Written Answers Nos. 30-43
31. Deputy Richard Boyd Barrett asked the Minister for Public Expenditure and Reform if it will be ensured that a company that is in receipt of public contracts is vindicating fully the rights of workers; and if he will make a statement on the matter. [2390/18]
Amharc ar fhreagraPublic procurement is the acquisition, whether under formal contract or not, of works, supplies and services by public bodies. National rules governing public procurement must comply with the relevant EU, WTO and national legal requirements and obligations. The aim of European and national rules is to promote an open, competitive and non-discriminatory public procurement regime which delivers best value for money.
In this regard, public procurement rules include provisions that allow Member States to require a contractor to comply with EU and National legislation on the protection of labour rights. As a consequence public procurement procedures require applicants to meet certain standards when applying for public contracts and applicants are required to make declarations in relation to their financial standing, their legal standing and in relation to payment of taxes and social contributions. They must also be compliant with relevant labour law. These requirements are set out in the template documents used in tendering for goods and services which have been developed by the Office of Government Procurement in conjunction with the Office of the Attorney General and the Chief State Solicitor’s Office.
The management of a tendering process for a public contract is a matter for each contracting authority. It is the responsibility of each contracting authority to assess that tenderers comply with all the requirements of the process.
Once awarded, the conditions of the public works contracts require the contractor to certify compliance with employment law, to maintain records of all those employed on the site, regardless of whether they are employees of the contractor or their subcontractors, and the hours worked by them. Where requested, the contractor must also provide details of the payments made to those employed on the site. Where the contractor fails to comply with their obligations under the contract or employment law, deductions may be made from payments due under the contract until the situation is rectified.
It is important to note that employment law and its enforcement, in both public and private contracts, is a matter for the relevant State authorities, including the Workplace Relations Commission and the Departments of Business, Enterprise and Innovation and Employment Affairs and Social Protection.
32. Deputy Joan Burton asked the Minister for Public Expenditure and Reform the section 38 and 39 organisations funded by the State, that is publicly, funded employees who work in publicly funded institutions in which the employer is not deemed to be part of the public service; the amount they received in respect of staff wages in each of the years 2010 to 2017; the funding that will be provided to these organisations to facilitate pay restoration in 2018; and if he will make a statement on the matter. [2232/18]
Amharc ar fhreagraThis information sought in respect of the organisations concerned are matters in the first instance for my colleague, the Minister for Health, to reply to.
34. Deputy Jonathan O'Brien asked the Minister for Public Expenditure and Reform if the punishment clauses underpinning the recent pay agreement will be removed from legislation in order that some teachers are not discriminated against in terms of pay increases; and if he will make a statement on the matter. [2333/18]
Amharc ar fhreagraThe Public Service Pay and Pensions Bill 2017 was published on 9 November 2017 and it gives effect to the provisions of the Public Service Stability Agreement 2018-2020, which was approved by Government in June and was ratified by the Public Services Committee of the Irish Congress of Trade Unions (ICTU) in September.
The Act was passed by the Dáil on 7 December 2017 and signed into law by the President on 16 December 2017. The legislation distinguishes between public servants who are covered by the agreement and public servants who are not covered by the agreement. It provides a nine month delay in pay increases for public servants who are not covered by the Agreement. This issue was debated extensively in both Houses of Oireachtas.
The legislation allows ICTU to provide umbrella confirmation of coverage on behalf of its affiliate unions. Importantly, while individual unions have voted to reject the agreement, the PSSA has been accepted by a majority vote of the Public Services Committee of ICTU.
Accordingly ICTU has now notified the WRC of its assent to be bound by the terms of the agreement, therefore provisions applicable to non-covered public servants will not arise for members affiliated to ICTU, including members in the teachers unions.
