Written Answers Nos 21-40
21. Deputy Aindrias Moynihan asked the Minister for Public Expenditure and Reform if he will provide an updated report on the plan to develop flood defences on the upper Lee at Inchigeela; and if he will make a statement on the matter. [21659/18]
Amharc ar fhreagra31. Deputy Aindrias Moynihan asked the Minister for Public Expenditure and Reform if he will provide an updated report on the plan to develop flood defences on the upper Lee at Ballingeary; and if he will make a statement on the matter. [21658/18]
Amharc ar fhreagraI propose to take Questions Nos. 21 and 31 together.
The Catchment Flood Risk Assessment and Management (CFRAM) Programme was the largest ever flood risk study carried out in the State and covered 300 areas believed to be at significant flood risk. The CFRAM programme culminated with the launch by me in Athlone on 3 May, 2018 of 29 Flood Risk Management Plans which proposed 118 new outline flood relief projects on top of the 42 major projects already completed and the 33 major schemes within the existing capital works programme of the Office of Public works (OPW).
I was delighted to be able to launch the Plans with the Taoiseach and to announce a major 10 year €1 billion programme of investment in flood relief measures. I also said on the day of the launch that it would not be possible to implement all of the capital projects in one go and that a phased approach was necessary. In that regard I also announced funding of €257 million for an initial phase of 50 flood relief projects throughout the country which would be progressed to detailed design and construction, including the 5 largest schemes identified in the Plans and 31 small or minor projects under €1 million which will be progressed directly by the local authorities.
Flood relief projects have been identified in the Plans for both Inchigeela and Ballingeary in County Cork at costs of €2.56m and €3.07m respectively. Neither area is in the first tranche of projects to be progressed, but I can give my assurance that the OPW and the local authority will work closely to ensure that both will be commenced in the coming years and within the 10 year timeframe for the programme of investment.
22. Deputy Joan Burton asked the Minister for Public Expenditure and Reform when the interdepartmental-agency group he established in 2017 to review Ireland's experience of using PPPs will report; the detail of his Department's ongoing work on same; and if he will make a statement on the matter. [21604/18]
Amharc ar fhreagraA senior-level Inter-Departmental/Agency Group was established last year to review Ireland's experience of PPPs and to make recommendations on the future role of PPPs, in the context of the development of the new 10 year National Development Plan (NDP). The Group reported to me earlier this year and I am currently reviewing their comprehensive report, which I will be publishing shortly after bringing it to Government for information.
However, the key findings and recommendations of the PPP review have already been made public. They were summarised in section 2.2 of the NDP and further detailed in section 6.7 of the Plan.
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. The fact that PPPs use private finance, on an off-balance sheet basis, enabled a number of key 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, and as recommended by the PPP Review, 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, on a case by case basis, and if procurement by PPP is found to offer better value-for-money than traditional procurement in the case of the various projects identified for delivery in the NDP, then they should be selected and progressed by the relevant sponsoring Department or agency on that basis.
23. Deputy Thomas P. Broughan asked the Minister for Public Expenditure and Reform the estimated levels of pre-committed Government expenditure in 2018 and 2019 for demographic-related costs and pay equalisation in the public service; and if he will make a statement on the matter. [21621/18]
Amharc ar fhreagraThe Mid-Year Expenditure Report (MYER) 2017, published in July last year set out the pre-Budget position for voted expenditure after taking account of the impact of demographics across the areas of health, education and social protection, and the carryover impact of prior year measures.
The MYER set out an estimate for demographic costs of €0.3 billion for 2018 and €0.4 billion for 2019 after taking account of estimated Live Register savings. The amounts included in respect of demographic cost pressures are informed by the IGEES staff paper ‘Budgetary Impact of Changing Demographics 2017 – 2027’ published in September, 2016. This paper provides an estimate of the demographic cost pressures from 2017 to 2027 across the three main areas of current expenditure; Social Protection, Health and Education. Based on the analysis in the paper, in the short term, annual demographic cost pressures are expected to remain relatively static out to 2020, at an average of c. €0.4 billion per annum.
