Written Answers Nos 1-24
12. Deputy Pearse Doherty asked the Minister for Public Expenditure and Reform the Structural Funds Ireland went without or had delayed as a result of the failure to have in place the information technology structure (details supplied) necessary to fulfil EU obligations; and if he will make a statement on the matter. [13220/18]
Amharc ar fhreagraIreland has been allocated €1.2 billion (in current prices) in Structural Funds for the period 2014 - 2020, which involves the European Regional Development Fund (ERDF) and the European Social Fund (ESF). This is comprised of:
- €411 million for the two ERDF co-funded Regional Programmes, under the aegis of my Department, and delivered through the Southern Regional Assembly and the Northern and Western Regional Assembly.
- €169 million for European Territorial Co-operation programmes; the PEACE Programme, the Ireland/Northern-Ireland/Scotland Programme, the Ireland/Wales Programme; and the Northern Periphery and Arctic, North West Europe and Atlantic Area trans-national programmes.
- €545 million for ESF co-funded programmes, and an additional €68 million provided for the Youth Employment Initiative (YEI) which is the responsibility of the Department of Education and Skills.
It is an EU regulatory requirement of the 2014 - 2020 round of Structural Fund that each Member State implements an ICT system, "e Cohesion", to control and monitor expenditure. The original procurement exercise in 2016 for such a system was unsuccessful, due to insufficient effective and genuine competition and due to the fact that the only valid bid was significantly in excess of the Budget set for the solution.
It was agreed with the EU Commission - specifically in order to safeguard Ireland's structural fund allocation - that the ICT system in use for the 2007 - 2013 round of funding, with minimal modifications, could be used for initial claims. This was on the understanding that the more comprehensive e Cohesion system was being developed.
The agreed "Contingency ICT System" went live in May 2017. It has been successfully used for claims by ERDF and the European Maritime and Fisheries Fund (EMFF).
Following a second, successful procurement a contract for e Cohesion was signed in April 2017. Phase One went live on 25 August 2017, Phase Two on 1 December 2017 and the final Phase is expected to be live before the end of March. The new e Cohesion system has already been successfully used by the Fund for European Aid to the most Deprived (FEAD) for a claim in December 2017.
With regard to the Deputy's question on drawdown I would like to reassure him that we have not lost any EU funding. He will be aware that most programmes are funded up front by the Exchequer and EU funding is claimed in arrears, as set out in the respective regulations.
In relation to ERDF receipts, my Department have claimed €32.2m to date, in addition to €23.5m we have been paid in advances. Furthermore, it expects to claim in the region of €75m by the end of this year.
In respect of the ESF and YEI, the EU Regulations allow for the 2014/2015 allocations to be claimed by the end of 2018. Preparations are underway by the Department of Education and Skills for the submission of a first payment application to the Commission in Q3 of 2018. The ESF authorities will ensure that sufficient payment applications are submitted to fully drawdown €127.7m by the end 2018 deadline.
The Deputy should be aware that the European Territorial Co-operation Programmes, including the north/south programmes, are subject to separate administrative arrangements on a cross border basis and are not covered by e Cohesion.
13. Deputy Aindrias Moynihan asked the Minister for Public Expenditure and Reform when flood defence construction works will advance in the upper Lee area for Inchigeelagh and Ballingeary. [11330/18]
Amharc ar fhreagraThe core strategy for addressing areas at potentially significant risk from flooding is the Office of Public Works (OPW) Catchment Flood Risk Assessment and Management (CFRAM) Programme. The Programme, which is being undertaken by engineering consultants on behalf of the OPW working in partnership with the local authorities, involves the production of predictive flood mapping for each location, the development of preliminary flood risk management options and the production of Flood Risk Management Plans.
The CFRAM Programme is focussing on 300 Areas for Further Assessment (AFAs) including 90 coastal areas, mainly in urban locations nationwide, designated in 2012 as being at potentially significant risk of flooding. The flood risk for each of these areas has been assessed, through detailed engineering techniques to assess their risk and impact from flooding. This risk and the proposed feasible measures, both structural and non-structural, identified to manage that risk are outlined in the Flood Risk Management Plans.
Inchigeelagh and Ballingeary are AFA’s and are being assessed by the South Western CFRAM Study.
Proposed measures has been identified for the areas in question, namely to progress the project level development and assessment of a Flood Relief Scheme, consisting of flood walls and embankments, including environmental assessment as necessary and further public consultation, for refinement and preparation for planning / exhibition and, if and as appropriate, implementation.