35. Deputy Charlie McConalogue asked the Minister for Public Expenditure and Reform if he has held discussions with the European Commission in relation to the possible allocation of additional funding for the Border region in view of the particular challenges that will arise in that area following Brexit and the need to improve infrastructure to assist existing businesses remain competitive; and if he will make a statement on the matter. [2128/18]
Amharc ar fhreagraAs the Deputy will agree, EU funding has made an enormous contribution to the development of the border region and to cross-border cooperation over the last quarter of a century. The current PEACE and INTERREG programmes, for which I have Ministerial responsibility, have a combined value of more than half a billion Euro over the period 2014-2020.
It is for that reason that I have been clear about the Government’s commitment not only to the successful implementation of the current PEACE and INTERREG programmes but also to successor programmes post-2020.
As part of my Department's contingency planning for Brexit, the risks to these programmes – which are 85% funded by the EU – were identified. In the immediate aftermath of the UK referendum, therefore, my objective was to ensure that current funding would continue.
For that reason I proposed to my then Northern Ireland counterpart, Máirtín Ó Muilleoir, that we jointly write to the Regional Policy Commissioner, Corina Cretu, to underline the importance we attach to the continuation of EU funding. Subsequently Minister Ó Muilleoir and I visited Derry together to see the difference that EU funding is making there.
Last April I raised the impact of Brexit on the two programmes at a meeting of the General Affairs Council devoted to Cohesion Policy in Luxembourg. While in Luxembourg I also took the opportunity to have a bilateral meeting with Commissioner Cretu where I impressed upon her the enormous contribution that EU funding has made to the economic and social development of the region, as well as the vital importance of continuing this funding. I also invited Commissioner Cretu to visit the region to see for herself the impact of the programmes on the ground.
In addition, my Department has maintained close contact with the Commission at official level with a view to ensuring that the current programmes continue and that there is support for future programmes.
I was pleased, therefore, that last month’s progress report on the Brexit negotiations that was agreed between the EU and the UK reflected the Irish Government’s ambitions for the programmes. Specifically, both parties undertook to honour their commitments to both PEACE and INTERREG under the current MFF and to examine favourably the possibilities for future support.
My officials and I will continue to work with the Commission and the UK to ensure that the current programmes are completed and that successor programmes are put in place.
36. Deputy Jonathan O'Brien asked the Minister for Public Expenditure and Reform his plans to reform freedom of information legislation; and if he will make a statement on the matter. [2335/18]
Amharc ar fhreagraAs the Deputy may be aware, an extensive review of the operation of the Freedom of Information (FOI) framework fed into the development of the FOI Act 2014 which introduced a modernised, consolidated, restructured and more accessible FOI system. The Act, alongside an FOI Code of Practice, seeks to bring about greater efficiency, consistency and promote best practice in the operation of FOI throughout public bodies.
FOI gives rise to significant challenges. The number, nature and complexity of requests continues to grow. To support the effective implementation of FOI, the FOI Central Policy Unit at my Department oversees a training framework to ensure consistency in standards and approach and over 9,000 participants have receiving training. The Central Policy Unit also provides ongoing support and advice to citizens and to FOI bodies through its website, www.foi.gov.ie and helpdesk and has presented at a number of conferences and training events. Networks for FOI Bodies have been established which provide an excellent means of sharing learning and expertise, assisting in the development of common approaches and facilitating the transfer of learning between FOI bodies.
Some 30,417 FOI requests were processed by public bodies in 2016, a record number and a doubling of the number reached under the previous Act, with some 73% of those requests granted either in full or in part. It is also worth noting that in only 3% of cases did requesters avail of the review mechanism available to them. Furthermore, only 1.5% of requesters seek an independent review by the Information Commissioner. The steps taken by my Department and the low level of appeals gives some indication of the progress being made in the implementation of the 2014 Act and the general satisfaction of requesters. As such I have no plans to further reform the freedom of information regime at this time.
37. Deputy Willie Penrose asked the Minister for Public Expenditure and Reform the proposals his Department is working on in conjunction with the OPW and the Department of Finance to strengthen the engagement with the insurance industry to improve the availability of flood insurance cover in view of the State's ongoing investment in flood defence schemes as per point 70 in the Action Plan for Rural Development; and if he will make a statement on the matter. [54713/17]
Amharc ar fhreagraThe Minister for Finance has overall responsibility for the Government’s flood insurance policy.