In relation to pay agreements, a total of €0.5 billion was allocated in 2018 to cover pay agreements for public servants in Expenditure Report 2018. This covered the final year of the Lansdowne Road Agreement and the first year of the Public Service Stability Agreement 2018-2020 that was endorsed by the Public Services Committee of the Irish Congress of Trade Unions in September last year. As outlined in Expenditure Report 2018, the Public Service Stability Agreement 2018-2020 will have a cost of €0.4 billion in 2019.
24. Deputy Mick Wallace asked the Minister for Public Expenditure and Reform his views on the number of contracts his Department and State agencies under his aegis hold with a company (details supplied) in view of its recent announcement regarding the need to raise an emergency €700 million; if contingency plans are in place if the company were to collapse; and if he will make a statement on the matter. [21666/18]
Amharc ar fhreagra32. Deputy Mick Wallace asked the Minister for Public Expenditure and Reform if he is satisfied that all contracts a company (details supplied) holds with his Department and State agencies under his aegis have been tendered for; if his attention has been drawn to contracts awarded to the company that have not been tendered for; if his attention has been further drawn to contracts awarded to the company that have rolled over; and if he will make a statement on the matter. [21667/18]
Amharc ar fhreagraI propose to take Questions Nos. 24 and 32 together.
My Department has no current contracts with the company in question.
For the most part, the bodies under the aegis of the Department hold no current contracts with this company, with the exception of the Institute of Public Administration (IPA). The IPA holds a contract in respect of maintenance for their financial system. This contract resulted from a tendering process and the contract includes a provision for the contract to be renewed on an annual basis between 2011 and 2018. Contingency is provided through the availability of other financial packages. I am advised that the Office of Public Works will provide any relevant information directly to the Deputy.
The Deputy may wish to note that the Office of Government Procurement has established six framework agreements that include as a member the company named in the question. These frameworks are for the provision of Professional Services, ICT and Managed Services. Contracts awarded as a result of a framework are put in place on behalf of other public service contracting authorities. My Department has not signed a contract for provision of services with this company. The administration of the contract once awarded is a matter for each contracting authority and contract details are held by the individual authority concerned.
The deferred reply under Standing Order 42A was forwarded to the Deputy.
26. Deputy Joan Burton asked the Minister for Public Expenditure and Reform the progress made in respect of the preparation of legislation regarding the changing of the compulsory retirement age for public servants; and if he will make a statement on the matter. [21605/18]
Amharc ar fhreagraAs the Deputy is aware, on 5 December 2017, the Government agreed that the compulsory retirement age of most public servants recruited before 1 April 2004 should be increased to age 70. Primary legislation is required for this change to be implemented. The Attorney General’s Office was requested to prioritise the drafting of the necessary legislation so that the new compulsory retirement age will become effective as soon as possible.
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. However, the drafting process is underway and the Bill is on the list of priority legislation for publication in the current session. Indeed, I understand that the drafting of the legislation is significantly advanced with an expected publication date, subject to Government approval, of next month.
In order to make some accommodation for public servants who reach the age of 65 in the period between the Government Decision of 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 (which have to respect the current statutory position of the compulsory retirement age of 65) will, through retire and re-hire, enable pre 2004 public servants who reach the age of 65 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.
27. Deputy Joan Burton asked the Minister for Public Expenditure and Reform his plans on foot of the International Monetary Fund, IMF, public investment management assessment for Ireland to ensure improvements in the efficiency and value for money of public investment; and if he will make a statement on the matter. [21606/18]
Amharc ar fhreagraThe National Development Plan explicitly addresses the need to improve management of capital spend, including the challenges referenced such as maintenance of assets, drawing in particular on the 2017 PIMA report. These actions are in train; in particular, a Project Ireland 2040 Delivery Board has been formed, consisting of Secretaries General from the main capital spending Departments, to ensure effective leadership of the implementation process. The Delivery Board had its first meeting on 1 May last.
This will lead to a greater focus by Government on achieving value for taxpayers’ money when it comes to public capital investment in Ireland over the period of the plan.
In particular, the Department of Public Expenditure and Reform will establish an Infrastructure Projects and Programmes Office to drive strengthened business case and project appraisal, and to act as the gatekeeper on the appraisal process.
