Written Answers Nos. 207-224
207. Deputy Alan Kelly asked the Minister for Public Expenditure and Reform the reason the OPW was not receiving rent for the lands it owned in Clonmore, County Tipperary; the reason the Garda College was renting out the land instead of the OPW; if the attention of the OPW was drawn to the fact that since 2007 rent was being paid to the Garda College for the land; and if so, the reason this was allowed to happen. [17231/17]
Amharc ar fhreagraThe OPW purchased the lands at Clonmore on behalf of the Garda Training College in 2006 and let the lands for 2007 and 2008 through the services of an auctioneer.
For the years 2009 to 2013 the Garda Training College took over the letting of the lands and continued to lease the lands to local farmers. In addition to this, OPW understands, the property was utilised for tactical training purposes and off road driving.
In 2014 the OPW, following discussions with the Garda Training College, took over the responsibility again for the leasing of the lands. OPW’s primary objective was to put in place a longer-term lease with the ultimate objective of improving the quality of the land.
While all rents payable have been received by the State in full, the OPW has held meetings at senior management level with An Garda Síochána to determine if monies collected by them should have more properly been remitted to OPW. OPW are satisfied that An Garda Síochána are fully investigating the issue and will revert appropriately.
208. Deputy Brendan Smith asked the Minister for Public Expenditure and Reform if he will ensure that the additional €2.65 billion which will be available for capital expenditure and to be announced in budget 2018 will take particular account of the needs of the Border region (details supplied); and if he will make a statement on the matter. [17273/17]
Amharc ar fhreagraSubmissions in relation to the mid-term review and the additional €2.65 billion funding available, were sought from Departments in January and are currently being received by my Department.
A public consultation process has also commenced, to ascertain the views of the public and key stakeholders on what our national infrastructure priorities should be, in light of issues including Brexit, and to seek views on infrastructure investment priorities beyond the period of the current Capital Plan, which will help formulate a longer term Capital Plan for the next 10 years. The closing date for submissions on the review is 30th April 2017.
My Department will assess the submissions received from Departments and other stakeholders and it is expected that the review process will be completed in Quarter 3 of 2017. This will enable Government to make final decisions in due course on how the remaining additional capital funding should be allocated.
It is a matter for each Department, in the first instance, to assess its sectorial capital plans in the light of significant factors, such as Brexit, taking into account the key issues emerging from the analysis of Brexit implications which is currently being carried out and to propose any consequent reprioritisation of resources when making its submission to the capital review.
209. Deputy Pearse Doherty asked the Minister for Public Expenditure and Reform the names of the members of the high-level forum on the community employment sector; and if he will make a statement on the matter. [17277/17]
Amharc ar fhreagraThe details sought by the Deputy are included in the minutes of the Forum which may be accessed on my Department's website. The minutes of the most recent meeting of the Forum with accompanying details of representatives in attendance are currently awaiting approval by the parties to the Forum and will then be published on the Department's website.
210. Deputy Pearse Doherty asked the Minister for Public Expenditure and Reform the details of all stakeholders and external groups and bodies with which the high-level forum on the community employment sector has consulted with respect to examining the issue of pension entitlement for community employment scheme supervisors and assistant supervisors; and if he will make a statement on the matter. [17278/17]
Amharc ar fhreagraThe High Level Working Group Forum is the formal representative body through which both management side and union side interests meet to deliberate on the particular issue in question.
211. Deputy Dara Calleary asked the Minister for Public Expenditure and Reform the amount of money to date that has been spent on the capital plan; the details of the expenditure by Department and by year, in tabular form; and if he will make a statement on the matter. [17350/17]
Amharc ar fhreagra212. Deputy Dara Calleary asked the Minister for Public Expenditure and Reform the capital expenditure for the remainder of the capital plan broken down by Department and year, in tabular form; and if he will make a statement on the matter. [17351/17]
Amharc ar fhreagra213. Deputy Dara Calleary asked the Minister for Public Expenditure and Reform the amount of money that has been committed but not spent under the capital plan; if he will provide a breakdown of the expenditure by Department and by year it is planned to be spent, in tabular form; and if he will make a statement on the matter. [17352/17]
Amharc ar fhreagra214. Deputy Dara Calleary asked the Minister for Public Expenditure and Reform if any amount of money committed under the capital plan has been removed from the capital plan; the amount of money involved, the specific projects removed, the amount of this money that was reallocated to other projects, the detail of these projects; and if he will make a statement on the matter. [17353/17]
Amharc ar fhreagraI propose to take Questions Nos. 211 to 214, inclusive, together.
