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Thursday, 16 Jun 2022

Written Answers Nos. 217-227

Public Sector Pay

Ceisteanna (218)

Bernard Durkan

Ceist:

218. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which all FEMPI-related payments have been restored in line with previously given indications; and if he will make a statement on the matter. [31619/22]

Amharc ar fhreagra

Freagraí scríofa

The process of unwinding the Financial Emergency (FEMPI) legislation commenced under the Lansdowne Road Agreement 2016-2018, with the remainder of the process largely completed under the Public Service Stability Agreement 2018-2020 (PSSA). This will continue under ‘Building Momentum: A New Public Service Agreement, 2021-2022’.

At this point, salary rates up to €150,000, which account for 99% of the Public Service, have been fully restored. Section 20 of the Public Service Pay and Pensions Act 2017 sets out that public servants with annualised basic salaries above €150,000 should be restored by a date no later than 1 July, 2022.

As the Deputy may be aware, I have established an Independent Review Panel into the recruitment and pay determination processes for Senior Public Service posts.

In addition, each year, under the terms of the FEMPI Act 2013, I am obliged to carry out an annual review of the operation, effectiveness and impact of the FEMPI Acts, having regard to the overall economic conditions in the State and national competitiveness. In this annual review, I am also to consider whether or not any of the provision of the relevant Acts continue to be necessary having regard to the purposes of those Acts, the revenues of the State and State commitments in respect of public service pay and pensions.

The 2021 annual review, a written report of which was laid before the Houses of the Oireachtas on the 25 June, 2021, recommended the continuation of the unwinding of the FEMPI measures in line with the provisions enacted in the Public Service Pay and Pensions Act, 2017. The 2022 annual review is due to be laid before the Houses of the Oireachtas in the coming weeks.

Question No. 219 answered with Question No. 216.
Question No. 220 answered with Question No. 216.
Question No. 221 answered with Question No. 216.
Question No. 222 answered with Question No. 216.

Departmental Functions

Ceisteanna (223)

Bernard Durkan

Ceist:

223. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which his Department have identified projects least compliant with the principal of achieving good value for money; and if he will make a statement on the matter. [31624/22]

Amharc ar fhreagra

Freagraí scríofa

The Government has committed to €165 billion in capital investment through the National Development Plan (NDP) published last year. As a percentage of national income, annual capital investment is now among the largest in the EU. In 2022, almost €12 billion will fund vital infrastructure in areas such as housing, transport, education, enterprise, sport and climate action.

My Department is responsible for the Public Spending Code (PSC), which sets the value for money requirements and guidance for evaluating, planning and managing Exchequer-funded capital projects.

Management and delivery of investment projects and public services within allocation and the national frameworks is a key responsibility of every Department and Minister. It is the responsibility of the relevant government department to ensure that the procedures are in place to ensure compliance with the Public Spending Code within their department/office and within the bodies under the aegis of their department.

It is also the responsibility of each government department to ensure that departments and agencies draw up their own sector-specific procedures for evaluating, planning and managing public investment which aligns with the Public Spending Code.

The majority of public investment projects are delivered on budget and on time and there is a high level of professionalism across the sectors. However, noting the higher risk profile of larger projects, it was recognised that new procedures were required in order to improve project out-turns, avoid cost overruns and avoid delays to project delivery.

Responding to this need, my Department put in place an External Assurance Process (EAP) to provide independent scrutiny for major public capital projects (projects which cost in excess of €100m). This involves independent expert reviews at two key stages in the project lifecycle under the PSC (approval in principle and prior to tendering).

The purpose of the EAP is to improve value for money and support funding departments and Government with expert insight relating to project risks, delivery feasibility, and robustness of costings, governance and procurement. Funding departments can avail of external assurance services and independent expertise through a framework of qualified service providers which has been established by my Department.

The Major Projects Advisory Group (MPAG) has also been established by my Department. MPAG supports my Department in assimilating the outputs from the external reviews, and aids government departments and agencies in improving the quality of project proposals. informed by the perspective of those who have successfully delivered major public infrastructure in Ireland. Project proposals and external reviews are scrutinised by MPAG as a prerequisite to seeking Government approval in principle to proceed with the proposal and Government approval for permission to tender.

