Written Answers Nos. 1-37
13. Deputy Richard Boyd Barrett asked the Minister for Public Expenditure and Reform his plans to renew FEMPI legislation; when a report on same will be laid before the Houses of the Oireachtas; and if he will make a statement on the matter. [29110/18]
Amharc ar fhreagra36. Deputy Bríd Smith asked the Minister for Public Expenditure and Reform the rationale behind continued legislation that designates Ireland's economy as suffering from a financial emergency; and if he will make a statement on the matter. [29108/18]
Amharc ar fhreagraI propose to take Questions Nos. 13 and 36 together.
As the House is aware I am obliged under legislation to:
1. review the operation and effectiveness of the FEMPI legislation, having regard to the overall economic conditions in the State and national competitiveness; and
2. consider whether the relevant Acts continue to be necessary, having regard to amongst other things the revenues of the State.
My review for 2018 was submitted to the Oireachtas last Friday the 29th June in accordance with the legislation.
The Financial Emergency Measures in the Public Interest Acts have been a cornerstone of fiscal consolidation. Over the period 2008 – 2014 FEMPI pay measures were responsible for a €2.1 billion reduction in the public service pay bill.
Responsible management of the public service pay bill has allowed the Government to prioritise recruitment to public services. In total between Q4 2013 and Q1 2018 an additional 32,075 public servants have been recruited to meet demands for enhanced public service delivery. These include 7,941 teachers, 3,470 Special Needs Assistants, 2,726 Health and Social Care Professionals, 4,234 nurses and 1,832 consultants/doctors/dentists.
Progress across other socio-economic priorities would not be possible to the same extent if the FEMPI legislation was repealed in one Budget year. For this reason we have negotiated a gradual and sustainable exit from the FEMPI acts with the commitment of approx €1.3bn through the Public Service Stability Agreement and the Public Service Pay and Pensions Act which the Oireachtas passed in December of last year. This agreement and legislation will complete the unwinding of the emergency legislation that we commenced with the Lansdowne Road Agreement. The gradual and negotiated repeal of the FEMPI legislation delivers on commitments made under the confidence and supply agreement and the programme for partnership government.
The terms of the Public Service Stability Agreement 2018-2020 facilitated by the enactment of the Public Service Pay and Pensions Act 2017, delivers real pay benefits to public servants ranging from 7.4% to 6.2% with the greater benefits going to the lower paid. The Agreement provides fair pay increases to public servants, is fair to tax payers and enables us to make progress in other areas that are important to our society, particularly capital investment in our schools, towns and hospitals.
14. Deputy Brendan Smith asked the Minister for Public Expenditure and Reform the discussions he has held with the authorities in Northern Ireland on the need to carry out drainage work on the River Erne in counties Cavan and Fermanagh; the proposals there are to have such works undertaken; and if he will make a statement on the matter. [29087/18]
Amharc ar fhreagraThere are a number of watercourses including the river Erne that flow between the Republic of Ireland and Northern Ireland. The Office of Public Works (OPW) has a long-standing working relationship with the Department of Infrastructure, Rivers (Dfl Rivers) which is the competent authority for the implementation of the ‘EU Floods Directive’ in Northern Ireland.
In 2009, the OPW and Dfl Rivers agreed to establish a Cross-Border Co-ordination Group to co-ordinate the implementation of the ‘EU Floods Directive’ across the border. This work was supported by a Cross-Border Technical Co-ordination Group. These groups have met on a number of occasions to co-ordinate their respective work to screen and assess the flood risk and to prepare plans to manage flood risk in border areas.
The Erne Catchment was assessed under the OPW’s Catchment Flood Risk Assessment and Management Programme, in close co-operation with the Department for Infrastructure, Northern Ireland. The study considered increasing watercourse conveyance of the Erne system to lower water levels as a measure to reduce flood risk. This study revealed that water levels in the majority of the Erne catchment in Ireland, remain unchanged regardless of any works that could be carried out in Northern Ireland.
The OPW does not have Arterial Drainage Schemes on the River Erne system in County Cavan and is not responsible for channel maintenance in the area in accordance with its statutory requirements under the Arterial Drainage Act, 1945. However parts of the Erne Catchment are a Drainage District for which the local authority is responsible for ongoing maintenance.
15. Deputy Charlie McConalogue asked the Minister for Public Expenditure and Reform the levels of capital expenditure which will be allocated for infrastructure projects in County Donegal; the timeframe for these allocations; the projects for which funding will be provided; and if he will make a statement on the matter. [28826/18]
Amharc ar fhreagraIn my role as Minister for Public Expenditure and Reform I am responsible for setting the overall capital allocations across Departments and for monitoring monthly expenditure at a Departmental level. Decisions on how and where those allocations are invested by Departments are a matter, in the first instance, for my ministerial colleagues.