In summer 2017, the OPW finalised all Plans and each Plan was submitted to the Department of Public Expenditure and Reform for an independent review of the environmental assessments. Having now received the outcomes of the independent review of the environmental assessments for the Flood Risk Management Plans, the Commissioners of Public Works are submitting the Flood Risk Management Plans to the Minister for Finance and Public Expenditure and Reform for approval.
The National Development Plan 2018-2027 commits to almost €1 billion in funding for flood relief schemes, with annual Capital funding for the OPW doubling to €100m by 2021. This funding will support continued investment in schemes at construction and design. Once the Plans are approved, I intend to announce a prioritised initial tranche of schemes proposed by the Plans to progress to detailed project level assessment and that provide greatest return for Government investment.
16. Deputy Martin Heydon asked the Minister for Public Expenditure and Reform the details of the investment to County Kildare under the national development plan; the next stages regarding timings of road and hospital projects; and if he will make a statement on the matter. [11319/18]
Amharc ar fhreagraI should first explain that my role is with respect to determining the national capital expenditure envelope, its allocation at the overall sectoral level and to support Departments with a framework that ensures resources are allocated efficiently. I do not have a role in respect of applications or proposals for individual projects at county level.
The ten-year National Development Plan (NDP) has been put in place to underpin the implementation of the National Planning Framework (NPF) to support the development of all counties and regions, both urban and rural areas.
The NDP sets out an investment programme of €116 billion, aligned to the ten National Strategic Outcomes (NSOs) detailed in the NPF which are critical to long-term economic, social and environmental sustainability in the period to 2040. Investment in urban and rural regeneration and development, drawing on two new Funds with total resources of €3 billion established for this purpose have the potential to have a transformative impact on both urban and rural areas and communities countrywide.
Total funding of €8.8 billion is allocated to the NSO of strengthened rural economies and communities which is a cornerstone of NDP, including in relation to the delivery of the National Broadband Plan and significant investment in regional and local roads. The NDP also contains, as a priority, increased investment in public transport including train fleets.
Chapter 5 of the NDP details as a fundamental objective of the Plan the investment planned in enhancing regional growth potential through an integrated programme of measures including, for example, regional sectoral clustering and the promotion of entrepreneurship on a regional basis. The Plan also highlights the importance of strengthening Ireland's international connectivity through continued investment in ports and airports, including under the Regional Airports Programme. It sets out the major programme of investment planned in the heritage area including in national parks and nature reserves. Continued investment over the ten years of the Plan to ensure the sustainable management of water resources is a further investment priority which is clearly relevant to all regions and counties. Finally the Plan sets out the investments planned in the areas of quality childcare, education and health services which are a defining characteristic of attractive, successful and competitive places.
Under the NPF, and as set out in section 6.3 of the NDP, the three Regional Assemblies are now responsible for co-ordinating, promoting and supporting the strategic planning and sustainable development of their regions, consistent with the objectives of the NPF, through the preparation of Regional Spatial and Economic Strategies (RSES). The RSES for the Eastern and Midland Region provides the opportunity for the priorities for County Kildare, for example, that are included in the existing Kildare County Development Plan, to focus on sustainable growth, quality of life and on achievable employment and population growth within Kildare and the Eastern and Midland Region to be integrated into a regional investment plan which is expected to be a major driver of the implementation of the NPF.
18. Deputy Peter Burke asked the Minister for Public Expenditure and Reform when legislation will be passed to facilitate the extension of retirement age by choice for persons working in the public sector; and if he will make a statement on the matter. [8397/18]
Amharc ar fhreagraAs I indicated in response to Priority PQ No 13699/18 from Deputy Calleary earlier, the Government agreed in December, that the compulsory retirement age of public servants recruited before 1 April 2004 would be increased to age 70. This is the only group of public servants who currently have a compulsory retirement age of less than 70. The decision arose on foot of a review of the current statutory and operational considerations giving rise to barriers to extended participation in the public service workforce carried out by my Department with public service employers, last year.
Primary legislation will be required for the changes approved by Government to be implemented. The Government has approved the General Scheme of a Bill to give effect to its decision and I have asked the Attorney General to prioritise the drafting of this legislation so that the new compulsory retirement age will become effective as soon as possible. The drafting process is currently underway and an initial draft of the Bill is being prepared. The Bill is on the list of priority legislation for publication in the Spring/Summer Session 2018.
