Dáil Éireann Debate, Thursday - 21 November 2013
1. Deputy Sean Fleming asked the Minister for Public Expenditure and Reform the new measures he is putting in place to ensure all departmental expenditure targets are consistently met; and if he will make a statement on the matter. [49664/13]
Amharc ar fhreagraThis question concerns this relatively new Department, the primary focus of which is on dealing with public expenditure and the new measures to ensure all line Departments consistently meet the targets set in the annual Estimates. I am thinking not just of this year but looking forward to next year.
The Government decides departmental allocations in the budget each year, with the full detail of these allocations being set out in the Estimates approved by the Dáil. All Ministers and their Departments are responsible for ensuring their expenditure is undertaken in line with the voted allocations. At the beginning of each year every Department sets out its expected profile of expenditure on a month by month basis and during the course of the year each Department reports monthly on its actual performance against this expenditure profile. My Department is in regular communication with Departments and offices to ensure expenditure is being controlled and we monitor the drawdown of funds from the Exchequer against the published expenditure profiles. Where necessary, my Department regularly meets line Departments to review financial management.
The comprehensive expenditure report 2012-14 introduced a new model of multi-annual budgeting for current expenditure, called a medium-term expenditure framework, MTEF. The MTEF was initiated on an administrative basis and now, following the passage of the Ministers and Secretaries (Amendment) Act 2013, the arrangements for fixed spending ceilings for each ministerial Vote group for a rolling three year period have a statutory basis. The details of the operation of the ministerial expenditure ceilings are set out in an administrative circular issued by my Department. The circular details the rules and arrangements for planning and managing current expenditure within the fiscal structures in place at European level. It includes provisions to assist with management of departmental expenditure, including control measures to ensure compliance with ministerial expenditure ceilings.
The new control measures provide for monthly reporting to the Government where a Department is spending in excess of its profile and there is a substantive risk. If any such overspend is not corrected within two months, a formal review will be conducted of the relevant Department’s expenditure and this will be led by the Department of Public Expenditure and Reform. If the relevant Department fails to implement recommendations of the formal review, as agreed by the Government, and breaches the expenditure ceiling, the Government may require the Department to repay the overrun in the following year.
The Minister has outlined the system, but I am more interested in how he implements the systems he has adequately described. I see the value of monthly reports. If there is no correction within two months, there is a full review. Has any Department had to repay expenditure and does the Minister envisage it happening?
Earlier this year after the Estimates for 2013 were published, people knew that the Estimate for the Department of Justice and Equality was flawed and would not meet the expenditure figures required for the running of the Garda Síochána. The figures were wrong and the Garda Síochána expressed concern about them.
The committee met yesterday to approve an extra €51 million and correct what was originally a misleading Estimate. We said the same about the Department of Health Estimate, and I understand there is to be a Supplementary Estimate for that Department in the coming days. This is not because of overspending but rather that the wrong Estimate was presented to the Houses to start with. That has been known from the start. What will the Minister do about people bringing forward flawed Estimates?
The Deputy has asked a number of questions and I will deal with the specifics. I consider all Estimates and we must ensure that we live within budgetary allocations. I am very confident that at the end of this year, the overall expenditure profile will be comfortably met across all Departments. Could there be changes in existing arrangements for Departments? There will be a number of Supplementary Estimates, and for example I will introduce a Supplementary Estimate for the €50 million for road construction stimulus package. There will be some technical Estimates to move moneys within Votes. It is normal practice when speaking to a budget profile across all public administration in excess of €50 billion.
The Deputy mentioned the two specific areas of justice and health, and I know the Minister for Justice and Equality was before the committee yesterday. Some 90% of his budget is pay and there must be flexibility to ensure gardaí can deal with manpower issues in the way to best meet the security needs of the State. That determination is made by the Garda Commissioner in consultation with the Minister for Justice and Equality, which I am happy to support.
I have stated before that I encourage the Minister's Department to take more of a hands-on approach rather than continuously leaving it to a line manager. For example, I have argued that the procurement office should take over the purchase of drugs and medicines on behalf of the Department of Health. I deal with this in a parliamentary question today but the Minister's Department indicated it was a matter for the Department of Health. I am sure the officials did not consult the Minister when they off-loaded it to the Department of Health. My question asked about bringing that functionality to the Department of Public Expenditure and Reform in dealing with procurement on behalf of the State. The Department did not want to take it. I am concerned that even when the Minister is encouraged to take more of a hands-on approach, some officials are not willing to do so.
It is clearly a matter for line Departments to run their own Estimates, as otherwise we would only have one Department of public expenditure for running everything, which would not be right either. I will finish the point relating to the Department of Justice and Equality. We have allocated an additional €5 million for the first instalment of the Magdalen payments, which was not accounted for but to which nobody would object. The Deputy mentioned the €51 million, which is a gross figure, and there are savings being made within the justice Vote to make up a bit of it too.
With regard to drugs procurement, the new office of procurement has a new director of procurement and it works very closely with all procurement agencies, including the HSE. It might be worthwhile for the Oireachtas Joint Committee on Finance, Public Expenditure and Reform to invite Mr. Paul Quinn, the director of procurement, before it to go through that process in some detail. It is important to see the really remarkable things happening on the procurement side.