The ten-year National Development Plan (NDP) has been put in place to underpin the implementation of the National Planning Framework (NPF) and to support the development of all counties and regions, both urban and rural areas, including County Donegal.
Total funding of €8.8 billion is allocated to the Strategic Outcome of strengthened rural economies and communities which is a cornerstone of NDP, including in relation to the delivery of the National Broadband Plan and significant investment in regional and local roads. The NDP also contains, as a priority, increased investment in public transport and ongoing investment in the Local Link Programme.
In the context of Brexit, the NDP represents a particular step change for the northern part of the island of Ireland, including Donegal and the North-West. For example, the NDP provides for investment to support the ambition for development of the region such as the N2/A5 road serving Meath, Monaghan and Donegal.
A major capital projects tracker was published in September 2017 on the website of my Department. This tracker is currently being updated following the launch of the NDP and the updated version will be published shortly which will feature details of the key projects being implemented under the Plan.
Under the NPF the three Regional Assemblies are now responsible for co-ordinating, promoting and supporting the strategic planning and sustainable development of their regions, consistent with the objectives of the NPF, through the preparation of Regional Spatial and Economic Strategies (RSES). The strategy for the Northern and Western Region provides the opportunity for the priorities for Donegal, for example the priorities included in the existing County Development Plan, to focus on sustainable growth, quality of life and on achievable employment and population growth within Donegal and the Northern and Western Region to be integrated into a regional investment plan which is expected to be a major driver of the implementation of the NPF.
16. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which he expects public expenditure and reform targets to remain an integral part of economic strategy in the future; the extent to which he is of the view that prudent management in this area is likely to remain beneficial to the future of the country; the extent to which strategy is likely to be guided by the ratio of total outstanding debt, current debt as a percentage of GDP-GNP or alternative; the extent to which performance here compares with other jurisdictions inside and outside the eurozone throughout the European Union; and if he will make a statement on the matter. [29089/18]
Amharc ar fhreagraAs outlined in the Summer Economic Statement published last month, the Government is determined to ensure that the budgetary strategy is based on steady increases in public expenditure underpinned by stable and predictable tax revenues. To deliver on this objective it is essential that expenditure increases to deliver improvements in services are affordable and sustainable over the medium-term. This will require prioritisation and realism in the allocation of resources and a focus on the extent to which public spending is delivering on key policy objectives.
Taking into account risks in the external environment, the Government will prioritise spending that mitigates risk, enhances resilience of the economy and raises our growth capacity. This is the context for Project Ireland 2040 and the capital expenditure allocations set out in the National Development Plan 2018-2017 (NDP). The increases in investment set out in the NDP will move Ireland’s public capital investment, as a share of national income, from relatively low levels following the recent recession to amongst the highest in the EU.
Public Service Reform has consistently been a key priority, with a comprehensive series of reforms having been implemented since the first Public Service Reform Plan was published in November 2011. The current plan, Our Public Service 2020, sets a path for improvements beyond 2020.
Irish public debt remains high, with the debt-to-GNI* ratio at an estimated 100 per cent last year. Such elevated debt levels weigh on the capacity of the public finances to respond to any economic downturn in the future. Therefore, we must continue to pursue a prudent budgetary policy so that we have room for manoeuvre in the event of a major shock to the economy at some point in future.
17. Deputy Thomas P. Broughan asked the Minister for Public Expenditure and Reform the work he and his officials are carrying out with the Department of Health on reported ongoing deficits in health expenditure; and his views on whether the estimates for health expenditure in 2018 are seriously underestimated. [28988/18]
Amharc ar fhreagraAs Minister for Public Expenditure and Reform I have prioritised the resourcing of our health system. Last year the Budget for the health sector was increased by almost 3.6% bringing the total funding to a record level of €15.3bn. In 2016 Ireland ranked sixth highest in terms of healthcare spend per capita out of all OECD countries.
There has also been a significant increase in the level of staffing. Since the beginning of 2015 to the end of Q1 2018, health staff numbers have increased by over 12,000 FTEs (12 per cent) to 112,526 FTEs. This growth represents nearly half of the increase in total public service staffing in the same period.
As outlined in the recent Summer Economic Statement, given the scale of overall expenditure in the health sector, and the additional resources allocated over the last four years, it is crucial that the Health allocation is managed effectively by the Department of Health and the HSE.
There is an ongoing process for monitoring expenditure in the Department of Health which includes the submission of monthly returns and regular meetings at Ministerial and official level. The Mid-Year Expenditure Report will review the overall expenditure position, outline further details of emerging trends at that stage, and also examine the scope for the provision of additional funding if necessary.