A Construction Sector Working Group is being established to ensure regular and open dialogue between Government and the construction sector in relation to significant issues relating to the successful delivery of the NDP on a value-for-money basis for the Exchequer.
This reform agenda was already begun with the publication in September 2017 of a Major Capital Projects Tracker on the website of the Department of Public Expenditure and Reform. The purpose of the tracker is to inform citizens of the variety of projects currently in the planning and construction phase and to also give a greater overview to the construction and infrastructure sectors of the Government's investment commitments and future opportunities for these sectors. The tracker will provide the public, businesses and other stakeholders with reliable information about current and future infrastructure delivery.
The Tracker is currently being updated to reflect the further projects now included in the National Development Plan and it will, in time, be further developed to become the primary tool for public transparency on infrastructure project priorities, timelines and performance targets.
28. Deputy Clare Daly asked the Minister for Public Expenditure and Reform if his Department has conducted an investigation into the prevalence of low pay across the different sectors of the public service; and his plans to address same. [21638/18]
Amharc ar fhreagraI refer the Deputy to PQ No. 159 answered on 13 February 2018. Currently there are no plans to undertake an investigation into this area.
29. Deputy Jonathan O'Brien asked the Minister for Public Expenditure and Reform the mechanisms by which public performance budgeting will be achieved; the information that will be gathered to assess the efficiency and effectiveness of public expenditure; and the measures to be taken in the event that organisations and public bodies fail to deliver under the rubric of public performance budgeting. [21513/18]
Amharc ar fhreagraIn recent years, significant reforms have been implemented to Ireland’s budgetary framework to embed sound expenditure management practice that maintains a focus on the results being achieved across the public service and the extent to which public spending is delivering on key policy objectives. Performance budgeting is a key element of this suite of expenditure reform measures that also includes the augmentation of the Irish Government Economic and Evaluation Service (IGEES), tasked with carrying out evaluations and value for money reviews, and the Spending Review process that provides an evidence base to inform the prioritisation of expenditure.
A key aim of the performance budgeting initiative is to maximise the reporting of relevant quantitative metrics capable of being used to assess trends over time in order to underpin the scrutiny and appraisal of expenditure programmes. Since its introduction in 2011, performance budgeting has been subject to ongoing refinement with a clear focus on, and significant improvement in, the quality and volume of quantitative information published in the Revised Estimates Volume (REV). REV 2018, as part of a pilot programme of Equality Budgeting, also includes indicators relating to equality objectives for a number of Departments. The performance budgeting initiative also supports another important aim: transparency and accountability to the Houses of the Oireachtas and to facilitate budget oversight by the Oireachtas.
Performance Budgeting operates within the wider expenditure framework that is focused on seeking to ensure that growth in public expenditure is sustainable. However, increasing and competing public service demands means that managing expenditure within these parameters is challenging. In this context, the focus must be on examining the totality of public expenditure including in particular the rationale/objectives, effectiveness, efficiency and impact of public spending. The Performance Budgeting initiative, with its focus on quantitative metrics that can be tracked over time complements the revised Spending Review process that was introduced last year. The over-arching purpose of the Spending Review is to broaden the Government's toolkit within the budgetary process. A systematic review of the effectiveness and impact of expenditure within the existing cost base can produce options for reprioritisation of expenditure in order to fund new policies from within existing ceilings.
As such performance budgeting cannot be viewed in isolation from the other expenditure reform measures such as the continued expansion of the IGEES and the Spending Review process, that all work towards embedding an ongoing evaluation culture across Government.
30. Deputy Richard Boyd Barrett asked the Minister for Public Expenditure and Reform if, in the context of the increasing difficulty on recruiting and retaining employees in key areas of the public service, he will eliminate the pay inequality faced by new entrants into the public service. [21725/18]
Amharc ar fhreagraThe Public Service Stability Agreement 2018-2020 (PSSA), provided that an examination of remaining salary scale issues in respect of post January 2011 recruits at entry grades would be undertaken within 12 months of the commencement of the Agreement.
