Written Answers Nos 71-82
71. Deputy Michael McGrath asked the Minister for Finance if he is satisfied that an insurance firm not in business here can enter the Irish market without barrier to entry, have access to the same databases and information as existing market players and therefore compete on a level playing field; and if he will make a statement on the matter. [21884/18]
Amharc ar fhreagraThe Irish insurance sector is diverse, comprising life, non-life and reinsurance firms operating across a range of products and geographical markets. I believe that it is very important that this market is competitive, vibrant and that there are no barriers to entry facing potential new entrants. If we want to increase its capacity and facilitate further competition, this must remain a key policy goal.
As Minister for Finance, I am responsible for the development of the legal framework governing financial regulation of the sector. This framework is mainly governed by the EU Solvency II Directive, which provides for three ways in which an insurance undertaking can operate within the Irish market. These are to:
- establish a head office in Ireland (authorised by Central Bank of Ireland);
- establish a branch in Ireland through Freedom of Establishment (FOE); or
- operate on a Freedom of Services basis (FOS).
My understanding is that there are companies operating in each of these channels in the Irish insurance market. The Solvency II framework is designed to allow for a level playing field across the European Union for insurers, not only in terms of access to markets within the EU, but also with regard to the level of supervision and regulation. In the context of my functions around the legal framework governing financial regulation, I am satisfied that insurers can compete on a level playing field.
In relation to the Insurance Ireland operated Insurance Link database I am aware that there are some membership criteria for new entrants. Having said that, this is something that I have no control over.
In conclusion, it is important to note that the Cost of Insurance Working Group’s Report on the Cost of Motor Insurance and the Group's Report on the Cost of Employer Liability and Public Liability insurance have made a number of recommendations that are relevant to the issue of supporting a level playing field. In this regard the insurance fraud database recommendation requires that it be available to all insurers participating in the Irish market for fraud detection purposes. It is hoped that this recommendation, along with other recommendations made in the field of transparency and the reduction of claims related costs in particular, should encourage competition and potential new entrants.
73. Deputy Michael McGrath asked the Minister for Finance when he plans to publish the summer economic statement 2018. [21886/18]
Amharc ar fhreagraThe publication of the Summer Economic Statement (SES), forms a key part of the reformed budgetary process designed to complement the Stability Programme Update (SPU). The macroeconomic outlook set out in April, as part of the SPU, will underpin the SES. The SES will broadly set out what the Government believes to be the appropriate fiscal policy next year, taking into account Ireland's stage in the economic cycle.
Whilst the economy is forecast to continue to grow strongly over the coming years, the SES will reflect the need to avoid any policy measures which could contribute to overheating in the economy. As a small open economy we are exposed to a number of external risks, particularly in relation to Brexit, changes in the international tax landscape and rising geopolitical tensions, all of which have the potential to destabilise our economy. The Government is cognisant of these risks and recognises the need to plan for the future and manage our resources in a prudent fashion. Given the uncertainty we face over the coming years we need to continue to focus on enhancing our competitiveness and building up resilience in our public finances.
I aim to publish the Summer Economic Statement in the Summer.
74. Deputy Mattie McGrath asked the Minister for Public Expenditure and Reform the details of consultancy services, value for money and policy review expenses incurred by his Department as at 31 December 2017. [21891/18]
Amharc ar fhreagraThe table outlines the amount paid to consultancy firms by my Department during 2017. My Department ensures that every effort is made to limit the use of consultancy where possible. It should be noted that the complex nature of the Department’s work in recent years in leading major reform programmes, such as the roll-out of shared services by the National Shared Services Office or the transformation of the central procurement function under the Office of Government Procurement, means that it is necessary for the Department to bring in external expertise from time to time. All contracts are negotiated with a view to achieving best value for money and are kept under review to ensure this is maintained. When the use of consultants is unavoidable, the staff in my Department ensure appropriate skills transfer to reduce the requirement for consultants going forward.
