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Wednesday, 26 Feb 2014

Written Answers Nos. 110 - 119

Sale of State Assets

Ceisteanna (110)

Bernard Durkan

Ceist:

110. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which the disposal of State assets remains included in options for consideration by his Department; if such options are likely to be used as a last resort; and if he will make a statement on the matter. [9959/14]

Amharc ar fhreagra

Freagraí scríofa

The scope and content of the State Assets Disposal Programme was agreed by Government in February 2012. No additional State assets are under consideration for inclusion in the State Assets Disposal Programme at this time.

Departmental Expenditure

Ceisteanna (111)

Bernard Durkan

Ceist:

111. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which his Department has succeeded in making savings through insurance cost reductions and public procurement in each of the past three years to date in 2014; the extent to which he expects to be in a position to achieve further savings in these areas; and if he will make a statement on the matter. [9960/14]

Amharc ar fhreagra

Freagraí scríofa

Departments and Offices should make every effort to contain and reduce all administrative costs including both insurance and procurement costs. This approach underpins the current programme of reform of public procurement and is one of the major projects of key strategic importance in the Government's Public Service Reform Plan. Procurement of supplies and services accounts for around €9 billion of current spending by the State per annum. This represents a very significant portion of overall spending and it is, therefore, essential that the Public Service achieves maximum value for money and operational efficiency in its approach to public procurement.

The Office of Government Procurement (OGP) is currently researching the area of insurance across the Public Service.  It is planned to identify the potential opportunities, savings and value for money that may be achieved in this area.

On 1st January, 2014, the National Procurement Service (NPS) was subsumed into the OGP. Previously, the NPS savings were measured by reference to actual spend and highlighted efficiencies from centralised procurement.  In that context, NPS savings in 2011, 2012 and 2013 were €46.5m, €39.1m and €43.7m respectively.

The Chief Procurement Officer (CPO) has set a target of €500m in net cash savings over a three year period.  The target set for 2014 is €127m.

In relation to plans for further reform of public procurement the new approach will involve:

- integrating procurement policy, strategy and sourcing in one office;

- strengthening spend analytics and data management;

- much greater aggregation of purchasing across public bodies to achieve better value for money;

- examining the specifications set out for goods and services;

- evaluating demand levels to assess how demand and volume can be reduced; and

- strengthening supplier and category management.

These reforms will lead to overall reductions in the cost of goods and services; better procurement services; introduction of technical standardisation; greater levels of professionalism among staff responsible for procurement; and increased performance management of the central procurement function.

Job Losses

Ceisteanna (112)

Finian McGrath

Ceist:

112. Deputy Finian McGrath asked the Minister for Jobs, Enterprise and Innovation the actions he will take regarding the potential loss of 70 jobs at a company (details supplied). [9840/14]

Amharc ar fhreagra

Freagraí scríofa

My sole focus since becoming Minister has been to create and protect employment. Recent figures confirm a growth in employment that is broad based with several sectors showing employment growth. While these are encouraging signs for the economy, we must continue to build on this progress and support further job creation.

My understanding is the issue of possible job losses in the company in question relates to an adjacent waste facility, which in their view, might have an impact on their business. In this regard, I should point out that issues concerning the enforcement of waste management legislation are matters for the appropriate regulatory authority and should therefore be pursued with the Environmental Protection Agency (EPA) or the relevant local authority, as appropriate.

I have nevertheless contacted Dublin City Council and I understand from them that they are satisfied that the waste facility in question is complying with the terms of its permit.

I have been informed by the City Council that the waste facility concerned applied for, and received, planning permission in June 2011 for a change of use and fit out of an existing disused light industrial building, for the purpose of handling non-hazardous waste. A Waste Facility Permit was granted in respect of the facility by Dublin City Council in March 2012. Despite a public advertisement and a site notice, there were no third party objections to the issue of this permit.

I have also been informed that the facility has been subject to a series of inspections by Dublin City Council staff. I understand that a number of issues were identified by the council prior to June 2013. However, I am informed that during six inspections since June 2013, no issues of concern were observed. I understand that the City Council is satisfied that the waste facility concerned is complying with the terms of its permit. While the company continues to raise concerns about the impact of the adjacent facility on its business my Department and its agencies have no power or role in the matter.