Experience from other countries which have introduced similar independent assurance processes shows that such arrangements reduce project schedule delay and cost overruns, providing greater value for money. These arrangements bring Ireland into line with leading international performers and meet a recommendation of the IMF’s Public Investment Management Assessment of Ireland.

Public Procurement Contracts

Ceisteanna (224)

Bernard Durkan

Ceist:

224. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform if reform in the context of public procurement can be used as a means of producing better value for money in respect of State projects; and if he will make a statement on the matter. [31625/22]

Amharc ar fhreagra

Freagraí scríofa

All public works projects that are delivered under the Exchequer-funded element of the Government's capital plan must be procured in accordance with the provisions laid down in the Capital Works Management Framework (CWMF). The CWMF represents the tools that a public body must use to procure and manage the external resources necessary to deliver a public works project that is to be delivered under the Exchequer-funded element of the National Development Plan. It consists of a suite of best practice guidance, standard contracts, generic template documents and procedures that cover all aspects of the delivery process of a public works project from inception to final project delivery and review to assist contracting authorities in meeting their ongoing procurement requirements.

A review of the policies and practices deployed in the procurement of public works projects commenced in March 2019 and is ongoing. The focus of the review is on improving the delivery of construction projects in terms of quality, timely delivery and cost outcomes. The review will deliver significant changes to the CWMF over the coming years. The review process involves extensive engagement, both with industry stakeholders, and with the public bodies charged with the delivery of public works projects on a broad range of issues such as:

- price variation;

- risk management;

- creating a better quality: price balance in the award of contracts;

- adoption of BIM on public works projects;

- liability, indemnity and insurance requirements;

- performance evaluation;

- encouraging collaborative working.

A high-level strategy has been developed by the Office of Government Procurement (OGP) with the Government Contracts Committee for Construction (GCCC) that will guide the implementation and will be addressed primarily through the progressive refinement and enhancement of the CWMF.

Covid-19 impacted the review in 2020 and 2021 as resources were redeployed to address the contractual and procurement issues that arose during construction lockdown. However, progress is being made on a number of fronts.

- The initial focus is on the engagement of consultancy services, which is aimed at driving better project definition, in order to provide greater certainty for all those engaged in the construction stage. Overall improvement in project definition is required through establishing minimum standards for information at the different stages of a project’s development. Work is ongoing on the detailed implementation aspects of the review of the engagement of consultancy services, which will be delivered by means of changes to the template tender documents, publication of new guidance material and exploring digital solutions.

- A review of the price variation mechanisms used in both the CWMF consultancy and construction contracts is currently underway. Initial research to review the inflation provisions in both the CWMF consultancy and construction contracts has been completed by consultants. Significant increases in construction material costs is affecting live tenders and contracts. Procurement guidance for ‘live’ tenders was published in November 2021. Interim amendments to the provisions in the public works contracts to address inflation in construction materials were introduced in January 2022. Following further inflationary pressures arising out of the Russian invasion of Ukraine concerns have been raised about the ability of contractors to withstand prolongation of elevated materials prices and more recent increases in energy and fuel prices. In the interest of safeguarding the delivery of the NDP and key projects underway, a new inflation co-operation framework is being introduced for those parties engaged under a public works contract. The framework will facilitate the parties to engage with one another on an ex gratia basis for the purpose of addressing the impacts of this most recent onset of exceptional inflation in construction materials and energy, and supply chain disruption. Consultation on broader changes is due to commence with stakeholders in 2022.

- Building Information Modelling (BIM) has the potential to transform the processes surrounding project and data management on construction projects and can drive significant efficiencies. The OGP is currently engaged with National Standards Authority of Ireland on preparing a national annex to the international standard (ISO) for BIM implementation and with the Build Digital Project in the development of an implementation plan for the adoption of BIM across the NDP. A series of masterclasses is ongoing to prepare public bodies for the implementation of BIM. In 2022, external advisers will be engaged to draft contract amendments to incorporate BIM into the CWMF and to prepare template procurement documents for publication.

- The OGP is engaging with key stakeholders on the issue of liability, indemnities and insurance and is reviewing broader aspects of the required terms in the contracts used to engage design teams and contractors. Engagement with the insurance sector and construction industry stakeholders has also taken place on issues relating to cost increases on Professional Indemnity Insurance premiums and the reduction in cover available. Amendments to CWMF documents and additional guidance was published in February 2022.

