Written Answers Nos. 567-588
567. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform if he expects public expenditure constraints and reform policies, effective in the context of economic recovery, to be used as a basis for prudent economic development in the future; if he expects to implement innovation in this regard in the future to maximise economic benefit; and if he will make a statement on the matter. [13616/16]
Amharc ar fhreagra568. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform if all Departments and their subordinate bodies have met the targets set down by his Department in the context of public expenditure and reform; and if he will make a statement on the matter. [13617/16]
Amharc ar fhreagra570. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform if he remains satisfied regarding the adequacy of the budget for each Department to meet its requirements over the next twelve months; if any particular measures are required to address specific issues; and if he will make a statement on the matter. [13619/16]
Amharc ar fhreagra572. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform if he remains satisfied that targets in respect of savings and public expenditure reform will continue to be met in the context of economic recovery; if he has identified particular areas of conflict in this regard; if he remains satisfied that economic recovery and retention of public expenditure objectives are not mutually exclusive; and if he will make a statement on the matter. [13621/16]
Amharc ar fhreagraI propose to take Questions Nos. 567, 568, 570 and 572 together.
The key focus of fiscal policy over the last number of years has been to reduce the General Government Deficit in line with the targets set under the Excessive Deficit Procedure. The management of public expenditure by Government Departments has played an important role in ensuring that these key fiscal targets have been achieved. The EU Commission has recommended that Ireland has met the requirements to exit the corrective arm of the Stability and Growth Pact at the end of 2015.
As the Deputy suggests, Public Service Reform was a key element of the Government's response to the crisis and the strategy for recovery. The reforms implemented over the past five years enabled us to maintain and improve public services in the face of the necessary reduction in staff numbers and budgets, at a time of increased demand for public services.
The Programme for Government recognises that economic and social progress go hand in hand. Only a strong economy supporting people at work can pay for the services needed to create a fair society. The Programme for Government, therefore, sets out a clear strategy for increasing spending in a sustainable way built on stable revenues.
A second Public Service Reform Plan (2014-2016) was published in January 2014. While maintaining an emphasis on efficiency and reducing costs, this Plan puts a particular focus on improved service delivery and achieving better outcomes. The actions set out in the Reform Plan address areas such as: greater use of shared services and innovative approaches to service delivery; increased use of technology and improved engagement with service users; more efficient and effective public procurement; increased accountability and transparency in public decision making; enhanced leadership and performance management; and a continued focus on building the required capacity to deliver reform. This second Annual Progress Report on the Public Service Reform Plan 2014-16 published in April 2016 sets out the significant progress that has been made over the last year in implementing the cross-cutting reform actions set out in the Plan.
As the Deputy is aware, 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 end-April Exchequer returns show that most Departments continue to manage expenditure within profile. However, these returns provide some indications of areas where there may be some pressures. As outlined in the analysis of Gross Voted Expenditure published with the Exchequer Returns, Health gross current spending was over profile by €78 million (1.7%) at the end of April.
As outlined in the 2016 Stability Programme Update (SPU) it was estimated at that time, on the technical no policy change basis on which the SPU was prepared, that over the course of the year, voted spending pressures amounting to c. ¼ per cent of GDP could materialise. Given the potential upside to the revenue projections it is envisaged that additional spending of this level can be accommodated within the fiscal rules.
569. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform if he sees recruitment in specific vital areas of the public sector becoming a policy initiative in the future; and if he will make a statement on the matter. [13618/16]
Amharc ar fhreagraIn my role as Minister for Public Expenditure and Reform, I have overarching policy responsibility for workforce planning in the Civil Service, including recruitment.
The initiation of a recruitment campaign for any particular civil service grade is determined by such factors as identified workforce planning requirements and the need to establish priorities for targeted recruitment into the civil service to meet specific service and skill needs.
In Budget 2015, it was announced that there would be a targeted programme of recruitment into the Civil Service to address service needs and a shortfall in key skills.