It is not possible to determine the length of time it will take for a Bill to be drafted and pass through both Houses of the Oireachtas, given the need for meticulous drafting, ongoing detailed policy considerations, and the scheduling requirements of the Houses of the Oireachtas. The Bill is, however, being treated as a priority and my intention is to bring forward the necessary legislation as soon as possible.
In order to make some accommodation for public servants who reach the age of 65 in the period between the Government Decision on 5 December and the commencement of the necessary legislation, the Government approved some limited interim arrangements which became effective from the date of the Government Decision. The interim arrangements allow affected public servants who reach the age of 65 in that period, to remain in employment until they reach the age of eligibility for the State Pension (Contributory), which is currently 66. Details of these interim implementation arrangements have been put in place by the relevant sectors.
19. Deputy Dara Calleary asked the Minister for Public Expenditure and Reform if the Office of Government Procurement has a statutory or other authority to advise, consult or manage local authority procurement processes; the policies in place to ensure fairness and consistent public procurement processes are used by local authorities; and if he will make a statement on the matter. [13129/18]
Amharc ar fhreagraPublic Procurement is governed by EU legislation 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.
The Office of Government Procurement (OGP) has responsibility for developing and setting out the overarching policy framework for public procurement in Ireland. In this regard, the OGP has developed the National Public Procurement Policy Framework which consists of 5 strands:
- Legislation (Directives, Regulations)
- Government Policy (Circulars, etc.)
- Capital Works Management Framework for Public Works
- General Procurement Guidelines for Goods and Services
- More detailed technical guidelines, template documentation and information notes as issued periodically by the OGP
This framework enables a more consistent approach to public procurement across the public sector by setting out the procurement procedures to be followed by public bodies. The framework supports contracting authorities, including the OGP, the four key sectors (Health, Education, Local Government and Defence), individual Departments, Offices, commercial and non-commercial State bodies, and entities which are subsidised 50% or more by a public body, when awarding contracts for works, goods and services. It enables public bodies to adopt procedures to meet their Public Procurement requirements and facilitates compliance with EU and National Procurement Rules.
I should point out that Local Authorities like all Contracting Authorities are responsible for adhering to the procurement policy framework and for the individual procurement decisions they make. In terms of adopting a consistent approach to public procurement, I understand that the Local Government Management Agency provides advice and assistance to Local Authorities regarding national and EU procurement regulations and contract management issues affecting their activities and monitors legislative and case law developments to ensure its processes remain current in light of these developments and other best practice initiatives.
I would add that, last July, my colleague, Minister of State Patrick O'Donovan, launched new Public Procurement Guidelines for Goods and Services. This comprehensive interpretation of the public procurement directives has been designed to improve consistency and promote best practice in the application of the public procurement rules.
However, it is worth noting that while the OGP guidelines facilitate and enable compliance with public procurement rules, it is the responsibility of each Contracting Authority, including the Local Authority Sector, to ensure they adhere to these rules.
The OGP supports compliance by putting in place compliant procurement solutions, publishing guidelines and template documentation and proactive engagement with our sourcing partners in the Health, Education, Defence and Local Government Sectors through the Procurement Executive. The solutions provided by the OGP include a broad range of Framework Agreements from which public bodies can draw down goods or service, and include areas as diverse as uniforms, food, legal services, IT, and electricity.
Furthermore, the OGP's Key Account Managers are in regular contact with Procurement Officers in Government Departments and State Bodies to assist, support and remind them of their obligations in relation to public procurement.
Finally, I would point out that 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 Accountable Officers/Accountable Persons 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.
20. Deputy Pearse Doherty asked the Minister for Public Expenditure and Reform if an end to the roll-out of the use of public services cards for more services provided by the State will be recommended until such time as concerns over the use of the card have been addressed; and if he will make a statement on the matter. [13221/18]
Amharc ar fhreagraThe recent concerns raised in relation to the Public Services Card have been comprehensively addressed through the provision of communications and guidance to clarify exactly what data the card contains, what it is used for, and its legal basis. The Department of Employment Affairs and Social Protection, assisted by my Department, published a "Comprehensive Guide To SAFE Registration and The Public Services Card" last October, which is available on the DEASP website. Furthermore, a new website, psc.gov.ie, was recently launched. This site includes a detailed 'questions and answers' section addressing the concerns that have been raised of late in relation to the card and MyGovID.
