Dáil Éireann Debate, Tuesday - 26 September 2017
101. Deputy Pearse Doherty asked the Minister for Public Expenditure and Reform the savings that have resulted from the work of the Debt Management Implementation Board, by area, that is, the HSE, the Courts Service and so on; and if he will make a statement on the matter. [40130/17]
Amharc ar fhreagra102. Deputy Pearse Doherty asked the Minister for Public Expenditure and Reform the future targeted savings for the Debt Management Implementation Board; and if he will make a statement on the matter. [40131/17]
Amharc ar fhreagraI propose to take Questions Nos. 101 and 102 together.
The Final Report of the Debt Management Implementation Project Board was published by my Department in October 2016. The report set improvement programmes that included qualitative and quantitative targets for 2016 - 2018 for each of the five in-scope public service bodies. If implemented successfully, the improvement programmes, in tandem with the economic recovery, were projected to contribute some additional €700m in collections for the exchequer over the three years 2016, 2017 and 2018.
The additional money targeted for collection was calculated by deducting the 2013 collection rate (%) from the current year collection rate (%), and multiplying this by the total amount estimated available for collection in the projected year. For example, in the Department of Employment Affairs and Social Protection, in 2013 the collection rate was 56%, the 2016 collection rate was targeted at 78%. Multiplying this 22% difference by the estimated total amount available for collection (€115m) in 2016 equalled €25.3m. This methodology was used as the total amount available for collection can vary significantly each year. Collection rates can exceed 100% due to the collection of prior years’ arrears.
The projected additional targeted collection amounts for each of the five in-scope public service bodies are set out in Table 1.
Table 1: Projected additional amounts (€ million) to be collected in 2016-2018
|
Body |
2016 |
2017 |
2018 |
Total |
|
Department of Employment Affairs and Social Protection |
25.3 |
25.3 |
25.3 |
75.9 |
|
Department of Agriculture, Food and the Marine |
0.14 |
0.23 |
0.22 |
0.59 |
|
Courts Service |
0.39 |
0.39 |
0.39 |
1.17 |
|
Health Service Executive |
6.52 |
7.16 |
7.82 |
21.5 |
|
Local Authority Rates |
150.03 |
208.15 |
269.62 |
627.8 |
|
Total |
182.38 |
241.23 |
303.35 |
726.96 |
Projected collection amounts for 2016, including the projected collection rates, are set out in Table 2 alongside the actual amounts collected in 2016. Final figures for 2016 are not yet available for all five of the public service bodies who participated in this project as detailed below.
Table 2: Projected and Actual amounts collected (€ million) 2016
|
Body |
Projected Available for Collection |
Projected Collection Rate |
Total Projected Collection |
Actual Available for Collection |
Actual Collection Rate |
Actual Total Collection |
|
Department of Employment Affairs and Social Protection |
115.0 |
78% |
90.0 |
115.0 |
71% |
82.0 |
|
Department of Agriculture, Food and the Marine |
21.0 |
96% |
20.2 |
24.9 |
93% |
23.2 |
|
Courts Service |
14 |
89% |
12.46 |
15.5 |
68% |
10.5 |
|
Health Service Executive |
50 |
92% |
46 |
n/a |
n/a |
n/a |
|
Local Authority Rates |
1,735.33 |
84% |
1,457.68 |
n/a |
n/a |
n/a |
Courts Service
As identified in the Final Report of the Debt Management Implementation Project Board (pages 35-38 and page 78), the Courts Service has embarked on a fundamental change of approach to the collection of court imposed fines arising from the implementation of the Fines (Payment and Collection) Act 2014. This Act came into effect in January 2016 and has introduced a number of new approaches to the collection of fines, including the option to pay by installment, attachment to earnings and community service. None of these options were available previously.
In effect, the Courts Service is in a transition period at present as not all aspects of the new legislation have taken effect yet. The time period to pay a fine has in effect been extended considerably compared with the previous situation, and as such the amount of fines collected in 2016 is, as expected, below the level collected in previous years. Taking account of the new arrangements, it is to be expected that there would be some drop off in the collection rate in the period immediately after the commencement of the new arrangements.
As stated in the report it will take approximately two years before the Courts Service can properly assess the impact of the new arrangements. For this reason it is not possible, at this point, to assess any savings that can be achieved, or other impacts of the new legislation.
Health Service Executive
The Finance function of the Health Service Executive is consulting hospitals to ascertain the total 2016 figure equivalent to the projected collection of statutory inpatient charges and emergency department charges. The figure will be provided to the Deputy as soon as it is available.
Local Authority Rates
The achievement of the 2016 targets for the local authorities will be assessed when the 2016 audited Annual Financial Statements of the local authorities are available. 2016 figures will be provided to the Deputy as soon as they are available.
