Written Answers Nos. 29-43
29. Deputy Ged Nash asked the Minister for Public Expenditure and Reform if he will provide an update on the under-profile and outturn of capital expenditure to date in 2021; if he will provide an update on the revised National Development Plan; if the National Development Plan will address the recent IPCC report and set out clear plans and targets with respect to climate action; and if he will make a statement on the matter. [45499/21]
Amharc ar fhreagraAs the Deputy will be aware, the drawdown of capital expenditure from the Exchequer is detailed each month and is publically available in the Fiscal Monitor, which is published on the gov.ie website. All line Departments and agencies submit information on their expenditure levels against profile to my Department, along with an explanation outlining details regarding any variance of under or over spending against profile.
The latest capital expenditure figures available to end-August reveal that the net capital spend, including capital carryover, was €4,153 million. When the carryover amount is omitted, the net capital spend amounts to €3,726 million, which is 14.8% or €649 million behind the profiled amount of €4,375 million, with all but one Department declaring underspends against profile.
While there was an impact on building activity earlier this year, due to Covid restrictions, activity in the sector has ramped up significantly since sites re-opened when restrictions were lifted in April. With this increased activity, Departments generally expect spending to realign with profiled expenditure as the year progresses.
The revised NDP is currently being finalised and it will set out annual expenditure ceilings for the initial 5 years for each Departmental Vote Group, including capital ceilings for 2022. This document is due to be published in the coming weeks, following final Governmental approval.
As part of the Programme for Government the review was brought forward from 2022 in order to assess the resourcing requirements for the most important challenges facing us as a nation including Covid-19, climate action, housing, balanced regional development and healthcare.
The revised NDP will address the recent IPCC report and in recognition of the importance of the climate objectives for the Government in the coming years, through the renewal of the Climate Action Plan and the new Climate Bill, the impact on climate and the environment will take a more central role within the new NDP. It will be important to ensure that the NDP is consistent with recent and upcoming commitments from the Irish Government to become carbon neutral by 2050 and to meet the more immediate climate targets by 2030.
30. Deputy Cormac Devlin asked the Minister for Public Expenditure and Reform if all public sector workers will be receiving a pay rise on 1 October 2021; and if he will make a statement on the matter. [45686/21]
Amharc ar fhreagraSection 3.1.3 of Building Momentum - A New Public Service Agreement 2021-2022 provides for a general round increase in annualised basic salary for all public servants of 1% or €500, whichever is greater, on October 2021.
Under section 19 of the Public Service Pay and Pensions Act 2017, public servants with annualised basic salaries of up to €150,000 were due full FEMPI restoration on 1 July 2021. This brought the proportion of public servants whose salaries have been restored to pre-FEMPI levels to 99%. Those with annualised basic salaries of over €150,000 will be due full FEMPI restoration on 1 July 2022, in line with section 20 of the Act.
Section 3.1.4. of Building Momentum states that public servants who are due an amount of pay restoration in 2021 or 2022, under Section 19 and 20 of the Public Service Pay and Pensions Act 2017, respectively, will not receive the general round increase in that year. However, if the amount of restoration due is less than the general round increase, they will be paid the balance on the date of the general round increase.
The benefits of the Agreement will be confined to those employees represented by unions in membership of the Irish Congress of Trade Unions or other unions or representative associations which have notified the WRC of their intention to comply with the Agreement. The vast majority of public service unions have signed up to the public service Agreement.
31. Deputy Joe Flaherty asked the Minister for Public Expenditure and Reform the status of the National Recovery and Resilience Plan; and if he will make a statement on the matter. [45714/21]
Amharc ar fhreagraThe National Recovery and Resilience Plan will enable Ireland to access funding under the EU’s Recovery and Resilience Facility, which lies at the heart of the Union’s €800 billion NextGenerationEU recovery package.
The aim of NextGenerationEU is to help repair the immediate economic and social damage brought about by the pandemic and prepare for a post-Covid Europe that is greener, more digital, more resilient and fit to face the future.
The National Recovery and Resilience Plan has been developed by the Government in close cooperation with the European Commission, taking into account the RRF prioritisation of green and digital transition and the challenges identified as part of the European Semester process.