The Office of Public Works is continuing to deliver a significant programme of capital investment to address existing flood risks to properties and infrastructure through major and minor flood relief projects, in partnership with local authorities.
To the end of 2017, the Government’s investment, since 1995 of €350m has delivered 42 major flood defence schemes that provide protection to 9,300 properties and the economic benefit to the State in damage and losses avoided estimated at €1.7 billion.
In addition, the Government has already invested a further €80m on eight other schemes currently at construction and 25 at design and planning.
The major flood defence schemes now completed by the OPW are to the standard required by the insurance industry – to protect against those 100 year significant flood events. They are also adaptable against any future impact from climate change.
The Government’s strategy is that in return to its investment on flood defence schemes in the most at risk communities, households and businesses should be able to access flood insurance.
The Office of Public Works has a very specific role in the exchange of information with the insurance industry in relation to completed flood defence schemes.
On 24th March 2014, the Office of Public Works agreed a Memorandum of Understanding with Insurance Ireland the representative body for the insurance companies in Ireland. This Memorandum of Understanding has a specific focus with agreeing a basis on which information can be provided to the insurance industry on flood relief schemes completed by the OPW to an agreed standard of protection desired by the industry.
The Memorandum accepts that the provision of cover, the level of premiums charged and the policy terms applied are a matter for individual insurers. The Memorandum notes the OPW requirement that, when assessing exposure to flood risk, insurers take full account of information provided by the OPW on completed flood defence schemes.
The Memorandum of Understanding does not guarantee the availability of flood risk cover in the locations concerned.
The Memorandum came into effect on 1st June, 2014 with an initial tranche of data provided by the Office of Public Works to Insurance Ireland in respect of twelve completed flood defence schemes; showing the design, extent and nature of the protections offered by these works. Details of a further five schemes were provided in January 2015 and details of the Waterford Flood Defence Scheme were provided last year.
Under this Memorandum of Understanding, Insurance Ireland provides the OPW with details of the level of policies that include flood risk insurance within the benefitting areas of these schemes.
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 results of the most recent survey indicated that 83% of property insurance policies in these areas include cover against flood risk.
The Department of Finance and the OPW meet with Insurance Ireland on a quarterly basis in order to address issues in relation to this transfer of data. The most recent of these meetings took place on December 8th 2017 and the next meeting is scheduled for early March.
The recent meetings, while not exclusively, have focused on the flood cover in areas protected by demountable defences. The insurance sector has acknowledged that demountable defences are designed and when properly erected meet the desired standard. The OPW has, in recent months given Insurance Ireland detailed information it sought to explain the protocols and procedures in place to maintain, test and erect demountable defences. Discussions are continuing with the Department of Finance to explore options to address the industry’s concerns about the ‘human element’ of demountable defences.
Separately the OPW and Department of Finance are working with the insurance sector to baseline flood cover ahead of schemes being completed. This will provide a ‘before and after’ of flood insurance cover for each community to be protected in the future; and give a baseline to be able to address any concerns about the levels of cover being reported.
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.
38. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform if in the context of public expenditure and reform he is of the view there is a need for a shift in emphasis in view of the extent to which the economy has increasingly become dependent on corporate taxes while encouraging continued foreign direct investment; and if he will make a statement on the matter. [2345/18]
Amharc ar fhreagraSound and sustainable public finances are essential to support growth in the economy. In recent years, Government spending has been managed in a sustainable and prudent manner with public expenditure growing at a lower rate than growth in the economy overall. Steady, incremental progress in public expenditure, and the intensification of reform and innovation across the public service, will continue to support delivery of our social and economic priorities. In particular, public expenditure has a key role to play in safeguarding economic growth through efficient and effective public capital investment.
