. Obviously, this affects the phasing and profiling of capital expenditure.
In addition, public financial rules require that payments are only made on foot of matured liabilities, so payments made in the later parts of the year are made on foot of work that has already been satisfactorily completed. The trend is therefore that the bulk of capital expenditure takes place in the final quarter of the year.
