Written Answers Nos. 1 to 20
8. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which he expects his Department to continue to meet deadlines, and to continue to play an important part in economic recovery, with particular reference to the need to ensure stability and sustainable economic growth across the country; and if he will make a statement on the matter. [40575/15]
Amharc ar fhreagraThe Deputy's question highlights the pivotal role played by my Department in supporting the delivery of Government priorities such as securing fiscal stability, sustainable economic growth and social progress.
My Department has played a key role in ensuring that Ireland continues to meet its key fiscal targets. As a result of the fiscal policies of this Government and the efforts of the Irish people Ireland is due to exit the corrective arm of the Stability and Growth Pact (SGP) at the end of this year and will transition to the preventive arm of the SGP.
Sustainable fiscal policy will be anchored in the future by adherence to the new fiscal rules which require that Ireland makes the appropriate adjustment each year towards achieving its medium term budgetary objective (MTO), a balanced budget in structural terms.
As Ireland is subject to the corrective arm of the SGP in 2015, economic growth and greater than expected tax receipts have allowed the Government to improve services in a number of key areas while remaining firmly within our fiscal parameters. The extra funding of €1.6 billion for gross voted expenditure in 2015 has allowed Government to target additional expenditure in areas experiencing increased demand and to growth enhancing capital expenditure.
The Capital Investment Framework published by my Department set out a €27 billion multi-annual Exchequer Capital Investment Plan. This Plan is supported by a programme of capital investment in the wider State sector. This investment over the period 2016 to 2021 will help to lay the foundations for continued growth.
The Capital Plan reflects the Government's commitment to supporting strong and sustainable economic growth and raising welfare and living standards. The Plan identified critical areas for investment over the 2016-2021 period with an allocation of €3 bn to support the Social Housing Strategy 2020 and a further €3 bn in support of health to deliver major infrastructural projects such as the new National Children's Hospital, which will be the largest health infrastructure project ever undertaken in Ireland.
As the economy continues to recover we will look to build upon the significant and wide-ranging civil and public service reforms implemented over recent years which have added efficiency and effectiveness to the way in which our public services are delivered and must continue to do so.
10. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which he expects the targets set by his Department to be met by all Government Departments in the course of the coming year; if he is satisfied that prudent relaxation of expenditure curtailments will drive economic progress, without creating inflationary tendencies, or threatening competitiveness; and if he will make a statement on the matter. [40574/15]
Amharc ar fhreagraThe Deputy will recognise the success achieved over the term of the present Government in meeting its key fiscal targets each year. As a result Ireland is on course to exit the Excessive Deficit Procedure at the end of 2015 with a forecast General Government Deficit of 2.1% for the year.
In implementing the expenditure reductions required to return sustainability to the public finances, the Government's priority has been to protect key public services and social supports to the greatest extent possible. Budget 2016 was, therefore, framed in a manner which was consistent, not only with fiscal responsibility, but also with ensuring careful allocation and investment of public money in prudent ways to ensure the maximum benefit to society, with over 80% of all current expenditure allocated to the areas of Health, Social Protection and Education.
Managing the delivery of public services within Budgetary allocations is a key responsibility of each Minister and their Department, and important measures are in place to help ensure that these budgetary targets continue to be met. My Department is in regular communication with all Departments and Offices to ensure that expenditure is being managed within the overall fiscal parameters. The drawdown of funds from the Exchequer is monitored against the published expenditure profiles. There is regular reporting to Government on these matters, and information is published monthly, as part of the Exchequer Statement.
The multi-annual voted expenditure ceilings in place secure greater transparency in the allocation of resources across Government Departments over a three year horizon. They also facilitate the work of the Oireachtas in engaging with Ministers and their Departments on their spending priorities.
The progress achieved in restoring the public finances is evidenced by the fact that from the beginning of next year, Ireland will be subject to the requirements set out under the preventive arm of the Stability and Growth Pact. In that context it will be essential that Departments prudently manage delivery of services within their voted allocations maintaining our hard-won fiscal stability and helping to support competitiveness, low inflation and economic progress.
