Thursday, 28 Apr 2022

Written Answers Nos. 71-100

Tax Data

Ceisteanna (71)

John Lahart

Ceist:

71. Deputy John Lahart asked the Minister for Finance the cost of the VAT reduction to 9% in gas and electricity; and if he will make a statement on the matter. [20549/22]

Freagraí scríofa

Minister for Finance

The estimated cost of the VAT reduction for gas and electricity to 9% from 1 May to 31 October is €46m. This is expected to result in estimated annual savings of €49 on gas and €69 on electricity bills for households.

The background to this change is the introduction of greater flexibility in Annex III of the VAT Directive which now provides that reduced rates can be applied to the electricity and gas sectors. Previously, this had not been the case and Ireland was only able to apply the 13.5% rate as a result of a historical derogation that allows us to maintain reduced rates to certain supplies under Article 118 of the VAT Directive. These are known as parked rates and cannot go below 12%.

Banking Sector

Ceisteanna (72)

Pearse Doherty

Ceist:

72. Deputy Pearse Doherty asked the Minister for Finance his interactions with banks (details supplied) since the announcement of their withdrawal from the banking market and with the remaining and receiving banks to discuss the preparedness of the banks for the transition; if he is satisfied that the banks are adequately resourced with reasonable timelines to ensure this process is managed successfully; and if he will make a statement on the matter. [21475/22]

Freagraí scríofa

Minister for Finance

The importance of an orderly withdrawal is emphasised in all engagements with Ulster Bank and KBC and both banks are meeting with officials and providing relevant information regarding account closures to the Department of Finance on a monthly basis. This will help to identify any emerging trends and potential issues for consumers.

As advised in a recent response to the Deputy on 7 April, I met with the management of NatWest and Ulster Bank in September 2021 for an update on the progress of its withdrawal and I met with the management of Ulster Bank last month for a further update. Most recently, my officials met with Ulster Bank on 31 March 2022.

I spoke with KBC and Bank of Ireland last spring around the time of the announcement of their proposed transaction and engagement has continued. Most recently, officials met with KBC on 14 April 2022.

The Central Bank expects that all retail banks have plans in place to manage the impact of the broader changes and consolidation in the retail banking sector in Ireland. It is the responsibility of the individual banks to ensure that they are putting their customer first, ensuring fair treatment of customers and that customers understand what the changes mean for them.

This week the Central Bank wrote to the CEOs of the five main retail banks to set out its expectations on some key items related to the account migration process. The purpose of these letters is to reinforce and, to any extent necessary, clarify the application of the expectations set out in the Central Bank's previous letter of June 2021 and to invite the CEOs to a roundtable meeting, hosted by Director General, Financial Conduct, Derville Rowland on the following five key issues/risks:

- Notice periods

- Application of the switching process

- New provider making commercial decisions in a manner that facilitates a customer making and executing a switch

- Direct debit originators and/or other service providers

- Vulnerable customers

In terms of the preparedness of the remaining banks, the Banking and Payments Federation of Ireland (BPFI) has advised that the industry is resourcing up significantly and that over 100,000 accounts have been opened at the three remaining retail banks so far this year. Officials from my Department are engaging with the BPFI on an ongoing basis to ensure that the industry is responding to the challenge appropriately.

Officials are also meeting representatives from other financial service providers that offer current accounts to discuss how they can support customers opening new accounts because of the withdrawal of both Ulster Bank and KBC.

Ukraine War

Ceisteanna (73)

Jackie Cahill

Ceist:

73. Deputy Jackie Cahill asked the Minister for Finance his assessment of the economic impact of the war on Ukraine on the Irish economy; and if he will make a statement on the matter. [20570/22]

Freagraí scríofa

Minister for Finance

First and foremost the Russian invasion of Ukraine is a humanitarian crisis. Along with the unjust loss of life, millions of people have been forced to flee their homeland. Meanwhile the combined impact of the war and the economic, financial and other sanctions represent a large supply-side shock, one which has reverberated throughout the global economy. Reflecting the negative spillover effects from the war, the IMF has recently revised down its global growth forecast for this year by almost one percentage point – and now expect growth of 3 ½ per cent.

