Tuesday, 15 Nov 2022

Written Answers Nos. 82-111

Voluntary Sector

Ceisteanna (89)

Ged Nash

Ceist:

89. Deputy Ged Nash asked the Minister for Public Expenditure and Reform further to Dáil Éireann passing a motion on Wednesday, 12 October 2022 in support of pay increases for community and voluntary sector workers, the action he or his Department has taken to deliver on the commitments listed in the motion; if he intends to provide for a standing forum and mechanism for collective bargaining on pay and conditions with recognised trade unions in the sector; if he or his Department has engaged with trade unions on this matter; and if he will make a statement on the matter. [56433/22]

Freagraí scríofa

Minister for Public Expenditure and Reform

Firstly, I would like to acknowledge the important work carried out by staff in these organisations and the vital contribution of the Community and Voluntary (C&V) sector. By way of general information, the Deputy may be aware that employees in these organisations are not Public Servants and do not fall under the remit of my Department.

The relevant legislation is clear on the range of responsibilities of the relevant departments and agencies. I would refer the Deputy to the following departments:

- Section 39 of the Health Act 2004 provides the responsibilities of the HSE and Department of Health,

- Section 10 of the Housing Act 1988 provides the responsibilities of the Department of Housing, and

- Section 56 of the Child and Family Agency Act 2013 provides the responsibilities of TUSLA and the Department of Children, Equality, Disability, Integration and Youth.

The organisations in question are private sector organisations. Accordingly the Terms and Conditions of their employees are matters in the first instance between the individual private sector employer, the employee and their employee representatives.

As noted by my colleague the Minister for Health in the debate on 12 October 2022, a process involving the Department of Health, the HSE and the Irish Congress of Trade Unions, ICTU, was initiated at the Workplace Relations Commission, WRC, in 2019.

In the debate the Deputy has referred to, the Minister for Health noted that it was considered that this process could provide a template of engagement which could be applied to other organisations in the Community and Voluntary (C&V) Sector. As further noted by Minister Donnelly, he considered that a process along these lines could play a useful role in providing solutions to the current pay-related issues that have been raised.

Any follow up questions would need to be directed to the Minister for Health, or in respect of other Community and Voluntary organisations to the relevant Minister.

Questions Nos. 90 to 94, inclusive, answered orally.

Public Procurement Contracts

Ceisteanna (95)

Emer Higgins

Ceist:

95. Deputy Emer Higgins asked the Minister for Public Expenditure and Reform the steps his Department is taking to reduce the cost of building materials; and if he will make a statement on the matter. [56229/22]

Freagraí scríofa

Minister for Public Expenditure and Reform

As Minister for Public Expenditure and Reform, I have responsibility for public procurement policy, including the work of the Office of Government Procurement within my Department.

There are two main sources for the significant and sustained increases in the price of a broad range of commonly used materials in the construction sector since Q2 of 2021. The first arises from the pandemic and in particular with materials shortages due to a sudden surge in demand as economies reopened across the globe. Essential supplies were prioritised throughout the pandemic whereas the manufacture of materials for non-essential areas was impacted disproportionately leading to shortages in certain sectors including construction.

Whilst global supply chains grappled with this challenge, the Russian invasion of Ukraine has resulted in further disruption to the supply of raw materials and, crucially, increases in energy prices which impacts both the manufacturing and transportation of materials, and affects all sectors.

The elevated cost of building materials therefore is linked to global events that are impacting on all economies. There is evidence to suggest that the rate of increase in material prices has moderated but they remain elevated and energy prices remain extremely volatile.

My Department’s response to this issue has been twofold, firstly to introduce measures to safeguard projects being delivered under the National Development Plan and secondly to invest in and promote measures that will drive efficiencies in the construction of buildings.

The volatility in the price of materials and energy is giving rise to significant challenges in the tendering process. Contractors have been unable to obtain fixed prices from materials suppliers which in turn means that contractors have to build in significant contingencies to deal with the risk of further inflation. For projects that were tendered prior to the onset of price increases, contractors were unable to absorb the additional costs, leaving them exposed.