The table following sets out for each Ministerial Vote Group gross voted capital expenditure for 2016, the published allocation for gross voted capital expenditure for 2017 and the updated ceilings for this expenditure category for 2018 and 2019 published in the Revised Estimates Volume (REV) taking into account the additional capital resources allocated for 2017. The capital allocations for 2020 and 2021 contained in the Capital Plan published in September 2015 and available at http://www.per.gov.ie/en/capital-investment-plan-2016-2021/ will be revised based on the outcome of the mid-term review of the Capital Plan currently underway.
|
€ million |
2016* |
2017** |
2018** |
2019** |
|
Finance Group |
22 |
25 |
25 |
25 |
|
Public Expenditure and Reform Group |
141 |
151 |
176 |
178 |
|
Justice Group |
145 |
180 |
141 |
173 |
|
Education & Skills Group |
693 |
693 |
714 |
745 |
|
Foreign Affairs Group |
7 |
11 |
11 |
11 |
|
Communications, Climate Action & Environment Group |
97 |
171 |
201 |
256 |
|
Agriculture, Food and the Marine Group |
159 |
238 |
238 |
238 |
|
Transport, Tourism & Sport Group |
1,158 |
1,130 |
1,281 |
1,328 |
|
Jobs, Enterprise & Innovation Group |
547 |
555 |
520 |
530 |
|
Arts, Heritage, Regional, Rural & Gaeltacht Affairs Group |
115 |
119 |
116 |
119 |
|
Housing, Planning, Community & Local Government Group |
467 |
705 |
788 |
764 |
|
Defence Group |
101 |
74 |
74 |
85 |
|
Social Protection Group |
14 |
10 |
9 |
9 |
|
Health Group |
418 |
454 |
473 |
550 |
|
Children and Youth Affairs Group |
23 |
26 |
25 |
25 |
|
Contingency in Public Capital Plan |
|
|
|
100 |
|
Unallocated Capital |
|
|
500 |
933 |
Rounding affects totals
Source: Department of Public Expenditure and Reform
* 2016 Provisional Outturn
** Revised Estimates for Public Services 2017
The Deputy may wish to note that the updated capital allocations set out in the table above for 2018 and 2019 are available for additional public capital investment in 2018 and 2019, as well as meeting carryover costs of the additional capital expenditure measures for 2017 announced in the Estimates.
In addition, as the Deputy will be aware a total €2.2bn. of the additional voted capital resources was allocated to the Government's initiatives aimed at tackling the housing crisis, as detailed in the Action Plan on Housing and Homelessness. This was reflected in the Estimates for voted capital expenditure for 2017, with a further proportion of the commitment, insofar as 2018 and 2019 are concerned, to be met from unallocated capital in the table above.
Taking account of the foregoing and the further capital allocations made in Estimates 2017 as discussed above, approximately €2.65bn of voted capital resources remain to be allocated for the 2018-2021 period of the Capital Plan following the capital review process referred to above.
