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Tuesday, 1 May 2018

Written Answers Nos. 108-121

Public Procurement Regulations

Ceisteanna (108)

Éamon Ó Cuív

Ceist:

108. Deputy Éamon Ó Cuív asked the Minister for Public Expenditure and Reform if consideration is being given to reducing the turnover requirements for public tenders to ensure that smaller suppliers of goods and services are not unnecessarily precluded from tendering for projects, to encourage more competition and to allow local companies bid for contracts in their own area, particularly in rural Ireland; and if he will make a statement on the matter. [18670/18]

Amharc ar fhreagra

Freagraí scríofa

The assessment of a tenderer's financial and economic standing is a key part of any procurement process. Establishing the appropriate suitability criteria that are relevant and appropriate to a particular contract is, of course, a matter for the contracting authority concerned. This is because the contracting authority is in the best position to gauge the appropriate levels of financial capacity that are appropriate to the needs of that specific contract. Therefore, there are no centrally imposed requirements for a minimum turnover. Such requirements must logically be developed on a case by case basis with reference to the specific needs of the contract, balancing the risk of contractors failing to perform the contract with encouraging more competition.

However, the Government recognises that the small and medium enterprise (SME) sector is very important to the economy and that public procurement can be a source of business for SMEs. In this regard, Government Policy, as set out in Circular 10/14: Initiatives to assist SMEs in Public Procurement issued by my Department, is aimed at facilitating greater participation of SMEs in public procurement opportunities.  In relation to suitability criteria, the circular stresses that public bodies must ensure that any criteria/turnover levels set by them should be both justifiable and proportionate to the needs of the contract and, a matter of general policy, should not for routine goods and services competitions set company turnover requirements at more than twice the estimated contract value.

The Office of Government Procurement through its engagement with public bodies and SME representative bodies is ensuring that this message continues to be highlighted.

Questions Nos. 109 to 111, inclusive, answered with Question No. 103.

Public Private Partnerships Data

Ceisteanna (112, 113, 115)

John Lahart

Ceist:

112. Deputy John Lahart asked the Minister for Public Expenditure and Reform the details of the PPP projects in the water sector; the cost of each; and his plans to begin posting these details on the Government's PPP website in the interests of greater transparency as recommended by the Oireachtas Committee on Budgetary Oversight. [18758/18]

Amharc ar fhreagra

John Lahart

Ceist:

113. Deputy John Lahart asked the Minister for Public Expenditure and Reform the estimates of PPP expenditure in the context of multi-annual capital allocations in respect of the period 2018 to 2021 (details supplied); and if he will make a statement on the matter. [18759/18]

Amharc ar fhreagra

John Lahart

Ceist:

115. Deputy John Lahart asked the Minister for Public Expenditure and Reform the reason the major PPPs in the water sector are not included on the Government's PPP website; and if he will make a statement on the matter. [18777/18]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 112, 113 and 115 together.

A Public Private Partnership (PPP) is an arrangement between the public and private sector for the purpose of delivering infrastructure or services which were traditionally provided by the public service. In effect, it is a form of procurement available to the public sector.

There are a number of different PPP models which can be used, including:

1. Projects financed by the private sector and remunerated by deferred annual payments (Unitary or Availability Payments) from the Exchequer e.g., Design, Build, Operate & Finance (DBOF); or Design, Build, Operate, Maintain and Finance (DBOMF);

2. Projects partly or fully financed by the private sector and remunerated by user charges, mainly in the roads area (DBOF with a Concession to levy user charges for a period); and

3. Projects funded from State Authorities own resources, mainly in the local authority area (e.g., Design, Build & Operate/Maintain). 

When referring to PPPs, we generally mean projects in category (a) or (b) above, whereby the asset is funded and constructed by the private partner, following which it is made available for public use and is paid for by the State and/or users over an extended period (typically 20-25 years), after which the asset comes into State ownership.  In the meantime, the PPP is regarded as ‘off balance sheet’ from a General Government perspective, which means that the initial capital cost of the project does not impact on the General Government Balance (GGB) over the construction period, nor does the debt associated with the project impact on General Government Debt (GGD).  Rather, the cost of such projects is spread over the lifetime of the projects, by way of annual unitary payments. 