The Plan has a total value of €990 million. Its overall objective is to contribute to a sustainable, equitable, green and digital recovery, in a manner that complements and supports the Government’s broader recovery effort. It is aligned with domestic policies, notably the Economic Recovery Plan and the National Development Plan.
The Plan is based on twenty five investment projects and reform measures spanning three priority areas addressing green and digital transition, along with social and economic recovery and job creation.
Ireland’s draft Plan was submitted to the European Commission on 28 May 2021. On 16 July 2021 Commission President Ursula von der Leyen travelled to Dublin to present the Commission’s positive assessment of the Plan to the Taoiseach. The Plan was then considered by ECOFIN on 6 September 2021, and a Council Implementing Decision was adopted by written procedure on 8 September 2021.
On 21 September 2021 I met Economy Commissioner Paolo Gentiloni to discuss our Plan and we both took part in an online stakeholder event hosted by the Institute of International and European Affairs.
Now that the Implementing Decision has been adopted by the Council, the Plan will be the subject of a Financing Agreement between the Commission and Ireland.
32. Deputy Ged Nash asked the Minister for Public Expenditure and Reform if he has held discussions with the Minister for Finance with regard to the need to raise additional revenue to fund permanent current expenditure increases given his intention that Government borrowing would only be for capital investment purposes by 2023 as stated in his recent updates to the Cabinet on Expenditure Management and Spending Strategy for Budget 2022 (details supplied); and if he will make a statement on the matter. [45497/21]
Amharc ar fhreagraAs outlined in the Summer Economic Statement (SES), anchoring core expenditure growth to an appropriate trend growth rate for the economy of c. 5% per annum, along with a phased unwinding of the exceptional Covid-19 expenditure, can provide a pathway back to a more sustainable budgetary position, while also providing the necessary resources to enhance our public services, social supports and infrastructure.
In line with the expenditure strategy laid out in the SES the expenditure ceiling for 2022 will be €88.2 billion, €80.1 billion of which will be for core expenditure. This amounts to a €4.2 billion or 5.5% increase in core expenditure, comprising €3.1 billion in current expenditure and €1.1 billion or almost 12% in capital expenditure.
Further to this a provision of up to €7 billion has been made for temporary spending measures to address the impacts of Covid-19 next year. In addition, funding for eligible measures as part of Ireland’s €1.1 billion allocation under the Brexit Adjustment Reserve is available to be allocated across Budget 2022 and Budget 2023.
The fiscal strategy set out in the SES will ensure that we reduce the deficit in an orderly manner to the point that we are only borrowing for capital investment purposes by 2023. Achieving this target is essential both to support society and the economy to recover from the impact of Covid-19 and to return our public finances to a sustainable position. Such sustainability in our public finances will ensure that we are in a position to address key priorities for our people in housing, health, education and climate action, while also placing us in a position to respond to future challenges.
34. Deputy Holly Cairns asked the Minister for Public Expenditure and Reform when the flood relief scheme in Skibbereen, County Cork will be officially completed. [45592/21]
Amharc ar fhreagraThe Skibbereen Flood Relief Scheme main construction contract was substantially completed on 6th June 2019. All identified defects arising from the construction have been remedied, albeit with some delays as a result of Covid-19.
Planning for the operation and maintenance of the scheme is ongoing, in conjunction with Cork County Council, who are acting as agents of the OPW in carrying out the statutory operation and maintenance of the scheme. A small number of works to address certain issues identified during construction, which were outside the main construction contract and mostly separate from the Scheme area, remain to be completed and are being progressed in separate work-packages, including the following works at the Cork Road and Rossa Road.
Drainage works planned on Cork Road are not part of the main Scheme, but were subsequently identified as being necessary. Detailed assessments are currently being progressed by Cork County Council and consultants RPS, in conjunction with Transport Infrastructure Ireland (TII), who are providing funding, and the OPW (who are providing some co-funding under the Minor Works & Flood Mitigation Scheme), to identify the most effective solution. The preliminary design report for these works is expected imminently. While work is currently ongoing on the development of a solution, the Council is not yet in a position to confirm the programme times in relation to planning approvals and construction.