215. Deputy Dara Calleary asked the Minister for Public Expenditure and Reform the PPPs, public private partnerships, currently in existence, the PPPs committed to and the annual cost to the Exchequer for each year to the end of the PPP projects, in tabular form; and if he will make a statement on the matter. [17355/17]
Amharc ar fhreagraA list of PPP and Concession projects which are now either operational or in construction, by sector, is set out in the following table:
|
Department/Agency |
Project Classification |
Operational From |
|
Health |
|
|
|
Primary Care Bundle |
DBFM |
2017 |
|
OPW |
|
|
|
National Conference Centre |
DBFOM |
Aug-10 |
|
Justice |
|
|
|
Criminal Courts Complex |
DBFOM |
Nov-09 |
|
Courts Bundle |
DBFOM |
2017 |
|
Education |
|
|
|
National Maritime College |
DBFM |
2004 |
|
Cork School of Music |
DBFM |
2007 |
|
5 Pilot Schools |
DBFM |
2002 |
|
Schools Bundle 1 |
DBFM |
2010 |
|
Schools Bundle 2 |
DBFM |
2011 |
|
Schools Bundle 3 |
DBFM |
2013 |
|
Schools Bundle 4 |
DBFM |
2016 |
|
Schools Bundle 5 |
DBFM |
2017 |
|
Transport Infrastructure Ireland |
|
|
|
M4 Kilcock Kinnegad |
Concession |
Dec-05 |
|
M1 Dundalk |
Concession |
Sep-05 |
|
M8 Fermoy |
Concession |
Oct-06 |
|
N25 Waterford |
Concession |
Oct-09 |
|
Limerick Tunnel[1] |
Concession |
Jul-10 |
|
M3 Clonee Kells[2] |
Concession |
Jun-10 |
|
N6 Galway Ballinasloe |
Concession |
Dec-09 |
|
M7/8 Portlaoise |
Concession |
May-10 |
|
M50 Upgrade |
DBFOM |
Sep-10 |
|
MSA |
Concession |
Sep/Oct-10 |
|
N11 Arklow/ Rathnew |
DBFOM |
Phased with final completion Q2/Q3 2015 |
|
M17/18 Gort / Tuam |
DBFOM |
Dec-17 |
|
M11 Gorey / Enniscorthy |
DBFOM |
Jul-19 |
|
N25 New Ross |
DBFOM |
2019 |
|
Environment |
||
|
Dublin Waste to Energy |
DCC - Incinerator |
2017 |
In addition, work is also progressing on a number of other PPP projects, including the Grangegorman DIT Project (including a student accommodation concession project as well as the availability based PPP project), a €300 million social housing PPP project, and three further projects with a combined value of c€500 million announced in 2015 under Phase 3 of the Government's PPP Programme, in the higher education, health and justice sectors - precise projects yet to be finally decided by the relevant Departments. (This list does not include a number of Water projects delivered by PPP but as on-balance sheet projects.)
My Department is currently updating projections for the future costs of PPPs, as part of the regular annual updating of PPP statistics. However, the latest projections available indicate that the cost of PPP Unitary Payments in 2017 is expected to be €224m, which cost is projected to continue to increase until 2021 when it is expected to peak at over €340m. Thereafter, the average cost for the next 14 years, to 2035, will exceed €300m per annum, before falling to an average of some €200m for the next 7 years to 2042. It will be 2053 before all unitary payments for existing PPPs have ceased.
My Department does not publish details of the projected annual cost of individual PPP projects over their lifetime, but aggregate information on the future cost of each individual PPP project is available on the Department's website www.ppp.gov.ie.
216. Deputy Dara Calleary asked the Minister for Public Expenditure and Reform the proceeds obtained from the sale of the State's share in Aer Lingus; the exact use these proceeds were put towards; the amount which has been spent or invested on each project; and if he will make a statement on the matter. [17357/17]
Amharc ar fhreagraThe acquisition of Aer Lingus by IAG, in 2015, resulted in a receipt of some €335m by the Exchequer for the Government's shareholding in the company. These funds were used to establish a Connectivity Fund, to support commercial projects that enhance connectivity both within and for the State, including physical, virtual and energy connectivity. The Connectivity Fund was established as a sub-Fund of the Ireland Strategic Investment Fund and is being managed by that Fund.
I understand that the latest position in relation to how these funds are being used is that two investments from this fund have already been completed, with a combined value of €57m.