As the Deputy will be aware a number of open graduate recruitment campaigns were held in late 2015 for Administrative Officer, Junior Diplomat and Trainee Auditor. An Assistant Principal and Principal Officer competition were also held in 2015.
This ongoing recruitment programme supports Action 8 of the Civil Service Renewal Plan, to "open up recruitment and promotion processes at all levels". Under the Renewal Plan the established policy of open competition for senior management positions (Assistant Principal and higher) has been extended following a hearing at the Civil Service Arbitration Board in 2015.
Further consideration will be given throughout 2016 to resourcing and staffing needs for the Civil Service.
Recruitment plans for the public service more generally are a matter, in the first instance, for the Minister with responsibility for each of the relevant sectors of the public service.
571. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform if he remains satisfied regarding the availability of adequate critical infrastructure such as road, rail, air and sea transport, ready access to high-speed reliable telecommunications, renewable energy and housing; if his Department continues to monitor the availability of such facilities and plan for the future accordingly; and if he will make a statement on the matter. [13620/16]
Amharc ar fhreagraI strongly share the premise underlying the Deputy's question that getting our investment strategy right is very important to securing economic progress and social development. In the process leading up to the publication of the current capital plan: 'Building Recovery: Infrastructure and Capital Investment 2016-2021' the previous Government sought to ensure that resources were focused where needed in order to protect economic recovery and meet social needs.
Identifying the capital needs of an economy is undoubtedly a complex process. To come to a firm view on the scale and composition of infrastructural needs, over the short, medium and long term, a number of factors need to be considered and analysed, such as for example:
- the existing level and composition of public capital stock;
- the social and economic value of infrastructure;
- the scale of the infrastructural deficit;
- geographic considerations; and
- economic growth projections.
It is also very important that the investment is efficient. Assessing the efficiency of investment requires methodologies to identify projects and programmes with the most favourable cost-benefit ratios.
Investment plans must also be fiscally sustainable. As we know from our experiences in the period from 2008 onwards, the costs of a fiscal crisis are such that the funding of investment plans must be strictly consistent with the overarching parameters of budgetary policy.
Following final Government deliberations, the 2016-2021 plan was published last September with a commitment to conduct a mid-term review in mid 2017. This commitment has been confirmed in 'A Programme for a Partnership Government'.
This review will provide the Government with the opportunity to review capital spending plans and allocate the additional funding identified in the Programme for Government to priority areas.
In specific terms, the Programme for a Partnership Government has proposed, subject to Oireachtas approval, an additional €4billion in exchequer capital investment up to 2021. Following the mid-term review of the Capital Plan the Government will increase capital investment in transport, broadband, education, health and flood defences.
In the appendix attached to this reply, details are provided of investment plans in the specific areas referenced in the Deputy's question.
Appendix
Road, rail, air and sea transport:
The Exchequer transport capital allocation is largely framed by the recommendations and priorities set out in the published Strategic Investment Framework for Land Transport. These priorities are threefold: to maintain and renew the strategically important elements of the existing land transport system; to address urban congestion; and to improve the efficiency and safety of existing transport networks.
In recognition of the fact that medium and long-term planning of transport infrastructure is well developed, the €9.6 billion capital envelope for transport will be provided over seven years. This will include €6 billion for investment in the national, regional and local road network and €3.6 billion in Public Transport. A €28 million investment package for safety and security enhancements at the regional airports to ensure connectivity for balanced regional development is also included in the Capital Plan. The largest single project will be a new metro link in Dublin. Based on the outcome of the Fingal/North Dublin Transport Study, the National Transport Authority has recommended that a revised metro project be selected as the appropriate public transport project to address the transport needs of the Swords/Airport/City-Centre Corridor. It is planned that Metro North will be in operation by 2026/2027.
Access to high speed reliable telecommunications:
An initial allocation of €275m of Exchequer funding has been provided to the National Broadband Programme as part of the first six years of an envisaged 20 year contract. While it is expected that the network will be built between 2016 and 2020, the overall funding will be spread over 20 years and this envelope represents a proportion of that funding.
