Tom Neville
Ceist:148. Deputy Tom Neville asked the Minister for Public Expenditure and Reform his views on a matter (details supplied); and if he will make a statement on the matter. [53610/17]
Amharc ar fhreagraLansdowne Road Agreement
Ceisteanna (148)
Freagraí scríofa
Last September the Public Services Committee of the Irish Congress of Trade Unions endorsed the terms of the recently negotiated extension to the Lansdowne Road Agreement, the Public Service Stability Agreement 2018-2020 (PSSA), on pay and reform in the public service.
On Thursday 7 December the Dáil passed the Public Service Pay and Pensions Bill after being debated by members of the House. This Bill provides for the implementation of the terms of the PSSA. Details of the debate, which addressed many of the issues raised in the details supplied to this question, can be found at: https://beta.oireachtas.ie/en/bills/bill/2017/124/?tab=debates.
The Bill now sits before the Seanad for consideration and debate.
Insurance Coverage
Ceisteanna (149)
Michael McGrath
Ceist:149. Deputy Michael McGrath asked the Minister for Public Expenditure and Reform if the OPW has reached agreement with the insurance industry regarding the use of demountable flood defences; if the insurance industry has given assurance that flood cover will be reinstated once a flood defence scheme involving demountable defences has been completed; and if he will make a statement on the matter. [53771/17]
Amharc ar fhreagraFreagraí scríofa
The Minister for Finance has overall responsibility for the Government’s flood insurance policy. To assist insurance companies to take into account the protection provided by completed OPW flood defence schemes, the OPW has a Memorandum of Understanding with Insurance Ireland, the representative body of the insurance industry. This Memorandum sets out principles of how the two organisations work together to ensure that appropriate and relevant information on these completed schemes is provided to insurers to facilitate, to the greatest extent possible, the availability to the public of insurance against the risk of flooding. Insurance Ireland members have committed to take into account all information provided by OPW when assessing exposure to flood risk within these protected areas. To date OPW has provided details to Insurance Ireland on 18 completed schemes nationally and Insurance Ireland surveys its members to ascertain the extent to which flood insurance cover is available in these areas.
The insurance industry has recently confirmed that it accepts that flood defence schemes that utilise demountable defences provide protection against 1 in 100 year flood events. The insurance industry however do have concerns in relation to the human element in the deployment of these demountable defences, specifically in relation to any liability for flooding arising due to the incorrect or late installation of the defences. A separate working group including members of Insurance Ireland the Department of Finance and the OPW are discussing how best to address these concerns. This group last met on November 13th and is scheduled to meet again in January.
These meetings are in addition to the regular quarterly meetings where the OPW and the Department of Finance engage with Insurance Ireland in respect of the Memorandum of Understanding. The most recent of these meetings took place on December 8th 2017 with the next meeting scheduled for March 2018. I am satisfied that my officials, along with officials from the Department of Finance, will continue to work with the insurance industry to progress this issue.
The decision on whether to offer insurance, the levels of premiums charged and the policy terms applied are matters for individual insurers. Insurance companies make commercial decisions on the provision of insurance cover based on their assessment of the risks they would be accepting on a case-by-case basis.
Any person with an insurance-related query or complaint can contact Insurance Ireland's Insurance Information Service (01 676 1914 or iis@insuranceireland.eu). In addition, the Financial Services Ombudsman (1890 88 20 90) deals independently with unresolved complaints from consumers about their individual dealings with all financial service providers.
Flood Relief Schemes Funding
Ceisteanna (150)
Michael McGrath
Ceist:150. Deputy Michael McGrath asked the Minister for Public Expenditure and Reform the amount of funding budgeted in 2017 for flood relief works; the amount actually spent to date; the budget for such works in 2018; and if he will make a statement on the matter. [53772/17]
Amharc ar fhreagraFreagraí scríofa
The allocation for flood relief works in the 2017 Estimates is €60.788 million, of which €45.019 million relates to capital expenditure on flood relief projects and €15.769 million relates to maintenance works on completed arterial drainage schemes. The total amount spent in the year up to 13th December was €53.348 million. It is anticipated that the full allocation will be spent by the end of the year.
The total allocation in the 2018 Estimates for these areas is €83.972 million. This will allow for the continued implementation of the existing programme of flood relief capital works with completion of at least four major flood relief schemes currently at construction, the commencement of up to eight new major schemes and the continued development and design of a further 17 schemes in the existing programme. In addition, the 2018 allocation will allow for the advancement to more detailed project level assessment of a number of flood relief projects included as part of an initial prioritised tranche of flood relief works proposed in the CFRAM Flood Risk Management Plans to be announced once those Plans have been approved by the Minister for Finance and Public Expenditure and Reform.