Additionally, as the Deputy is aware, this Government accepted an amendment at Section 11 of the Public Service Pay and Pensions Act 2017, that within 3 months of the passing of the Act, I would prepare and lay before the Oireachtas a report on the cost of and a plan in dealing with pay equalisation for new entrants to the public service.
This was a significant body of work and staff resources from within the Irish Government Economic Evaluation Service (IGEES) were assigned to collect, collate and examine the data and provide detailed point in time costs associated with the measure.
In accordance with the legislation I submitted a report to the Oireachtas on 16 March. This report, and the substantial amount of work that has taken place since on this costing, will provide the evidence base for the negotiations that are ongoing.
Discussion on this issue with Unions, which commenced in October of last year, are ongoing with the last meeting taking place on 27 April. Further engagement is being arranged for early June.
In relation to recruitment and retention issues in the public service, the evidence shows that the public service is a good employer by any objective measurement. Public Service offers a comprehensive set of terms and conditions, flexible working arrangements, decent pension provisions, fair wages that increase over time and secure employment. While public service is a career choice, and people who serve are highly motivated by the public good, the competitiveness of the package on offer can be seen in the strong level of recruitment that this report has highlighted.
Headline public service numbers already show a high level of recruitment of plus 29,000 since 2013. However this is the growth in the overall public service, as such it doesn't capture recruitment "below the line" replacing retirements and leavers.
The report I submitted on Friday 16 March 2018 however sheds light on this, revealing that over 60,500 people have been recruited in the "new entrant" grades since 2011. This represents almost a fifth of the current public service including over 16,000 teachers, nearly 5,000 Special Needs Assistants and almost 10,000 nurses. At an individual level people are looking at the remuneration package, including terms and conditions, and the opportunities that a career in the public service presents and are opting to join in great numbers. This substantiates a finding of the Public Service Pay Commission that there was no general recruitment problem, and that at lower pay levels there is a substantial pay premium in favour of public servants.
Where there may be specific recruitment problems in certain specialist areas the Public Service Pay Commission has been tasked to examine these issues in detail, starting with the Health sector, and I expect an initial report from the PSPC later this year.
33. Deputy Joan Burton asked the Minister for Public Expenditure and Reform the detail of his Department's engagement with the European Commission in respect of the future continuation of the European Structural and Investment Fund supports for cross-Border projects after Brexit; and if he will make a statement on the matter. [21603/18]
Amharc ar fhreagraAt the outset I would like to restate the Irish Government's firm commitment to the successful implementation of the current PEACE and INTERREG Programmes and to successor programmes post-2020.
As part of the contingency planning undertaken by the Government prior to the Brexit referendum, my Department identified the risks to these EU-funded programmes in the event of the UK voting to leave. The first official level contacts following the referendum result took place on the day of the result itself and these contacts have continued since.
Shortly after the result of the referendum I met the then Northern Ireland Finance Minister, Máirtín Ó Muilleoir, and I proposed that we would jointly write to the EU’s Regional Policy Commissioner, Corina Cretu, to highlight the importance we attach to the programmes. The future of the programmes has also been raised by Ministers at meetings of the General Affairs Council devoted to Cohesion Policy. In the margins of the Council meeting held under the Maltese Presidency I had a bilateral meeting with Commissioner Cretu about the programmes, and I subsequently wrote inviting her to visit the region and she has indicated her desire to do that.
I was pleased, therefore, that the Irish Government's ambitions for the programmes was reflected in December's EU-UK Joint Report on Brexit. Specifically, the report states that both parties would honour their commitments to the PEACE and INTERREG programmes under the current MFF and that possibilities for future support would be examined favourably.
December’s Communication from the Commission to the European Council that accompanied the Joint Progress Report went further. In it the Commission not only acknowledged the great value of cross-border programmes in benefitting North South cooperation but also expressed its opinion that PEACE and INTERREG should continue beyond the current programming period. It committed itself to proposing the continuation of the programmes, based on their existing management structure, in its proposal for the next MFF, which I am pleased to say it has now done.
My Department is continuing to work with the Commission to ensure that the vital work of these programmes in supporting North South cooperation under the Good Friday Agreement can continue post-Brexit.