12. Deputy Clare Daly asked the Minister for Public Expenditure and Reform the systemic analysis he has undertaken of the effects on public service delivery of the reduction in public service staff numbers from 320,387 full-time equivalents to 293,811 full-time equivalents between 2008 and end of June 2015; and if he is satisfied that public services can be adequately provided in the face of such reductions. [40617/15]
Amharc ar fhreagraStaffing levels in the Public Service are increasing, and have been since December 2013. There are more nurses, teachers, gardaí, and special needs assistants now than at any time since the onset of the economic and fiscal crisis. Public service staff numbers have increased by just under 5,000 in the first nine months of 2015 alone, on foot of Budget decisions taken last year, which also included a removal of the Moratorium on Public Service Recruitment. Last month, as part of the Budget for 2016, I announced further additional 2,260 teachers, up to 600 new Gardaí, plus more staff in the Health Sector and for Tusla, the Child and Family Agency.
As regards the current level of staffing across the Public Service compared to the peak in or around 2009, the changes since then need to be understood and assessed in their proper context.
- In the 5-year period leading up to the end of 2008, public service numbers increased by almost 15%, tracking increases in annual public expenditure levels that have come to define that era. As we know now, this was unsustainable, and it hardly represents a sensible benchmark for public services for the future.
- There was also an unprecedented economic and fiscal crisis which threatened the sustainability of the public finances. This required difficult decisions to reduce public service pay rates and public service numbers, among many other difficult decisions. These were delivered in co-operation with the staff unions, under a series of critically important industrial relations agreements and in tandem with specific sectoral reform measures.
- Finally, there has been a wide ranging reform agenda, which I launched in 2011, and it has delivered efficiencies and enhanced the effectiveness of public services. At the heart of the Reform Agenda is a commitment to drive change and continuous improvements to outdated practices and service delivery models in order to protect and enhance key public services. The introduction of shared services, automation of processes across many areas, and changes to work practices means that more is being done with less.
It is on this more secure and reformed foundation that I have been willing and able to increase staffing levels across key sectors, which the Government can be more assured will impact directly on improved service levels for people.
15. Deputy Anthony Lawlor asked the Minister for Public Expenditure and Reform his plans to increase the level of investment in capital projects to secure the continued growth in the economy; his views that this investment needs to occur quickly; if the proceeds from the sale of shares in Allied Irish Banks could be used to invest in these projects; and if he will make a statement on the matter. [40407/15]
Amharc ar fhreagraAssessment of the appropriate level of investment in the economy depends on a number of factors, including:
- the need to maintain sustainable rates of growth in the economy;
- securing economic and fiscal stability as a key enabler of the level of private investment in the economy; and
- ensuring that the Exchequer component of the Government's Capital Plan is consistent with Ireland's fiscal targets over the medium-term period.
As far as economic growth is concerned, forecasts from both national and international authorities - reflecting the investment levels provided for in the Government's Capital Plan - are for the achievement of continued strong and sustainable growth in the Irish economy. Indeed real GDP growth in Ireland having outpaced that realised in all other European economies in 2014 at 5.2 per cent is forecast to grow faster this year and remain robust over the medium-term growing in line with growth in the economy's growth potential.
The scale and profile over time of the Exchequer component of the Government's Capital Plan has been developed with reference to medium-term economic growth forecasts and consistency with the Government's fiscal objectives. The Deputy will be aware that the Capital Plan marks a step change in the Government's capital investment policy prioritising projects both to meet social needs and to support the maintenance of a sustainable growth path for the economy.
In addition, the strong and sustainable growth projected for the Irish economy over the medium-term, together with the projected improvement in Ireland's fiscal position - in terms of both the structural budget balance and the debt ratio - are concrete measures of the economic and fiscal stability that underpin the continued recovery in private investment and employment creation.
As far as the proposal that the proceeds from the sale of the State's shareholdings in the banks should be used to finance additional capital spending is concerned, under EUROSTAT rules the sale of financial assets, such as shareholdings, do not result in a beneficial impact to the General Government Balance (GGB) as they are classified as financial transactions. Consequently, any sale of shares in AIB would be neutral as regards general government revenue and any proceeds arising would not provide any increased capacity for expenditure without impacting adversely on the General Government Deficit.
