Written Answers Nos. 20-31
20. Deputy Mick Wallace asked the Minister for Public Expenditure and Reform further to Parliamentary Question No. 11 of 2 March 2017, the details of the review into the role of public private partnerships and their role in infrastructure funding; his views regarding the costs incurred each year by the State by public private partnerships; and if he will make a statement on the matter. [18713/17]
Amharc ar fhreagraPPPs offer an alternative model for delivering infrastructure, that can facilitate the delivery of additional capital projects and that can be effective in particular circumstances. However, the long-term nature of the financial commitments arising under PPPs require that the use of such arrangements must be carefully planned in order to ensure that they are used to address infrastructural needs in a manner that is sustainable in the long term and which the public finances can afford.
Against this background, Government needs to formulate a strategic view on the extent to which PPPs can play a useful role in delivering additional infrastructure, to complement that provided directly with Exchequer funding, without placing an unsustainable burden that severely constrains future capital budgets.
The Mid-Term review of the Capital Plan presents an opportunity to assess the extent to which PPPs can play a role in mobilising and applying additional resources to support Ireland's medium-term growth potential. With this in mind, I have asked my Department to consider the scope for further use of PPPs to complement the direct provision of infrastructure using Exchequer funding, on a basis that is sustainable and affordable in the long term.
A senior level group has been established, comprising relevant officials from the Departments with experience of procuring projects by PPP, together with the Department of Finance, the National Development Finance Agency and Transport Infrastructure Ireland, to review past experience of PPPs and to provide an evidence based analysis of the potential for further use of PPPs (and concessions) as a procurement option for the delivery of additional capital infrastructure. Assessing the affordability, sustainability and value-for-money of PPP procurement will be key elements of the Group's work.
As far as the existing programme of PPP projects are concerned, the decision to procure as a PPP in each case was taken on the basis of a detailed assessment of value for money (VFM) as compared to the cost of traditional procurement carried out by the relevant public body on the basis of the detailed framework put in place and maintained by my Department. Full details and key documents of this VFM framework can be found at ppp.gov.ie.
21. Deputy Mick Barry asked the Minister for Public Expenditure and Reform the detail of the Government's negotiation position on the follow up to the Lansdowne Road agreement with public sector unions. [18350/17]
Amharc ar fhreagraThe Deputy will appreciate that I cannot disclose the Government's negotiation position in advance of actual negotiations. No party to a negotiation, in any walk of life, would do so as this could jeopardise the outcome of the negotiation.
What I can say, in broad terms, is that this Government values collective agreements and will negotiate in good faith to achieve one. We value industrial relations peace and the productivity improvements that collective agreements deliver. We believe collective agreements are more equitable, with benefits spread across all public servants, not concentrated in particular sectors while providing a fair and reasonable reflection of the important contribution all our public servants make to the delivery of vital public services to the public. Perhaps most importantly, we appreciate how collective agreements allow for strong fiscal planning, where public service pay increases that are fiscally sustainable are allocated within multi annual budgets. An agreement would assist us to balance public service pay issues with other societal priorities including for example additional resource requirements in housing, health and education, within what remains a constrained fiscal position.
Detailed negotiation positions will be informed by the first report of the Public Service Pay Commission. I understand work on the report is progressing well and will be completed and published before the end of the current quarter.
22. Deputy Bríd Smith asked the Minister for Public Expenditure and Reform if the high level forum on the community employment sector is empowered to take steps to rectify the injustice done to community supervisors who remain without an entitlement to a pension; and if he will make a statement on the matter. [18711/17]
Amharc ar fhreagraThe purpose of the High Level Community Sector Forum is consultative in nature. It allows for discussion between the relevant public service management and trade union side interests on matters of concern in relation to the Community Sector. Following the most recent meeting of the Forum it was agreed that further consultative provisions agreed under the auspices of the then Labour Relations Commission in 2015 would be incorporated into the objectives of the Forum. The details will be available in the minutes of the Forum to be published on my Department's website once formally approved by the parties concerned.
23. Deputy Thomas P. Broughan asked the Minister for Public Expenditure and Reform the status of the implementation of the PEACE IGV 2014 - 2020 programme; if the various programmes under the four specific objectives have commenced; and if he will make a statement on the matter. [18701/17]
Amharc ar fhreagraMy Department has joint responsibility with the Department of Finance in Northern Ireland for the Special EU Programmes Body (SEUPB), which manages the EU-funded PEACE and INTERREG cross-border programmes. Together these programmes will see investment of more than half a billion euro in Northern Ireland and the border region of Ireland over the period 2014-2020.