For Ireland, the war in Ukraine is expected to slow, rather than derail the economic recovery. Whilst Ireland’s direct trade links with Russia and Ukraine are very limited, we are nevertheless highly exposed to indirect effects arising from the conflict. The primary channel through which the war is already having a negative impact on the Irish economy is through higher energy and commodity prices. Rising price levels have a real bearing on the cost of living for Irish households.

Consumer price inflation rose sharply to 6.9 per cent in March – the highest level recorded since 1984. As set out in the Stability Programme Update, inflation is expected to remain at an elevated level for the remainder of the year, peaking in the second quarter, before easing slightly over the rest of the year. As a result, average annual inflation is expected to be around 6¼ per cent for this year.

Facing significant inflationary pressure and economic uncertainty, consumers are expected to curtail expenditure and businesses are likely to postpone investment. Reflecting these dynamics, my Department has incorporated a 2¼ percentage point reduction in its growth forecast for this year – based on modified domestic demand - to 4¼ per cent.

Given the high level of uncertainty at present, my Department has also constructed an alternative more severe scenario in which oil and gas prices increase by 50 and 75 per cent relative to the central assumptions. Under this scenario, inflation would increase by an additional 2 percentage points to 8¼ per cent this year - peaking at 9¼ per cent in the third quarter – and 4¼ per cent next year. Such a scenario would result in a reduction in domestic demand by around 2 percentage point over the medium term and wipe out next year’s projected surplus.

In addition to the impact on prices, a number of Ireland’s key trading partners in Europe are highly dependent on commodities imports from Russia and Ukraine. If this disruption to trade was to persist, it could weigh on demand in several of Ireland’s key export markets, with knock-on implications for Irish exports.

My Department will continue to monitor developments in Ukraine and the broader spillover effects closely. Indeed a chart-pack containing information on the economic and fiscal impacts of the conflict can be found on my Department’s website. Further analysis is set out in the Stability Programme Update, which was published in draft form earlier this month.

Covid-19 Pandemic Supports

Ceisteanna (74)

Gerald Nash

Ceist:

74. Deputy Ged Nash asked the Minister for Finance his views on the report by the Revenue Commissioners indicating that 641 companies that claimed the €267.8 million in employment wage subsidy scheme also filed for the dividend withholding tax (details supplied); the number of the companies in question that have returned all or part of the value of the subsidy paid to them during the lifetime of the scheme to the Exchequer; and if he will make a statement on the matter. [21427/22]

Freagraí scríofa

Minister for Finance

The Employment Wage Subsidy Scheme (EWSS) is provided for in section 28B of the Emergency Measures in the Public Interest (COVID-19) Act 2020, as amended and is an economy-wide support. It has played a central role in supporting businesses, encouraging employment and helping to maintain the link between employers and employees since July 2020. The EWSS provides a subsidy to qualifying employers, based on the number of qualifying employees on the payroll. To date, the EWSS has helped almost 52,000 employers to keep over 734,000 employees in employment since the scheme began in September 2020. The related cost has been €7.8 billion.

As regards eligibility for the EWSS, an employer must be able to demonstrate that its business has experienced a 30% reduction in turnover or orders between 1 January and 31 December 2021, by reference to the corresponding period in 2019, as a result of business disruption caused by the Covid-19 pandemic. Furthermore, the employer must have a tax clearance certificate to be eligible to join the EWSS and must continue to meet the requirements for tax clearance throughout the scheme. Where an eligible employer makes a payment of wages, within prescribed limits, to a qualifying employee during the scheme, the employer can claim an EWSS subsidy for that employee.