18. Deputy Niamh Smyth asked the Minister for Public Expenditure and Reform if discussions have taken place in his Department on providing funding for the east-west link road and rural roads in general; and if he will make a statement on the matter. [29114/18]
Amharc ar fhreagraThere have been no discussions within my Department on the east west link road and rural roads in general.
I understand the Minister for Transport Tourism and Sport has responded to the Deputy on this issue in PQ 24501 on 12 June 2018.
19. Deputy Thomas P. Broughan asked the Minister for Public Expenditure and Reform if the budgetary expenditure projections for 2017-2021 in the summer economic statement 2018 include provisions for possible Brexit outcomes; and if he will make a statement on the matter. [28987/18]
Amharc ar fhreagraPlanning for the withdrawal of the UK from the EU poses a significant challenge, particularly given that the precise nature of the relationship that will exist between the UK and the EU is yet to be agreed. The impact of Brexit will depend on the outcome of the ongoing negotiations. While this poses challenges in planning our response, it is important to note that Ireland’s economy is in a strong position to deal with these challenges. As set out in the Summer Economic Statement the central scenario for fiscal and economic planning purposes in Ireland is that a transition arrangement will be agreed that will cover the period from end-March next year until end-2020.
Supporting the areas of our economy that may find themselves significantly impacted by Brexit has already been a key element of the Government’s response. To this end, Budget 2018 provided for additional expenditure amounts specifically for Brexit-related measures across a number of Departments, including the Department of Foreign Affairs and Trade; the Department of Business, Enterprise and Innovation; the Department of Transport, Tourism and Sport; and the Department of Agriculture, Food and the Marine.
Taking into account risks in the external environment, in particular Brexit, the Government will prioritise spending that mitigates risk, enhances resilience of the economy and raises our growth capacity. This is the context for Project Ireland 2040 and the capital expenditure allocations set out in the National Development Plan 2018-2017 (NDP). The increases in investment set out in the NDP will move Ireland’s public capital investment, as a share of national income, from relatively low levels following the recent recession to amongst the highest in the EU. €5.8 billion has been allocated to gross voted capital expenditure this year. This is to be increased by an additional €1.5 billion next year to €7.3 billion. Further increases in the coming years will bring the annual investment up to €8.6 billion in 2021.
20. Deputy Barry Cowen asked the Minister for Public Expenditure and Reform the outcome of consultation between the Minister of State with responsibility for the Office of Public Works and flood relief and an organisation (details supplied) on the provision of insurance in areas protected by demountable flood defence systems; and if he will make a statement on the matter. [29054/18]
Amharc ar fhreagraThe Government’s strategy for flood insurance is in return to its investment on flood defence schemes, households and businesses should be able to access flood insurance.
While the Office of Public Works has no responsibility for oversight or regulation of the insurance industry in relation to flood risk insurance, or to insurance matters generally, the Office of Public Works has a very specific role in the exchange of information with the insurance industry in relation to completed flood defence schemes.
On 24 March 2014, the Office of Public Works agreed a Memorandum of Understanding with Insurance Ireland, the representative body for the insurance companies in Ireland. This Memorandum of Understanding has a specific focus with agreeing a basis on which information can be provided to the insurance industry on flood relief schemes completed by the OPW to an agreed standard of protection desired by the industry.
The Memorandum came into effect on 1 June, 2014 with an initial tranche of data provided by the Office of Public Works to Insurance Ireland in respect of twelve completed flood defence schemes; showing the design, extent and nature of the protections offered by these works. Details of a further five schemes were provided in January 2015 and details of the Waterford Flood Defence Scheme were provided last year.
The Department of Finance and the OPW meet with Insurance Ireland on a quarterly basis in order to address issues in relation to this transfer of data. The insurance sector has acknowledged that demountable defences are designed and when properly erected meet the desired standard. The OPW has given Insurance Ireland detailed information it sought to explain the protocols and procedures in place to maintain, test and erect demountable defences. Discussions are continuing with the Department of Finance to explore options to address the industry’s concerns about the ‘human element’ of demountable defences.
The Memorandum notes the OPW requirement that, when assessing exposure to flood risk, insurers take full account of information provided by the OPW on completed flood defence schemes. The Memorandum does not guarantee the availability of flood risk cover in the locations for which information has been provided by the OPW, and it accepts that the provision of cover, the level of premiums charged and the policy terms applied are a matter for individual insurers
21. Deputy Barry Cowen asked the Minister for Public Expenditure and Reform if he has engaged with retired public servants on pension restoration; and if he will make a statement on the matter. [29058/18]
Amharc ar fhreagraI and my Department are fully committed to maintaining the well-established dialogue with the Alliance of Retired Public Servants. Through ongoing recourse to that dialogue process, I believe that retired public servants and their representatives can be confident that their pension concerns will receive full and proper consideration as they have done in the past.