35. Deputy Joan Burton asked the Minister for Public Expenditure and Reform the work being carried out in respect of gender equality budgeting; the way in which this will be monitored and inputted into the final programme for the budget; and if he will make a statement on the matter. [21607/18]
Amharc ar fhreagraThe ongoing work regarding Equality Budgeting in Ireland follows the Programme for a Partnership Government commitment to ‘develop the process of budget and policy proofing as a means of advancing equality, reducing poverty and strengthening economic and social rights’. The National Strategy for Women and Girls 2017-2020 also contains a related commitment.
The elements that make gender and equality budgeting work such as impact analysis and evaluation are important in any good budgetary process. Gender and equality budgeting should not to be seen as something separate from the budget process, the intention is to embed a gender and equality perspective throughout the budgetary process, with a whole of year budgetary focus.
A pilot programme of equality budgeting for the 2018 budgetary cycle is underway, anchored in the existing performance budgeting framework. International experience has shown the importance of setting specific and measurable targets. This approach works well in terms of transparency around objectives and measuring progress. For this first cycle of equality budgeting, a number of diverse policy areas have been selected with associated objectives and indicators published in the Revised Estimates Volume (REV) 2018 in December last. Progress towards achieving these targets has been reported on in the Public Service Performance Report 2017 published last month.
Responsibility for proofing expenditure programmes, the selection of indicators, and making progress towards achieving the high level goals articulated is a matter for the individual spending Departments in the first instance. The role of the Department of Public Expenditure and Reform is to facilitate the initiative and provide support for Departments to fulfil the Programme for Government commitment.
The pilot programme of equality budgeting is to be reviewed, with learnings from the pilot approach used to expand the initiative to other expenditure programmes and equality dimensions for the 2019 budgetary cycle. To further guide the roll-out of equality budgeting it is intended to establish an Equality Budgeting Steering Group. This group will be comprised of relevant stakeholders and policy experts to provide advice on the most effective way to advance the initiative.
36. Deputy Martin Heydon asked the Minister for Public Expenditure and Reform the status of the flood relief plans for areas in south County Kildare (details supplied); when they will be progressed; and if he will make a statement on the matter. [21644/18]
Amharc ar fhreagraThe Catchment Flood Risk Assessment and Management (CFRAM) Programme was the largest ever flood risk study carried out in the State and covered 300 areas believed to be at significant flood risk. The CFRAM programme culminated with the launch by me in Athlone on 3 May, 2018 of 29 Flood Risk Management Plans which proposed 118 new outline flood relief projects on top of the 42 major projects already completed and the 33 major schemes within the existing capital works programme of the Office of Public works (OPW).
I was delighted to be able to launch the Plans with the Taoiseach and to announce a major 10 year €1 billion programme of investment in flood relief measures. I also said on the day of the launch that it would not be possible to implement all of the capital projects in one go and that a phased approach was necessary. In that regard I also announced funding of €257 million for an initial phase of 50 flood relief projects throughout the country which would be progressed to detailed design and construction, including the 5 largest schemes identified in the Plans and 31 small or minor projects under €1 million which will be progressed directly by the local authorities.
Flood relief projects have been identified in the Plans for both Newbridge and Athy. Neither area is in the first tranche of projects to be progressed, but I can give my assurance that the OPW and the local authority will work closely to ensure that both will be commenced in the coming years and within the 10 year timeframe for the programme of investment.
In relation to Castledermot and Suncroft, potentially viable structural flood relief measures have been investigated and technically viable flood relief schemes have been identified. However, a more detailed assessment of the costs and benefits will have to be completed to determine if the proposed Schemes are feasible. This further assessment will commence later this year.
The allocation of almost €1 billion by the Government in the National Development Plan up to 2027 for flood risk management will allow the annual allocation for flood risk measures increase from almost €70m in 2018 to €100m per annum by 2021 and thereafter.
