Thursday, 26 Jan 2017

Written Answers Nos. 115-124

Public Sector Pensions

Ceisteanna (115)

David Cullinane

Ceist:

115. Deputy David Cullinane asked the Minister for Public Expenditure and Reform the options available to a public servant who is required to retire at 65 years of age but is on a b1 stamp, is unable to collect a social welfare payment due to a partner's income and who will, therefore, have no income for 12 months; if the public servant can remain in employment until reaching 66 years of age; if not, the provisions his Department has made for such cases; and if he will make a statement on the matter. [3550/17]

Freagraí scríofa

Minister for Public Expenditure and Reform

An individual who pays Class B PRSI is an established civil servant appointed before 6th April 1995.  As a Class B PRSI contributor he/she pays modified PRSI, he/she does not make the appropriate PRSI contributions towards a contributory state pension (CSP).  Therefore such a person will not be entitled to a Social Welfare pension in respect of his/her Civil Service employment.  Consequently, a Class B PRSI contributor's occupational pension is not integrated with the Social Welfare system i.e. the calculation of the occupational pension does not take account of any Social Welfare pension or payments payable. 

In general, the occupational pension of an established civil servant paying a class B PRSI contribution is payable from minimum pension age or on retirement whichever is the later.  A Class B PRSI contributor will be entitled to an income from the occupational pension immediately on retirement if retiring at any age between 60 and 65, the latter age being the maximum retirement age for that group.

Semi-State Bodies

Ceisteanna (116)

Róisín Shortall

Ceist:

116. Deputy Róisín Shortall asked the Minister for Public Expenditure and Reform the current policy in respect of semi-State employees having their retirement age extended to 66 years of age (details supplied); and if he has issued or intends to issue guidance to semi-State companies in this regard. [3587/17]

Freagraí scríofa

Minister for Public Expenditure and Reform

Terms and conditions of employees of commercial state bodies (other than the Chief Exective Officer) are generally a matter for the body concerned and I have no direct input in relation to those terms and condition. However, in relation to public servants generally including those in non-commercial state bodies, the Deputy may be aware that an Interdepartmental Working Group, chaired by my Department, was established in early 2016. This Group was to examine the issues arising from prevailing retirement ages for workers in both the public and private sectors, in the context of the increase in the State Pension age from 65 to 66 in 2014 and the scheduled further increases to the State Pension age in 2021 and 2028.

The Group, whose Report was agreed by Government last August, considered policy around retirement age in both the public and private sectors, examining implications arising from retirement ages now and in the future. The Group identified a set of framework principles to underpin policy in the area and made a number of recommendations assigned to Government Departments and Employer bodies for follow-up in that regard. A copy of the Report is available online at http://www.per.gov.ie/en/report-of-the-interdepartmental-group-on-fuller-working-lives/.  

On foot of one of the recommendations of the Report, my Department, with Public Service employers, was tasked to review the current statutory and operational considerations giving rise to barriers to extended participation in the public service workforce up to and including the current age of entitlement to the Contributory State Pension. This review is currently underway and is expected to be completed by the Q2 2017.

Public Sector Pensions

Ceisteanna (117)

Charlie McConalogue

Ceist:

117. Deputy Charlie McConalogue asked the Minister for Public Expenditure and Reform the position regarding the restoration of pension payments for public sector workers who had their pensions cut as part of the public sector pay reductions; when pensioners who were in receipt of payments of more than €32,500 will see their pensions increased; and if he will make a statement on the matter. [3627/17]

Freagraí scríofa

Minister for Public Expenditure and Reform

Public service pay reductions under the financial emergency (FEMPI) legislation have not altered the value of public service pensions in payment. The particular FEMPI measure which has affected the payment rate of public service pensions is the Public Service Pension Reduction (PSPR). 

Introduced in January 2011 under the FEMPI 2010 Act, PSPR reduces the pay-out value of pensions whose pre-PSPR value is above specified thresholds. It does so in a progressively structured way which has a proportionately greater effect on higher value pensions. At all times, public service pensions up to a value of €12,000 have been unaffected by PSPR, while a higher exemption threshold of €32,500 has applied to pensions awarded from 1 March 2012 onwards.

PSPR is being significantly reversed or restored in three stages under FEMPI 2015 over the 2016 to 2018 period, with PSPR-affected pensioners getting pension increases via substantial restoration of the PSPR cuts on 1 January 2016, 1 January 2017 and 1 January 2018.  When fully rolled-out from 1 January 2018, the changes will mean that all public service pensions with pre-PSPR values of up to €34,132 will be fully exempt from PSPR, while those pensioners not fully removed from the reach of PSPR will, in the majority of cases, benefit by €1,680 per year. The cost of these changes is estimated at about €90 million on a full-year basis from 2018.