The interests and concerns of public service pensioners in relation to public service pension issues have been regularly articulated in meetings between the Alliance of Retired Public Servants and my Department. This engagement has also included meetings between the Alliance, myself and my predecessor. Through that process of engagement with the Alliance, I believe that public service pensioners have had, and continue to be afforded, a meaningful and direct means of articulating their concerns in relation to pensions and related issues.
I and my Department have also engaged with retired public servants, through correspondence such as representations.
22. Deputy Clare Daly asked the Minister for Public Expenditure and Reform the steps being taken to prevent further coastal damage at Portrane in the immediate term and the development of a long-term plan to ensure the safety of the homes in the area that are in danger due to damage to the dunes; and if he will make a statement on the matter. [28675/18]
Amharc ar fhreagraI am very familiar with the situation at Portrane and I have visited the area and have been briefed by Fingal County Council on the problem. Fingal County Council is leading on this issue as it lies within its functional area and it is a matter for local authorities in the first instance to assess and address problems of coastal erosion in their areas. I fully appreciate the serious concerns of the local people and I and the Office of Public Works (OPW) are working with the Council to assist it in finding a proper long term solution to the problems at Portrane.
On 1 June 2018 a meeting took place between Fingal County Council and the National Parks and Wildlife Service (NPWS) with OPW in attendance to update all bodies on the current situation at Portrane and to jointly examine the optimum way forward to deal with this serious problem. Due to the complexity of the issues and the health and safety risks involved, priority is being given to the identification of feasible interim measures to address these risks in the short term. I am advised that RPS, who are the engineering consultants engaged by Fingal County Council in this matter, have just last week submitted to the Council details of such interim measures and proposals for their implementation. These proposals are being considered by the relevant agencies with a view to their earliest possible implementation where feasible.
In addition a potential permanent coastal protection option has been identified and this is currently being further assessed.
The OPW is committed to working closely with Fingal County Council to assist the Council in finding and implementing feasible measures to address the problem at Portrane in the immediate term and to develop and put in place a long term, sustainable solution to the issue of coastal erosion at Portrane.
I would acknowledge the work and contribution which the local community have made in highlighting and seeking solutions to the problem at Portrane. Fingal County Council will continue to work with the local community and will keep it updated on progress to address its concerns.
23. Deputy Brendan Smith asked the Minister for Public Expenditure and Reform if specific funding will be provided to local authorities such as counties Cavan and Monaghan for improvement works on roads which were damaged due to flooding during recent successive winters; and if he will make a statement on the matter. [29086/18]
Amharc ar fhreagraAs recently outlined by the Minister for Transport, Tourism and Sport (PQ 14780/18) the improvement and maintenance of regional and local roads is the statutory responsibility of local authorities, in accordance with the provisions of Section 13 of the Roads Act 1993. Works on those roads are funded from the Council's own resources supplemented by State road grants. The initial selection and prioritisation of works to be funded is also a matter for the local authority.
The 2018 regional and local road allocations (total €417m) were announced by the Minister for Transport, Tourism and Sport earlier this year and all grant funding available has now been allocated.
Question:
370. Deputy Brendan Smith asked the Minister for Transport, Tourism and Sport if additional funding will be allocated to Cavan and Monaghan county councils for road improvements in view of the substantial damage to roads caused by recent storms; and if he will make a statement on the matter. [14780/18]
The improvement and maintenance of regional and local are the statutory responsibilities of Monaghan and Cavan County Councils, in accordance with the provisions of Section 13 of the Roads Act 1993. Works on those roads are funded from the Council's own resources supplemented by State road grants. The initial selection and prioritisation of works to be funded is also a matter for the local authority.
As indicated previously to the Deputy, I announced the 2018 regional and local road allocations on 29th January and all grant funding available to my Department has now been allocated. Cavan County Council was allocated €10.7million, an increase of €1.6million compared to the 2017 allocation, and Monaghan County Council was allocated €9.1million, and increase of €1.5million, compared to the 2017 allocation. It is for each Council to determine its priorities and decide its work programme on that basis, taking available grant funding and its own resources into account. There is no additional funding available to my Department.
I am aware that my colleague the Minister for Housing, Planning and Local Government has written to local authorities indicating that claims can be submitted to that Department for recoupment of costs associated with clean-up works and necessary immediate works which were undertaken in the aftermath of the recent severe weather.
It is a matter for each Council to determine its priorities and decide its work programme on that basis, taking available grant funding and its own resources into account.
24. Deputy Charlie McConalogue asked the Minister for Public Expenditure and Reform if he has held discussions with the European Commission on the possible allocation of additional funding for the Border region in view of the particular challenges that will arise in that area following Brexit and the need to improve infrastructure to assist existing businesses remain competitive; and if he will make a statement on the matter. [28825/18]
Amharc ar fhreagraAs the Deputy will be aware, the EU-funded cross-border programmes, PEACE and INTERREG, have been important drivers of regional development for the border region of Ireland and Northern Ireland for more than a quarter of a century. Through EU-funded cooperation, a range of Departments, agencies and organisations, North and South, have engaged in and benefitted from a variety of cross-border and cross-community projects.