My Department actively ensures that funds appropriated to it by Dáil Éireann are spent in a manner that supports the achievement of the best possible value-for-money. Consequently, each Division in my Department examines and reviews capital, consultancy and information technology project expenditure on a regular basis. This process is formalised through the collation of bi-annual value for money reports on such projects.
|
Consultant |
Purpose |
Cost |
|
Accenture |
Build to Share (OGCIO) |
€34,440 |
|
Accenture |
Build to Share (OGCIO) |
€10,762 |
|
Accenture |
Build to Share (OGCIO) |
€51,660 |
|
Accenture UK Ltd |
Robotic process automation process analysis, HSE and passport office |
€13,214 |
|
Achilles Procurement Service |
Strategic Advice (OGP) |
€32,643 |
|
Agency Assessments Ireland |
EMA bid - Consultancy services (OGP) |
€861 |
|
Analysys Mason |
Mobile voice and data sourcing strategy report (OGP) |
€26,912 |
|
Aspira |
Expert analysis and advice on implementation of eCohesion System |
€79,824 |
|
Astron |
Review of system design and operation of eCohesion IT system |
€22,140 |
|
Bearing Point |
Service supply contract research into technical, operational, market and procurement considerations into implementation of a future Human Capital Management system for the Civil Service |
€71,401 |
|
Bearing Point |
ICT common services evaluation (OGP) |
€18,450 |
|
Bearing Point |
ICT common services evaluation (OGP) |
€24,600 |
|
Bearing Point |
Expert advisory services to the Single Scheme Administration Project (Design phase) |
€95,854 |
|
Bid Management Services |
Professional Services (Bid Manager) (OGP) |
€61,474 |
|
Byrne Wallace |
Consult on employment law |
€119,433 |
|
Coyne Research Associates |
Research consultancy (OGP) |
€11,162 |
|
Deloitte |
Financial management shared service project / GDPR assessment services (NSSO) |
€1,553,960 |
|
Empirica |
Strategic Advice (OGP) |
€59,427 |
|
Ernst & Young |
Diversity and Inclusion diagnostic for the Department |
€14,452 |
|
Ernst & Young |
Continuity and Resilience |
€24,465 |
|
Eversheds |
Legal advice (OGP) |
€94,620 |
|
Fehily Timoney & Co. |
Environmental consultancy |
€12,300 |
|
Fehily Timoney & Co. |
Environmental consultancy |
€24,600 |
|
Fehily Timoney & Co. |
Environmental consultancy |
€18,450 |
|
Gartner |
Research and Advisory Services (OGCIO) |
€182,655 |
|
Gartner Ireland Ltd |
Strategic Advice (OGP) |
€127,428 |
|
Genfour Limited |
Robotic process automation needs analysis Peoplepoint |
€6,600 |
|
Greenville Procurement Partners |
Strategic Advice (OGP) |
€2,085 |
|
Horizon Energy Group |
Strategic Advice (OGP) |
€238,326 |
|
Innovative Procurement Solutions Ltd |
Procurement support and advice (OGP) |
€59,497 |
|
KPMG |
Build to Share business case (OGCIO) |
€92,250 |
|
KPMG |
Advisory services on data centre hosting of Government cloud infrastructure (OGCIO) |
€23,757 |
|
KPMG |
Advisory services on data centre hosting of Government cloud infrastructure (OGCIO) |
€99,999 |
|
KPMG |
Peer review of actuarial work completed |
€15,000 |
|
Milliman |
Actuarial Consulting Services |
€22,755 |
|
Oiliúna |
Technical consultancy (OGP) |
€2,000 |
|
Praesta Ireland Ltd |
Business Planning consultancy (OGP) |
€19,680 |
|
Price Waterhouse Cooper |
Operational support and strategic advisory (OGP) |
€44,526 |
|
Prof. Edel Conway & Dr. Yseult Freeney |
Academic advice services to the Public Service Pay Commission |
€1,900 |
|
Research Matters Ltd |
Strategic Advice (OGP) |
€23,979 |
|
Ryan Hanley Consulting Engineers |
EIS of river Fealge Clonakilty |
€6,285 |
|
The Friday Agency |
ICT - www.eufunds.gov.ie |
€15,141 |
|
Version 1 Software |
ICT - Contingency system development and implementation |
€22,071 |
|
Ward Solutions |
Security Consultancy fees (OGCIO) |
€3,321 |
OGCIO - Office of the Government Chief Information Officer
OGP - Office of Government Procurement
NSSO - National Shared Services Office
75. Deputy Eamon Ryan asked the Minister for Public Expenditure and Reform the measures contained within the national planning framework that will help to avert the impending fines for missing Ireland's 2020 renewable energy targets; and if he will make a statement on the matter. [21980/18]
Amharc ar fhreagraThe National Planning Framework is the responsibility of my colleague the Minister for Housing, Planning and Local Government. Compliance with 2020 renewable energy targets is a matter for my colleague the Minister for Communications, Climate Action and Environment. However, as my Department has been involved in both processes I will address the Deputy’s question.