These are the projects that are reported on annually by my Department on the ppp.gov.ie website - on the basis that these are the PPP projects which have not been recorded on the balance sheet of the Government and so constitute a future contingent liability for the State.  Such contingent liabilities pose a potential risk for the Exchequer, in terms of a potential future GGB/GGD impact were they to be terminated and surrendered to the Exchequer earlier than anticipated, thus requiring a reclassification as on-balance sheet at that time.  For this reason, these contingent liabilities must be reported to Eurostat, via the Central Statistics Office, on an annual basis.  Accordingly, it is appropriate that such contingent liabilities associated with PPPs be carefully monitored and reported on.    

On the other hand, the projects pursued under category (c) above have been fully funded by the Exchequer and are already classified as on-balance sheet in General Government terms.  Such projects are not generally regarded as ‘classic’ PPPs and there are no contingent liabilities associated with them as there is no risk of a potential future GGB or GGD impact associated with such projects, since they are already on-balance sheet (unlike ‘classic’ PPPs).  On this basis, we do not record these projects on the PPP.gov.ie website, nor do I propose to change this approach.   

Since 1 January 2014, Irish Water now has statutory responsibility for all aspects of water services planning, delivery and operation at national, regional and local levels, and this included taking on responsibility for the water related ‘PPPs’ from the local authorities.  Details of the PPP projects in the water area would therefore be available from Irish Water.   

In relation to the PPP related expenditure that is provided for in the context of the multi-annual capital allocations now agreed for the period 2018 to 2022, my Department is in the process of producing a detailed breakdown of this information to be published soon. 

Chapter 6 of the NDP included a section on the PPP review which stated that, in order to improve transparency in reporting on PPPs, a number of changes in the reporting arrangements for PPPs were recommended by the Review Group.  One of the improvements in reporting being introduced on foot of these recommendations is that the table published by my Department on the ppp.gov.ie website will, in future, include details of the PPP unitary payment charges for each individual project by year, until such time as the project is handed back by the PPP Company to the Sponsoring Authority.  Officials in my Department are currently compiling the required data in conjunction with the responsible Departments and it is expected that the new reporting arrangement will be in place and the data published on the PPP website soon.   

These new arrangements will address the suggestion of the Parliamentary Budget Office that future PPP commitments be disaggregated and that clarity be provided on the amount of the total capital allocations for 2018-2021 that will be required to fund such commitments - but in respect of all future years and not just the period 2018-2021.

Public Private Partnerships Cost

Ceisteanna (114)

John Lahart

Ceist:

114. Deputy John Lahart asked the Minister for Public Expenditure and Reform the PPP contracts that account for an increase in PPP liability from €6 billion in 2013 to €9.6 billion in 2016; and the details of increased PPP liabilities since 2016. [18763/18]

Amharc ar fhreagra

Freagraí scríofa

My Department's role in relation to Public Private Partnerships (PPPs) is to maintain and develop the general policy framework (including, where necessary, the legal framework) within which PPPs operate. It also provides central guidance to other Departments and State Authorities in that context.  My Department has no direct involvement in the procurement or delivery of individual PPP projects.

A summary update on PPP projects is available at the website www.ppp.gov.ie.  A copy of the updated table is set out as follows for the Deputy's information.  The table summarises information on PPP projects across the public sector indicating for each project, the value of the contract, the operational date of the project and the name of the company to which the contract was awarded. 

The Deputy should note that the table is intended to provide indicative information in relation to PPP projects generally, based on information provided to my Department by the relevant responsible Departments/Agencies. The Central PPP Policy Unit in my Department endeavours to ensure that the information is as accurate as possible but details on specific projects should be confirmed with the State authorities responsible for those projects.

As the Deputy will see from the details supplied in the table, there have been a number of additional PPP projects where contracts have been signed since 2013, such as the Primary Care Bundle, the Courts Bundle, Schools Bundle 4 and 5 and a number of roads projects, which account for the increase in liabilities arising from PPPs since 2013. 