The Government’s consistent position has been that it is committed to the successful implementation of the current PEACE and INTERREG programmes and to successor programmes post-2020.
In the two years that have elapsed since the UK referendum on EU membership, my officials and I have been working with the European Commission at all levels to ensure that this important source of funding for the border region continues post-Brexit. I have met Regional Policy Commissioner Corina Cretu to discuss the matter and I have invited her to visit the border region to see for herself the impact the programmes are having on the ground. I have also raised the matter at the General Affairs Council, meeting in Cohesion Policy formation, and my officials continue to work closely with their colleagues in the Commission.
I was pleased, therefore, that the Government’s ambition for the programmes was reflected in December’s EU-UK Joint Report on Brexit in which both parties undertook to honour their commitments to the PEACE and INTERREG programmes under the current Multiannual Financial Framework and to examine the possibilities for future support favourably. This was matched by a commitment from the Commission to propose the continuation of the programmes in its proposal for the next MFF covering the period 2021-2027.
This has now happened, and I warmly welcome the Commission’s recent proposal for a special new PEACE PLUS programme which will build on and continue the work of successive PEACE and INTERREG programmes. My officials and I will continue to work with the Commission on the development of this new programme to ensure that the challenges facing the border region are addressed.
25. Deputy Thomas Byrne asked the Minister for Public Expenditure and Reform his plans to deliver a playground at a location (details supplied) for which planning permission already exists. [28767/18]
Amharc ar fhreagraThere are no plans to proceed with the development of a playground on the Oldbridge Estate, County Meath. While Planning Permission for a playground was granted in September 2011, it expired in November 2016. The development did not proceed as funds were not available in the Office of Public Works and a request for a financial contribution from the Local Authority was declined.
26. Deputy Joan Burton asked the Minister for Public Expenditure and Reform when the inter-departmental inter-agency group he established in 2017 to review Ireland’s experience of using PPPs will report; the detail of the ongoing work on same; and if he will make a statement on the matter. [28990/18]
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 will be publishing the report after bringing it to Government for information in the coming weeks.
However, it should be noted that 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, 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.
27. Deputy Clare Daly asked the Minister for Public Expenditure and Reform further to Parliamentary Question No. 14 of 17 May 2018, if work has concluded on revision of the estimated cost associated with new entrants in the Department of Defence highlighted in the report on the cost of dealing with pay equalisation for new entrants to the public service laid before the Houses of the Oireachtas in March 2018; and if so, the estimated cost of same. [28676/18]
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 the 16th of March.
This report estimated the overall cost of a two point increment adjustment at €200m for the 60,500 staff identified as new entrants. Of this, approximately €3m is associated with new entrants in the Department of Defence. As a result of additional information supplied, the estimated cost in the Department of Defence has increased but as expected, this has not materially impacted the overall cost of approximately €195- €200m per annum.
28. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the degree to which he plans to incorporate further reforms throughout the civil and public service with a view to achieving better value for money, improved economic impact and delivery of services to the public; and if he will make a statement on the matter. [29088/18]
Amharc ar fhreagraI am pleased to inform the Deputy that a new phase of public service reform is already underway, as set out in the framework document Our Public Service 2020, which I launched last December. Let me assure him that public service reform remains an integral part of the Government’s economic strategy in order to enable us to continue to improve outcomes for the public.
In the case of the Civil Service, the Deputy will also be aware of the ambitious programme of reform under the Civil Service Renewal Plan aimed at creating a more unified, professional, responsive, open and accountable Civil Service providing a world-class service to the State and to the people of Ireland. Significant progress has been made in implementing the actions under that three-year Plan and work is now underway on developing a refreshed Plan for the next phase of Civil Service Renewal to 2020 which will align with Our Public Service 2020.
Our Public Service 2020 seeks better outcomes for the public, to support innovation and collaboration and to build public service organisations that are resilient and agile. It contains strong links between expenditure and reform in order to achieve the desirable outcomes set out in the Deputy’s question. The aim is to ensure that real reform is delivered and that there is a continued emphasis on ensuring value-for-money principles are adhered to across the public service. Ensuring value for the taxpayer is an important element of managing the costs of public services and maintaining stable public finances.
I am confident that the implementation of the actions contained in Our Public Service 2020 will have an ongoing positive impact on economic performance and improved service delivery to the public in the future.