- ISIF announced a $25 million (c. €22 million) equity investment in Aqua Comms DAC, the operator of Ireland's first dedicated subsea fibre-optic network. The cable lands in Killala County Mayo and interconnects New York, Dublin and London. Aqua Comms is a provider of data connectivity and bandwidth infrastructure services for content providers, cloud-based networks, data centres, IT companies and the global media. Its network will be used by major multinational technology and telecoms companies to provide fast, secure data connections between Ireland, the US and UK and will enable the continued growth of the Irish digital economy.
- ISIF also rolled an existing (National Pensions Reserve Fund) commitment in daa plc's public bond, which was issued in 2008 (repayable in 2018), into a €35 million commitment in a new 2028 public bond issuance by daa, the operator of Dublin and Cork Airports. This continues ISIF's role as a long-term, strategic, domestic investor in daa. Given the nature of the underlying business of daa, and the fact that the new bond issuance provides the underpinning long-term financing for the company, the ISIF commitment to the 2028 bond is considered suited to inclusion under the Connectivity Fund.
I understand that several other Connectivity Fund investment opportunities are currently being assessed under the ISIF's "double bottom line" mandate, which is to seek both commercial return and economic impact. These connectivity opportunities include potential investments in energy, air, sea and further data connectivity projects and businesses seeking to expand and enhance Ireland's international links.
217. Deputy Dara Calleary asked the Minister for Public Expenditure and Reform the amount of extra capital expenditure announced in budget 2017, ignoring the €2.2 billion allocated to housing, which constitute the projects and Departments this money has been allocated to, in tabular form; and if he will make a statement on the matter. [17360/17]
Amharc ar fhreagraEstimates 2017 contained an allocation of Gross Voted Capital Expenditure of €4.5bn. This represents an increase of almost €500m on the outturn for 2016. The increased capital allocation for each Vote Group comparing the 2017 allocation to the provisional outturn for 2016 is set out in the following table.
|
Ministerial Vote Group |
Increase in Gross Voted Capital 2017 |
|
Agriculture, Food & the Marine |
79 |
|
Arts, Heritage, Regional, Rural and Gaeltacht Affairs |
4 |
|
Children & Youth Affairs |
3 |
|
Communications, Climate Change & Natural Resources |
74 |
|
Finance Group |
3 |
|
Foreign Affairs and Trade Group |
4 |
|
Health Group |
36 |
|
Housing, Planning & Local Government |
238 |
|
Jobs, Enterprise, & Innovation |
8 |
|
Justice Group |
35 |
|
Public Expenditure & Reform Group |
10 |
Note: Rounding may affect totals
Information on the planned utilisation of Departmental capital allocations can be found in the Expenditure Report 2017 published at www.budget.gov.ie. Detailed information on the up-to-date position of any Department's capital expenditure programmes and projects under the Capital Plan can be obtained directly from the Department concerned.
218. Deputy Niall Collins asked the Minister for Public Expenditure and Reform the name, costs, date of commission, date or expected date of publication and name of the external consultant of all external reports commissioned by his Department since March 2011 per annum in tabular form. [17438/17]
Amharc ar fhreagraIn response to the Deputy's question, the following table outlines the total amount spent on external consultant reports commissioned by my Department since 2011. My Department only uses external consultants where essential and the contracts are negotiated with a view to achieving best value for money. When external consultants are used, the staff in my Department ensure that appropriate skills transfer takes place to reduce such requirements going forward.