Another significant development in this context is the creation of the Connectivity Fund, which has been formed from the proceeds of the sale of the Government's shareholding in Aer Lingus. The Fund, which operates on a commercial basis, is available to provide support for commercial investment projects with a connectivity theme, including data and energy connectivity.
The Programme for a Partnership Government also commits to providing additional exchequer capital, if needed, to deliver on the commitment to bring next generation broadband to every house and business in the country by 2020.
Renewable energy:
The Government is committed to reducing carbon emissions and increasing our use of renewable energy. €444 million has been provided for investment in energy efficiency and renewable energy programmes from 2016 to 2021.
Housing:
Direct Exchequer investment in the area of social housing of nearly €3 billion has been provided. This will help deliver an additional 35,000 housing units by 2020. Around 18,000 of these additional housing units will come on stream between now and 2017 with the balance provided between 2018 and 2020. A further 75,000 households will have their housing needs met through leasing and renting in the private rental sector.
This is supported by PPP investment of €300m which is expected to deliver 1,500 social housing units. This investment is to be delivered in three bundles, each of approximately €100m with 500 units expected to be delivered through each. Details of Bundle 1 were announced last October and include:
- Ayrfield, Malahide Road (Dublin City) - 100 units
- Corkage Grange (South Dublin) - 100 units
- Scribblestown (Dublin City) - 100 units
- Dunleer, (Co. Louth) - 70-95 units
- Convent Lands (Wicklow) - 60-70 units
- Craddockstown, Naas (Kildare) - 75 units
Sites for Bundle 2 have been selected and are expected to be announced by the Department of Housing Planning and Local Government in the near future.
573. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the number of persons who have left the Civil Service in each of the past five years to date either by way of natural retirement or redundancy; the extent to which the national pay bill has been affected as a result; and if he will make a statement on the matter. [13622/16]
Amharc ar fhreagraAs Minister for Public Expenditure and Reform, I have primary responsibility for the civil service. There have been 6,262 retirements from the civil service in the 5 year period from 2011 to 2015. The retirements are broken out by year in the following table. With civil service salaries averaging around €49,000[1] over the period, it can be seen that these retirements gave rise to a gross reduction in the civil service pay bill of c. €300 million. However, it should be noted that there is a corresponding increase in the pension bill. The civil service annual pension pay bill increased by c. €75 million over the same period. This latter number is lower than might be expected because it is affected by savings as retirees die, and pensions generally being slightly less than 50% of pay (which is the rate that applies after 40 years of service).
|
Year |
2011 |
2012 |
2013 |
2014 |
2015 |
|
No. of retirees |
1,056 |
1,826 |
829 |
1,275 |
1,276 |
Voluntary redundancy has been primarily a public service rather than civil service phenomenon with over 900 staff leaving the wider public service over the period, with none in the civil service.
[1] CSO Earnings and Labour Costs
574. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform if discussions have taken place with his colleagues in the Department of the Environment, Community and Local Government with a view to agreement on a public expenditure proposal in respect of social and affordable housing which might meet the approval of his Department in the context of public expenditure constraints; and if he will make a statement on the matter. [13623/16]
Amharc ar fhreagraI am engaging with my colleagues in the Cabinet Committee on Housing, which is meeting weekly, to facilitate the drawing up by the Minister for Housing, Planning and Local Government of the Action Plan on Housing provided for in the Programme for Government. The committee is looking at a range of options to increase the supply of social and affordable housing and housing generally. The funding implications of any proposed measures will be considered in that context and in the annual estimates.
The work of the Cabinet Committee is supported by a Senior Officials Group, including officials from my Department and the Department of Housing, Planning and Local Government as well as officials from other relevant Departments.
575. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform if reform as a component in economic strategy has achieved savings in line with projections; and if he will make a statement on the matter. [13624/16]
Amharc ar fhreagraPublic Service Reform was a key element of the response to the challenges of recent years and continues to be essential as part of building for the future. Significant progress has been made since the publication of the first Public Service Reform Plan in 2011, including in the area of reducing costs. This includes, for example, a very significant reduction in the Public Service pay bill and changes to terms and conditions such as reduced sick leave entitlements and additional working hours. In addition to the reduced cost of the Public Service overall, reform is also delivering savings across a range of specific areas such as shared services, procurement reform and property management.
A second Public Service Reform Plan (2014-2016) was published in January 2014. While maintaining an emphasis on efficiency and reducing costs, this Plan puts a particular focus on improved service delivery and achieving better outcomes. The actions set out in the Reform Plan address areas such as: greater use of shared services and innovative approaches to service delivery; increased use of technology and improved engagement with service users; more efficient and effective public procurement and property management; increased accountability and transparency in public decision making; and enhanced leadership and performance management. The second Progress Report on the Public Service Reform Plan 2014-16 was published in April. The report was sent to all Deputies and is also available at www.reformplan.per.gov.ie .
A Civil Service Renewal Plan was also published in 2014 and the implementation of this ambitious three year plan is leading to major changes right across the Civil Service.
Overall, I believe that there has been significant progress on Public Service Reform to date. We must build on this progress and maintain a focus on Public Service Reform over the coming years. It is essential that targeted recruitment and investment in public services is done in tandem with further Public Service reform measures, not least as current and future demographic trends will continue to place demands on public service delivery.
576. Deputy Brendan Griffin asked the Minister for Public Expenditure and Reform when a decision on a competition for a lease on lands (details supplied) will be available; and if he will make a statement on the matter. [13625/16]
Amharc ar fhreagraA decision will be made following negotiations with the highest acceptable tender. It is intended to complete these negotiations within the next fortnight.
577. Deputy David Cullinane asked the Minister for Public Expenditure and Reform the estimated full-year savings for 2017 by reducing Teachtaí Dála pay to €75,000. [13649/16]
Amharc ar fhreagraThe current annual rate of salary for members of Dáil Éireann is €87,258. Every €1,000 reduction applied to that rate would yield an annual saving of €158,000.
578. Deputy David Cullinane asked the Minister for Public Expenditure and Reform the estimated full-year savings for 2017 by reducing Senators' pay to €60,000. [13650/16]
Amharc ar fhreagraThe current annual rate of salary for members of Seanad Éireann is €65,000. Every €1,000 reduction applied to that rate would yield an annual saving of €60,000.
579. Deputy David Cullinane asked the Minister for Public Expenditure and Reform the estimated full-year savings for 2017 by withdrawing officeholder allowances. [13651/16]
Amharc ar fhreagraBased on current salary rates, the total cost of the annual allowances payable to the following in respect of their positions as Officeholders is €1,892,591: Taoiseach, Tánaiste, Ministers (13), Ministers of State (18), Ceann Comhairle, Leas Cheann Comhairle, Cathaoirleach, Leas Chathaoirleach, Leader of the Seanad.
580. Deputy David Cullinane asked the Minister for Public Expenditure and Reform the estimated full-year savings for 2017 by reducing Ministers' portion of pay by 50%. [13652/16]
Amharc ar fhreagraBased on current salary rates, the annual total cost of the allowance payable to Ministers, including the Taoiseach and Tánaiste, in respect of those positions is €1,095,809. Every 1% reduction applied would yield an annual saving of €10,958.09.
581. Deputy David Cullinane asked the Minister for Public Expenditure and Reform the estimated full-year savings for 2017 by withdrawing super junior ministerial allowances. [13653/16]
Amharc ar fhreagraThe current rate of the annual allowance payable to each of the two Ministers of State who regularly attend Cabinet meetings is €15,829.