The PEACE IV Programme was adopted by the European Commission on 30 November 2015 and formally launched on 22 January 2016. The Programme is co-funded by the Irish Government, the Northern Ireland Executive and the European Union.
Along with match funding from the two Member States, the PEACE IV programme has a total value of €269 million. The focus of the PEACE IV programme is on social inclusion and combatting poverty, with investment in four key priority areas where it aims to make significant and lasting change, namely:
- Shared Education, with a total value €35.3 million;
- Children and Young People, with a total value €67.1 million;
- Shared Spaces and Services, with a total value €99.4 million; and
- Building Positive Relations, with a total value €51.7 million.
All of the funding calls for the PEACE IV programme have now been completed.
Currently a total of 19 projects have been approved across four Specific Programme Objectives. Sixteen of the approved projects are Local Authority Plans. Two projects have been approved in the area of shared education, while one focusing exclusively on victims and survivors has also been approved.
The total value of the projects approved to date is over €99 million. This represents a programme commitment level of 39%.
The Letters of Offer issuing to successful applicants includes a safeguard clause negotiated by my officials and their Northern Ireland counterparts to Brexit-proof projects to the greatest extent possible. This gives programme beneficiaries the confidence they need to proceed with the implementation of projects.
Further projects, with a total value of more than €367 million, are currently under assessment. Letters of Offer will continue to issue to successful applicants in the coming months. It is anticipated that the PEACE IV Programme will be fully committed by the summer of 2017.
24. Deputy Peter Burke asked the Minister for Public Expenditure and Reform if he will consider the request from the Department of Housing, Planning, Community and Local Government to grant moneys in order to extend the LIHAF, local infrastructure housing activation fund, scheme for projects which were not allocated funding under the recently announced projects in view of the demand for a scheme in Mullingar, County Westmeath, when the review of the Capital Plan 2016-2021 is being carried out; and if he will make a statement on the matter. [18703/17]
Amharc ar fhreagraAs the Deputy will be aware, housing is a key priority for this Government as stated in the Programme for a Partnership Government and as is evident from the decision to allocate in advance of the capital review an additional €2.2b to fund the Action Plan for Housing and Homelessness "Rebuilding Ireland". This amounts to 40% of the available additional capital investment to 2021.
The establishment of the Local Infrastructure Housing Activation Fund was also a commitment under the Programme for a Partnership Government. My government colleague Minister Coveney and I recently announced the approval of 34 projects to avail of the funds across 15 Local Authority areas, including Westmeath, with an estimated cost of €226.5m from 2018 2021. These projects are expected to support delivery of an additional 23,000 private housing units by 2021.
In relation to the review of the Capital Plan, a very clear process has been put in place in order to ensure that capital spending is fully aligned with national economic and social priorities, consistent with Programme for Partnership Government objectives. A submission in relation to the review and the additional funding available has been received from the Department of Housing, Planning, Community and Local Government and is currently being reviewed 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 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.
My Department's assessment of the submissions received on the Capital Review will be based on, for example, updated analysis of infrastructure capacity and demand as well as the new National Planning Framework due to be published later this year in order to ensure that the additional capital resources are targeted on priority public capital infrastructure required to support Ireland's medium-term growth potential and underpin social cohesion.
It is expected that the review process will be completed in Quarter 3 of 2017, in time to enable the Government to make final decisions in due course on how the remaining additional capital funding should be allocated.
25. Deputy Clare Daly asked the Minister for Public Expenditure and Reform the steps he will take to develop a national strategy and guidelines with regard to coastal erosion; and if he will make a statement on the matter. [18699/17]
Amharc ar fhreagraThe primary objective of Government policy on coastal protection is to ensure that in areas identified as being at greatest risk of damage or loss of economic assets through coastal erosion, appropriate and sustainable measures are identified by Local Authorities to protect those assets and, where such measures are economically justified on cost benefit grounds and compatible with all required environmental and other statutory requirements, they are implemented subject to the availability of resources.