The eligibility criteria for the wage subsidy schemes, as provided for in legislation, do not include any conditions related to a company making a distribution to its shareholders. Thus, there is no impediment to employers paying dividends to its shareholders and this is a business decision for an employer to take based on its financial circumstances.

Companies making distributions have obligations to deduct and return Dividend Withholding Tax (DWT). DWT applies to a wide range and different types of distributions. This includes both intra-group distributions and dividends paid to shareholders, including both cash and non-cash distributions (e.g. distributions made in the form of the issue of additional shareholdings). The DWT return does not distinguish between these different forms of taxable distribution nor does it set out the accounting period to which distributions may relate. Therefore, I am advised by Revenue that it is not possible to determine whether distribution payments relate to profit reserves earned before or during the pandemic.

Revenue recently carried out a short exercise to identify DWT returns filed by EWSS claimant companies in respect of distributions made in 2021. This showed that 641 employers, out of a total of 51,900 who received EWSS payments, filed DWT returns advising of some form of distribution during this period. However, it was not possible to determine whether the distributions were cash or non-cash in nature or whether any dividends were paid to shareholders. At that time, the 641 companies had received gross EWSS subsidy payments of €267.8m. 19 of these employers have returned all subsidies received totalling €27.9m while 84 have partially repaid EWSS received amounting to € 5.8m.

It should be borne in mind that the EWSS was developed as an emergency support to assist businesses in extraordinary circumstances arising from the Covid-19 pandemic. It should also be noted that the majority of companies that have participated in the wage subsidy schemes did so because they had a reasonable expectation that their business would suffer a decline in turnover or customer orders as a result of the effect of the pandemic.

Without the support of EWSS, many businesses may not be in existence today or may not have been in a position to adapt as responsively as they have to the reopening of all sectors of our economy. I am satisfied that the EWSS has operated as a very effective and responsive instrument to aid economic recovery during these unprecedented times.

Question No. 75 answered with Question No. 11.

Insurance Industry

Ceisteanna (76)

Seán Haughey

Ceist:

76. Deputy Seán Haughey asked the Minister for Finance if he will provide a report on his engagement with the insurance industry to address the difficulties of access to affordable insurance faced by some businesses. [20563/22]

Freagraí scríofa

Minister for Finance

Insurance reform is a key priority for this Government. The Cabinet Committee Sub-Group on Insurance Reform was established to prioritise this issue, and published the Action Plan for Insurance Reform in December 2020. The Sub-Group is overseeing the implementation of this reform agenda, and meets regularly in this regard. The Action Plan sets out 66 actions to protect consumers and improve the businesses environment in the insurance sector.

In terms of engagement, there has been engagement with industry – both individual insurers and Insurance Ireland – on an ongoing basis. [Minister of State Fleming] has met individually with the CEOs of the eight main insurers in the Irish market twice since the adoption of the Personal Injuries Guidelines in April 2021, in order to hold them to account on their commitments to pass on all savings from the insurance reform agenda to customers.

In these meetings, and in his ongoing engagement with industry, Minister of State Fleming has consistently stressed the importance of insurers reflecting lower claims costs through reduced premiums, and the need for insurers to respect the Guidelines by not settling for amounts that are inconsistent with them. These engagements have been positive, with insurers confirming their commitment to passing on savings from the Guidelines, and are adhering to them in their direct settlements. During these meetings, Minister of State Fleming also impressed upon insurers the need to expand their risk appetite into ‘pinch-point’ sectors that are experiencing issues with availability and affordability of cover, particularly high-risk/high-footfall areas.

Another development of the Action Plan for Insurance Reform was the creation of the new Office to Promote Competition in the Insurance Market within the Department of Finance. The role of the Office, which is chaired by Minister of State Fleming, is to assist in reducing insurance costs by promoting competition in the Irish insurance market. Since its establishment, the Office has held over 70 meetings with a wide range of key stakeholders, including representative bodies, providers and other civic society groups, to understand the gaps in the Irish insurance market. The Office has been working closely with the IDA to bring new entrants into the Irish insurance market and to improve its overall competitiveness. Officials have developed a customised proposition for potential market entrants and have identified a shortlist of specific targets to engage intensively with. This will, in the first instance, target providers who offer insurance in areas which have been identified as ‘pinch-points’ in the Irish market. This will hopefully assist those businesses with a lack of choice when it comes to insurance providers.