In January 2022, the Office of Government Procurement introduced amendments to the standard public works contracts to enable contractors to recover price increases in excess of stated thresholds to bring greater certainty in the tendering process. In response to the further price escalation in materials and the exceptional increases in energy prices evident since the Russian invasion, additional measures were introduced in May to address the risk arising under live contracts.

in order to improve delivery efficiency, the Construction Sector Group (CSG), which is chaired by the Secretary General of my Department, has a number of initiatives currently underway to increase productivity in the sector. These include the establishment of the Construction Technology Centre to accelerate research and innovation within the sector; the Build Digital Project funded by my Department to support the sector in its transition to digital; the adoption of Building Information Modelling; and an analysis of the cost of residential construction.

Furthermore, work is underway in both the Department of Enterprise, Trade and Employment and in the Department of Further and Higher Education, Innovation and Science on Modern Methods of Construction which also aim to improve productivity in construction.

Office of Public Works

Ceisteanna (96)

Catherine Connolly

Ceist:

96. Deputy Catherine Connolly asked the Minister for Public Expenditure and Reform if he will provide details of any analysis carried out by his Department into the impact of the ongoing rise in rental prices on the cost of the rented portion of the OPW's office accommodation portfolio; and if he will make a statement on the matter. [56397/22]

Freagraí scríofa

Minister of State at the Department of Public Expenditure and Reform

A key function of the Office of Public Works (OPW) is to provide office accommodation for all Government Departments. In this regard, OPW holds a portfolio of property throughout the country to meet the various operational needs of the Civil Service, the Gardaí and various other State Bodies. The OPW’s objective is to hold, manage and maintain a property portfolio that is aligned to Government delivery needs in terms of size, location, specification, value for money and optimum utilisation.

The OPW office portfolio comprises some 890,488 square meters (year-end 2021), 61% of which is owned and 39% leased. It is a significant and diverse portfolio distributed throughout the country and includes a range of differing types of office provision, from prestige heritage buildings to brand new grade A office accommodation.

In its role of managing the extensive office accommodation portfolio, the OPW is consistently monitoring the commercial office market, both in terms of the current and future availability, in addition to noting available information on transactions that have been completed by third parties.

Given the current global instability on a number of geo-political / economic fronts the future of the commercial property market is somewhat uncertain. However broadly speaking, Dublin office rents for prime city centre Grade A office accommodation appear stable. There is recent market evidence to suggest premiums have been paid for new, best in class, city centre offices where particular occupiers have specific Sustainability, and Environmental, Social, and Governance requirements to satisfy, and require a certain quantum of space.

It is worth noting significant leasehold savings were secured during the office rationalisation programme of 2009 – 2012. As rent reviews arise they are negotiated, in accordance with the terms of individual leases, by chartered surveyors on behalf of the OPW to ensure that the best outcome for the State is achieved.

The OPW will continue to work with its clients to ensure that office accommodation across the owned and leasehold office portfolio is used to its optimal potential while at the same time meeting their operational requirements. All options within the existing portfolio, (owned & leased) including any capacity that may arise as Blended Working policies are rolled out, will be fully explored before new lease arrangements are considered.

Heritage Sites

Ceisteanna (97)

Cathal Crowe

Ceist:

97. Deputy Cathal Crowe asked the Minister for Public Expenditure and Reform if his Department has had engagement with other Departments with the view to providing Clare County Council with Exchequer money to make the transfer of Shannon Heritage sites a success. [56246/22]

Freagraí scríofa

Minister for Public Expenditure and Reform

In May of this year the Department of Transport established an inter-departmental working group to consider how the transfer could be supported across Government, as the Department of Transport itself has no mechanism to fund financial support to Shannon Heritage or the local authorities.

My Department was represented on the Group along with the Department of Housing, Local Government and Heritage, the OPW and the Department of Tourism, Culture, Arts, Gaeltacht, Sports and Media.