The OPW has surveyed and assessed the coastal erosion risk along the entire national coastline, as part of the Irish Coastal Protection Strategy Study (ICPSS), and this information is published (on the OPW website) and available to all Local Authorities. This Study enables Local Authorities to develop appropriate plans and strategies for the sustainable management of the coastline in their counties, including the identification, prioritisation and, subject to the availability of resources, the implementation of coastal protection works both of a structural and non-structural nature.
The Local Authorities may carry out coastal protection works using their own resources. If necessary, they may also put forward proposals to the relevant central Government Departments for funding of appropriate measures depending on the infrastructure or assets under threat.
Because intervention within a coastal area may cause problems further along the coast, any proposed intervention measures are best developed in conjunction with a formal coastal erosion risk management study that has carefully investigated the problem and explored the full range of management options.
The OPW operates the Minor Flood Mitigation Works and Coastal Protection Scheme, under which applications for funding from local authorities are considered for measures costing up to €500,000 in each instance. Funding for coastal erosion risk management studies may also be applied for under this scheme. Funding of up to 90% of the cost is available for projects which meet the eligibility criteria including a requirement that the proposed measures are cost beneficial.
The OPW has published guidelines for coastal erosion risk management measures and funding applications under the Minor Works Scheme, available on the OPW website.
26. Deputy Noel Rock asked the Minister for Public Expenditure and Reform the actions and infrastructural changes that will be undertaken by the Government in response to the rising sea level, which clearly poses a pressing public safety threat; if funding will be devoted to prevention or adaptation; and if he will make a statement on the matter. [15027/17]
Amharc ar fhreagraThe Government published the National Climate Change Adaptation Framework in December 2012. This document sets out Government policy for addressing climate change adaptation in Ireland. It focuses on key climate sensitive sectors and mandates that certain Government Departments, other public sector bodies and Local Authorities prepare sectorial and local climate change adaptation plans.
Under the Framework, the OPW was mandated to prepare the Sectoral Adaptation Plan for Flood Risk Management. This Plan was prepared involving extensive consultation and is published on the OPW website, www.opw.ie
The Flood Risk Management Sectorial Adaptation Plan is based on a current understanding of the potential consequences of climate change for flooding and flood risk in Ireland. It identifies the actions to be implemented by the OPW and other responsible Departments and agencies in the flood risk management sector.
The National Catchment Flood Risk Assessment Management Programme (CFRAM) is central to the assessment of future flood risk and the planning of future flood protection measures for the 300 areas of potentially significant flood risk (or Areas for Further Assessment, the 'AFAs') designated under the Preliminary Flood Risk Assessment. This Programme includes the assessment of risk for two potential future scenarios taking account of the potential impacts of climate change. These climate change assessments have informed the development of the proposed flood risk management and protection measures being set out in the Flood Risk Management Plans, currently being finalised.
The OPW has surveyed and assessed the coastal erosion risk along the entire national coastline, as part of the Irish Coastal Protection Strategy Study (ICPSS), and this information is published (on the OPW website) and available to all Local Authorities. This Study enables Local Authorities to develop appropriate plans and strategies for the sustainable management of the coastline in their counties, including the identification, prioritisation and, subject to the availability of resources, the implementation of coastal protection works both of a structural and non-structural nature.
The Local Authorities may carry out coastal protection works using their own resources. If necessary, they may also put forward proposals to the relevant central Government Departments for funding of appropriate measures depending on the infrastructure or assets under threat. This can include the OPW Minor Flood Mitigation Works and Coastal Protection Scheme.
Because intervention within a coastal area may cause problems further along the coast, any proposed intervention measures are best developed in conjunction with a formal coastal erosion risk management study that has carefully investigated the problem and explored the full range of management options.
The Minister for Public Expenditure and Reform in September 2015 announced details of a €430 million 6 year programme of capital investment on flood defence measures as part of the Government’s overall Capital Investment Plan 2016 – 2021.
27. Deputy Sean Sherlock asked the Minister for Public Expenditure and Reform the engagement he has had with other Ministers with regard to pay restoration and pay negotiations for workers in agencies and bodies under their respective remit; the Ministers he has discussed this with; if this engagement has taken place in Cabinet, Cabinet committee or an interdepartmental basis; the dates these meetings took place; and if relevant trade unions have been informed of the status of these discussions. [18348/17]
Amharc ar fhreagraI have of course kept my Government and Cabinet colleagues informed of any significant developments with respect to the management of public service pay expenditure. In response to the Labour Court Recommendation on Garda pay, the Government, collectively, agreed a two phase approach to securing the future of collective pay agreements:
- Phase 1 to address anomalies arising from the recent Labour Court recommendations on An Garda Síochána; and
- Phase 2 to negotiate a successor to the Lansdowne Road Agreement.