Work remains ongoing across Government to deliver the remaining elements of the Action Plan, in order to improve the affordability and availability of insurance for businesses in particular. Engagement will continue with the insurance industry to ensure that they are passing along savings made, in the form of more affordable premiums.

Question No. 77 answered with Question No. 47.

Questions Nos. 78 to 82, inclusive, answered orally.

Office of Public Works

Ceisteanna (83)

Brendan Griffin

Ceist:

83. Deputy Brendan Griffin asked the Minister for Public Expenditure and Reform if Kerry County Council has approached his Department regarding the possibility of incorporating further walkways and cycleways along the River Maine levee system in County Kerry; and if he will make a statement on the matter. [21471/22]

Freagraí scríofa

Minister of State at the Department of Public Expenditure and Reform

My Office has no record of an approach by Kerry County Council in relation to the provision of walkways and cycleways along the River Maine levee system.

The provision of walkways and cycleways is a matter for local authorities and the Office of Public Works (OPW) does not have any statutory function or remit in this area.

The OPW is responsible for the maintenance of embankments that form part of Arterial Drainage Schemes completed under the Arterial Drainage Acts 1945, including the embankments that form part of the River Maine Scheme. The OPW does not own the property on which such embankments are located and only has powers of entry onto the land to undertake maintenance works. It should also be noted that these embankments were not originally designed or constructed to cater for walkways or cycleways.

Therefore, any proposals relating to walkways and cycleways along the River Maine in County Kerry would be a matter for the legal owner of the land along with Kerry County Council. The OPW is happy to work with the local authority in relation to the development of such community assets, and would provide any advice and assistance where possible. Any proposed development at embankment locations would have to recognise the OPW’s requirement to gain access to conduct routine inspection and undertake maintenance where required.

In relation to embankments that may form part of future OPW funded flood relief schemes, the OPW is also happy to work with any local authorities that wish to explore opportunities for the provision, where feasible, of added value elements such as walkways and cycleways in the development of flood defence structures.

Questions Nos. 84 to 86, inclusive, answered orally.

Office of Public Works

Ceisteanna (87)

Holly Cairns

Ceist:

87. Deputy Holly Cairns asked the Minister for Public Expenditure and Reform the steps being taken by the OPW to ensure that buildings it has responsibility for are fully accessible for people with disabilities, including having suitable toilet and changing places facilities. [21418/22]

Freagraí scríofa

Minister of State at the Department of Public Expenditure and Reform

The Office of Public Works endeavour to integrate best practice into every aspect of our building compliance requirements. We aim to redefine and encompass techniques, where the best solutions for the buildings within their specific context are identified. This approach benefits all of society and re-frames and prioritises the work of OPW architects, engineers, surveyors, district inspectors, clerks of works and other stakeholders working directly within the Office of Public Works or acting as agents on our behalf. This in turn enhances the experiences of building users. It ensures Accessibility and Universal Design principles frame and guide all aspects of the built environment to which the public have the right to access. This is enabled through the application of Codes of Practice, Technical Guidance Documents and Building Regulations.

The OPW responsible for a portfolio of both modern and historical buildings, monuments, parks and sites. Each property has its own challenges, in terms of optimising accessibility. Some of the projects completed in recent years have been a particular success, where innovative solutions have been designed and brought to fruition, often in challenging circumstances. Often solutions may be applicable across other similar building types in the portfolio.