The inter-departmental group have met four times to date, and have identified a number of ways the transfer could be supported. The group’s findings were communicated to the Shannon Airport Group and Clare County Council by the Department of Transport, and both have been asked to continue their engagement in light of the supports identified, with a view to reaching agreement on a transfer.

Minister of State Naughton has also recently written to the Ministers of Housing and Tourism and the Minister of State for OPW with a view to seeking any further supports that might be identified to facilitate the transfer.

Once the remaining issues around the transfer are resolved, the Shannon Airport Group will be in a position to seek the formal consent of the Minister for Transport and myself to execute the transfer of the Shannon Heritage business and the relevant heritage sites and this will be done with the agreement of the Minister for Housing, Local Government and Heritage.

I recognise the importance of these heritage sites to the mid-west region, and I want to see the transfer of the Shannon Heritage business and heritage sites proceed as planned to secure the future of the businesses and their employees and my officials remain available to support and advise as required.

Flood Risk Management

Ceisteanna (98)

Paul Kehoe

Ceist:

98. Deputy Paul Kehoe asked the Minister for Public Expenditure and Reform if he will provide an update on the progress of the Enniscorthy flood defence scheme; if he will confirm whether the project will proceed with the construction of the new bridge; and if he will make a statement on the matter. [56108/22]

Freagraí scríofa

Minister of State at the Department of Public Expenditure and Reform

The Enniscorthy (River Slaney) flood relief scheme is being progressed by Wexford County Council, on behalf of the Office of Public Works, under the Arterial Drainage Acts 1945, as amended. On completion, the scheme will protect 326 properties in the town.

A proposed scheme including river channel widening, river deepening, bridge relocation, and the construction of extensive glass panelled flood walls through the town was submitted to the Minister for Public Expenditure and Reform for confirmation, under the Act in April 2020. In March 2022 The Minister for Public Expenditure and Reform, Michael McGrath TD, made a decision to refuse this Scheme under Section 7E(1)(b) of the Arterial Drainage Acts.

Since then Wexford County Council, as contracting authority has engaged consultants to review alternative options for a flood relief scheme for Enniscorthy, that has a long history of flooding. This will require some additional modelling and consideration of alternative options such as nature based solutions, as part of a viable scheme. The associated extensive and detailed engineering and environmental studies and assessments required as part of this process are expected to identify an alternative scheme in the second part of 2023.

Legal advice was sought and has recently been received by my officials in relation to progressing construction of a new bridge for the town, ahead of works for a flood relief scheme, so that both the scheme and the bridge can be integrated and delivered in a timely manner. This legal advice is currently being reviewed.

State Bodies

Ceisteanna (99)

Alan Dillon

Ceist:

99. Deputy Alan Dillon asked the Minister for Public Expenditure and Reform the reason his Department requires State bodies to disclose more comprehensive information on the remuneration of their CEOs than it does of the Accounting Officers of Departments and Government offices. [56395/22]

Freagraí scríofa

Minister for Public Expenditure and Reform

The reason for the different disclosure requirements is due to the different evolution of the rules in which Voted entities and non-Voted public bodies and companies report their accounts and the fact that the standard Secretary General salary scales, along with scales for other Civil Service grades, are regularly published on Gov.ie whereas the remuneration of CEO positions in non-Civil Service public sector organisations can diverge from Civil Service salary scales. The most recent circular in relation Civil Servants’ pay was published on 12 October.

Unless otherwise provided for in the establishing legislation of a State Body, guidance on the format and structure of some notes to the financial account within the annual reports of both commercial and non-commercial State bodies is provided for in the Code of Practice for the Governance of State Bodies 2016. This guidance is based on the Financial Reporting Standard FRS102 terminology. For bodies that are not Vote funded, the Code standardised and increased transparency in the accounts of public bodies across the State sector.