Following the flood event which occurred in August 2020 in the Rossa Road area, Cork County Council and its consultants have been undertaking assessments of the problem. Although some assessments have yet to be finalised, some discussions have taken place with a local landowner, with a view to completing some remedial/improvement works. Further works will be progressed once the required reports are completed, and these are understood to be imminent. The OPW is providing funding towards these works under the Minor Works & Flood Mitigation Scheme.
35. Deputy Dara Calleary asked the Minister for Public Expenditure and Reform the current position in relation to the flood alleviation scheme for Crossmolina, County Mayo; and if he will make a statement on the matter. [45421/21]
Amharc ar fhreagra47. Deputy Alan Dillon asked the Minister for Public Expenditure and Reform the status of a scheme (details supplied); when it is likely to proceed to approval; and if he will make a statement on the matter. [45639/21]
Amharc ar fhreagraI propose to take Questions Nos. 35 and 47 together.
The Office of Public Works (OPW) submitted the Crossmolina Flood Relief Scheme documentation to the Minister for Public Expenditure and Reform for Statutory Confirmation under the Arterial Drainage Acts 1945 and 1995 on 28th September 2020.
As part of the Confirmation process, the Department of Public Expenditure and Reform (DPER), appointed independent consultants to carry out a review of the scheme documentation. Following this review, supplementary information was requested by DPER in May 2021 and provided by the OPW in July 2021. The Department Of Public Expenditure and Reform has advised that it has received final technical reports from their environmental consultants on the proposed flood relief scheme, following clarifications sought from the OPW on further information recently provided in relation to the proposed works.
The Department is now finalising its review and a decision by the Minister for Public Expenditure and Reform is imminent.
36. Deputy Brendan Smith asked the Minister for Public Expenditure and Reform if he will report on the PEACE PLUS cross-Border EU programme; and if he will make a statement on the matter. [45423/21]
Amharc ar fhreagraI am pleased to report that the development of the new PEACE PLUS North South EU programme is now at a very advanced stage.
This new cross-border programme for Northern Ireland and the border counties of Ireland was first proposed by the European Commission in 2018. The proposal reflects the ongoing commitment of the European Union, and of the Irish Government and the UK Government, to the support of peace and prosperity in this region. PEACE PLUS will succeed the current INTERREG and PEACE cross-border EU programmes by combining these funding strands into one cohesive new programme for the 2021-27 period, with an anticipated total budget of over €1 billion.
The development of PEACE PLUS has been led by the cross-border Special EU Programmes Body (SEUPB), working closely with officials of my Department and of the Department of Finance in Northern Ireland. The SEUPB has been assisted by a cross-sectoral Programme Development Steering Group (PDSG), consisting of representatives of central and local government, environmental, rural, voluntary, community, equality, business and trade union groups from both Ireland and Northern Ireland.
The programme development process has been informed by extensive stakeholder engagement. This included an initial public consultation exercise in 2019/2020, involving public events held across the eligible area for PEACE PLUS, and a consultation on the draft programme in 2021, which elicited over three hundred written submissions. Government departments North and South have also engaged throughout the programme development period in order to identify and develop areas of cross-border collaboration.
On foot of this development process, the SEUPB has now finalised an ambitious draft PEACE PLUS programme based on a budget of over €1 billion and focused on six thematic areas. I encourage anyone with an interest in the new programme to visit www.seupb.eu/peaceplus to learn more.
I am looking forward to bringing the draft PEACE PLUS programme to Government for approval in the coming weeks. Following approval by the Government and the Northern Ireland Executive, the draft programme will be submitted to the European Commission for its consideration and approval. It is anticipated that the programme will be launched in 2022, with the first funding approvals under PEACE PLUS taking place later that year.