- Engagement is ongoing in developing standard metrics for life cycle costing and life cycle analysis that can be applied to the evaluation of projects’ cost of use in service and full life cycle analysis, including the carbon impact of individual projects. The OGP is liaising with the GCCC and the Irish Green Building Council in developing these metrics.

- The Cost Control Templates published under the CWMF are undergoing review to incorporate the International Construction Measurement Standard (ICMS). A working group has been established and revised templates will be published in 2022. ICMS is a global standard for benchmarking and reporting of construction project cost and covers both capital and whole life costing while providing a way of presenting costs in a consistent format.

- A review into the performance of alternative dispute resolution (ADR) provisions that were introduced in 2016 has also taken place in 2021. A final report on the review is being prepared by consultants, which will form the basis of a position paper in 2022 on ADR provisions in the public works contracts.

Together these reform processes will lead to meaningful policy change and will assist in delivering better value for money for the taxpayer in the implementation of Project Ireland 2040.

Inflation Rate

Ceisteanna (225)

Bernard Durkan

Ceist:

225. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform if delays incurred in the delivery of housing projects are responsible for inflationary costs; if he foresees opportunities for intervention in this regard; and if he will make a statement on the matter. [31626/22]

Amharc ar fhreagra

Freagraí scríofa

As the Deputy is aware, my Department is responsible for policy on allocating public funds across each area of Government spending and ensuring that expenditure is managed in line with these allocations by Departments. In this way, officials from my Department engage with their counterparts on proposals in relation to a variety of expenditure measures including in relation to housing, however, queries in relation to housing policy are in the first instance for the Minister for Housing, Local Government, and Heritage who has policy responsibility in this area.

Whilst I do not have the information necessary to be able to comment on whether delays incurred in the delivery of housing projects are causing an inflationary effect, as this would be more appropriate to the Department of Housing, I am confident that work underway in my Department progressing Modern Methods of Construction and improving levels of productivity and innovation in residential construction should help to alleviate some of the pressures that are unfolding in today’s construction industry.

The Construction Sector Group within my Department is working with the industry to strengthen the residential construction supply chain, to introduce modern methods of construction and promote innovation using digital and manufacturing technologies.

The progress of these initiatives are monitored monthly and detailed progress reports submitted to the Government periodically.

Pension Provisions

Ceisteanna (226)

Dara Calleary

Ceist:

226. Deputy Dara Calleary asked the Minister for Public Expenditure and Reform if he has plans to review current pension abatement arrangements for public service staff who complete their employment in one area of the public sector and subsequently take-up employment in another area of the public service; and if he will make a statement on the matter. [31712/22]

Amharc ar fhreagra

Freagraí scríofa

As the Deputy may be aware, the principle of abatement of a public service pension is long-standing within the rules of various public service pension schemes. Prior to the Public Service Pension (Single Scheme and Other Provisions) Act 2012), pension abatement applied only where an individual was re-employed in the same sector. The Single Scheme Act extended abatement such that an individual in receipt of a public service pension is subject to abatement where they are re-employed in any part of the public service.

The Act provides for the abatement of a public service pension where a retired public servant, whose pension is in payment, is re-employed in the public service such that no more of the pension when combined with the remuneration in the new position shall exceed the pensionable remuneration of the old position. It should be noted that it is the pension which is abated and not the salary in the new position.

I am satisfied that the measures taken in the 2012 Act were progressive and necessary. The extension of abatement across the public service was appropriate as a modernising pension reform. While the high level operation of abatement is monitored on an ongoing basis, there are no current plans to review pension abatement policy. Abatement policy remains a key component of Public Service pension policy and represents a suitable and measured response to legitimate public concerns about simultaneous payment of a pension and salary in the public service.

Departmental Policies

Ceisteanna (227, 228)

Holly Cairns

Ceist:

227. Deputy Holly Cairns asked the Minister for Public Expenditure and Reform if his Department and public bodies and agencies that operate under his remit that operate in direct contact with members of the public have policies in place for members of the public to report instances of sexual harassment or assault that occur on the property of his Department or public body and agency under his remit; if so, if these policies are publicly accessible on the relevant website; and if he will make a statement on the matter. [31748/22]

Amharc ar fhreagra

Holly Cairns

Ceist:

228. Deputy Holly Cairns asked the Minister for Public Expenditure and Reform if his Department and public bodies and agencies that operate under his remit have policies in place for employees to report instances of sexual harassment or assault that occur involving other employees or members of the public or on the property of his Department or each public body and agency that operate under his remit; if so, if these policies are publicly accessible on the relevant website; and if he will make a statement on the matter. [31767/22]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 227 and 228 together.