This Table is currently in the process of being updated to reflect the position as at end-2017, which will be published on the website as soon as possible

Exchequer funded financial commitments under Public Private Partnerships and Concession Projects

Department/Agency 

Project Classification

Operational From

Contractual Value       (€,m)

PPP Unitary Payments to End 2016                    (€,m)

Projected Future   PPP Unitary Payments in NOMINAL Terms      (€,m)

Other PPP Payments, where available          (€,m)

Projected Total Cost of all PPP Payments         (€,m)

Year of Final Payment

PPP Company

Health

 

 

 

 

 

 

 

 

 

Primary Care   Bundle

DBFM

Phased   from Q3 2017

140.0

-

422.3

35.5

457.8

2042

Healthcare Centres PPP Limited

OPW

 

 

 

 

 

 

 

 

 

National Conference Centre

DBFOM

Aug-10

189.8

269.2

477.3

32.9

779.4

2035

Spencer Dock Convention Centre Dublin Ltd

Justice

 

 

 

 

 

 

 

 

 

Criminal Courts Complex

DBFOM

Nov-09

132.4

149.7

455.9

17.9

623.5

2035

IPP CCC Partnership Ltd. Managed by amber Infrastructure Ltd.

Courts Bundle

DBFOM

2017

149.9

-

362.8

20.9

383.7

2042

BAM PPP PGGM consortium

Total Justice

 

 

282.3

149.7

818.7

38.8

1,007.2

 

 

Education*

 

 

 

 

 

 

 

 

 

5 Pilot   Schools

DBFM

2002

63.7

161.3

129.1

TBC

290.4

2027

Schools Public/Private Partnership (Ireland) Ltd

National   Maritime College

DBFM

2004

51.4

112.3

75.5

TBC

187.8

2029

Focus Education (NMC) Ltd.

Cork School   of Music

DBFM

2007

49.3

85.4

144.8

TBC

230.2

2032

CSM PPP Services Ltd

Schools   Bundle 1

DBFM

2010

59.9

63.7

181.9

TBC

245.6

2035

MPFI Schools 1 Ltd

Schools   Bundle 2

DBFM

2011

81.7

75.7

266.7

TBC

342.4

2036

Pymble Schools Ltd

Schools   Bundle 3

DBFM

2013

100.0

55.4

355.0

TBC

410.4

2039

BAM PPP Ltd

Schools Bundle 4

DBFM

2016

61.3

14.0

201.6

TBC

215.6

2042

BAM PPP Ltd

Schools Bundle 5

DBFM

2017

90.9

-

255.7

TBC

255.7

2042

Inspired Spaces   Consortium

Total Education

 

 

558.2

567.8

1,610.3

0.0

2,178.1

 

 

Transport Infrastructure Ireland

 

 

 

 

 

 

 

 

 

M3 Clonee Kells[2]

DBFOM

Jun-10

521.2

395.8

266.7

43.9

706.4

2052

Eurolink Motorway Operations (M3) Ltd

Limerick Tunnel[1]

DBFOM

Jul-10

382.5

220.6

32.8

28.2

281.6

2041

Direct Route   (Limerick) Ltd

M50 Upgrade

DBFOM

Sep-10

219.1

148.7

718.1

77.8

944.6

2042

M50 (Concession) Ltd

N11 Arklow/   Rathnew

DBFOM

Phased   with final completion Q2/Q3 2015

131.2

20.7

421.0

23.6

465.3

2040

N11 Arklow Rathnew PPP Limited

M17/18 Gort   / Tuam**

DBFOM

Dec-17

271.4

-

894.3

37.9

932.2

2042

Direct Route (Tuam)   Ltd

M11 Gorey /   Enniscorthy**

DBFOM

Jul-19

234.5

-

476.0

31.7

507.7

2044

Gorey to Enniscorthy M11 PPP Limited

N25 New   Ross**

DBFOM

2019

150.6

-

304.2

32.1

336.3

2044

New Ross N25   Bypass Designated Activity Company

Total TII PPP

 

 

1,910.4

785.8

3,113.1

275.2

4,174.1

 

 