As the Deputy is aware, the legislative basis for the annual appropriation accounts is the Exchequer and Audit Departments Act 1866 and in the interest of transparency and accountability each year my Department considers requirements for more enhanced reporting in the Appropriation Accounts while also considering any legal constraints on disclosing information. Any extra information disclosed in the accounts is in the form of notes to the accounts. These notes to the accounts aid the reader to better understand the expenditure and receipts for each Government Department and Office of Government.

In that regard, in March this year, my Department issued an instruction to all Accounting Officers requesting additional reporting requirements including the disclosure of the Accounting Officer’s salary in the appropriation accounts for each of the forty five Vote holding Departments, Offices of Government and other entities. This additional reporting requirement commenced with the 2021 appropriation account. These audited appropriation accounts were published by the office of the Comptroller and Auditor General on 30 September 2022. My Department is considering further enhancing the information in the salary note for this year’s appropriation accounts. The enhancements being considered include provision of salary band data as well as further information on the gross remuneration of Accounting Officers. The provision of information in relation to gross remuneration reflects that decisions regarding voluntary deductions from salary are a personal matter.

Flood Risk Management

Ceisteanna (100)

Pádraig O'Sullivan

Ceist:

100. Deputy Pádraig O'Sullivan asked the Minister for Public Expenditure and Reform if he will provide an update on the selection of a contractor for the Glashaboy flood relief scheme; and if he will make a statement on the matter. [56244/22]

Freagraí scríofa

Minister of State at the Department of Public Expenditure and Reform

The Glashaboy River Flood Relief Scheme at Glanmire / Sallybrook, Cork is being progressed by Cork City Council. The Office of Public Works (OPW) in partnership with Cork City Council are engaging proactively to progress the flood relief scheme for Glanmire.

The Glashaboy Flood Relief Scheme was confirmed in January 2021 by the Minister for Public Expenditure and Reform under the Arterial Drainage Acts 1945 to 1995. The scheme is being funded from the €1.3 billion in flood relief measures under the National Development Plan to 2030, and as part of Project Ireland 2040.

The Glashaboy River Flood Relief Scheme will protect 103 properties from a significant risk of flooding.

The tender documentation for the procurement and appointment of a contractor was issued in September 2021 with a return date of 24th January 2022. Unfortunately, Cork City Council was not in a position to appoint a Contractor for the works on foot of this procurement process. However, Cork City Council is proceeding towards issuing updated Tender Documents in the coming weeks with the works scheduled to commence in Q2 2023. Key project partners are working to minimise the overall delay in the completion of these works.

Public Services Provision

Ceisteanna (101)

Brendan Griffin

Ceist:

101. Deputy Brendan Griffin asked the Minister for Public Expenditure and Reform the up-to-date position regarding the provision of a site for a children's playground at Dún Chaoin; and if he will make a statement on the matter. [56503/22]

Freagraí scríofa

Minister of State at the Department of Public Expenditure and Reform

The 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 Visitor Centre was officially opened in April 1994.

The Visitor Centre site on the mainland at Dún Chaoin supports and animates the OPW’s operations on the Great Blasket Island.

To enhance the visitor offering on the mainland, in 2020 we constructed a striking Viewing Platform on a clifftop site overlooking the Blasket Sound, which I had the pleasure of opening in July 2020.

Following a substantial re-imagination of the exhibition, I had the additional pleasure of reopening the Visitor Centre in June 2022. The new exhibition delivers a world-class visitor attraction in Dún Chaoin and is expected to be transformative for tourism in the locality.

OPW have been working with Comharchumann Dhún Chaoin since 2020 regarding the possibility of the OPW providing lands at the site of Ionad an Bhlascaoid for the purposes of a community playground.

The OPW management team assessed the proposal holistically and considered multiple issues about capacity, best practices in heritage presentation and the long-term objectives of the site. It was decided that any solution must address these concerns while meeting the needs of the local community.

In September 2021, I had a really positive meeting with the Comharchumann, at which the OPW made an offer in principle of a site to be leased for a playground for the community in Dún Chaoin.