In the first instance it should be noted that there are no "impending fines".
The 2009 EU Renewable Energy Directive set Ireland a legally binding target of meeting 16% of our energy demand from renewable sources by 2020. While good progress has been made to date, meeting the target remains challenging. The Sustainable Energy Authority of Ireland's most recent assessment is that Ireland will achieve between 13.2% and 15.4% of the 16% renewable energy target by 2020 - or, to put it another way, we will be between 82% and 96% of the way towards the target.
Failing to achieve our 2020 target under this Directive could give rise to the usual penalty applied by the Commission when a Member State breaches a Directive – infringement proceedings. It is only when an infringement proceeding reaches the stage of 2nd referral to the European Court of Justice that the Commission might ask the Court to impose fines.
However the Renewable Energy Directive also provides a framework for Member States to work together towards renewable energy targets. This includes mechanisms which allow Member States to meet their targets by purchasing credits - or what are termed statistical transfers -from Member States that overachieve on their renewable targets.
How much this will cost depends on two factors – price and quantity. How much will we miss our target by and what price will other Member States be prepared to sell to us at. Because of the uncertainty inherent in each of these factors it cannot be definitively said how much this purchase of compliance will cost.
Work undertaken by the SEAI in 2016 indicated that the cost to Ireland of not meeting our overall renewable energy targets may be in the range of €65 million to €130 million for each percentage point Ireland falls short of the overall 16% renewable energy target. However, present indications, based on a trade agreed by other Member States late last year, suggest that the cost per percentage point for statistical transfers is likely to be below the lower end of the range suggested by SEAI.
Contingency planning to explore the potential extent, mechanisms and cost of addressing our target within the framework of the Directive is underway between officials in the Department of Communications, Climate Action and Environment and my Department
With regard to the National Planning Framework, one of the key objectives of that document is to make our planning system more responsive to our national environmental challenges. It commits the Government to integrating climate action into the planning system in support of national targets for climate policy mitigation. This plan will be complemented by the forthcoming Renewable Electricity Policy and Development Framework which will aim to identify strategic areas for the sustainable development of renewable electricity projects and by new Wind Energy Guidelines which will facilitate informed decision making in relation to onshore renewable energy infrastructure.
76. Deputy Brendan Smith asked the Minister for Public Expenditure and Reform if he has had discussions with the British Government and with the European Commission on the need to ensure the continuation of funding for cross-Border projects post-2020; and if he will make a statement on the matter. [21055/18]
Amharc ar fhreagraAs the Deputy will be aware, Ireland and Northern Ireland are currently partners in two EU-funded cross-border Cooperation Programmes, PEACE and INTERREG, with a total value of €550 million over the period 2014-2020. These programmes are 85% funded by the EU through the European Regional Development Fund (ERDF) under the European Union's Cohesion Policy.
The Irish Government remains firmly committed to the successful implementation of the current programmes and to successor programmes post-2020.
Work on this objective commenced as soon as the outcome of the UK referendum on EU membership was known. Shortly after the referendum I met the then Finance Minister in Northern Ireland, Máirtín Ó Muilleoir, and we agreed to write to the EU’s Regional Policy Commissioner, Corina Creu, to highlight the importance we attach to the programmes. I subsequently raised the programmes at the Cohesion General Affairs Council and met Commissioner Creu to discuss them. Throughout this period my officials have also been engaging with their European Commission counterparts.
I was pleased, therefore, that the Irish Government's ambitions for the programmes were reflected in December's EU-UK Joint Report on Brexit in which both parties undertake to honour their commitments to the two programmes under the current MFF and to examine the possibilities for future support favourably.
I am also pleased that the Commission has now brought forward proposals for future programmes in its proposals for the EU budget post-2020. My officials and I will continue to work with the Commission and our EU partners to ensure the continuation of these important programmes post-2020. The future of these EU-funded programmes are part of the ongoing work of the Barnier Task Force, and negotiations with the UK will take place in that context.