M4  Kilcock Kinnegad

Concession

Dec-05

301.8

168.2

5.4

5.7

179.3

2033

Eurolink Motorway Operations (M4) Ltd

M1 Dundalk

Concession

Sep-05

112.6

-

3.1

3.8

6.9

2034

Celtic Roads Group (Dundalk) Ltd

M8 Fermoy

Concession

Oct-06

182.7

134.2

15.7

1.8

151.7

2024

DirectRoute (Fermoy) Ltd

N25   Waterford

Concession

Oct-09

262.3

155.1

39.3

2.4

196.8

2027

Celtic Roads Group (Waterford) Ltd

N6 Galway   Ballinasloe

Concession

Dec-09

297.8

300.3

51.6

19.6

371.5

2035

N6 (Concession) Ltd

M7/8   Portlaoise

Concession

May-10

300.1

72.4

7.7

5.6

85.7

2023

Celtic Roads Group (Portlaoise) Ltd

MSA

Concession

Sep/Oct-10

62.7

47.1

-

-

47.1

2010

Superstop Ltd

Total TII Concession

 

 

1,519.9

877.3

122.8

38.9

1,039.0

 

 

Dublin City Council

 

 

 

 

 

 

 

 

 

Dublin Waste to Energy

Concession

2017

346.0

-

-

-

-

2062

Covanta

 

 

 

 

 

 

 

 

 

 

Total PPP

 

 

3,080.7

1,772.5

6,441.7

382.4

8,596.6

 

 

 

 

 

 

 

 

 

 

 

 

Total Concession

 

 

1,865.9

877.3

122.8

38.9

1,039.0

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

4,946.6

2,649.8

6,564.5

421.3

9,635.6

 

 

* Education figures to be validated

**Figures include a provision for a VAT bullet payment when due.

[1]  The Payments for Limerick Tunnel include payments required to be made under the traffic guarantee contract mechanism.  The nominal value of remaining payments as at 31 December 2015 does not include any amounts for future payments under this mechanism.

[2]  The Payments for M3 Clonee Kells include payments required to be made under the traffic guarantee contract mechanism.  The nominal value of remaining payments as at 31 December 2015 does not include any amounts for future payments under this mechanism.

Notes 

1. Estimates of future nominal committed payments are calculated on an assumed future annual inflation of 2 per cent per annum.

2. PPP Unitary expenditure by TII relates to construction, operation and availability payments.

3. Other PPP expenditure relates to VAT, rates, enabling works, authority variations etc.

4. A review of "Other PPP Payments" is currently being undertaken by the Dept. of Education and figures will be provided following completion of the review.  Total PPP cost figures are also subject to change in that context.

5. Rounding affects totals.

Question No. 115 answered with Question No. 112.

Minor Flood Mitigation Works and Coastal Protection Scheme Applications

Ceisteanna (116)

Éamon Ó Cuív

Ceist:

116. Deputy Éamon Ó Cuív asked the Minister for Public Expenditure and Reform if the Office of Public Works will provide funds for coastal protection works in Leenane, County Galway, on foot of an application from Galway County Council for funding of such works; when a decision will be made on the application; and if he will make a statement on the matter. [18932/18]

Amharc ar fhreagra

Freagraí scríofa

I have been advised by the Office of Public Works that the application submitted under its Minor Flood Mitigation Works and Coastal Protection scheme by Galway County Council for flood relief works at Leenane Village is currently under consideration and the Council will be notified shortly.

Disability Act Employment Targets

Ceisteanna (117)

Robert Troy

Ceist:

117. Deputy Robert Troy asked the Minister for Public Expenditure and Reform the percentage of new temporary clerical officer posts (details supplied) in the Civil Service that will be for persons with disabilities; and if persons included in the WAM programme will be considered as part of this. [18934/18]

Amharc ar fhreagra

Freagraí scríofa

As the Deputy will be aware, the civil service is an equal opportunities employer and all recruitment campaigns, including the Temporary Clerical Officer campaign, are conducted in strict compliance with the Codes of Practice set out by the Commission for Public Service Appointments. Codes include the Code of Practice governing the External and Internal Appointments of Persons with Disabilities to Positions in the Irish Civil Service and Certain Public Bodies, available at www.cpsa.ie.

Public service bodies are also subject to specific legal obligations in the Disability Act 2005, including the requirement for public bodies to:

- promote and support the employment of people with disabilities;

- comply with any statutory Code of Practice;

- meet a target of 3% of employees with disabilities;

- report every year on achievement of these obligations.

As the Deputy will be aware, the Comprehensive Employment Strategy for people with disabilities was agreed by the Government in 2015. It proposes to increase the public sector target of 3% employment of people with disabilities to 6% by 2024.