16. Deputy Helen McEntee asked the Minister for Public Expenditure and Reform the status of his Department's effort to address an issue of significant heritage concern (details supplied); and if he will make a statement on the matter. [39264/15]
Amharc ar fhreagraThe Kells High Crosses are significant historical artefacts and, as such, are protected under National Monument legislation. There has been a concern in recent years about the deteriorating condition of the Crosses and, as the Deputy mentions, there is evidence of some accelerated weather and environmental erosion on some of the panels of the West and South Crosses in particular. Understanding that there was a clear risk to the Monuments, the Office of Public Works carried out a detailed technical study of the Crosses during 2014 and presented the lead Department involved, the Department of Arts Heritage and the Gaeltacht, with a full assessment of the issues involved together with some options for them to consider. Following a full assessment of this report, the Department has recently instructed the Office of Public Works to pursue the option of in situ enclosure of the West and South Crosses within structures that will provide the necessary environmental protection for the future. Additionally, as a first step, the OPW is instructed to complete a detailed 3D laser scan of the structures to establish their current condition and point to weaknesses in the fabric. This work is under way currently. The proposed erection of an environmental shelter for the Crosses will be, in itself, a complex and challenging undertaking. There are a number of international comparators for a project such as this. The OPW is evaluating the options available and consulting with relevant authorities who have undertaken similar works elsewhere before deciding how best to proceed. Once a viable plan has been devised, the project will proceed under the joint management of the OPW and DAHG.
In the short term, and to protect the Crosses from the worst of the Winter weather, the OPW is considering the provision of a temporary cover for the crosses.
17. Deputy Denis Naughten asked the Minister for Public Expenditure and Reform the steps he is taking to ensure that home owners can access insurance following the completion of catchment flood risk assessment and management schemes and flood relief works; and if he will make a statement on the matter. [40405/15]
Amharc ar fhreagraNeither my Department nor the Office of Public Works (OPW) have any function in relation to the oversight or regulation of insurance matters. The provision of insurance cover, the level of premiums charged and the policy terms applied are matters for individual insurers. Insurance companies make commercial decisions on the provision of insurance cover based on their assessment of the risks they would be accepting on a case-by-case basis.
The OPW is the lead State body for the management of flood risk in Ireland. Over the past 20 years, it has invested over €410 million on flood protection measures in major urban areas together with investment in many minor works projects to address more localised flooding problems. The Government's Capital Investment Plan 2016–2021, includes a €430 million investment in flood defence measures to build on the work already done.
With such State investment in flood protection, it is right to expect that insurance cover will be available. In March 2014, the OPW and Insurance Ireland signed a Memorandum of Understanding intended to facilitate, as far as possible, the availability of insurance against flood risk. The OPW is committed to providing Insurance Ireland with detailed data on completed OPW flood defence schemes. Insurance companies will then take this data into account when assessing exposure to flood risk within these areas.
The Deputy has referred to the Catchment Flood Risk Assessment and Management Programme. Under this Programme, the OPW is producing detailed flood maps for 300 communities at potentially significant risk from flooding. Following an extensive series of public consultation days, a statutory public consultation on these maps will commence tomorrow and run until 23 December 2015. These maps are draft and I have ensured that the insurance sector has been informed that they cannot be relied upon to inform insurance premiums, policies or excesses. When finalised, these maps will inform the development of Flood Risk Management Plans, due by the end of 2016, on how best to address the flood risk in each of these areas. These plans will inform decisions on future investment on flood risk management.
Policy in relation to flood insurance is amongst the policy areas being considered by an Interdepartmental Committee that is developing for Government, by early Spring 2016, the whole-of-government policies and measures to support the OPW Flood Risk Management Plans, to help individuals and communities prepare, plan and protect their properties and communities against flooding.
18. Deputy Sean Fleming asked the Minister for Public Expenditure and Reform the number of defined benefit pension schemes currently listed for public sector employees, the number that are in deficit; his plans to consolidate any of these schemes; and if he will make a statement on the matter. [40606/15]
Amharc ar fhreagraIn relation to pension schemes for public service employees or for employees in the wider public sector, schemes are in general provided for under legislation relating to the body or sector and subject to the oversight of the relevant line Minister. The Occupational Pension Schemes (Funding Standard) (Amendment) Regulations 2014 which were signed by the Minister for Social Protection on 16 June 2014 provide a list of public service pension schemes that are exempt from the funding standard provisions of Part IV of the Pensions Act 1990.
There are also a number of defined benefit schemes operated by Commercial State Bodies which are subject to the funding standard. Although I as Minister have certain consent functions to changes in scheme terms, none of these schemes come under the direct auspices of my Department.