The allocation will also provide for the delivery in 2018 of the ongoing programme of maintenance of completed arterial drainage schemes.
Public Expenditure Data
Ceisteanna (151, 152)
Bernard Durkan
Ceist:151. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the Departments or bodies under their aegis that are deemed to be best performing in terms of public expenditure and reform with respect to impact on the economic situation in general; and if he will make a statement on the matter. [53936/17]
Amharc ar fhreagraBernard Durkan
Ceist:152. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform if in the context of public expenditure and reform, he has identified specific areas of potential overexpenditure that may require attention in the course of 2017 or thereafter; and if he will make a statement on the matter. [53937/17]
Amharc ar fhreagraFreagraí scríofa
I propose to take Questions Nos. 151 and 152 together.
Managing expenditure within their voted allocations is a key responsibility of each Minister and their Departments. As reported in the Department of Finance Fiscal Monitor, at the end of November overall gross voted expenditure of €51.5 billion was 1.3% below profile with current expenditure of €48.2 billion under profile in 15 out of 17 Ministerial Vote Groups.
However, given the cash basis of Government accounting and the scale of gross voted expenditure, over €58 billion in aggregate for 2017, there can be a need for Supplementary Estimates arising from policy decisions, overruns, timing issues or shifts in expenditure requirements. In aggregate, Supplementary Estimates of €0.49 billion have been presented to Dáil Éireann for approval this year and are set out in the table.
|
Supplementary Estimates by Vote |
€m |
|
Vote 5 – Director of Public Prosecutions |
0.4 |
|
Vote 12 – Superannuation and Retired Allowances |
6.5 |
|
Vote 17 – Public Appointments Service |
0.7 |
|
Vote 20 – An Garda Síochána |
44.2 |
|
Vote 26 – Education and Skills |
124 |
|
Vote 34 – Housing, Planning and Local Government |
100 |
|
Vote 35 – Army Pensions |
10.7 |
|
Vote 37 – Employment Affairs and Social Protection |
10 |
|
Vote 38 – Health |
195 |
|
Vote 30 – Agriculture, Food and the Marine |
0.001 |
|
Vote 31 – Transport, Tourism and Sport |
0.001 |
|
Vote 32 – Business, Enterprise and Innovation |
0.001 |
As we are operating under the fiscal rules that apply under the preventive arm of the Stability and Growth Pact, Supplementary Estimates need to be accommodated within the requirements of the fiscal rules. Additional expenditure requirements in one Department may be offset by underspends in other areas. In this context, taking account of the overall expenditure position at the end of November, it can be expected underspends surrendered to the Exchequer at the year-end will mitigate the impact of the Supplementary Estimates.
Looking forward to 2018, taking into account the increased expenditure allocations set out in the Budget Estimates published on Budget day in October this year, and the key fiscal objective of achieving the structural deficit of 0.5% of GDP, it is important that Departments continue to manage expenditure within their allocations.
Sustainable public finances are necessary to support growth in the economy and build resilience to respond to potential adverse economic and fiscal developments. Budget 2018 sets out prudent sustainable growth in public expenditure. On Budget day, I announced an additional allocation of capital expenditure of €4.3 billion over the next four years up to the end of our existing Capital Plan. This additional capital investment is central to our response to Brexit and will allow major infrastructure projects to be planned over the medium term.
Education is vital to keeping our economy competitive and attracting investment. The allocation of over €10 billion for education is a new peak for the sector. Additional capital funding is also being provided over the period out to 2021 to address the infrastructure needs of the higher and further education sectors.
In conclusion, the increased expenditure set out on Budget day for schools, hospitals housing and public transport will continue to support economic growth, enhance the economy's resilience and help maintain its international competitiveness in terms both of trade and attractiveness to foreign direct investment.
Public Sector Reform Implementation
Ceisteanna (153, 156)
Bernard Durkan
Ceist:153. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the impact he expects reform throughout the public sector to have on economic performance in the future; and if he will make a statement on the matter. [53938/17]
Amharc ar fhreagraBernard Durkan
Ceist:156. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which he expects reform to remain part of economic strategy affecting the public or indirectly in the private sector in the future; and if he will make a statement on the matter. [53941/17]
Amharc ar fhreagraFreagraí scríofa
I propose to take Questions Nos. 153 and 156 together.
Public service reform has been a central element in the response to the challenges of recent years and remains an essential part of building for the future. The reform programme has been delivering for the Irish public for 6 years – since the first reform plan was launched in 2011. We have achieved much to transform our public services in that time and are building a resilient and responsive public service that can meet the challenges of the future while delivering quality services. However, the world is changing fast. Today’s uncertain and unpredictable global environment poses significant challenges for Ireland.