Due to the nature of its role, my Department, including the Office of Government Procurement therein, has no office locations that provide services directly to the general public.

The Customer Service Charter for my Department describes the service each customer is entitled to expect when dealing with the Department and our commitment to ensuring that these service levels are maintained. It provides information on service standards, customer input, complaints procedures and freedom of information, as well as contact details for key areas of the Department. This policy document is published and can be viewed at www.gov.ie/en/organisation-information/79b529-customer-service-in-the-department-of-public-expenditure-and-reform/

Employees of my Department and the OGP are subject to the provisions and protections of “Dignity at Work – an anti-bullying, harassment and sexual harassment policy for the Irish Civil Service”. This policy sets out the process by which an employee can report an alleged incident of sexual harassment or assault. It includes provision for referral of an alleged incident to An Garda Síochána where there is a possibility that a criminal offence has occurred. The policy is published and available at hr.per.gov.ie/en/publications/dignity-at-work-policy/

The relevant information regarding the bodies under the aegis of my Department is set out in the table below.

Publicly Accessible Policy – complaints from members of the public

Publicly Accessible Policy – complaints from employees

Office of Public Works (OPW)

The OPW supports and upholds a culture of respect, dignity, safety and equality in their workplaces, many of which are sites that involve direct contact with the public. The OPW has A Child Safeguarding Statement that sets out procedures for raising concerns about harm to children at any OPW site. The OPW has a number of policies in place for members of the public and employees to report instances of harassment or assault that occur on OPW managed property. The OPW Customer Charter and the Child Safeguarding statement are available to the public at visitor centres in hard copy. The Customer Action Plan and Charter are also available on the OPW website. www.gov.ie/en/organisation-information/019c0e-about-the-office-of-public-works/The Child Safeguarding Statement will be uploaded to the OPW website in the coming days.

The OPW adheres to the provisions of the Dignity at Work (anti-bullying, harassment and sexual harassment for the Irish Civil Service) Policy - see earlier link.

National Shared Services Office (NSSO)

The NSSO does not operate in direct contact with members of the public.

The NSSO adheres to the provisions of the Dignity at Work (anti-bullying, harassment and sexual harassment for the Irish Civil Service) Policy - see earlier link.

Public Appointments Service (PAS)

The PAS complaints procedure is for all types of customer service related complaints, and is not specific to complaints of sexual harassment or assault (but would include any such type of complaint). This is available at: Customer Service Action Plan 2021 - 2023.pdf (publicjobs.ie)

The PAS adheres to the provisions of the Dignity at Work (anti-bullying, harassment and sexual harassment for the Irish Civil Service) Policy. The Policy is made available to all staff on the PAS Intranet - see earlier link.

Office of the Ombudsman

No formal office policy exists concerning reporting by the public of allegations of harassment. The Health and Safety Statement for the office provides that no form of harassment by staff will be tolerated or accepted in dealing with staff or customers. Processes are available for members of the public to make such complaints and any such complaint would be treated very seriously.

The Office of the Ombudsman adheres to the provisions of the Dignity at Work (anti-bullying, harassment and sexual harassment for the Irish Civil Service) Policy - see earlier link. Each member of staff is given a copy of the Dignity at Work Policy when they commence employment at the Office of the Ombudsman and it is also covered as part of the staff induction programme.

State Laboratory

The State Laboratory does not operate in direct contact with members of the public.

The State Laboratory adheres to the provisions of the Dignity at Work (anti-bullying, harassment and sexual harassment for the Irish Civil Service) Policy - see earlier link.

Office of the National Lottery Regulator (ORNL)

The ORNL does not operate in direct contact with members of the public.

The Office of the Regulator of the National Lottery has a policy in place for employees to report instances of sexual harassment that occur involving other employees on the property of the ORNL. The policy is for internal use only and is not publicly accessible.

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