You may also wish to note that a number of Departments and Offices in the Civil Service are participants in the Willing Able and Mentoring (WAM) Programme, which is a mentored work placement programme aimed at offering graduates with disabilities up to six months paid work experience.  It is organised by the Association for Higher Education Access and Disability (AHEAD). The Civil Service has been participating in the programme since 2006.

WAM participants past and present can apply for positions advertised by the Public Appointments Service, including the Temporary Clerical Officer competition.

Proposed Legislation

Ceisteanna (118)

John Brady

Ceist:

118. Deputy John Brady asked the Minister for Public Expenditure and Reform when the public service superannuation (miscellaneous provisions) (amendment) Bill will be published; the committee in which will the Bill will be discussed for pre-legislative scrutiny; and if he will make a statement on the matter. [19084/18]

Amharc ar fhreagra

Freagraí scríofa

As the Deputy is aware, the Government agreed on 5 December 2017 that the compulsory retirement age of most public servants recruited before 1 April 2004 should be increased to age 70.  The Attorney General’s Office has been asked to prioritise the drafting of the necessary legislation so that the new compulsory retirement age will become effective as soon as possible.  The drafting process is under way and the Bill is on the list of priority legislation for publication in the Oireachtas Spring/Summer Session 2018.

I wrote to the Joint Committee on Finance, Public Expenditure and Reform earlier in the year requesting them to undertake pre-legislative scrutiny on the General Scheme of the Bill at an early date.  The Committee in response has indicated that, while they do not intend to undertake pre-legislative scrutiny on this Bill, they will engage fully on the draft legislation in the context of the formal legislative process.  This approach is likely to facilitate passage of the Bill through the Oireachtas and I welcome the support of the Committee in this regard.

Community Employment Schemes Supervisors

Ceisteanna (119)

John Curran

Ceist:

119. Deputy John Curran asked the Minister for Public Expenditure and Reform if the high-level forum set up to deal with the issue of pension provision for the supervisors and assistant supervisors of community employment schemes has met since its last meeting in November 2017; if so, if a report from the meeting will be provided; and if he will make a statement on the matter. [19126/18]

Amharc ar fhreagra

Freagraí scríofa

The most recent meeting of the Community Sector Forum took place on 23 November 2017. Previous meetings took place on 24 February 2017 and 7 April 2017. It remains the position that the minutes of these meetings await formal approval by the parties to the Forum and will on such approval be publicly available on my Department's website.

Question No. 120 answered with Question No. 103.

Youth Guarantee

Ceisteanna (121)

Donnchadh Ó Laoghaire

Ceist:

121. Deputy Donnchadh Ó Laoghaire asked the Minister for Education and Skills the amount drawn down to date of the Youth Guarantee funding from the EU. [18804/18]

Amharc ar fhreagra

Freagraí scríofa

The Youth Employment Initiative (YEI) is one of the main EU financial resources to support the implementation of the EU Youth Guarantee. It is integrated into European Social Fund (ESF) programming as a dedicated priority axis within the ESF Programme for Employability, Inclusion and Learning 2014-2020 (PEIL). The specific YEI allocation for Ireland of €68m is matched by equal amounts from our ESF allocation and from the Exchequer, giving an overall allocation of €204m.

All ESF activities, including YEI activities, are fully funded up-front by the Exchequer with the EU (ESF/YEI) funding being claimed in arrears. While no payment application has been made to date to the Commission under the PEIL, it is expected that the funding will be fully drawn down.

The ESF authorities must be designated in accordance with the EU regulations prior to making the first payment application. This designation is based on the opinion of the Independent Audit Body (IAB) which must be satisfied across a range of criteria that systems are in place to allow the ESF authorities to perform their required functions. These systems requirements include the provision of a computerised accounting and information system for EU funds to meet the 2014-2020 functionality requirements. The final phase of the IT system went live at the end of March 2018. The ESF authorities are engaging with the IAB and it is expected that designation will be completed in the coming weeks.

Preparations are underway for the submission of a first payment application to the Commission in Q3 2018. The European Commission has advised that the potential decommitment at end 2018 is €127.7m, if not claimed in payment applications in the meantime. The ESF authorities will ensure that sufficient payment applications are submitted to fully drawdown the EU funding allocations.

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