37. Deputy Clare Daly asked the Minister for Public Expenditure and Reform his plans to address the errors and inefficiencies in the PeoplePoint shared service system; and if he will make a statement on the matter. [21637/18]
Amharc ar fhreagraPeoplePoint is the Civil Service HR and pensions shared service centre – it is a processing centre for HR and pensions administration on behalf of 35,400 Civil Service customers. In 2017, PeoplePoint, now called HR Shared Services, completed in excess of 231,000 HR and pensions transactions and received over 86,000 calls and 4 million website visits. PeoplePoint applies Government HR and pension policies and procedures on behalf of its clients and all decision making remains with each Department or office. It started to provide services to a small number of Government Departments and offices in 2013, increasing this in phases over time, until it completed its establishment at the end of 2016.
The benefits of HR shared services have included the first ever online system for applying for annual leave and other forms of leave; a website providing all Civil Servants with easier and faster access to important information on entitlements and services; one set of standard HR processes, applied consistently, based on HR policy. These standard processes are eliminating local interpretation and thereby increasing fairness for everyone. The value of shared services is to standardise and optimise processes to improve service quality and to apply policy administration equally across the Civil Service whilst improving data accuracy and reporting.
A programme of continuous improvement is in place in PeoplePoint, seeking to increase efficiency and effectiveness, and includes; greater automation of business processes to reduce or eliminate errors or delay; a workflow management review and ongoing staff training and quality review programmes. A customer services group with representation from HR Managers from a number of Government Departments was also established in 2017 to support the effective delivery and future development of shared services and to ensure that the voice of the customer is fully considered. I am informed that the management team fully accepts that the service level is not yet where it needs to be to satisfy all users. As part of its continuous improvement initiatives, a major customer survey will be conducted this year to obtain full and objective information on satisfaction levels which will help to inform further targeted actions in order to achieve the highest service levels.
38. Deputy Michael Moynihan asked the Minister for Public Expenditure and Reform if he will report on the statutory duties of the Minister of State with responsibility for flood relief. [17970/18]
Amharc ar fhreagraUnder the Minister and Secretaries Act 1924, as amended, the Commissioners of Public Works in Ireland (Board of Commissioners) and its powers, duties and functions are assigned to, and administered by, the Minister for Public Expenditure and Reform as the responsible head of the Board of the Commissioners to Dáil Éireann. The Ministers and Secretaries Act, 1924 designates the Minister as the corporation sole that is a perpetual entity separate from the individual Office holders.
The Ministers and Secretaries (Amendment) (No. 2) Act 1977, provides for the delegation of a Minister's powers and Duties to Minister(s) of State by Order made by the Government at the request of the Minister concerned. Delegation from a Minister to a Minister of State of non-statutory responsibilities is generally made by way of an understanding between a Minister and Minister of State.
The Minister has delegated by way of an understanding special responsibility for the OPW and Flood Relief to the Minister of State. The Minister remains responsible to Dáil Éireann for the exercise or performance of any powers or duties delegated to the Minister of State.
39. Deputy Michael Moynihan asked the Minister for Public Expenditure and Reform the role his departmental officials have in respect of utilising the European Structural and Investment Funds to meet Europe 2020 objectives under social inclusion. [17676/18]
Amharc ar fhreagraThe Europe 2020 strategy document sets out specific targets under a range of objectives including employment, research and development (R&D), climate change and energy, education, and poverty and social exclusion.
The Irish targets under Europe 2020 with regard to social inclusion are to reduce:
- consistent poverty to 4% by 2016 (interim target) and to 2% or less by 2020, from a baseline rate of 6.3% in 2010;
- by a minimum of 200,000 the population in "combined poverty" (i.e. consistent poverty or at risk of poverty or basic deprivation) between 2010 and 2020.
The European Structural and Investment Funds (ESI Funds) support the delivery of these goals across Europe and in Ireland through:
- The European Regional Development Fund (ERDF)
- The European Social Fund (ESF)
- The European Maritime and Fisheries Fund (EMFF)
In addition, although not part of the Structural Funds, there is support available from the European Aid to the Most Deprived (FEAD) fund.