Phase 1 was completed with the agreement of a €1,000 increase in respect of 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 issued in respect of the Garda Associations.
Phase 2 will commence with the submission of the first report from the Public Service Pay Commission which is due for completion by the end of the current quarter. Officials from my Department are in regular ongoing contact with senior management of public service employers and staff representatives across all sectors of the public service in relation to industrial relations issues including those relating to pay and conditions for public servants.
28. Deputy Dara Calleary asked the Minister for Public Expenditure and Reform if his Department compiled data from other European countries on the different ways public sector and civil servants' pensions are administered; the amount they pay on average per employee; the rules they have for public pensions; and if he will make a statement on the matter. [18704/17]
Amharc ar fhreagraMy Department is not involved in compiling in any kind of systematic fashion the class of information to which the Deputy refers. However, the Department has access to databases containing information on public service pension terms and administration arrangements operated by organisations such as the OECD and the European Institute of Public Administration which may be consulted as the need arises. That is aside from any direct contacts that my officials will make with relevant officials from other European states from time to time to examine any particular aspect of their pension arrangements.
However, I should remind the Deputy that comparative studies of this nature are far from straightforward. A comprehensive and thorough analysis of administration arrangements and pension terms in other European countries, which included a comparison with our own practices in the Irish public service, was carried out as part of work leading to the Report of the Commission on Public Service (2000). The report noted that it was important to acknowledge that pension arrangements in any range of countries will reflect the comparative economic, social and political conditions in those countries. Specifically, the Commission warned:
'In a widely based review such as this it is difficult to draw firm conclusions. Each country has its own distinctive historical, social and economic characteristics. These help to determine the relative importance of the public service within the economy, the processes for determining pay and conditions for public servants, and the state social security system, all of which combined impact upon the public service pension system in each country.'
I think the Deputy would agree that the caveats raised by the expert group regarding such studies are valid, and that the concerns they raise should be properly taken into account in the interpretation made on foot of any comparative analyses of this nature in the future.
29. Deputy Alan Farrell asked the Minister for Public Expenditure and Reform his plans to address the issue of coastal erosion at the Burrow, Portrane; the detail of his Department's engagement with the local authority to resolve this matter; and if he will make a statement on the matter. [18347/17]
Amharc ar fhreagraThe management of problems of coastal protection in the area indicated is a matter for Fingal County Council in the first instance. The Council must assess the problem and, if it is considered that specific measures and works are required, it is open to the Council to apply for funding under the Office of Public Works' (OPW) Minor Flood Mitigation Works & Coastal Protection Scheme. Any application received will be assessed under the eligibility criteria, which include a requirement that any measures are cost beneficial, and having regard to the overall availability of funding.
Fingal County Council applied for and was approved funding of €57,800 under this scheme in 2012 to carry out a Coastal Erosion Risk Management Study of Portrane to Rush. The funding was drawn down in 2013 following completion of the study.
Following the severe storms of Winter 2013/2014 and on foot of submissions made by the local authority, total funding of €200,000 was provided by the OPW to Fingal County Council under the Government decision S180/20/10/1272 of 11 February 2014 to allocate funding for the repair of damaged coastal protection infrastructure. Part of this funding was for a dunes repair project at Burrow beach, Portrane. This project was not proceeded with by Fingal County Council at the time and the Council indicated that this would form part of a separate application under the Minor Works scheme.
I visited Portrane on 21 February 2017 to view myself the effects of coastal erosion in the area. I met with local Deputies, local representatives, residents and property owners and I was impressed by the level of engagement locally and with the Council officials in exploring options to address the problem. I know that Fingal County Council is working hard to identify an appropriate and sustainable solution to the problem at Portrane in advance of submitting an application to the OPW for funding to carry out works.
I have been advised that my Office is not in receipt of any application from Fingal County Council currently under the Minor Flood Mitigation Works and Coastal Protection Scheme for dune protection works at Portrane. My Office remains available to work in partnership with Fingal County Council to provide any assistance possible to alleviate the effects of coastal erosion at this location.