Since all public service pensions with pre-PSPR value greater than €32,500 have been negatively affected by PSPR, it follows that all such pensions will be increased by this three-stage restoration under FEMPI 2015.

Public Sector Reform Implementation

Ceisteanna (118, 121, 122, 123)

Bernard Durkan

Ceist:

118. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent of reform and-or policy initiatives required to maximise the opportunities for economic recovery in the future; and if he will make a statement on the matter. [3654/17]

Bernard Durkan

Ceist:

121. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the degree to which each Government Department continues to maintain good practice in terms of expenditure, in keeping with both the effects of the economic recession and the growing demands of the recovery; and if he will make a statement on the matter. [3702/17]

Bernard Durkan

Ceist:

122. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which he is satisfied that he will be able to continue to meet the targets set by his Department in the context of spending and reform; and if he will make a statement on the matter. [3703/17]

Bernard Durkan

Ceist:

123. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the degree to which each Government Department has achieved the targets set by way of public expenditure and reform in the past five years; the extent to which this has now become the basis for reward throughout; and if he will make a statement on the matter. [3704/17]

Freagraí scríofa

Minister for Public Expenditure and Reform

I propose to take Questions Nos. 118 and 121 to 123, inclusive, together.

Increased investment in public capital infrastructure can support enhanced economic growth. In this regard the Deputy will be aware that I announced on Budget Day that my Department would, by the middle of 2017, complete a review of the Capital Investment Plan published in September 2015. The objective of the Capital Review will be to provide a focused analysis of capital spending and it will provide the Government with an opportunity to reaffirm priorities and, if necessary, recalibrate investment plans. The key task, however, will be to recommend how the remaining unallocated capital funding should be allocated over the period of the plan, having regard to the priority areas identified in the Government's Programme.  

The effective management of expenditure has played a key role in ensuring Ireland met or exceeded its key fiscal targets over the past number of years. This continues to be the case, with the management of the delivery of public services within budgetary allocations being a key responsibility of each Minister and their Department. 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 and information is published monthly, as part of the Exchequer Statement.

The Government is now in a position to provide for sustainable levels of expenditure growth to support improvements in public services. The Revised Estimates Volume (REV) 2017 sets out total gross voted expenditure of €58.1 billion in 2017. This represents a year on year increase of over 3 per cent on the 2016 allocation and is a prudent level of increase as we continue to repair the public finances. However, we have to be mindful of the considerable expenditure pressures facing the public finances and it is important that we continue to evaluate how we spend our money to ensure that limited resources provide much needed public services and social infrastructure. Given this context, I announced on Budget day that a spending review will be carried out in advance of Budget 2018.

Given the many competing priorities and demands for resources, there is an ongoing requirement to implement reforms that improve how public services are delivered, and that achieve savings which can be reinvested in frontline services.  The Public Service has delivered significant productivity gains and service improvements over the last number of years, as set out in the Annual Progress Report on the Public Service Reform Plan (published April 2016).  We must build on this progress, and it is essential that targeted recruitment and investment in public services is done in tandem with further public service reform measures. This includes, for example, more digital delivery of services, improved customer service and business processes, and greater use of shared services. When Departments identify savings arising from such reform measures, such savings are in general made available to Departments to reinvest in the delivery of services.  It is also very important to ensure that the public service workforce operates in a manner which maximises the positive impact on public service provision of the increased staff numbers reflected in the budgetary allocations for 2017.

Public Sector Pay

Ceisteanna (119)

Bernard Durkan

Ceist:

119. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which he expects to be able to maintain compliance with the Lansdowne Road agreement or other pay agreements in the context of the financial emergency measures in the public interest, FEMPI, legislation, having particular regard to the need to reward those affected by the downturn in the economy in the course of the ongoing recovery; and if he will make a statement on the matter. [3700/17]

Freagraí scríofa

Minister for Public Expenditure and Reform

This Government believes in the value of collective agreements and is taking steps to support the continued implementation of the Lansdowne Road Agreement .

A collective approach to public service pay is vital to our national interest as it provides for the stable industrial relations environment which has been a pillar of our domestic recovery and restored international reputation. Collective agreements deliver public service reform, secure productivity improvements and allow for strong fiscal planning where pay increases are negotiated fairly and budgeted for on a multi-annual basis. This allows us to balance pay increases in the public service with other societal priorities including improvements in housing and health care.