29. Deputy Bobby Aylward asked the Minister for Public Expenditure and Reform his views on the public objection and local opposition to aspects of the proposed flood relief plans for Ballyhale, County Kilkenny; and if he will make a statement on the matter. [28832/18]
Amharc ar fhreagraThe Catchment Flood Risk Assessment and Management (CFRAM) Programme was the largest ever flood risk study carried out in the State; covering 300 areas believed to be at significant flood risk, and culminated with the launch of 29 Flood Risk Management Plans on 3 May 2018, and 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).
All of these projects are to be funded under the Government's 10 year flood risk investment programme of almost €1 billion under the National Development Plan 2018 – 2027.
As it is not possible to progress all 118 proposed new schemes at once, funding of €257 million for an initial phase of 50 flood relief projects throughout the country was also announced which would be progressed to detailed design and construction; including the five largest schemes identified in the Plans and 31 small, or minor projects, under €1 million which will be progressed directly by local authorities.
The proposed flood relief works at Ballyhale, Co. Kilkenny comprise one of the minor outline flood relief projects, which is to involve the construction of an embankment and flow diversion from the Ballyhale watercourse to the Little Arrigle River and will protect twenty-five properties when completed.
It is important to emphasise that all of the proposed schemes, including the proposed project for Ballyhale, were developed through the CFRAM Programme to outline design only, which means they are not, at this point, final, definitive, nor ready for construction. Further detailed design through a project-level of assessment will be required for such works before implementation. This process will include further public and stakeholder consultation and engagement, project-level environmental assessment and appraisal (which would include an Environmental Impact Assessment and Appropriate Assessment where relevant) and a statutory planning process.
Local information that was not captured at the Plan-level assessment will be collected and assessed by Kilkenny County Council during the next stage of development for the project and may potentially give rise to changes to the proposed works to ensure that they are viable and fully adapted, developed and appropriate within the local context, and that they are compliant with environmental legislation. The proposed works set out in the current outline may therefore be subject to some amendments prior to implementation.
It is acknowledged that the route of the proposed diversion channel as shown in the outline plan is through lands owned by the Ballyhale Shamrock GAA club. However, as this proposal is at outline design stage and subject to further consultation, there is scope for addressing the concerns of the Ballyhale community prior to the design of the proposed works being finalised.
A new website, www.floodinfo.ie, launched on 3 May 2018, provides access to the published Flood Plans along with the Flood Maps developed by the OPW and information about flood risk management in Ireland.
30. Deputy Mick Barry asked the Minister for Public Expenditure and Reform the engagements his Department will have with the public sector committee of an organisation (details supplied) between now and budget 2019; and if he will make a statement on the matter. [29100/18]
Amharc ar fhreagraAt this point I have no fixed arrangement to meet the Public Services Committee of ICTU, however officials in my Department do regularly engage with the Public Services Committee on a range of issues.
More broadly the reformed budgetary process allows for engagement in advance of the Budget, particularly through the National Economic Dialogue. The fourth National Economic Dialogue took place on 27 and 28 June 2018. The objective of the dialogue is to facilitate an open and inclusive exchange on the competing economic and social priorities facing the Government. It also aims to assist groups with their pre-budget submissions. Representatives of community, voluntary and environmental groups as well as business, unions, research institutes, the academic community and the diaspora were in attendance. ICTU were active contributers to discussions.
31. Deputy Mick Barry asked the Minister for Public Expenditure and Reform if the public private partnership model of funding public projects has been reappraised in view of the winding up of a company (details supplied) which had publicly funded projects sub-contracted to it from another company which has also gone into liquidation; and if he will make a statement on the matter. [29099/18]
Amharc ar fhreagraThe Public Private Partnership (PPP) model is an internationally recognised model to design, build, finance, operate and maintain public infrastructure. In accordance with international best practice, PPP contracts already typically include detailed provisions that apply in the event of the liquidation of a consortium member of the PPP company, or an entity under the contract, to protect the public interest and ensure that the project proceeds to completion.
Under the terms of such PPP contracts, in the case of liquidation of a consortium member, or an entity under the contract, the PPP consortium’s funders and remaining shareholders are required to intervene and implement rectification measures to ensure that the project is completed to the satisfaction of the State. Liquidation of a company involved in delivering a public infrastructure project is an unfortunate and unforeseen development but would impact on any project where a supplier became insolvent during the delivery process, regardless of whether the project was being procured by PPP or by traditional means. The issue, therefore, is not PPP-specific, but where it arises in a PPP project, the provisions of the PPP contract ensure that the public interest is protected.
It is worth bearing in mind that this is not the first time a PPP in Ireland has experienced issues with its construction contractor, which is not uncommon given the risks inherent in the construction market. In all previous similar cases, the projects were completed successfully and are now fully operational. These examples demonstrate the resilience of the PPP contractual structure and underline the importance of adhering to the contractual documentation in resolving issues - which has previously been raised as a negative feature associated with PPPs.