Consequently, we intend to continue with the delivery plan for the card and MyGovID, as set out in the eGovernment Strategy published by Minister O’Donovan last July. Obviously, we will continue to work with the Office of the Data Protection Commissioner and take on board any recommendations that arise from their ongoing review
21. Deputy Richard Boyd Barrett asked the Minister for Public Expenditure and Reform if the recent collapse of a company (details supplied) and previous problems with public private partnerships will lead the Government to review its commitment to such funding models for infrastructure and services; and if he will make a statement on the matter. [13009/18]
Amharc ar fhreagraThe Public Private Partnership (PPP) model is an internationally recognised model to design, build, finance, operate and maintain public infrastructure. In accordance with international best practice, PPP contracts already typically include detailed provisions that apply in the event of the liquidation of a consortium member of the PPP company, or an entity under the contract, to protect the public interest and ensure that the project proceeds to completion.
Under the terms of such PPP contracts, in the case of liquidation of a consortium member, or an entity under the contract, the PPP consortium’s funders and remaining shareholders are required to intervene and implement rectification measures to ensure that the project is completed to the satisfaction of the State. Liquidation of a company involved in delivering a public infrastructure project is an unfortunate and unforeseen development but would impact on any project where a supplier became insolvent during the delivery process, regardless of whether the project was being procured by PPP or by traditional means. The issue, therefore, is not PPP-specific, but where it arises in a PPP project, the provisions of the PPP contract ensure that the public interest is protected.
It is worth bearing in mind that this is not the first time a PPP in Ireland has experienced issues with its construction contractor, which is not uncommon given the risks inherent in the construction market. In all previous similar cases, the projects were completed successfully and are now fully operational. These examples demonstrate the resilience of the PPP contractual structure and underline the importance of adhering to the contractual documentation in resolving issues - which has previously been raised as a negative feature associated with PPPs.
I am advised by the NDFA, who are procuring this PPP project on behalf of the Minister for Education and Skills, that in accordance with international best practice, this PPP contract includes detailed provisions that apply in the event of the liquidation of a consortium member to ensure that the project proceeds on a “business as usual” basis with minimal disruption.
Given the advanced state of these schools (approximately 90% completed) the NDFA does not envisage material disruption or delay to the works. However the NDFA is actively monitoring the position in the context of the robust contractual protections provided for under the PPP contract. The NDFA are making every effort to ensure delivery of the schools in as timely a manner as possible.
PPPs continue to provide benefits to the State as a procurement method which enables the public sector to harness the innovation, commercial and management expertise and efficiencies of the private sector to design, build, finance, operate and maintain State facilities with a specified residual life on handback. PPPs will also continue to be a procurement method available to the State for appropriately structured projects where they demonstrate value for money over a traditional procurement option.
While the liquidation referred to in the Deputy's question will give rise to a delay in completing the remaining construction works on Schools Bundle 5, payments under the PPP contract will not be made until the full works and services as set out under the project agreement are satisfactorily delivered for each school.
22. Deputy Thomas P. Broughan asked the Minister for Public Expenditure and Reform his views on whether departmental Estimates of expenditure in budget 2018 are adequate to meet the likely needs of all Departments over the coming 12 months; and if he will make a statement on the matter. [4071/18]
Amharc ar fhreagraThroughout the year, managing the delivery of public services within budgetary allocations is a key responsibility of every Department and Minister. There are measures in place to ensure that budgetary targets are being met. Monthly expenditure profiles are published and the drawdown of funds from the Exchequer is monitored and reported on against these profiles on a monthly basis in the Exchequer Statement.
As set out in the most recent Exchequer Statement, total gross Voted Expenditure at end-February 2018 was €9,062 million. This is €167 million, or 1.8%, below profile and an increase of €396 million, or 4.6%, on the same period in 2017. Of this, gross voted current expenditure accounts for €8,626 million, which is €83 million, or 1%, below profile and an increase of €406 million, or 4.9% on the same period in 2017. The full year increase in current spending for 2018 is estimated at 3.6%. Gross voted capital expenditure accounts for €435 million, which is €83 million, or 16.1%, below profile and a decrease of €10 million, or 2.2% on February 2017. The full year REV allocation for capital spending provides for an increase of c. 26% compared to the estimated outturn for 2017.