77. Deputy Joe Carey asked the Minister for Public Expenditure and Reform if a matter (details supplied) will be addressed; and if he will make a statement on the matter. [21869/18]
Amharc ar fhreagraAs the Deputy will be aware recruitment for An Garda Síochána is a matter for my colleague the Minister for Justice and Equality and the Garda Commissioner in the first instance.
Recruitment for an Garda Síochána is undertaken by the Public Appointments Service (PAS) which is an independent recruiter for the civil and some parts of the public service.
I understand that while the Pubic Appointments Service conducts the initial competitive selection stages for Garda Trainee on behalf of the Garda Commissioner, eligibility requirements are set out in the Garda Síochána (Admissions & Appointments) Regulations, 2013. This includes a requirement for applicants to have proven proficiency in two languages, one of which must be Irish or English.
In cases where candidates do not have the required proven proficiency Irish or English e.g. have not achieved a minimum of Grade D in Ordinary Level at the Leaving Certificate, and have qualified at Stage 3 (interview) of the selection process, the Public Appointment Service affords those candidates an opportunity to undergo an alternative written and oral language test. The written and oral language test process is an alternative route for the candidate to demonstrate proficiency in the language if they do not have it in the Leaving Certificate.
However, the written and oral language test is analogous to the Leaving Cert in that candidates have only one opportunity to demonstrate proficiency. The recruitment process to Garda Trainee is a competitive one. It is not appropriate in the context of a competitive recruitment process to afford a candidate additional opportunities to complete elements of the assessment process. It is however open to individuals to apply again for subsequent Garda Trainee competitions, if they continue to be eligible.
78. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the degree to which public procurement and reform thereof continues to be part of Government policy with particular reference to the need to ensure maximum economic benefit whilst maintaining good procurement practice and indigenous resourcing; and if he will make a statement on the matter. [21921/18]
Amharc ar fhreagraPublic Procurement is governed by EU and National rules and guidelines. The aim of these rules is to promote an open, competitive and non-discriminatory public procurement regime which delivers best value for money.
Procurement reform is a key element of the Government's overall reform programme and is aimed at delivering increased value for money, and having a strategic approach to public procurement across the public sector.
A key element of the reform programme has been to ensure it is being carried out in a manner that recognises the importance of small and medium-sized enterprises as the engine room of our economy. The aim is to drive fair, transparent and open competition in the marketplace but also to work with business to ensure that government procurement policies are business friendly.
The Government has committed in the Programme for a Partnership Government to refining the new procurement structures in place and to make adjustments according to best international practice and in conjunction with Irish business.
My colleague, Minister of State Patrick O'Donovan chairs the SME Advisory Group in accordance with the Programme for Government. He hears at first hand the concerns of industry at these quarterly meetings. Representatives include the OGP, the Department of Business, Enterprise and Innovation, Enterprise Ireland (EI), InterTrade Ireland (ITI), the Competition and Consumer Protection Commission (CCPC), the Irish Business and Employers' Confederation (IBEC), the Small Firms Association (SFA), the Construction Industry Federation (CIF), Chambers Ireland and the Irish Small and Medium Enterprises Association (ISME).
Minister of State O'Donovan also launched the OGP's Public Service Spend and Tender Analysis Report for 2015 report last September. This is the OGP's third annual report that analyses expenditure and tendering activity on goods, services and minor works across public service bodies in Ireland. I would point out that the analysis is encouraging, indicating that 94% of the State’s expenditure is with firms within the State.
Finally, it is also important to remember that open tendering is a two way street and that it provides Irish companies with opportunities to compete abroad. Public expenditure on goods, works, and services representing approximately 14% of EU GDP with an annual value in the order of €2 trillion. The open market regime offers opportunities for Irish companies to win business abroad and EU studies indicate that many Irish businesses are successful in this regard.
79. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the role he expects for reform throughout the public sector to impact on economic performance in the future; and if he will make a statement on the matter. [21922/18]
Amharc ar fhreagraThe public service is central to economic and social life in Ireland. Significant reforms have been made in recent years and have made the work of the public service more transparent, decision-making more accountable and service delivery more effective and efficient. There has been much progress since the first reform programme was started in 2011, in areas including procurement, shared services and civil service renewal, and public service reform continues to play a key role in Ireland’s development.