In these circumstances, I think the current focus should be on resolving the immediate practical issues arising from the untimely and unfortunate liquidation of both Sammon and Carillion. Once these matters are fully and satisfactorily resolved, and the Schools Bundle is delivered to the Sponsoring Agency, I would be open to a review of the experience with the project at that point, that explores any lessons to be learned.
32. Deputy Mick Barry asked the Minister for Public Expenditure and Reform if a cost-benefit analysis will be conducted into the outsourcing of public service work to private agencies across Departments and State bodies versus the creation of directly employed public service posts; and if he will make a statement on the matter. [29102/18]
Amharc ar fhreagraThe Government is committed to using alternative models of service delivery, which may include external service delivery (outsourcing), where appropriate, as part of our ongoing drive to provide the most efficient and effective services to the citizen. This commitment was recently renewed in the Government's innovation and development framework, Our Public Service 2020.
Decisions to outsource functions are reached on a case-by-case basis by the organisation or public service body that manages the service or function in question. The Department of Public Expenditure and Reform’s role is to support public service bodies in exploring all service delivery options that are available to them and to ensure evidence-informed decisions are made when selecting a delivery model. In order to meet that objective, the Department has undertaken a substantial programme of learning and development over a number of recent years to up-skill public service managers on best practice around outsourcing using evidence-based techniques.
The Department of Public Expenditure and Reform does not intend to undertake a whole-scale review of outsourcing of all public service work. It should be noted that, in line with existing expenditure policy, public bodies are generally required to examine a number of different factors when exploring the potential to outsource a function. These include issues such as costs, quality, service effectiveness and the public interest. This continues to be the case in respect of any new service that is being considered for delivery by public bodies.
In concluding the Lansdowne Road Agreement in the summer of 2015, a limitation was placed on the ability of public bodies to outsource existing services. In particular, a restriction was introduced which prevented direct comparisons being made between total labour costs for direct provision of a service against the total labour costs of a potential outsourced provider in the preparation of the business case. This limitation remained in place following the extension to the Lansdowne Road agreement concluded in 2017.
The restriction only applies in respect of existing services, that is, services that are currently being provided directly by the State or its agents. It does not apply in respect of newly conceived or planned services.
33. Deputy Jonathan O'Brien asked the Minister for Public Expenditure and Reform his plans to review existing public procurement contracts in view of the liquidation and insolvencies of over 40 construction firms since the beginning of 2018 due to losses incurred from public contracts. [29112/18]
Amharc ar fhreagraI am not aware of any published evidence that links recent construction company insolvencies and liquidations directly with the public works contracts. Insolvency statistics published for Q1 2018 indicate the construction industry recorded 42 insolvencies (22% of the total number of insolvencies), a 17% increase on Q1 2017. Published analysis points to legacy issues related to the property crash rather than the public works contracts as the cause of these insolvencies.
The total capital expenditure channelled through the public works contracts accounts for approximately 20% of the total value of construction output (industry estimates put this at €19.5bn for 2018). Whilst it is accepted that a number of the insolvencies that have arisen involve companies who were operating under public works contracts, those same companies would also have been operating under a range of the other forms of construction contract widely used by private sector construction clients.
Analysis undertaken in the UK in the wake of the collapse of Carillion has highlighted the low margins (between 1 – 2%) generally made by main contractors in a sector that is traditionally seen as high risk. Given the cultural similarities between the UK and Irish construction industries there is every reason to believe low margins are also prevalent in the Irish construction sector. This culture must be addressed by the industry if it is to service its client base in a professional manner.
The impact of awarding contracts at low prices was highlighted in the Report on the Review of the Performance of the Public Works Contracts published in 2014. A range of measures was recommended in that report to discourage unsustainably low prices, amongst other aspects. Most of these measures have been implemented since 2016 and are designed to give contracting authorities much greater detail on the price make-up.
A further measure identified in the Report is the development of a medium term strategy for the procurement of public works projects. Engagement with industry stakeholder bodies has recently commenced on that strategy which will outline the optimum means of procuring the necessary expertise to deliver public works projects in a sustainable, efficient and cost effective manner.
34. Deputy Joan Burton asked the Minister for Public Expenditure and Reform if an evaluation has been carried out of the cost to the Exchequer of failure to meet the Paris Agreement's targets in respect of climate change; his plans to reform the tax system in line with the Paris Agreement; if there will be plans in budget 2019 to reduce carbon use; and if he will make a statement on the matter. [28992/18]
Amharc ar fhreagraThe primary aim of the Paris Climate Agreement is to hold the increase in the global average temperature to well below 2 °C above pre-industrial levels and to pursue efforts to limit the temperature increase to 1.5 °C above pre-industrial levels. The agreement does not specify any emissions reduction targets for individual parties to the agreement.