My Department has direct oversight in relation two defined benefit schemes i.e. the Civil Service (Established Staff) Superannuation Scheme and the Civil Service (Unestablished Staff) Superannuation Scheme. In addition, under the Financial Measures (Miscellaneous Provisions) Act 2009, the role assigned to "relevant Minister" as defined in that Act, is now the Minister for Public Expenditure and Reform in respect of The Institute of Public Administration Superannuation Fund, the Economic and Social Research Institute Pension Plan, and the Economic and Social Research Institute Superannuation Plan. All of these schemes are currently operated on a pay-as-you-go basis and as such no deficits arise. I have no current plans for consolidation of these schemes.
An effective consolidation of public service pension schemes will in any event be achieved over time by way of the Single Public Service Pension Scheme, which I launched on 1 January 2013. The Single Scheme applies to all areas of public service employment, and is now the default pension scheme for first-time new-joiner public servants. In general the only new-joiner public service personnel who can be enrolled in pre-Single Scheme public service schemes are those with a recent work history elsewhere in the public service. Therefore the multitude of existing public service schemes are regarded as in general closed to new entrants, and will be fully displaced over time by the Single Scheme.
19. Deputy Charlie McConalogue asked the Minister for Public Expenditure and Reform if he will expedite a number of reports commissioned by the Office of Public Works regarding flooding in a number of areas across County Donegal, including in Ramelton, Letterkenny and Raphoe; and if he will make a statement on the matter. [40401/15]
Amharc ar fhreagraRamelton and Letterkenny are two Areas for Further Assessment (AFAs) that are being assessed under the Office of Public Works (OPW) Catchment Flood Risk Assessment and Management (CFRAM) Programme, the purpose of which is to implement the EU Floods Directive and national flood policy. They are being assessed under the North West–Neagh Bann (NW-NB) CFRAM study. Work on this study is progressing well.
The Programme, which is being undertaken by engineering consultants on behalf of the OPW working in partnership with the local authorities, involves the production of predictive flood risk and hazard mapping for each location. A national public consultation on the draft flood maps will commence tomorrow, 20 November and run until 23 December 2015.
The Programme also involves the development of preliminary flood risk management options and flood risk management plans. The Plans which are scheduled for completion by the end of 2016 will include a prioritised list of measures, both structural and non-structural, to address flood risk in an environmentally sustainable and cost effective manner.
Further information on the NW-NB study is available on the study website: www.northwestcframstudy.ie.
In relation to assessment of flood risk in Raphoe AFA, this is being undertaken independently from the CFRAM Programme. The flood risk management options report for Raphoe is still being developed by consultants on behalf of the OPW. Public consultation on these options will be held early in 2016. Feedback received during the public consultation will then inform the relevant Flood Risk Management Plan to be prepared in 2016.
20. Deputy Mick Wallace asked the Minister for Public Expenditure and Reform given the well documented importance of public investment in bringing about economic growth, if he has had discussions recently with the Department of Finance concerning the fact that Irish public investment, at approximately 2% of gross domestic product, ranks 26 out of 28 European Union member states; the plans he has to address this issue; and if he will make a statement on the matter. [40615/15]
Amharc ar fhreagraAs stated in my response to PQ 40614/15, there are important issues relating to differences in the composition of public expenditure in different jurisdictions affected by such factors as, for example, the age profile of the population, the level of defence spending and the mix between public and private provision of particular services that need to be taken into account in seeking to make cross-country comparisons on public investment.
Direct comparisons with public investment levels in Ireland under previous capital investment plans also need to be treated with caution particularly when such plans were oriented towards addressing long-standing infrastructural deficits as was, for example, the case in the period to 2008. In addition, capacity constraints and levels of tender price inflation can impact on the level of real as compared to the nominal level of public capital investment and the value-for-money of the expenditure undertaken.
Reflecting these types of considerations, trends in public capital investment should preferably be examined over a more extended time horizon. In this regard, the ESRI who reviewed investment levels in EU Member States over more than four decades from 1970 to 2013 found that Ireland ranks third behind Sweden and the Netherlands in terms of State investment in national infrastructure as a share of GDP.
The Government's Capital Plan "Building on Recovery: Infrastructure and Capital Investment 2016-2021" announced an Exchequer capital spend of €27 billion over a six year period. Supplementing Exchequer-funded investment with the investment plan from the wider semi-state sector, and PPPs, total State investment amounts to €42 billion over the period. At the time of the publication of the Capital Plan, State-backed capital investment, therefore, constituted a forecast average of 3.5% of GNP per annum over the relevant period.
As the Deputy will be aware, this represents a step-change in public investment, the feasibility of which is attributable to the achievement of fiscal and economic stability and the successful delivery of which will require the maintenance of this stability.