37. Deputy Ged Nash asked the Minister for Public Expenditure and Reform the reason for his decision to propose a full new review of ethics legislation rather than restore the existing Public Sector Standards Bill 2015 to the order paper of Dáil Éireann; and if he will make a statement on the matter. [45496/21]
Amharc ar fhreagraSince it was established in 2011, my Department has committed significant resources in terms of policy development and consultation across government to explore how the statutory framework for ethics can be reformed to make it fit-for-purpose. An initial concrete outcome of this work was the Public Sector Standards Bill (the PSSB), which was brought forward by my predecessor in 2015. The broad aims of this draft legislation were to:
- Modernise, simplify and streamline the existing legislative framework;
- Respond to the recommendations on conflicts of interest contained in the final report of the Mahon and Moriarty Tribunals; and
- Consolidate local and national ethics requirements.
The PSSB commenced Second Stage of the legislative process in January 2016 and Committee Stage commenced in April 2017. However, as the Bill’s passage had not been completed when the Dáil was dissolved in advance of the 2020 General Election it lapsed (as with all Bills). The Programme for Government of the Government formed after the election contains a commitment to “reform and consolidate the Ethics in Public Office legislation”.
I recently brought proposals to Government for a review of the statutory framework for ethics in public life, as the first step in delivering on our commitment in the Programme for Government.
The review will enable us to take account of developments and issues that have arisen in public debate since the PSSB was last discussed in the Dáil in April 2017. The recommendations of the Review of Structures and Strategies to Prevent, Investigate and Penalise Economic Crime and Corruption (the ‘Hamilton Report’), published in December 2020, also fall to be considered in the context of a reform of the statutory framework.
The review will consider:
- Ireland’s existing ethics legislative framework,
- The recommendations of relevant tribunals of inquiry,
- Recommendations made by SIPO based on its operation of the current regime,
- The views of key stakeholders;
- Current EU/international best practice; and
- The views submitted during a public consultation.
The outcome of this review, which the Government has agreed to, will inform proposals for legislative reform that I intend to bring forward in 2022. These will have the ultimate goal of an easy to understand and user-friendly ethical framework that contributes to the quality and effectiveness of our public administration.
39. Deputy Richard Boyd Barrett asked the Minister for Public Expenditure and Reform if he will make the funds available in Budget 2022 to bring funding for education up to the OECD average of 4.9% of GDP; and if he will make a statement on the matter. [45646/21]
Amharc ar fhreagraAs outlined in Figure 2.1 on page 13 of the 2021 Mid-Year Expenditure Report, growth in the economy as measured by modified gross national income (GNI*) is broadly in line with growth in tax revenue and voted expenditure over the period 1999 to 2019, with growth in GDP diverging significantly in recent years, with in particular nominal growth in GDP of 35% between 2014 and 2015. These large increases in GDP have seen General Government expenditure as a percentage of GDP decreasing from 37.5% in 2014 to 24.5% in 2019, at a time when we have seen steady increases in expenditure.
Consequently, GNI* is a more appropriate measure when looking at overall expenditure as a percentage of national income both in aggregate terms and for specific sectors. In this context, when cross country comparisons of expenditure as a percentage of national income are made, with GDP used as the national income base, such as in the OECD Report on Education, Ireland's level of expenditure appears low.
The Report published by the OECD last week, looks at indicators for inputs as well as outputs and outcomes relating to Education across OECD countries. In relation to inputs into education the report showed Ireland as having the lowest level of expenditure as a share of GDP compared to all other OECD counties. However, when expenditure on education is calculated over GNI*, which as outlined above is more appropriate in the Irish context, expenditure on primary, secondary, further and higher education in Ireland as a share of GNI* in 2018 was 5 percent. This is above the OECD average cited in the report.
Allocating and managing expenditure is not just concerned with inputs but also with the outputs and outcomes being delivered. Across a range of indicators looking at the outputs and outcomes of education, Ireland performs well in comparison to other OECD countries. For example, Irish students score amongst the highest in standardized reading tests (PISA) compared to other OECD countries, and Ireland has one of the highest shares of adults with tertiary education in the OECD.
The budgetary reforms introduced in recent years including Performance Budgeting and Equality Budgeting are focussed on providing the evidence base to support the efficient and effective delivery of services that have a positive impact on people's lives. This work is being further enhanced with the development of the Wellbeing Framework for Ireland that can inform efforts to improve the impact of public policy. This focus on performance and impact of expenditure is an essential element of the expenditure framework as we plan for steady sustainable increases in expenditure over the coming years.