582. Deputy David Cullinane asked the Minister for Public Expenditure and Reform the estimated full-year savings for 2017 by reducing advisers' pay to first point principal officer grade. [13654/16]
Amharc ar fhreagraThe Deputy's question is a hypothetical one.
I would like to advise the Deputy for information that on the commencement of each Dáil, the Department of Public Expenditure and Reform issues guidelines setting out the arrangements for the staffing of Ministerial Offices including:
1. the permitted staffing levels in the private and constituency offices of Ministers and Ministers of State, and
2. the level of salaries for Ministerial personal appointees to the positions of Special Adviser, Personal Secretary, Personal Assistant and Civilian Driver and the number of appointees permitted.
These guidelines are brought to the Government and it is anticipated that the Government will consider the guidelines shortly.
It should be noted in this context that some of the Special Advisers appointed by Ministers in the last Government will be reappointed as Special Advisers by Ministers in the current Government . Factors such as progression on the incremental scale cannot be fully assessed until all such appointments have been finalised.
583. Deputy David Cullinane asked the Minister for Public Expenditure and Reform the estimated full-year savings for 2017 by reducing public sector pay over €100,000 by 15% and over €150,000 by 30%. [13655/16]
Amharc ar fhreagraBased on the information currently available to my Department, the estimated full year gross saving in the Exchequer and Local Government pay bill arising from a reduction in public service salaries for amounts in excess of €100,000 of 15% and amounts in excess of €150,000 of 30% is some €47m. This does not take account of any offsetting reductions in taxes and levies. As the combined effect of the estimated marginal tax rate and the pension related reduction at a pay level for a public servant of €100,000 p.a. or higher is at least 62.5%, the estimated net savings would be reduced to less than €17.6m.
584. Deputy David Cullinane asked the Minister for Public Expenditure and Reform the estimated full-year savings for 2017 by reducing non-commercial State-sponsored bodies' chief executive officer pay by 10%. [13657/16]
Amharc ar fhreagraMy Department currently holds information on the salary rates being paid to Chief Executive Officers of some 88 non-commercial State sponsored bodies. The total CEO salary figure for these bodies is €10.68m. Each 1% reduction in the salaries being paid to those CEOs would yield a full-year saving of approximately €107,000.
585. Deputy David Cullinane asked the Minister for Public Expenditure and Reform the estimated full-year savings for 2017 by reducing commercial State-sponsored bodies' pay by 10%. [13658/16]
Amharc ar fhreagraI have no statutory role in relation to the rates of pay for staff below CEO level in the Commercial State Bodies.
The total CEO salary figure for Commercial State Bodies is some €5m. Each 1% reduction in the salaries being paid to those CEOs would yield a full-year saving of approximately €50,000.
586. Deputy David Cullinane asked the Minister for Public Expenditure and Reform the estimated full-year savings for 2017 by reducing spending on professional fees by 10% in his Department. [13660/16]
Amharc ar fhreagraThe total cost of professional fees incurred by my Department in 2015, and by the associated functions - the National Shared Services Office and the Office of Government Procurement- together with bodies under the aegis of my Department (excluding the Office of Public Works)*, amounted to some €8.1m. A 10% reduction in that level of spending would, therefore, give rise to an annual saving of €810,000.
* The Office of Public Works will respond directly to the Deputy on the matter.
587. Deputy David Cullinane asked the Minister for Public Expenditure and Reform the estimated full-year savings for 2017 by reducing spending on travel by 10% in his Department. [13661/16]
Amharc ar fhreagraMy Department does not normally collect information on overall figures for travel in the Civil and wider Public Service. However, if the Deputy wishes to consult the response given to PQ 26628/15, this sets out the most recent estimated figures on this matter.
588. Deputy David Cullinane asked the Minister for Public Expenditure and Reform the estimated full-year savings for 2017 by reducing spending on education and training by 5%. [13662/16]
Amharc ar fhreagraThe estimated full-year savings for 2017 by reducing spending on education and training by 5 per cent is €20,000.