The Spending Review 2017 took place during the first half of last year and was the first in a series of rolling, selective reviews which will cover the totality of Government spending over a three year period to 2019. The results of the first year of this new approach were published with the Mid-Year Expenditure Report 2017 and included key sectoral trend analysis and a number of individual topic papers. Building on the output of the 2017 Spending Review, the intention is that the Spending Review in 2018 will further reinforce the more structured and systematic means of analysing spending focusing on an assessment of efficiency, effectiveness and sustainability.
Investment in public infrastructure is essential to support balanced regional growth and to increase the capacity of the economy over the long-run. Following the review of the Capital Plan in 2017, on Budget day last year I announced an additional allocation for capital investment of €4.3 billion over the next four years, up to the end of our existing Capital Plan in 2021. This will allow our State and its agencies to properly plan major infrastructure projects over the medium term while also ensuring communities and businesses can plan ahead.
Turning to Corporation Tax, as the Deputy will be aware, the Department of Finance published its Annual Taxation Report last week. This Report provides details of the role this tax head plays in the overall composition of Exchequer tax revenues.
In relation to Foreign Direct Investment (FDI), Ireland is one of the most globalised nations in the world and Foreign Direct Investment has been a key contributor to economic development and growth. Regarding this, our competitive corporation tax regime has been an important part of our industrial policy since the 1950s. However, there are many criteria on which companies base the location of their activity, of which taxation is just one. Factors such as availability of physical and technological infrastructure, availability of skilled staff, the level and scale of technological innovation, the regulatory environment and political stability are also significant considerations.
An effective education system supports economic growth. This year €10 billion has been allocated to the Education sector. This investment is important not alone in supporting inward investment but also nurturing indigenous businesses and fostering innovation.
39. Deputy Jonathan O'Brien asked the Minister for Public Expenditure and Reform his plans to address pay inequality within the public sector. [2332/18]
Amharc ar fhreagraI refer the Deputy to my answer to PQ Ref: 53243/17 on the 14th December 2017.
41. Deputy Richard Boyd Barrett asked the Minister for Public Expenditure and Reform the efforts being made to ensure that the companies to which public contracts are awarded are protecting the rights of workers; and if he will make a statement on the matter. [2389/18]
Amharc ar fhreagraPublic procurement is the acquisition, whether under formal contract or not, of works, supplies and services by public bodies. National rules governing public procurement must comply with the relevant EU, WTO and national legal requirements and obligations. Under EU law, public contracts above a certain value must be advertised EU-wide and awarded to the most competitive tender in an open and objective process. The aim of European and national rules is to promote an open, competitive and non-discriminatory public procurement regime which delivers best value for money.
In this regard, public procurement rules include provisions that allow Member States to require a contractor to comply with EU and National legislation on the protection of labour rights. As a consequence public procurement procedures require applicants to meet certain standards when applying for public contracts and applicants are required to make declarations in relation to their financial standing, their legal standing and in relation to payment of taxes and social contributions. They must also be compliant with relevant labour law. These requirements are set out in the template documents used in tendering for goods and services which have been developed by the Office of Government Procurement in conjunction with the Office of the Attorney General and the Chief State Solicitor’s Office.
The management of a tendering process for a public contract is a matter for each contracting authority. It is the responsibility of each contracting authority to assess that tenderers comply with all the requirements of the process.
Once awarded, the conditions of the public works contracts require the contractor to certify compliance with employment law, to maintain records of all those employed on the site, regardless of whether they are employees of the contractor or their subcontractors, and the hours worked by them. Where requested, the contractor must also provide details of the payments made to those employed on the site. Where the contractor fails to comply with their obligations under the contract or employment law, deductions may be made from payments due under the contract until the situation is rectified.
It is important to note that employment law and its enforcement, in both public and private contracts, is a matter for the relevant State authorities, including the Workplace Relations Commission and the Departments of Business, Enterprise and Innovation and Employment Affairs and Social Protection.