While as Minister for Finance and Public Expenditure and Reform I have overall policy responsibility for the European Structural and Investment Funds, my Department also has administrative responsibility for the European Regional Development Fund (ERDF). As regards the European Social Fund (ESF), administrative responsibility rests with the Minister for Education and Skills. The Minister for Agriculture, Food, and the Marine has administrative responsibility for the European Maritime and Fisheries Fund (EMFF), and the Minister for Social Protection has administrative responsibility for the European Aid to the Most Deprived (FEAD).
In relation to ERDF, Ireland has been allocated €409m support for the programming period 2014-2020. It should be noted that this amount is matched with 50% Exchequer funding, therefore the total allocation for ERDF programmes is €818m. ERDF contributes to combatting social exclusion by creating employment through investing in business start-ups, and enhancing SME competitiveness.
FEAD aims to help people take their first steps out of poverty and social exclusion by addressing their most basic needs i.e. food and or basic materials for personal use. The FEAD budget for 2018 is €8m. €4.5m of this will be allocated to ongoing food distribution through the central procurement in FoodCloud Hubs. The remaining €3.5m is allocated to the distribution of material assistance in the areas of homelessness, school kits and new migrants.
Under Ireland’s EMFF OP, a community led local development initiative is being implemented through seven Fisheries Local Action Groups (FLAGs) covering all coastal areas of Ireland. The FLAGs are provided with a €12 million budget, co-financed by 50% exchequer funding, in the period 2014 - 2020, to disperse within their respective FLAG territories through grant aid to projects that contribute to the achievement of the FLAG’s Local Development Strategy. The FLAGs focus on promoting innovative approaches to create growth and jobs in their territories, and enhance the socio-economic prospects of their area, in particular by adding value to fishery and aquaculture products and diversifying the local economy of their territories towards new economic activities.
While the FLAG scheme is the most directly relevant to social inclusion, other EMFF schemes also contribute to this objective. For example, the EMFF Inshore Fisheries Scheme supported the establishment and ongoing development of representative forums for the inshore fisheries sector (i.e. the National Inshore Fisheries Forum and 7 Regional Inshore Fisheries Forums) to give voice and representation to small scale coastal fishermen from many remote areas of Ireland.
As regards the ESF, while it is required that at least 20% of the ESF resources in each Member State be allocated to the social inclusion objective, the Irish ESF Programme has gone beyond this and has in fact allocated 34%, or €388m, of the total Programme allocation of €1.157bn, to this objective. This is co-financed by 50% exchequer funding in the period 2014 - 2020.
Social inclusion activities supported include:
- the Social Inclusion and Community Activation Programme, which tackles poverty and social exclusion;
- Youthreach which provides education, training and work experience for early school leavers;
- Garda Youth Diversion Projects, which support young people at risk of/or involved in anti-social and/or criminal behaviour;
- Young Persons Probation Projects, which engage with young offenders in local communities;
- the Tús Nua Project, to promote independent living and positive reintegration into the community for women leaving prison and women offenders referred from the community;
- the Ability Programme to promote employment prospects and meaningful social roles for young people with disabilities;
- projects to support the integration and employment of migrants; and
- gender equality projects aimed at women who are currently detached from the workforce and business women who wish to realise their full business potential.
40. Deputy Michael McGrath asked the Minister for Public Expenditure and Reform the amount of the additional €2.6 billion of expenditure commitments for 2019 he outlined to the Select Committee on Budgetary Oversight on 18 April 2018 that will reduce the estimate for net fiscal space of €3.2 billion for 2019; and if he will make a statement on the matter. [21620/18]
Amharc ar fhreagraTable 3 on Page 22 of the Summer Economic Statement (SES) 2017 set out an amount of €3.2 billion in respect of the estimated net fiscal space for 2019. In arriving at this net amount, the fiscal space impact of certain pre-committed voted expenditure was deducted from the gross fiscal space. The nominal amounts relating to these pre-commitments were set out in Table 1.3 on Page 9 of the Mid-Year Expenditure Report (MYER) 2017, with €0.4 billion of current expenditure in respect of demographics and €0.3 billion of capital expenditure arising from increases set out in the Public Capital Plan and from prior year budget adjustments.