1. Accessibility Audits Update:

A reframed accessibility audit review of all OPW buildings across the State is to be carried out. The original programme was adversely disrupted by the pandemic over the last two years, whereby site visits and reports, critical to the completion of our inspections, were mostly postponed, cancelled or delayed. Over 1,900 buildings overall in the category have been identified to be audited. Of these, following initial desk-top surveys, where collating documentary data relating to each building is co-ordinated, approximately 29% of buildings may be excluded i.e. if they are vacant properties, sites or buildings in the process of being released. When our finalised schedule of audits is identified, redefined and subsequently completed, we will be in a position to confirm and reprioritise a rejuvenated programme of upgrading works, to happen throughout the State.

Our technical teams are focusing on the most urgent and essential works across the entire estate at this time. Even with progress to date, we fully appreciate that must further strive to create a built environment and public spaces, best suited and equipped to ensure that all persons are treated with dignity and consideration. Since the publication of the I.S. EN 17161:2019 standard on Design for All in 2019, we have looked forward to moving towards wider application of the Universal Design principles in our buildings and sites. This will shortly benefit from the suite of amendments under consideration to Technical Guidance Document Part M for the provision of Changing Places Facilities in specific settings. (Proposed legislation: Building Regulations (Part M Amendment) Regulations 2022).

2. Changing Places Facilities Update:

In relation to the provision of Changing Places Facilities for the public, the following is the current position: In December 2020, in support of Government policy on advancing the rights and inclusion of people with disabilities, Minister for Housing Local Government and Heritage established a Working Group to examine the provision of a Changing Places facility in certain buildings. The Working Group has now recommended the types and sizes of buildings where this facility should be required, along with the technical requirements (equipment, room size and layout) of a Changing Places toilet.

The public consultation was launched on the 9th February 2022, which seeks submissions, observations and comments on a proposed amendment to the Building Regulations and associated Technical Guidance Document M – Access and Use to make provision for a Changing Places toilet in certain buildings.

To assist in this process, the following documents are available on the Department's website: www.gov.ie/en/consultation/247d5-public-consultation-on-the-review-of-building-regulations-part-m-access-and-use-to-make-provision-for-a-changing-places-toilet-in-certain-buildings/

- Draft Building Regulations (Part M Amendment) Regulations 2022

- Draft Technical Guidance Document M – Access and Use 2022

- A Preliminary Regulatory Impact Analysis

- An easy read consultation document

- A template for submissions

Technical staff within the Office of Public Works, together with third party stakeholders and consultants, are currently co-ordinating a submission to the Department of Housing, Local Government and Heritage, on the proposed amendment, for the 12th May 2022 deadline.

An appraisal of seven of the most popular OPW run heritage sites in the State [Farmleigh House, Dublin Castle, Royal Hospital Kilmainham, Clonmacnoise, Brú na Boinne, Glendalough and Doneraile Court] was carried out to determine their suitability for the provision of a Changing Place facility. We anticipate providing facilities at four or more of these sites with Doneraile Court likely to be the first opened for use.

Questions Nos. 88 to 92, inclusive, answered orally.

Question No. 93 answered with Question No. 89.

Public Sector Pay

Ceisteanna (94, 99)

Paul Murphy

Ceist:

94. Deputy Paul Murphy asked the Minister for Public Expenditure and Reform if he will provide an assurance to trade unions that public sector pay increases will be at least in line with inflation; and if he will make a statement on the matter. [20851/22]

Richard Bruton

Ceist:

99. Deputy Richard Bruton asked the Minister for Public Expenditure and Reform his approach to calls for pay increases to match rises in the cost of living; the way he will calculate the affordability of such calls; and if he will make a statement on the matter. [21002/22]

Freagraí scríofa

Minister for Public Expenditure and Reform

I propose to take Questions Nos. 94 and 99 together.

Public service pay has been governed by a system of collective agreements since the Croke Park Agreement was negotiated in 2010. These collective agreements have helped to ensure that public pay is managed in a sustainable, affordable and orderly manner. These agreements have also enabled significant reform of public services and changes to work practices.