As the Deputy will be aware, a new phase for public service reform was set out in the framework Our Public Service 2020 published earlier this week. Our Public Service 2020 aims to deliver better outcomes for the public, to support innovation and collaboration and to build public service organisations that are resilient and agile. Implementation of the actions in Our Public Service 2020 will have an ongoing positive impact on economic performance in the future.
Our Public Service 2020 aims to strongly link expenditure with reform. This is to ensure that real reform is delivered and that there is a continued emphasis on ensuring value-for-money principles are adhered to across the public service. Ensuring value for the taxpayer is an important element of managing the costs of public services and maintaining stable public finances.
Our Public Service 2020, allows the public and businesses to have greater input into the planning, design, implementation and review of public services. Public service reform remains part of the Government’s economic strategy and will enable us to continue to improve outcomes for the public.
Shared ownership of the framework and committed leadership will be essential to ensure successful delivery of the actions in the new framework. For this first time, both civil service and public service leaders are directly involved in the public service reform governance structures. I believe that this will be key to ensuring the successful implementation of the new framework and to achieving the best possible outcomes for our economy and for the public.
Public Sector Reform Implementation
Ceisteanna (154, 159)
Bernard Durkan
Ceist:154. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which all bodies throughout the public sector, through reform or otherwise, are being rewarded through FEMPI; and if he will make a statement on the matter. [53939/17]
Amharc ar fhreagraBernard Durkan
Ceist:159. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which he expects those sectors and unions throughout the public sector to benefit from FEMPI or otherwise from the sacrifices they made during the downturn in the economy with a view to ensuring full restoration within a reasonable period; and if he will make a statement on the matter. [53944/17]
Amharc ar fhreagraFreagraí scríofa
I propose to take Questions Nos. 154 and 159 together.
Last September the Public Services Committee of the Irish Congress of Trade Unions endorsed the terms of the recently negotiated extension to the Lansdowne Road Agreement, the Public Service Stability Agreement 2018-2020 (PSSA) on pay and reform in the public service.
On Thursday 7 December the Dail passed the Public Service Pay and Pensions Bill, and it now sits before the Seanad for consideration. This Bill provides for the implementation of the terms of the PSSA.
The PSSA will run from 2018 to 2020 by which point pay will be fully restored to all public servants earning up to €70,000 which is equal to almost 90 per cent of public servants. Benefits to different income groups are progressive and weighted towards the lower paid with pay increases ranging from 7.4 per cent to 6.2 per cent over three years.
This Agreement achieves the right balance between addressing the legitimate expectations of public service workers for increases in their pay and ensuring that the Government continues to exercise a prudent approach to the overall management of our public finances while securing industrial peace to support the ongoing delivery and reform of our public services.
The improvements in pay provided for in this Agreement mark another important step in the gradual normalisation of our collective bargaining approach to pay arrangements in the public service through the process of unwinding the FEMPI legal framework on pay that has been in place for the last number of years.
A copy of the Agreement can be found on the Department's website: http://www.per.gov.ie/wp-content/uploads/LRA-extension.pdf.
Public Sector Reform Implementation
Ceisteanna (155)
Bernard Durkan
Ceist:155. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform if he is satisfied that all bodies impacted by cutbacks in the public sector are likely to receive recognition and recompense in the near future; and if he will make a statement on the matter. [53940/17]
Amharc ar fhreagraFreagraí scríofa
The Deputy is referring to private sector organisations in the Voluntary and Community Sector in respect of which my Department has not actual corporate responsibility or direct involvement. As non public servants, the staff of such organisations, which may exceed 100,000 in number, did not, for example, fall within the application of the FEMPI legislation involving as it did the reduction in pay and increase in pension contribution for public servants. It is correspondingly the case that current public service pay policy does not extend to such organisations.
It will be appreciated that such entities are accordingly self governing and accountable for the management of their own internal financial resources. While it is the case that certain or indeed, in some cases, all of these financial resources may come from government funding it remains the position that decisions on pay expenditure issues arising in such entities are matters that are determined at the discretion of the management authorities of each of the organisations concerned. The issue of pay is just one important challenge within a complex mix of other challenges and demands that the individual organisations concerned are required to decide upon and manage. Having regard therefore to these circumstances it is a matter for each of these private sector organisations to resolve the financial challenges that they may face in accordance with the financial resources available to them, whatever the source may be of such funding arrangements.
It is also important to note that in respect of Section 39 organisations, which are private sector concerns and a significant part of this sector, funding of almost €1billion was provided by the State in 2016. It is furthermore the case that Exchequer funding for Section 39 organisations has increased by over 15% between 2014 and 2016.