|
Name of Report |
Costs |
Date or Expected Date of Publication |
Name of External Consultant |
|
Independent verification of savings arising under the Public Service Agreement |
€35,819 |
June 2011 |
MKO Partners Ltd |
|
Report on Reasons Behind Voter Behaviour in the Oireachtas Inquiry Referendum 2011 |
€41,043 |
January 2012 |
Red C Research and Marketing Ltd. |
|
Independent verification of savings arising under the Public Service Agreement |
€31,586 |
13 June 2012 |
Grant Thornton |
|
Capacity and Capability Review of Central Procurement Function |
€30,750 |
6 September 2012 |
Accenture |
|
IT Capability Maturity Framework Executive Assessment |
€30,750 |
November 2012 |
Innovation Value Institute, NUIM |
|
Independent verification of savings arising under the Public Service Agreement |
€24,206 |
3 July 2013 |
Grant Thornton |
|
Debt Management Final Report |
€135,514 |
24 July 2014 |
BearingPoint |
|
Report of a Consultation with Civil Society Representatives and Citizens on Ireland's Participation in the Open Government Partnership
|
Funding of €25,735.25 was provided to Transparency International Ireland following a competitive tender process to support a public consultation with civil society and the preparation of a report of their proposals for potential inclusion in Ireland's Open Government Partnership National Action Plan. |
2 October 2013 |
Transparency International, Ireland |
|
Open Data project (Best Practice Handbook; Data Audit Report; Roadmap for Open Data; Evaluation Framework; Open Data Publication Handbook) |
€19,188 |
July 2014 |
Insight Centre for Data Analytics, NUI Galway |
|
Office of Government Procurement Development of Training and Organisation Development |
€22,900 |
Internal report |
Baker Tilly Ryan Glennon. Trinity House, Charleston Road, Ranelagh, Dublin 6 |
|
Value for Money Report of Dublin Castle's Conference Facilities |
€4,674 |
Qtr 3, 2014 |
Newmarket Consulting |
|
Fund Structuring Services Agreement for Social Housing and Energy Efficiency in Ireland |
€26,767 |
5 November 2014 |
European Investment Bank |
|
Baseline Report Single Pension Scheme |
€24,900 |
9 December 2014 |
Mr Seamus O'Dwyer |
|
Civil Service Disciplinary Code Review (action identified under Civil Service Renewal Plan |
€30,750 |
March 2015 |
Byrne Wallace |
|
Civil Service Disciplinary Code Review (action identified under Civil Service Renewal Plan) |
€23,985 |
May 2015 |
Clarion Consulting |
|
Comparative Report on European National Identification Numbers |
€37,500 |
Publication pending the completion of the work of the PPSN review Group |
Hans Graux of time.lex CVBA, Brussels, Belgium |
|
Provision of legal expertise to assist and advise the Department in the preparation of Guidance to Public Bodies under Section 21(3) of the Protected Disclosures Act 2014 |
€12,500
|
Provision of legal expertise only. Not for publication.
|
Lauren Kierans BL
|
|
Analysis of Business Processes for European Structural and Investment Funds and Development of a Detailed Specification for EU Structural Funds 2014-2020 |
€46,371
|
Internal report which formed the basis of a request for tender published on 4 March 2016 |
Dovetail
|
|
Options for the next National Lottery licence |
€615 |
Internal report |
Davy Corporate Finance |
|
Recommendations to DPER for Clare River (Claregalway) Flood Relief Scheme |
€23,917 |
November 2015 |
JBA Consulting |
|
National Shared Services Office Continuous Improvement Report |
€36,900 |
November 2015 |
Ernst & Young |
|
Building Strategic HR in the Civil Service |
€8,000 |
Internal report |
McGrath Associates |
|
PeoplePoint: Optimal Resourcing Review reflecting present and future organisational requirements |
€49,200 |
Internal report |
Equita Consulting |
|
Baseline Research 2015 Usage, Resourcing and costs of ICT across selected Public Service Bodies |
€148,781 |
Internal report |
Price Waterhouse Cooper |
|
Develop and agree a service delivery model for Government ICT Shared Services |
€339,188 |
Internal report |
Accenture |
|
River Ilen (Skibbereen) drainage scheme: environmental impact statement recommendations to DPER |
€12,417 |
January 2016 |
Ryan Hanley Consulting Engineers |
|
Office of Government Procurement ICT Category Strategies (8 in total) |
€153,000 |
Internal report |
Accenture |
|
Public Service Spend and Tendering Analysis for 2014 |
€98,400 |
September 2016 |
Accenture |
|
Office of Government Procurement Strategic Market Assessment Phase 1 |
€200,010 |
Internal report |
Deloitte |
|
Office of Government Procurement Strategic Market Assessment Phase 2 |
€484,450 |
Internal report |
Deloitte |
|
Office of Government Procurement Strategic Market Assessment Phase 3 |
€196,333 |