40. Deputy Brendan Griffin asked the Minister for Public Expenditure and Reform if he will provide space for a play area in Dun Chaoin on the site of Ionad an Bhlascaoid; and if he will make a statement on the matter. [45697/21]
Amharc ar fhreagraThe OPW’s involvement with An Blascaod Mór goes back to 1988 with Ionad an Bhlascaoid, (the Blasket Centre) being developed with assistance from the locally based voluntary group, Fondúíreacht an Bhlascaoid in 1992/3. The Centre was officially opened to public in April 1994 and the centre plays a critical role in the cultural life of Dún Chaoin and is an important facility for the local community. It is also an important heritage visitor experience, operated by OPW, which celebrates and interprets the extraordinary literary legacy of the Great Blasket and as such, it makes a significant contribution to the economic and tourism agenda in West Kerry.
At An Blascaod Mór itself, the State purchased the majority of the land holdings in 2009. The OPW has provided a very successful guide service on the island since 2013, highlighting the heritage of the island for visitors. The OPW, with assistance from Fáilte Ireland, has also restored two houses on the island, including the home of the pre-eminent Blasket author, Tomás Ó Criomhthain. Further work is currently underway with a view to the further conservation of the largely abandoned island village.
In 2020, the OPW opened a striking new ‘Viewing Platform’ at the Ionad site in Dún Chaoin, on a clifftop site overlooking the Blasket Sound. This project was funded by Fáilte Ireland and the OPW to create a unique way for visitors to experience the dramatic landscape of West Kerry. It connects with the headland walking routes which provide a safe way for visitors of all ages to enjoy the natural landscape.
As part of this strategic programme of investment with Fáilte Ireland, a project is also underway to refurbish Ionad an Bhlascaoid itself incorporating a completely reimagined interpretive exhibition of world-class standard. This project will be completed in Spring 2022 and will open to visitors for the Summer season next year.
Since the inception of Ionad an Bhlascaoid at Dún Chaoin, the OPW has been highly engaged with the local community and Fondúireacht an Bhlascaoid in seeking to meet the cultural and social needs of the community. In particular the OPW manifestly supports and nurtures the living language and the cultivation of a local community where Irish is the spoken language for all day-to-day activities.
Late last year, the OPW was approached by Comharchumann Dhún Chaoin regarding the possibility of the OPW providing land at the site of Ionad an Bhlascaoid for the purposes of a playground.
This proposal was given deep consideration by the OPW but there were a number of concerns in relation to establishing an enclosed, surfaced play area within the natural landscape located in a Special Area of Conservation. The OPW was also concerned about additional demand generated by users of the playground for facilities on site including toilets, café and car parking which have not been designed or planned with such demand in mind.
I have personal associations with Dún Chaoin and Corca Dhuibhne for many years and I am anxious to resolve this matter to the benefit of the OPW and the community in Dún Chaoin. I have asked my officials to examine all possibilities at the site in question to see if there might be scope for an alternative approach and I am very confident we will find a solution. There is a constructive dialogue ongoing and I believe an excellent outcome can be achieved which will meet the needs of the local community but will also be compatible with the operations of Ionad an Bhlascaoid.
I, together with senior OPW officials, plan to meet representatives of Comharchumann Dhún Chaoin shortly. I am hopeful that this engagement will enable further progress to be made to bring this matter to a satisfactory conclusion.
41. Deputy Martin Browne asked the Minister for Public Expenditure and Reform his views on the latest publication by the OECD which places Ireland at the bottom of a list of 36 OECD countries in terms of the amount of GDP being invested in education; his plans for improving this record; and if he will make a statement on the matter. [45603/21]
Amharc ar fhreagraThe recent OECD Education at a Glance report examines indicators across OECD countries for inputs as well as outputs and outcomes relating to Education.
As one of the inputs to education, the report compares spend on education across countries as a percentage of their GDP and shows Ireland’s 2018 spending at 3.3% of GDP, below the OECD average of 4.9%. For Ireland however, comparing public spending against GNI* gives a better indication of the resources allocated as it adjusts for the impact of globalisation activities that disproportionately affect Irish economic aggregates. When expenditure on education is measured against GNI* expenditure on primary, secondary, further and higher education in Ireland in 2018 and 2019 was 5 percent, just above the OECD average.