2018 is the fourth consecutive year in which the Government have been able to provide for an increase in spending on public services. Given this context, it is crucial that this growth is managed in a sustainable manner within agreed allocations. However, given the scale of overall voted expenditure, almost €61 billion in aggregate for 2018, and the impact that unforeseen events, such as for example, Storm Emma, can have on expenditure requirements in certain areas, my Department is in regular contact with all Departments and Offices to ensure that expenditure is being managed within the overall fiscal parameters.
23. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the degree to which the capital review programme has been revised; the extent to which specific expenditure proposals have increased or decreased over particular areas; the extent to which this may impact on economic performance; and if he will make a statement on the matter. [11265/18]
Amharc ar fhreagraA very substantial programme of work has been undertaken by my Department over the last year in relation to capital expenditure culminating in the publication of the National Development Plan (NDP) last month. The evidence-base and approach taken to the public capital investment plans in the NDP were strongly informed and guided by the assessment of key issues contained in:-
- The Review of the 2015 Capital Plan published last September which confirmed the compelling case for increased public capital investment and identified priority sectors for increased investment.
- The Infrastructure Demand and Capacity Analysis prepared by the Irish Government Economic and Evaluation Service in my Department published alongside the Review of the Capital Plan which assessed on the basis of available evidence the quality of Ireland’s public capital stock and key drivers of future infrastructure demand.
- The IMF Public Investment Management Assessment (PIMA) for Ireland which highlighted that while, by international standards, infrastructure management practices in Ireland are generally well developed there are a number of areas where significant improvements can be made to ensure that public investment is efficient and value-for-money.
The NDP sets out €116 billion in total public capital investment over the ten years of 2018-2027. This includes €91 billion Exchequer investment and €25 billion commercial State Owned Enterprise investment. Approximately €60 billion of this Exchequer investment is new additional funding for the period 2022-2027. I have also provided additional funding over 2019-2021 in order to permit the four new Funds announced in the NDP to be established with effect from 2019. The aggregate amount involved is €765m over the three year period.
The OECD and IMF find that the productive capacity of the economy and its growth potential can be raised by changing the composition of expenditure in favour of capital spending. Against the backdrop of the current cyclical position of the economy, with the labour market approaching estimates of full employment, stronger than projected growth could potentially lead to overheating pressures. However, the scale and pace of increased capital expenditure envisaged under the NDP is intended to minimise the contribution of public capital investment to overheating risks in the coming years. In addition, it is important to recognise the impact of the very substantial public capital programme contained in the NDP on the supply side of the economy and productivity – the key driver of long-term economic growth.
24. Deputy Pearse Doherty asked the Minister for Public Expenditure and Reform the reason the national development plan utilises public private partnerships in view of the concerns regarding the cost of these projects; and if he will make a statement on the matter. [13217/18]
Amharc ar fhreagraThe National Development Plan 2018 – 2027 summarises the key findings and recommendations agreed as part of the recent PPP review - the detailed report of which will be published shortly.
As noted in the NDP, PPPs have been very useful in the past in facilitating the delivery of important infrastructure projects. This was particularly the case when the Exchequer was seriously constrained in terms of its ability to fund infrastructure directly, given their use of private finance, on an off-balance sheet basis. This enabled projects to proceed which would not otherwise have been deliverable on the basis of Exchequer funding alone.
In ensuring Departments obtain the best value-for-money from public capital investment, PPPs, just as traditionally procured projects, are subject to the same robust and rigorous project appraisal process as traditionally procured projects. All projects over €20m are required under the Public Spending Cote to be subject to a Cost Benefit Analysis or Cost Effectiveness Analysis. In addition, all public investment projects of this value must also be referred to the National Development Finance Agency for advice in terms of the options for financing and procuring the projects.
As outlined in the NDP, PPPs will continue to feature as a procurement option available to Government for appropriately structured projects which demonstrate value for money over a traditional procurement option and which meet the robust and rigorous tests for project appraisal that apply to all public investment projects under the Public Spending Code.
While there are a number of previously announced PPP projects in the pipeline for delivery over the coming years, no further specific additional projects have been identified in the NDP for procurement by PPP at this stage. Rather, it is essential that projects are judged on their merits and if procurement by PPP is found to offer better value-for-money than traditional procurement in the case of individual projects identified for delivery in the NDP, then they should be selected and progressed by the relevant sponsoring Department or agency on that basis.