Question No. 156 answered with Question No. 153.
Question No. 157 answered with Question No. 12.
Public Procurement Contracts
Ceisteanna (158)
Bernard Durkan
Ceist:158. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the degree to which public procurement and reform thereto continues to be part of Government policy with particular reference to the need to ensure maximum economic benefit while maintaining good procurement practice and indigenous resourcing; and if he will make a statement on the matter. [53943/17]
Amharc ar fhreagraFreagraí scríofa
Public 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.
Procurement reform is a key element of the Government's overall reform programme and is aimed at delivering increased value for money, more accurate and timely data and improvement in the capacity and capability of procurement across the public service. The fragmented procurement arrangements across the public service facilitated amongst other things suppliers charging different public service bodies different prices for the same goods and services. This was not sustainable, as the State could not afford to continue to purchase works, goods and services in a manner that undermines the efficient delivery of services.
The central procurement frameworks and contracts established by the Office of Government Procurement (OGP) have been designed to optimise benefits including savings to the State through the strategic aggregation of its buying power. Aggregation arrangements such as multi-supplier frameworks can, where appropriate, address local supplier issues.
The reform of public procurement in Ireland is being carried out in a manner that recognises the importance of small and medium-sized enterprises in this country's economic recovery. The aim is to drive fair, transparent and open competition in the marketplace but also to work with business to ensure that government procurement policies are business friendly
Given the budgetary pressures facing the public service, public procurement enabled savings can support the dual objectives of meeting our fiscal targets and of maintaining/improving services for the public. The strengthening of procurement professionalisation will in turn provide public bodies who use the contracts and frameworks with increased certainty and reduced risk by providing them with compliant sourcing solutions.
The Government has committed in the Programme for Partnership Government to refining the new procurement structures in place and to make adjustments according to best international practice and in conjunction with Irish business.
The SME Advisory Group chaired by my colleague, Minister of State Patrick O’Donovan in accordance with the Programme for Government, meets on a quarterly basis to address issues concerning SME participation in public procurement. Representatives include the OGP, the Department of Business, Enterprise and Innovation, Enterprise Ireland (EI), InterTrade Ireland (ITI), the Competition and Consumer Protection Commission (CCPC), the Irish Business and Employers’ Confederation (IBEC), the Small Firms Association (SFA), the Construction Industry Federation (CIF), Chambers Ireland and the Irish Small and Medium Enterprises Association (ISME). Minister of State Patrick O’Donovan also launched the Office of Government Procurement’s (OGP) Public Service Spend and Tender Analysis Report for 2015 report in September. This is the OGP’s third annual report that analyses expenditure and tendering activity on goods, services and minor works across public service bodies in Ireland. I would point out that the analysis is encouraging, indicating that 94% of the State’s expenditure is with firms within the State.
Finally, it is also important to remember that open tendering is a two way street and that it provides Irish companies with opportunities to compete abroad. Public expenditure on goods, works, and services representing approximately 14% of EU GDP with an annual value of nearly €2 trillion. The open market regime offers opportunities for Irish companies to win business abroad and reliable EU studies indicate that many Irish businesses are successful in this regard.
Question No. 159 answered with Question No. 154.
Public Sector Staff Recruitment
Ceisteanna (160)
Bernard Durkan
Ceist:160. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which the recruitment embargo throughout the public sector has been lifted with particular reference to the need to ensure replenishment of staffing levels in the most sensitive areas; and if he will make a statement on the matter. [53945/17]
Amharc ar fhreagraFreagraí scríofa
The moratorium on recruitment in the Public Service, introduced as a control measure in 2009, was ended with effect from 2015. Since then, a policy of delegated sanction for management of staff numbers has been applied to most Government Departments. Under this policy, subject to remaining within their pay ceilings, Departments can recruit or promote in grades up to and including Principal Officer or equivalent without seeking central approval. Departments with delegated sanction may also introduce similar arrangements with public service bodies under their aegis. The policy gives Departments a greater degree of flexibility to respond to staffing needs as they arise.
Since the ending of the moratorium, the number of full-time equivalent staff employed in the Public Service and delivering services on behalf of the State has grown by just over 25,000 and stands at approximately 315,000 as of Q3 2017.
The Deputy may wish to note that recent growth in public service numbers has taken place in the key sectors of health, education and justice in line with increased investment by Government in these services with these three areas accounting for over 85 per cent of the increase in staffing since the end of 2014. This, in addition to the further planned recruitment in 2018, reflects the Government's response in terms of prudent and sustainable increases in public spending to key service needs reflecting, for example, demographic developments.