Our Public Service 2020, which I launched last December, is a new policy framework designed to build on these previous reforms while expanding the scope of reform to focus more on collaboration, innovation and evaluation. I am confident that Our Public Service 2020 will contribute to the strengthening and further development of our economy over the period of its implementation.
A Public Service Leadership Board comprising Secretary General and CEO level participants from across the civil and public service has also been established to drive the reform agenda and lead on its implementation. This approach will support and enable public servants and their organisations to perform at their best and to work together to deliver high-quality, value-for-money outcomes that will benefit the economy.
As Minister for Finance and Public Expenditure and Reform I must ensure that our fiscal and public expenditure policy is prudent and sustainable. There are a number of budgetary reforms introduced in recent years to guide my decisions on overall fiscal policy in this regard, including fiscal rules, expenditure ceilings and spending reviews. The actions in Our Public Service 2020 will ensure that the focus of the public service is very much on delivery of quality public services, while operating within these prudent limits.
Our Public Service 2020 contains an added focus on evaluation and on the importance of building a reform evaluation culture. The newly established Reform Evaluation Unit will work closely with other units within my Department focusing on performance budgeting and spending reviews to strengthen the links between expenditure and reform. This will take place alongside the work of the Irish Government Economic and Evaluation Service (IGEES) which leads a programme of evaluation of public service delivery across the public service. A series of rolling, selective reviews, which will cover the totality of Government spending over a three-year period to 2019, started in 2017.
80. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which he is satisfied of being able to continue to meet the targets set in the context of spending and reform; and if he will make a statement on the matter. [21923/18]
Amharc ar fhreagra81. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the degree to which each Department continues to maintain good practice in terms of expenditure in keeping with both the effects of the economic recession and the growing demands of the recovery; and if he will make a statement on the matter. [21925/18]
Amharc ar fhreagra82. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform if he remains satisfied that targets in respect of savings and public expenditure reform will continue to be met in the context of economic recovery; if he has identified particular areas of conflict in this regard; if he remains satisfied that economic recovery and retention of public expenditure objectives are not mutually exclusive; and if he will make a statement on the matter. [21926/18]
Amharc ar fhreagraI propose to take Questions Nos. 80 to 82, inclusive, together.
Managing the delivery of public services within allocations and meeting our budgetary targets forms a key part of the responsibilities of every Minister and Department. My own Department is in regular contact with all other Departments and Offices to ensure that expenditure is being managed within the overall fiscal parameters. The drawdown of funds from the Exchequer is reported on each month against expenditure profiles, in the Fiscal Monitor published by the Department of Finance.
As set out in the most recent Fiscal Monitor, total gross voted expenditure at end-April 2018 was €19,216 million. This is €74 million, or 0.4% below profile. Gross voted current expenditure of €18,084 million, is €192 million, or 1.1% ahead of profile. Timing issues relating to Child Benefit and Garda Pension payments, profiled for payment at the start of May but brought forward to April, account for the significant portion of this variance. As outlined in the April Fiscal Monitor, this arose as the Trans-European Automated Real-time Gross settlement Express Transfer (TARGET) system was closed on the first of May due to the European Public Holiday. These timing issues will reverse in May. Health expenditure of €5,152 million was 1.4% above profile.
Gross voted capital expenditure of €1,132 million, is €266 million, or 19% below profile and up €190 million, or 20.1% on April 2017. Capital expenditure in the Department of Housing, Planning and Local Government is running €158 million or 43% behind profile, largely due to a delay in drawing down payments to Irish Water. It is anticipated that these drawdowns will be completed in the coming months bringing expenditure back in line with profile.
As the Deputy will be aware, sound public finances are necessary to underpin sustainable economic growth in the context of our economic recovery. This requires effective and efficient management of overall expenditure. To support this goal, my Department has been engaging with a range of Departments on year two of the Spending Review process, with a view to reinforcing a systematic analysis of existing spending programmes, focusing on an assessment of efficiency, effectiveness and sustainability.
In addition to this, the Public Service Performance Report was published last month and this aims to strengthen focus on what is being delivered with public funds. Performance targets are published in the Revised Estimates Volume each year. This report, provides timely quantitative performance data to help to enhance the focus on performance and delivery by presenting relevant performance indicators in a dedicated, focused document.