However Ireland, in common with all EU Member States, has signed up to deliver its contribution to the Paris Agreement through the EU’s Intended Nationally Determined Contribution. This commits the EU to collectively delivering a reduction in emissions of at least 40% by 2030 against 1990 levels. Ireland’s share of this overall EU target has been set at a 30% reduction in national emissions by 2030 against 2005 levels.
Co-ordination of the national approach to achieving this target is, in the first instance, a matter for my colleague the Minister for Communications, Climate Action and Environment. However, my Department remains in close contact with the Minister’s Department in relation to any Exchequer implications arising out of compliance with this target.
It is the long standing practice not to comment on measures which may or may not be included in the upcoming Budget. However, in relation to taxation I can say that as part of the joint research programme between the Department of Finance and the ESRI, the ESRI has carried out an analysis which examines the impacts of increasing the carbon tax rate in Ireland. This paper analyses the economic, environmental and households impacts of increasing the carbon tax rate using an Energy Social Accounting Matrix. The findings of the paper together with a number of other policy options in respect of energy and environmental taxation are due to be presented to the Tax Strategy Group in July.
On expenditure, the Deputy will note that the Government recently demonstrated its commitment to addressing climate change with an unprecedented €22 billion capital funding allocation for climate initiatives over the next decade as part of the National Development Plan (NDP). This will be complemented by a further €8.6 billion investment in sustainable mobility measures. This commitment marks a step change in public investment on climate action and will demonstrate that Ireland is serious about meeting our climate commitments.
35. Deputy Barry Cowen asked the Minister for Public Expenditure and Reform if he has been in consultation with the Department of Health on the outcome of the audit on pay restoration for section 39 workers; and if he will make a statement on the matter. [29057/18]
Amharc ar fhreagraIn regard to the specific issue the Deputy raises, I should point out that as Minister for Public Expenditure and Reform I have no statutory role in respect of Section 39 organizations which are the responsibility of my colleague the Minister for Health.
As the Deputy will appreciate, my officials are routinely in consultation with the Department of Health on a broad range of matters relating to the health sector and, in this context, a copy of the interim HSE Report on pay restoration issues in Section 39 organizations was copied to my Department for information purposes.
However, questions in regard to Section 39 organisations or the HSE led process underway should be directed to the Minister for Health.
37. Deputy Thomas P. Broughan asked the Minister for Public Expenditure and Reform if he will report on the 2018 spending review and the role and work of the IGEES in the 2019 budgetary process. [28989/18]
Amharc ar fhreagraAs the Deputy will be aware, the Spending Review 2017-2019 was announced as part of my Budget day speech in 2016. This review differs from previous Comprehensive Reviews of Expenditure, with the introduction of a rolling system of selective reviews that will seek to examine the significant portion of current expenditure over the three year period from 2017 to 2019.
This redesigned process looks to shift the emphasis away from the incremental nature of the annual Estimates process, with a focus instead on assessing the effectiveness of the totality of existing programmes. The rolling three-year nature of the current spending review will allow for the build-up of expertise and awareness of the process, allow analysts to revisit key topics if issues are emerging, and further embed an ongoing evaluation culture across the Public Service.
Last year’s Spending Review culminated in the publication of over 20 analytical papers, most published alongside the Mid-Year Expenditure Report in July, with the remainder published following the publication of Budget 2018 in October last year. Work on this year's Spending Review is still ongoing. It is planned that the Spending Review and associated papers will be published with the Mid-Year Expenditure Report in mid-July. In line with last year a small number of papers may also be published at Budget time in October. With publication of the Spending Review papers in July, this allows the Spending Review analysis to inform the budgetary discussions that take place as part of the Estimates process.
The Irish Government Economic and Evaluation Service (IGEES) is core to delivering the work on the Spending Review. IGEES is an integrated, cross-Government service that aims to support better policy formulation and implementation in the civil service through economic analysis and evaluation.
IGEES is not a standalone service. IGEES staff are part of each Department. By operating as a cross Government service, IGEES supports and builds economic and evaluation capacity and consistency across the civil service. IGEES staff in Departments prepare analysis as part of the Spending Review and to inform the annual budgetary process as directed by their Departmental business plans.
IGEES hosts a Spending Review Conference to provide an opportunity for all Departments to come together to discuss the analysis being conducted to inform the Spending Review. This supports a wider capacity building in analysis and evidence in the Civil Service. It provides a forum for analysts to talk about the challenges in conducting analysis, potential solutions, and how analysis can inform policy choices.
The IGEES Work Programme for 2018 can be found on the IGEES website at https://igees.gov.ie/publications/igees-corporate-programme/. It sets out the work being conducted within each Department in 2018 and highlights cross Departmental collaboration on analysis to inform policy.