Finally, I have also consulted recently with Enterprise Ireland. I understand from Enterprise Ireland that they are continuing to liaise with the company concerned, as one of their client companies, and will continue to assist them in any way possible within the Agency’s statutory remit.

Consultancy Contracts Expenditure

Ceisteanna (113)

Catherine Murphy

Ceist:

113. Deputy Catherine Murphy asked the Minister for Jobs, Enterprise and Innovation if he will indicate, in tabular form, the total expenditure by his Department on external consultancy advice services, including legal services, in 2011, 2012 and 2013; if this spend is in line with the overall value for money objective of his remit; and if he will make a statement on the matter. [10015/14]

Amharc ar fhreagra

Freagraí scríofa

The following is the total expenditure incurred by my Department in respect of external consultancy advice services, including legal services, for the years 2011, 2012 and 2013:

Year

Expenditure

2011

€209,486.79

2012

€523,715.28

2013

€216,315.32

My Department is fully committed to achieving the best value for money in respect of the expenditure of public funds. My Department has, in line with Government policy, taken measures to reduce the level of expenditure on external consultancies. Consultancies are undertaken on the basis of necessity and in instances where it is not possible to conduct the work in-house having regard to the nature of the work and the skills required.

Appointments to State Boards

Ceisteanna (114)

Seán Fleming

Ceist:

114. Deputy Sean Fleming asked the Minister for Jobs, Enterprise and Innovation if he is satisfied with the number of women currently serving on State boards under his remit; and if he will make a statement on the matter. [10026/14]

Amharc ar fhreagra

Freagraí scríofa

Appointments to the boards of bodies accountable to the Department of Jobs, Enterprise & Innovation are made in accordance with the legislation under which the body was established. The relevant legislative provisions vary from body to body. For example, in certain cases the legislation provides for the appointment of persons nominated by specified stakeholders, such as employer or trade union representative bodies. This can sometimes have a limiting effect on the scope to address gender imbalances. In other cases there may be no such provisions.

Appointments are also made based on the expertise and experience of individuals, the balance of skills and attributes in terms of the overall composition of the board, the gender balance of the board and the availability and commitment of people to serve on the board. So, whilst achieving greater gender balance on State boards is an important goal, the overriding focus is on getting the best people for particular board appointments.

To this end, I have since 2011 launched public campaigns inviting expressions of interest from suitably qualified and experienced persons for appointment to the boards of the agencies under the aegis of my Department. The purpose of the campaign was to broaden the pool of suitable candidates for consideration for appointment to boards. I have made it clear that in considering applications that I would give due regard to Government policy on gender balance on State boards. The current gender balance of the bodies under the aegis of my Department is set out in the following tabular statement.

DJEI Agency Board Gender Breakdown as at 31/01/14

Agency

Male

Female

Current Membership

Vacancies

Total Board positions

% Male

% Female

NCA

5

6

11

0

11

45.5%

54.5%

SFI

7

5

12

0

12

58.3%

41.7%

PIAB

6

5

11

0

11

54.5%

45.5%

EI

5

4

9

3

12

55.6%

44.4%

IDA

8

2

10

3

13

80.0%

20.0%

NSAI

8

4

12

2

14

66.7%

33.3%

HSA

6

1

7

4

11

85.7%

14.3%

IAASA

7

8

15

0

15

46.7%

53.3%

Forfás

5

1

6

0

6

83.3%

16.7%

Shannon

9

1

10

0

10

90.0%

10.0%

ITI *

3

3

6

0

6

50.0%

50.0%

LRC

4

1

5

2

7

80.0%

20.0%

 

73

41

114

14

128

64.0%

36.0%

* Nominated by Minister and approved by North South Ministerial Council

As can be seen, in relation to the bodies to which I appoint members, over half of these exceeded the 40% minimum gender balance target and in aggregate we are at 36% female and 64 % male representation. I am satisfied, in the context of the constraints I have noted regarding nominating bodies and specialist skills needs, that the bodies under the remit of my Department in broad terms have good gender balance on their boards, albeit that in some individual cases the level of female representation could be improved. The Deputy might further note that when Forfás is dissolved and Shannon Development restructured, such that the existing board of both bodies will no longer exist, later this year, the gender balance of the remaining boards under my Department’s remit will have, on average, 52% male and 48% female representation. The Department of Transport, Tourism and Sport will have responsibility for the new Board of the new Shannon entity.