Internal report |
Deloitte |
|
eInvoicing Recommendation Report |
€160,327 |
TBC |
KPMG |
|
Review of environmental impact statement of the Bandon River (Bandon) drainage scheme including recommendations |
€7,196 |
March 2016 |
CAAS Limited |
|
Research and recommendation on a fit for purpose HR model / structure for the National Shared Services Office |
€21,000 |
April 2016 |
Sile O'Donnell |
|
Payroll Shared Services operational review |
€44,280 |
June 2016 |
Deloitte |
|
A critical review of the applicability of the performance related remuneration approach to the Irish Public Service |
€15,375 |
July 2016 |
Institute of Public Administration |
|
Business case shared model for Learning and Development in the Irish Civil Service |
€106,063 |
Internal report |
Knowledge Pool as part of Capita Consulting |
|
Appropriate HR model for Office of Government Procurement |
€17,589 |
Internal report |
John O'Hehir Consulting Ltd. |
|
Economic assessment of issues raised in relation to the tendering process for the supply of printing devices |
€37,597 |
Internal report |
Peter Bacon & Associates Economic Consultants |
|
Office of Government Procurement Audit of Methodologies for 2013 Spend Data Analysis |
€13,550 |
Internal report |
KOSI Corporation Ltd. |
|
eCatalogue Readiness Assessment Report |
€17,454 |
Internal report |
Science Warehouse |
|
Environmental Impact Statement of the River Mall Templemore Drainage Scheme |
€7,196 |
December 2016 |
CAAS Limited |
219. Deputy Niamh Smyth asked the Minister for Arts, Heritage, Regional, Rural and Gaeltacht Affairs if she will consider amending section 51 of the Planning and Development Act 2000 in order that battle sites that do not necessarily include a built or ruined structure are afforded protected status; and if all planned works at such sites will be subject to rigorous archaeological scrutiny. [17167/17]
Amharc ar fhreagraA comprehensive review of Part IV of the Planning and Development Act 2000 (as amended), which includes Section 51, was carried out in 2014 by my Department and assisted by an expert advisory committee. Extending the scope of the Record of Protected Structures as proposed was not one of the recommendations sought and it is not proposed at this stage to carry out a further review of the Act. However, work is in progress on the drafting of a new consolidated and updated national monuments legislative code.
220. Deputy Eamon Scanlon asked the Minister for Arts, Heritage, Regional, Rural and Gaeltacht Affairs the amount of dormant account moneys available to be disbursed to each Department; if a charity (details supplied) can be considered for funding under the dormant accounts fund; and if she will make a statement on the matter. [17172/17]
Amharc ar fhreagraThe Dormant Accounts Act 2001, together with the Unclaimed Life Assurance Policies Act 2003 and the Dormant Accounts (Amendment) Acts 2005-2012, provide a framework for the administration of unclaimed accounts in credit institutions (i.e. banks, building societies and An Post) and unclaimed life assurance policies in insurance undertakings. The Acts provide for the disbursement of funds for the purposes of programmes or projects to assist:
- the personal and social development of persons who are economically or socially disadvantaged;
- the educational development of persons who are educationally disadvantaged; or
- persons with a disability.
My Department's role is to prepare a Dormant Accounts Fund Disbursement Scheme every three years, which sets out the objectives to be achieved by making disbursements from the Dormant Accounts Fund and the strategies for achieving those objectives. My Department also co-ordinates the preparation of annual Action Plans in accordance with the three-year Disbursement Scheme, which contain the details of specific programmes and projects for delivery across Government Departments.
My Department is currently finalising a new Dormant Accounts Fund Disbursement Scheme, following a detailed consultation process across Government Departments. This Scheme will cover the period 2017-2019 and will be submitted to the Cabinet for approval shortly.
Following Government approval of the Disbursement Scheme, an Action Plan for 2017 will be drawn up in consultation with relevant Government Departments. It will be a matter for the Departments in question to propose specific schemes or programmes for inclusion in the 2017 Action Plan and to invite applications under their own schemes. Under the Dormant Accounts Fund legislation, relevant Ministers are required to prepare a list of applications which they recommend should receive a disbursement under their schemes, and submit this list to me for approval.