The current public service agreement is Building Momentum - A New Public Service Agreement 2021-2022. This Agreement is weighted towards those at lower incomes with headline increases of approximately 5% for the lowest paid public servants. These groups will also benefit more from other measures in the Agreement including the overtime rates and premia payment adjustments.

The Agreement provides for the following pay adjustments:

- A general round increase in annualised basic salary for all public servants of 1% or €500, whichever is greater, on 1 October 2021.

- The equivalent of a 1% increase in annualised basic salaries to be used as a Sectoral Bargaining Fund, in accordance with Chapter 2 of the Agreement, on 1 February 2022.

- A general round increase in annualised basic salaries for all public servants of 1% or €500, whichever is greater on, 1 October 2022.

Building Momentum is a two year Agreement, which is due to expire at the end of 2022. As the Deputies will be aware, public service unions and staff representative associations have sought a review of the current Agreement on the grounds that the assumptions regarding inflation, public finances and the projected deficit need to be revisited. The Agreement commits the parties to ‘prior engagement’ where assumptions underlying the Agreement need to be revisited.

It should be noted in this context that a number of measures have been agreed by Government in order to mitigate the impact of inflation. The cost of living package announced in February, combined with the earlier Energy Credit announcement, has a value of over half a billion euro. This comprises:

- A lump sum payment of €125 to recipients of Fuel Allowance to be paid in March;

- An increase in the Energy Credit payment announced in December from €100 exclusive of VAT to €200 inclusive of VAT;

- Applying the Budget 2022 increase of €10 in the weekly income threshold for the Working Family Payment from April rather than June;

- Further reducing the Drugs Payment Scheme threshold to €80 per month, having been reduced to €100 per month in Budget 2022;

- Reducing the maximum annual School Transport charge to €150 per family at primary level and €500 per family at post-primary level for the next academic year;

- A 20% reduction in PSO Public Transport fares from May until the end of 2022.

Additional measures of a temporary payment of €100 per week for every heavy goods vehicle for licensed hauliers and a further Fuel Allowance lump sum payment of €100 have since also been announced.

These expenditure measures, along with the excise duty reduction on petrol, diesel and marked gas oil introduced by the Minister for Finance and now extended until Budget day in October 2022, and the VAT reduction from 13.5% to 9% on gas and electricity bills until end October, amount to €1 billion in aggregate.

In terms of the review of Building Momentum, an initial constructive engagement has already taken place between my officials and ICTU and I am giving consideration the issues raised. I am also consulting with Government colleagues as to the appropriate way forward. Of course, Government acknowledges that current price pressures present particular challenges and are a source of concern - including for public service workers.

The Government is committed to the delivery of quality public services, and will continue to approach public service pay in a balanced way that is reasonable and fair to both public servants and the taxpayer.

It is important to remember that there are multiple challenges facing the economy and the Exchequer, and in this context the public service pay bill needs to be managed in a sustainable way. While inflation and cost of living pressures will form a key part of any discussions, it is also important to avoid measures that might exacerbate inflationary pressures.

Flood Risk Management

Ceisteanna (95)

Marc Ó Cathasaigh

Ceist:

95. Deputy Marc Ó Cathasaigh asked the Minister for Public Expenditure and Reform the position regarding interim findings from the slow water project, funded by the OPW and the Environmental Protection Agency, which is due to be completed in 2023 (details supplied); and if he will make a statement on the matter. [20495/22]

Freagraí scríofa

Minister of State at the Department of Public Expenditure and Reform

The Office of Public Works (OPW) has been engaged in a number of activities to assess and develop nature-based solutions that can have benefits for Water Framework Directive, flood risk management and biodiversity objectives.