This investment in our education system can be seen in Ireland’s strong performance across a range of indicators covered in the report looking at educational outputs and outcomes. Among the areas where Ireland is performing well compared to the other OECD countries are Irish students scoring amongst the highest in standardized reading tests (PISA) compared to other OECD countries and one of the highest shares of adults with tertiary education in the OECD.
This year, around €12 billion has been allocated to the Departments of Education and of Further and Higher Education, Research, Innovation and Skills for core expenditure, almost 16% of all core voted spending.
42. Deputy Niamh Smyth asked the Minister for Public Expenditure and Reform if he will report on capital expenditure to date in 2021; and if he will make a statement on the matter. [45493/21]
Amharc ar fhreagraAs the Deputy will be aware, the drawdown of capital expenditure from the Exchequer is detailed each month and is publicly available in the Fiscal Monitor, which is published on the gov.ie website. All line Departments and agencies submit information on their expenditure levels against profile to my Department, along with an explanation outlining details regarding any variance of under or over spending against profile.
The latest capital expenditure figures available to end-August show that the net capital spend, including capital carryover, was €4,153 million. When the carryover amount is omitted, the net capital spend amounts to €3,726 million, which is 14.8% or €649 million behind the profiled amount of €4,375 million, with all but one Department declaring underspends against profile.
2021 saw a larger than usual capital carryover from the previous year with €710 million carried over. The carryover spend to end-August amounts to €427 million (60.2% of the €710 million carryover).
Capital expenditure by its nature tends to be lumpy, with a particularly high drawdown at year-end. For example, 25.6% of the annual capital issues were drawn down in December 2018; 25.4% in December 2019 and 32.4% in December 2020. It is therefore difficult to predict, at this point in time, the levels of savings, if any, at end-year.
While there was an impact on building activity earlier this year, due to Covid restrictions, activity in the sector has ramped up significantly since sites re-opened when restrictions were lifted in April. With this increased activity, Departments generally expect spending to realign with profiled expenditure by the end of the year.
We will continue to monitor and report on capital expenditure developments as the year progresses.
43. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform if in the context of economic progress over the next year, he expects to invoke any further reforms to address any likely issues that might arise; and if he will make a statement on the matter. [45599/21]
Amharc ar fhreagra78. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which it is expected to meet the challenges of the reopening of the economy while at the same time maintaining prudent spending; and if he will make a statement on the matter. [45598/21]
Amharc ar fhreagraI propose to take Questions Nos. 43 and 78 together.
The prudent management of the public finances in recent years provided Government with the scope to provide substantial supports in order to respond to Covid-19 and to mitigate the impacts of the pandemic. Indeed, across 2020 and 2021, Government will have made available over €31 billion for direct expenditure measures to support our people, businesses and key public services deal with the impacts of Covid-19.
Looking forward, the pandemic has now entered a new phase and the reopening of our economy continues to take place. In light of this, we must adapt our budgetary policy. The Summer Economic Statement set out a pathway to meet core objectives of Government of continuing to invest in our economy and society, while also reducing the deficit in order to underpin the sustainability of the public finances.
It would not be appropriate to withdraw all pandemic related spending in the one year. Accordingly, up to €7 billion has been set aside for non-recurring Covid-19 related supports in 2022. In tandem with this, the fiscal strategy in the SES sets out sustainable annual increases in core public expenditure in the upcoming and subsequent budgets, thus ensuring prudent levels of core voted spending are maintained over the medium term.
Underpinning this strategy is the Programme for Government commitment to continue to reform and improve the Budgetary process in order to enhance Ireland’s budgetary framework. The budgetary reforms introduced in recent years, including Performance Budgeting and Equality Budgeting, are focussed on providing the evidence base to support the efficient and effective delivery of services that have a positive impact on people's lives. This work is being further enhanced with the development of the Wellbeing Framework for Ireland that can inform efforts to improve the impact of public policy. This focus on performance and impact of expenditure is an essential element of the expenditure framework as we plan for steady sustainable increases in expenditure over the coming years.