221. Deputy Brendan Smith asked the Minister for Arts, Heritage, Regional, Rural and Gaeltacht Affairs further to Parliamentary Question No. 192 of 20 October 2016, the position regarding the proposed provision of a jetty by Waterways Ireland at Castlesaunderson, County Cavan; and if she will make a statement on the matter. [17183/17]
Amharc ar fhreagraI am informed by Waterways Ireland that it continues to engage with Cavan County Council, which owns the property at Castle Saunderson, regarding the provision of a jetty at that location.
222. Deputy Niall Collins asked the Minister for Arts, Heritage, Regional, Rural and Gaeltacht Affairs the name, costs, date of commission, date or expected date of publication and name of the external consultant of all external reports commissioned by her Department since March 2011 per annum, in tabular form. [17427/17]
Amharc ar fhreagraI refer the Deputy to my reply to Parliamentary Question No. 390 of 13 December. I am advised that no further reports have been commissioned or costs incurred in addition to the details provided in respect of the 11 reports commissioned by my Department since June 2011.
223. Deputy Billy Kelleher asked the Minister for Health if the HSE can confirm plans to remove the intermediate care vehicle from Castleblayney station (details supplied); and if he will make a statement on the matter. [17157/17]
Amharc ar fhreagraAs this is a service matter, I have asked the HSE to respond to the Deputy directly.
224. Deputy Jack Chambers asked the Minister for Health if he will clarify comments he made in a speech on 22 March 2017 to the Select Committee on the Future of Healthcare in which he indicated he wanted to strengthen incentives for providers to effectively respond to unmet health care needs; the providers he had in mind; the incentives in place that he was referring to; the future incentives he is planning and the detail of same; the meaning of ramping up activity-based funding; the activity-based funding measures currently in place; and if he will make a statement on the matter. [17170/17]
Amharc ar fhreagraAt a meeting with the Committee on the Future of Healthcare on 22 March 2017, I outlined my views on the future direction of the health service and a number of key priorities that I believe should underpin that direction. One of the priorities that I highlighted was the need to strengthen incentives for providers to effectively respond to unmet health care needs by ramping up Activity Based Funding (ABF).
An ABF system is currently being introduced in public acute hospitals on a phased basis. The introduction of ABF represents a fundamental change in how healthcare is funded in Ireland. Implementation of the funding model involves moving away from inefficient block grant budgets to a new system where hospitals are paid for the actual level of activity undertaken, subject to budgetary limits. As such, there will be a fundamental shift from funding facilities and settings to instead funding episodes of care. Other key benefits from the introduction of ABF include increased fairness in resource allocation, improved efficiency and increased transparency.
January 2016 represented a major milestone in the implementation process because the ABF system was introduced for inpatient and daycase activity in the 38 largest public hospitals. This means that hospitals are now being incentivised to pursue the most cost-effective means of achieving their performance targets while remaining within their overall budgetary ceilings. By operating more efficiently, hospitals will have the opportunity to maximise the delivery of activity within their overall budgetary ceilings, thereby helping to tackle waiting lists and address unmet need.
While the implementation of ABF is currently focused on inpatient and daycase activity, the Government is clear that journey must not end there. Instead, it is vital that the funding model continually evolves so as to create the correct incentives for the delivery of optimal care for the Irish population while avoiding the introduction of perverse incentives. For this reason, the ABF model will continue to evolve on a phased basis over the coming years to encompass other aspects of hospital services, such as outpatient activity, before extending into community services. This is being done in order to incentivise the delivery of care in the most appropriate settings. As part of the process of achieving this objective, my Department is engaging with the HSE in relation to the development of a framework for costing community care services.
I am also committed to using the ABF model to incentivise other health system objectives such as improving the quality of care and integration of care across different settings. During the implementation process, my Department and the HSE will continue to learn from the experiences both of our own system and other jurisdictions in order to ensure the effective implementation of this important reform.