30. Deputy Thomas P. Broughan asked the Minister for Public Expenditure and Reform his Department's current approach to expenditure risk profiling; the way in which this information may be communicated to the budgetary oversight committee and to Dáil Éireann; the way in which this approach is being applied to demand-led public expenditure schemes in 2017; and if he will make a statement on the matter. [18702/17]
Amharc ar fhreagraThe management of the annual Exchequer funding provision allocated to Departments is governed by the rules detailed in Public Financial Procedures. Managing the delivery of public services within Budgetary allocations is a key responsibility of each Minister and their Department. My Department is in ongoing communication with Departments and Offices to ensure that expenditure is being managed within the overall expenditure parameters. The drawdown of funds from the Exchequer is monitored against the published expenditure profiles and this information published monthly, as part of the Department of Finance's Fiscal Monitor.
In addition, extensive data, information and analytical studies on public expenditure are published on a timely basis in support of the whole-of-year approach to the budgetary process. The pre-Budget baseline for Departmental expenditure is provided in the Mid-Year Expenditure Report (MYER), first published by my Department in 2016. The MYER represents the baseline for examination of budgetary priorities by the Government and the Oireachtas. It also identifies any areas where significant expenditure pressures or risks are arising over the course of the year.
Budget allocations are based on detailed costings provided by Departments and on analysis by my Department of expenditure trends, demographic pressures and other drivers of spend.
Based on the expenditure figures reported in the March Fiscal Monitor, no significant spending pressures are evident from the Quarter 1 position. As the Deputy will be aware there is an additional cost of €0.12bn. arising this year from the decision to bring forward to April, from September, a pay increase due under the Lansdowne Road Agreement. This cost is to be met from available public resources taking into account the scope for reallocation of expenditure, while also ensuring that core public services are not adversely impacted. The extent to which Departments are in a position to meet this additional cost will only be determined later in the year. The position will be closely monitored and Government will consider how best to meet any additional funding requirements where the need arises.
My Department is committed to continuing to support and to working to facilitate the important work of the Committee on Budgetary Oversight, as emphasised by officials from my Department during their recent meeting with the Committee.
31. Deputy Dara Calleary asked the Minister for Public Expenditure and Reform if he is satisfied that public procurement rules as set out by the Office of Government Procurement are being adhered to by each Department and public body to which they apply; the way he satisfies himself that these rules are being adhered to; if there are penalties for those Departments or public bodies which do not adhere to the rules; and if he will make a statement on the matter. [18706/17]
Amharc ar fhreagraPublic Procurement is governed by well-established EU and National rules and guidelines. The aim of these rules is to promote an open, competitive and non-discriminatory public procurement regime which delivers best value for money.
EU Directives on public procurement require that public contracts above certain financial thresholds must be advertised on the Official Journal of the EU and awarded on the basis of objective and non-restrictive criteria. In the case of works contracts the threshold is €5.225 million; for supplies and service contracts awarded by Government Departments the threshold is €135,000 and for the remainder of public bodies the threshold is €209,000. The threshold for supplies and service contracts of entities operating in utility sectors is €418,000.
For contracts below these financial thresholds, it is a basic principle that a competitive process should be used unless there are justifiably exceptional circumstances. For example, contracts for goods and services with an estimated value of €25,000 and up to the value of the EU thresholds should normally be advertised on E-tenders using the open procedure.
It is the responsibility of each contracting authority to ensure that they comply with EU and national rules in relation to public procurement. Template Request for Tender and contracts documents have been developed in conjunction with the Chief State Solicitor's Office and the Office of the Attorney General to assist contracting authorities carrying out routine, non-bespoke and low to medium risk procurements.
In relation to oversight of Government contracts awards, public procurement practices are subject to audit and scrutiny under the Comptroller and Auditor General (Amendment) Act 1993, and the Local Government Reform Act 2014, and Accounting Officers are publicly accountable for expenditure incurred. Individual contracting authorities are responsible for establishing arrangements for ensuring the proper conduct of their affairs, including conformance to standards of good governance and accountability with regard to procurement.
Finally in relation to penalties, the Remedies Regulations (S.I. Nos. 130 and 131 of 2010 and S.I. Nos. 192 and 193 of 2015) allow tenderers or candidates the option of seeking recourse through the courts if they feel that a procurement process was not carried out in an open, fair and transparent manner.