The SES and the MYER did not reflect the impact of the abolition of domestic water charges and the consequent change in funding arrangements for Irish Water. Irish Water expenditure was therefore included within the overall General Government expenditure amounts in the SES, and reflected increases in relation to Irish Water’s capital investment programme. With funding in respect of domestic water services now being provided through voted expenditure, €0.1 billion of the overall year-on-year increase in voted capital expenditure in 2019 arises from the change in funding arrangements for Irish Water and is therefore technical in nature. This technical change was reflected in the multi-annual capital ceilings included in the Revised Estimates Volume (REV) 2018 published in December last year.
Consequently, of the €2.6 billion in voted expenditure pre-commitments set out in the Stability Programme Update 2018, the fiscal space impact of nominal amounts of €0.4 billion in voted current expenditure and €0.4 billion in voted capital expenditure, including the €0.1 billion in relation to Irish Water capital expenditure, were taken into account in arriving at the estimated net fiscal space amount of €3.2 billion for 2019 in last year’s SES.
Table 4 on Page 23 of the SES outlines the indicative allocation of available net fiscal space for 2018-2021. This Table outlines an indicative allocation of €1.5 billion in fiscal space for expenditure in 2019, with over €0.9 billion of this amount for current expenditure and just under €0.6 billion for capital expenditure. This was the pre-Budget position and expenditure allocations made as part of the Budget Estimates process in October last year, set out in Expenditure Report 2018, utilise most of this indicative allocation.
In relation to current expenditure there are pre-commitments that arose after the SES of €0.7 billion that would need to be funded from the current expenditure fiscal space amount or from savings/reprioritisation. There is a cost of €0.4 billion arising in 2019 from the Public Service Stability Agreement (PSSA). This amount was not included as pre-committed expenditure in the SES or the MYER as the agreement at that stage was subject to ratification by the membership of the Public Service Unions and Staff Associations. In addition, as outlined in the Expenditure Report 2018, there was a cost estimated, at that time, of €0.2 billion in respect of the carryover impact of certain Budget 2018 measures that would need to be met from the available resources for 2019 or from savings/reprioritisation. The current estimate of the carryover impact into 2019 is €0.3 billion. This estimated carryover impact will be reviewed in the context of this year’s MYER to take account of expenditure developments during the first half of this year.
In Budget 2018 last October, additional capital was allocated over the four year period 2018 to 2021 following the mid-term review of the Capital Plan. Expenditure Report 2018 set out gross voted capital expenditure amounts of €5.3 billion for 2018 and €6.6 billion for 2019. These amounts were in line with the increases set out in the MYER, with just over €0.3 billion in the pre-Budget position and just under €1 billion to be allocated as part of the Budget 2018 process. The fiscal space impact of the additional capital allocated during the Budget 2018 process is in line with the indicative allocations of fiscal space for capital grants and gross fixed capital formation of just under €0.6 billion in aggregate. Consequently, these increases fully utilise the indicative fiscal space for capital grants and gross fixed capital formation set out in the SES for 2019.
The National Development Plan revised the Departmental capital expenditure ceilings for 2019 to 2021, published in REV 2018, to facilitate the early commencement of a number of funds. The voted capital expenditure amount in the Stability Programme Update for 2019 reflects the additional funding allocated in the National Development Plan in respect of the Rural, Urban, and Innovation Funds. With the cost of the funds being partly covered by an unallocated capital reserve, the additional cost arising in 2019 is less than €0.1 billion.
Consequently, the expenditure pre-commitments outlined in the Stability Programme Update that arose after publication of last year’s SES and MYER amount to €1.8 billion, with an impact on fiscal space of c. €1.4 billion after taking into account the estimated effect of the capital smoothing adjustment that applies under the Expenditure Benchmark.
The Stability Programme Update (April) 2018 provides for an increase in Voted Expenditure of €2.8 billion in 2019, including the pre-committed expenditure of €2.6 billion. After providing for this increase of €2.8 billion in Voted Expenditure, a deficit of 0.1 per cent of GDP is projected for next year.
The Summer Economic Statement will outline the fiscal parameters for Budget 2019. In setting out these parameters a key consideration is the formulation of budgetary policy, based on what is right for the economy, and that does not jeopardise the sustainability of our public finances and our future living standards.