42. Deputy Mick Wallace asked the Minister for Public Expenditure and Reform if he has satisfied himself that the €11,842,195 his Department paid to a company (details supplied) for contracts and projects in each of the years 2011 to 2017 constituted value for money; if each contract complied with public procurement obligations and requirements; if all contractors engaged through the company by his department recorded their hours of attendance on an electronic time recording system; and if he will make a statement on the matter. [2218/18]
Amharc ar fhreagraTo support value for money and the building of its own internal capacity, my Department limits the use of external consultancy to instances where the relevant expertise is not available within the Department. The nature of the work which the Department leads in relation to the Public Service Reform programme means that it undertakes some very significant transformation projects, which in some instances require external expertise. This includes, for example, the development of the first Public Service Reform Plan in 2011, the establishment of major Civil Service Shared Services Centres such as Peoplepoint and the Financial Management Shared Service, and the transformation of our approach to public procurement through the establishment of the Office of Government Procurement.
I am satisfied that the contracts referred to by the Deputy represented value for money in supporting the Government’s ambitious programme of Public Service Reform and that it was necessary to engage external expertise on these projects. Where external consultancy has been used, the engagement of such service providers by my Department is undertaken in compliance with public procurement rules, with every effort made to minimise costs and ensure skills transfer.
I can confirm that all of the contracts in question were managed appropriately. The Deputy may wish to note that the nature of the work carried out in these instances was project based, with very clear outputs required as part of the contracts and the delivery of these outputs was managed robustly through regular activity and status reporting. For example, the review of the central procurement function was required to be completed in a two month period and all the necessary work was done by the service provider in this timeframe, with close tracking of the detailed project plan on a regular basis overseen by a Working Group. Finally, it should be noted that one of the contracts in question was a secondment arrangement to support the development of the first Public Service Reform Plan in 2011 and the secondees were required to attend the Department for normal working hours for the duration of the contract and reported directly to a senior manager.
43. Deputy Thomas P. Broughan asked the Minister for Public Expenditure and Reform if he will report on the actuarial review of public service pension liabilities; and if he will make a statement on the matter. [2125/18]
Amharc ar fhreagraOn 19th December last, I published the report of the actuarial review of the State's accrued liability in respect of Public Service Occupational Pensions that was carried out by my Department.
The review was undertaken on behalf of the Central Statistics Office who are required to show the accrued liabilities of all funded and unfunded Irish pension schemes as part of the National Accounts, under EU Regulation 549 / 2013. Transmission of this data to the European Commission is mandatory from 2017, in respect of valuation year 2015, and at three yearly intervals from that date.
In summary, the actuarial review found that the value of the State’s accrued liability in respect of retirement benefits for current and former public service employees is estimated to be €114.5bn as at 31 December 2015.
While this is a large figure, it is important to bear in mind that the accrued liability will fall to be paid over the next 70 years or so – not in any single year. It is also important to stress that we have taken a number of significant steps to improve the long-term sustainability of public service pensions in recent times.
For example, the Single Public Service Pension Scheme introduced from 2013 will, in time, reduce liabilities by around 35% from what would otherwise have been the case.
Additionally, under the Public Service Pay and Pensions Bill (Act) 2017 we are making provision for the introduction of an Additional Superannuation Contribution by public servants. This will increase current employee pension contributions from over €700m per annum to €1.25bn in 2019, thus providing substantial additional ongoing funding support towards the cost of public service pensions from those that benefit from such pensions.
Furthermore, I recently announced an increase in the compulsory retirement age from 65 to 70 for public servants recruited before 1 April 2004. This will also assist in reducing the time period over which pension payments will be paid to those public service employees who opt to remain in work longer.
The cost of public service occupational pensions is expected to increase from 1.2% of GDP in 2016 to 1.5% of GDP by 2040. However, the cost is expected to reduce thereafter with a cost of 0.9% of GDP expected by 2060. The reductions in projected public service occupational pension expenditure over the long term arise largely as a result of the integration of public service pensions with the State Pension Contributory for employees who joined the public service after 6 April 1995, the subsequent increase in the minimum retirement age for new entrants from 2004, as well as the introduction of the Single Public Service Pension Scheme as noted above.
The full report is published on my Department's website at the following link.
http://www.per.gov.ie/en/minister-donohoe-publishes-actuarial-review-of-public-service-pension-liabilities/