The Labour Court Recommendation on Garda pay issued on 3rd of November last had serious implications for the continued viability of the Lansdowne Road Agreement and this needed to be addressed.

This process of engagement between public service management and the Public Service Committee of ICTU has been completed.

In acknowledgement of the anomaly that has arisen, the Government in its capacity as the public service employer, agreed to an increase in annualised salaries of €1,000 for the period April to August 2017 inclusive for:

- those on annualised salaries up to €65,000;

- who are parties to the Lansdowne Road Agreement; and

- who do not stand to benefit from the Labour Court recommendations (CD/16/321 & CD/16/322) issued in respect of the Garda Associations.

This additional payment is being offered by Government on the understanding that there will be continued adherence to the terms of the LRA, and in particular, its mechanisms to resolve disagreements before they escalate into industrial disputes over the remaining period of the Agreement. The requirement therefore to adhere to industrial peace will be fully observed in all sectors and this has been accepted by ICTU.  

The Oversight Group for the Agreement will meet regularly in order to take an active role in addressing any major disputes that arise ensuring compliance with the relevant terms of the agreement over its remaining term.  

Preparatory work for Phase 2 has commenced, with parties making submissions to the Public Service Pay Commission. An initial report from the Commission is expected in Q2 2017. This report will provide inputs on how the unwinding of FEMPI legislation can be best managed in the context of the national finances.

Once this report is available, the Government intends to initiate negotiations on a successor to the Lansdowne Road Agreement ahead of Budget 2018 considerations.

Infrastructure and Capital Investment Programme

Ceisteanna (120)

Bernard Durkan

Ceist:

120. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform in the context of the growing needs of the recovering economy, if he expects to be in a position to meet infrastructural requirements of the widest possible nature affecting our economic performance; and if he will make a statement on the matter. [3701/17]

Freagraí scríofa

Minister for Public Expenditure and Reform

The Capital Plan "Building on Recovery", sets out a €42 billion framework to address our priority infrastructure needs up to 2021. This plan is being reviewed to ensure that capital spending is strictly aligned with national economic and social priorities, consistent with Programme for Partnership Government objectives. This includes examining how available capital funds can best be allocated to underpin sustainable medium-term economic growth and future growth potential. 

The review of the Plan will be undertaken in two stages:

Phase 1 is a focused review of priorities aimed primarily at advising Government, in the context of Budget 2018, on how the additional capital funding committed by Government should be allocated over the remainder of the plan.  This will examine priority areas for investment, consistent with the objectives of the existing Capital Plan and the specific investment priorities contained in the Programme for Government.

Phase 2 will assess and report on the framework required to underpin longer term analysis of Ireland's infrastructure planning needs. 

My Department has recently written to all Departments initiating the review process and has sought submissions, including proposals for any of the additional capital funding available, by end February 2017. A public consultation will also be undertaken to inform the Review.

Questions Nos. 121 to 123, inclusive, answered with Question No. 118.

Public Service Reform Plan Update

Ceisteanna (124)

Bernard Durkan

Ceist:

124. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the scope for reforms throughout the public and private sectors which may still have a role to play in economic performance in the future; and if he will make a statement on the matter. [3705/17]

Freagraí scríofa

Minister for Public Expenditure and Reform

Public Service Reform was a central element of the response to the challenges of recent years and remains an essential part of building for the future. Since the first Public Service Reform Plan was published in 2011, a comprehensive programme of reform has been implemented and this continues to be a key priority.  This is important as the performance of the Public Service has major implications for the management of the State's finances, and for economic development and employment creation.

We are now at the end of the final year of the implementation of the current three year Public Service Reform Plan 2014 2016.  The Reform Plan has enabled a transformation of how we do our work as public servants, putting citizens ever more to the centre of what we do both in terms of service delivery and transparency, openness and accountability. In addition, reform is continuing to deliver savings across a range of specific areas such as shared services, procurement reform and property management. The launch of the Public Service ICT Strategy in will permit the public service to use new digital methods to improve online delivery of services and reduce costs. These reform initiatives will ensure that the public service along with the private sector continues to each play their role in creating a positive climate for trade, investment and job creation.

A new phase of public service reform, to cover the period 2017-20, is currently being developed and last September I invited the members of the Oireachtas Committee on Finance, Public Expenditure and Reform to input to this process. This phase will consolidate the significant progress made since the first Public Service Reform Plan was launched in 2011. It will set out a series of actions to be delivered out to 2020 which will both build on the achievements of the last six years and respond to new challenges.

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.