In 2019, a four-year research project, under the Environmental Protection Agency (EPA) research programme, titled ‘A Strategic Look at Natural Water Retention Measures’ (SLOWWATERS) commenced. This ongoing research has a budget of €508,000 and is co-funded by the OPW and the Department of Environment, Climate and Communications. The research, which is due to be completed in 2023, will assess the benefits of nature-based solutions for agricultural catchments in Ireland. The project outputs will provide recommendations for the management of specific catchment types relevant to the Irish environment by quantifying the magnitude of nature-based solutions required to reduce flood peaks and improve downstream water quality by attenuating nutrients.

The research is being led by Professor Mary Bourke of Trinity College Dublin and the team includes authors of the Environment Agency (UK) Working with Natural Processes – Evidence Directory from Newcastle University and The James Hutton Institute in Scotland as well as participants from University College Cork. A review and evaluation of Irish and international best practice has been completed by the research team, the findings of which are due to be published in academic papers this year.

Demonstration sites have been established on farms in Co. Cork and Co. Wexford and nature-based solutions have been constructed at each site. These demonstration sites will be used to develop a portfolio of potential approaches and methodologies to reduce flood risk and generate co-benefits including sediment and nutrient attenuation and ecosystem enhancement. Data collection and analysis of the performance of the measures at the demonstration sites is ongoing. Initial findings have contributed to a chapter authored by researchers from the SLOWWATERS project, ‘Nature-based solutions for flow reduction in catchment headwaters’ in a book ‘Spatial Flood Risk Management’, recently published for open access through the Elgar online website.

(www.elgaronline.com/view/edcoll/9781800379527/9781800379527.xml)

Fiscal Data

Ceisteanna (96)

Willie O'Dea

Ceist:

96. Deputy Willie O'Dea asked the Minister for Public Expenditure and Reform the amount of Covid-19 contingency funding that was drawn down in the first three months of 2022; and if he will make a statement on the matter. [20337/22]

Freagraí scríofa

Minister for Public Expenditure and Reform

The Revised Estimates 2022 set out an Government Expenditure Ceiling of €87,593 million. This reflected funding allocated to Departments of almost €83 billion, with further amounts totalling just over €4.6 billion held in reserve. This reserve amount included some €3.9 billion in the Covid Contingency.

In February 2022 Government announced a cost of living package including the Energy Credit with an expected cost of €400 million, part of which was to be met from reallocation. Given that this amount is considerable in relation to the original Estimate for the Department of Environment, Climate and Communications, a Supplementary Estimate for Vote 29 to provide for the additional funding needed for the Energy Credit was brought before the Dáil in March. Following this allocation over €3.5 billion remains in the Contingency. This amount is as of yet allocated however a number of areas may need to draw on the contingency later in the year.

Costs incurred on the Employment Wage Subsidy Scheme (EWSS), Pandemic Unemployment Payment (PUP) and Covid-19 Illness Benefit to date are currently in excess of the REV provision for these schemes and a further allocation to the Department of Social Protection may be required in respect of these later this year. Further Covid-19 related allocations to Departments may also be needed to meet the cost of the Quarter 1 Commercial Rates Waiver, the health staff recognition payment and for the costs of antiviral drugs.

Costs relating to the other cost of living measures announced since Budget 2022, to the extent that these cannot be met though savings in existing departmental allocations, will also need to be funded.

Together, these Covid-19 related spending pressures and the cost of living expenditure package mean that approximately €1½ billion of this Contingency reserve is in effect committed. While there is potential for some of these costs to be met from underspends in other areas, if the full amounts fall to be met from the reserve funds this would leave a remaining balance of some €2½ billion. In addition, there may be further Covid-19 related spending requirements during 2022 which would need to be met from this reserve as Covid-19 related employment support schemes are unwound and depending on the position with the virus later in the year.

Furthermore, the cost of providing supports to Ukrainian refugees arriving in the State are expected to be significant. If these costs cannot be met from within the Departments allocations they will fall to be met in the first instance from funds with the Contingency.