Semi-State Bodies

Ceisteanna (115)

Seán Fleming

Ceist:

115. Deputy Sean Fleming asked the Minister for Jobs, Enterprise and Innovation the number of employee share ownership plans in operation in the commercial semi-State sector under the remit of his Department; his views on whether they offer good value to the State; and if he will make a statement on the matter. [10048/14]

Amharc ar fhreagra

Freagraí scríofa

My Department does not have any commercial semi state sector bodies under its aegis.

Rural Social Scheme Administration

Ceisteanna (116)

Brendan Griffin

Ceist:

116. Deputy Brendan Griffin asked the Minister for Social Protection her plans for the rural social scheme; and if she will make a statement on the matter. [9784/14]

Amharc ar fhreagra

Freagraí scríofa

The rural social scheme (RSS) provides income support for farmers and those engaged in fishing who have an entitlement to specified social welfare payments. Participants are engaged for 19½ hours per week to provide certain services of benefit to rural communities. The scheme currently provides work opportunities for around 2,600 participants and 130 supervisory staff. The funds allocated for 2014 amount to €45m. This level of funding will allow the scheme to continue along the same lines in 2014 as in previous years but does not allow for the recruitment above the numbers stated above.

The operation of the RSS is governed by a comprehensive set of rules which are revised on an on-going basis as a result of changes in the operating environment and the introduction of, or changes to, other schemes or other conditions that impact on the scheme’s operations.

Pension Provisions

Ceisteanna (117)

Patrick Nulty

Ceist:

117. Deputy Patrick Nulty asked the Minister for Social Protection if she will address the matter raised in correspondence (details supplied) regarding the threat of cuts to Aer Lingus staff pensions; and if she will make a statement on the matter. [9881/14]

Amharc ar fhreagra

Freagraí scríofa

The Deputy will appreciate that it is not appropriate for me to comment on matters relating to an individual pension scheme. I am very aware of the serious challenges facing many pension schemes at this time and the efforts being made by both the trustees and the sponsoring employers of these schemes to meet these challenges. The Deputy will be aware that I have introduced a number of legislative changes in recent years to assist both trustees and employers meet these challenges.

The Social Welfare and Pensions (No.2) Act 2013 amended section 50 of the Pensions Act to broaden the options available to the trustees of a pension scheme in any consideration of a restructure of pension scheme benefits. Prior to this change, the trustees of a pension scheme could restructure active and deferred scheme member’s benefits and post retirement increases in pension benefits. The change to section 50 of the Pensions Act extends the categories of benefits which can be considered in a restructure of scheme benefits to include a portion of pensioner benefits. This change essentially provides for the sharing of the risk of scheme underfunding across all scheme members. I should add that the recent changes protects 100% of pensions in payment up to €12,000 per annum and 90% of pensions in payment between €12,000 and €60,000 per annum.

Any consideration of a restructure of pension scheme benefits under section 50 of the Pensions Act must comply with the provisions in the Act and with guidance issued by the Pensions Board. This guidance makes provision for the notification of all scheme members in advance of any application to the Pensions Board to restructure scheme benefits. In such circumstances, scheme members will have at least one month to make a submission to the trustees of the scheme in relation to such a proposal. The Pensions Board must be satisfied that all the provisions in the guidance are complied with before the Board will consider issuing a notice to restructure scheme benefits.

The issue of how these changes might be applied will be a matter for the trustees of the scheme who are required under trust law to act in the best interests of all scheme beneficiaries.

Invalidity Pension Appeals

Ceisteanna (118)

Jack Wall

Ceist:

118. Deputy Jack Wall asked the Minister for Social Protection the position regarding an invalidity pension appeal in respect of a person (details supplied) in County Kildare; and if she will make a statement on the matter. [9739/14]

Amharc ar fhreagra

Freagraí scríofa

The Social Welfare Appeals Office has advised me that an appeal by the person concerned was registered in that office on 13th January 2014. It is a statutory requirement of the appeals process that the relevant Departmental papers and comments by the Deciding Officer on the grounds of appeal be sought. When these have been received from the Department, the case in question will be referred to an Appeals Officer who will make a summary decision on the appeal based on the documentary evidence presented or, if required, hold an oral appeal hearing.

The Social Welfare Appeals Office functions independently of the Minister for Social Protection and of the Department and is responsible for determining appeals against decisions in relation to social welfare entitlements.

Question No. 119 withdrawn.
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