Ukraine War

Ceisteanna (97)

Paul Murphy

Ceist:

97. Deputy Paul Murphy asked the Minister for Public Expenditure and Reform if he will ensure that public funds are made available for the additional public services posts and resources needed to meet the needs of Ukrainian refugees arriving in Ireland during 2022; and if he will make a statement on the matter. [20848/22]

Freagraí scríofa

Minister for Public Expenditure and Reform

Ireland, with our EU partners, is committed to helping Ukraine and its people. This includes providing necessary funds to meet the costs of providing for Ukrainian refugees arriving to Ireland. There is a whole of government approach in place to coordinate the necessary humanitarian response in order to make provision for the necessary accommodation, social protection supports, health and other public services.

The level of public funds required to meet the cost of this response is expected to be significant. It is difficult at this point to estimate accurately how much additional funding will be required to provide the resources to meet the needs of Ukrainian refugees arriving in Ireland. We are still an early stage of people movement into Ireland and the possible range of Ukrainian arrivals is quite large, the overall demographic profile and needs of potential arrivals can only be estimated at this point and accommodation solutions found will impact considerably on the overall costs.

For 2022, where costs of the humanitarian provision for Ukrainian arrivals to Ireland cannot be met by Departments through re-prioritisation of existing resources, it is intended that funding required would in the first instance be met from the remaining €2½ billion in uncommitted Contingency reserve funds. However, there are also demands for additional Covid related expenditure that may arise later in the year depending on the situation with the virus. The actual level of funding that will need to be allocated this year will be reviewed throughout the year as work continues across Departments to understand the full cost implications of the crisis.

In respect of future years, a contingency provision of €3 billion for next year has been included in the draft Stability Programme Update to meet continued costs of providing supports for Ukrainian arrivals to Ireland. As it is too early at this stage to estimate the time horizon for which supports will be required, future years will be revised as more information becomes available.

Question No. 98 answered with Question No. 89.

Question No. 99 answered with Question No. 94.

Public Services Provision

Ceisteanna (100)

James Lawless

Ceist:

100. Deputy James Lawless asked the Minister for Public Expenditure and Reform the way his Department is improving citizen support innovation in the public service; and if he will make a statement on the matter. [20330/22]

Freagraí scríofa

Minister for Public Expenditure and Reform

Thank you Deputy for the question. I am pleased to report that my Department has made significant progress to enable our public service to drive innovation in order to support our citizens.

Since I launched the Public Service Innovation Strategy, ‘Making Innovation Real’ in November 2020, my Department has assisted Public Service organisations in setting their own innovation goals and actions and to incorporate these activities into their own corporate plans through the development of toolkits, guidance documents and the facilitation of workshops. 

That strategy is now being implemented with a focus around four key priority areas:

- Citizen Centric Innovation

- Culture of Innovation

- Scale up Innovation

- Transformative Innovation

Some examples of initiatives currently under way to drive innovation include:

- DPER’s Public Service Innovation Fund, which has supported approximately 90 projects from across the public sector since 2019 (€2.8m in funding).  These projects demonstrate new ways of working and provide an enhanced user experience to the citizen. 

- The Public Service Innovation Network, which has over 2,000 members from across the public sector.  The Network meets monthly to showcase projects and examples of innovation across the civil and public service to encourage scaling of innovations.

- The creation of a range of learning & development interventions, including innovation programmes for people managers and senior leaders as well as programmes to upskill our public service in areas like Artificial Intelligence (AI) and other intelligent automation technologies.

- Ongoing work to include innovation in competencies and role descriptions at appropriate grades in the public service.

- The Future Tech Challenge, which encourages the adoption of emerging technologies in public bodies using a collaborative model between Ireland’s Public Service and private sector actors. 

In order to monitor the effective implementation of the Public Service Innovation Strategy, and to provide recommendation on best practice, I have also established the Public Service Innovation Advisory Board, which is comprised of senior leaders from academia as well as the public and private sector and I expect that this will help Government to further enhance our public service's growing innovation capacity into the future.