A location adjacent to the Ionad on OPW lands, but not on the immediate footprint of the Ionad site, has been provisionally identified. I can confirm that the site has been assessed by both Comharchumann Dhun Chaoin and Kerry County Council, and I was assured that this site is acceptable to both.

Following the offer in principle of a lease on the relevant lands, I understand the Comharchumann is engaging now with Kerry County Council to secure their support and assistance in the design and development of the playground facility. The next step is for a detailed proposal for design and layout of the playground to be developed and agreed with all stakeholders. Thereafter, this proposal must be submitted for planning permission through the normal process.

Any lease for the purposes of a playground will be entered into when planning permission is secured. The OPW was happy to provide a letter earlier this year setting out the availability of the site subject to lease in support of the planning application, and to support the Comharchumann through the process.

The OPW is in regular and proactive contact with the Comharchumann regarding the playground and is making every effort to ensure that this issue is progressed without delay.

I assure the Deputy that the OPW is keen to receive the proposals and looks forward to assisting the Comharchumann as they progress this project to planning permission and funding applications.

Cost of Living Issues

Ceisteanna (102)

Neale Richmond

Ceist:

102. Deputy Neale Richmond asked the Minister for Public Expenditure and Reform the actions he has taken to deal with the rising cost of living; and if he will make a statement on the matter. [56293/22]

Freagraí scríofa

Minister for Public Expenditure and Reform

Budget 2023 set out a responsive approach to fiscal policy investing in the future of our public services and economy while addressing the challenges faced today. Budget 2023 contained significant measures, of c. €4.5 billion, to support households, public and community services and businesses.

As part of this budget, a winter cost of living package for households was announced by Government, costing €2.2 billion. It included:

- a double week of weekly social welfare schemes in October,

- a fuel allowance lump sum of €400,

- a once-off payment of €500 to those in receipt of Carer's Support Grant and to people on Disability Allowance, Blind Pension & Invalidity Pension,

- a €200 living alone allowance lump sum,

- a €500 working family payment lump sum,

- a double child benefit payment,

- a once off reduction in the student contribution fee by €1,000 for undergrads and 1/3 for Apprentices; €1,000 increase to post-graduates’ tuition fee contribution grant.

- a double payment to those eligible for SUSI maintenance grants and once off payment of €500 for SFI and IRC PhD researchers,

- €8 million for the Student Assistance fund, and

- three €200 electricity credits with two instalments due in the New Year.

In addition, a Christmas Bonus will be paid to eligible social protection recipients in 2022.

In recognition of the unprecedented rise in energy bills, Government introduced a number of further one-off support measures for businesses and public services;

- it provided €340 million in 2022 in support of public and community services,

- it will introduce a €200 million Ukraine Emergency Response Scheme, helping firms faced with liquidity issues as a result of increased energy costs, (administered by the Department of Enterprise, Trade and Employment).

- it is introducing a Temporary Business Energy Support Scheme, providing up to €1.2Bn in support to businesses encountering increased energy costs.

Budget 2023 also included new core permanent spending measures, focusing on cost of living, with an estimated value of c. €1.3 billion, including a €12 weekly Social Protection rate increase for working age and pension payments and an increase in the universal subsidy on the National Childcare Scheme.

Outside of these expenditure supports, additional taxation measures for households and business were also announced as part of Budget 2023.

The Government’s aim is to deliver sustainable public expenditure, and Budget 2023 balanced the need to protect the real value of public services and support citizens without adding further to inflationary pressures. The measures introduced recognise the particular challenges faced by those on lower and fixed incomes and the elevated energy-related costs. The measures were also designed to be capable of timely implementation.

Flood Risk Management

Ceisteanna (103)

Aindrias Moynihan

Ceist:

103. Deputy Aindrias Moynihan asked the Minister for Public Expenditure and Reform when flood defence construction works will advance for an Sulán River, Ballymakeera, County Cork; and if he will make a statement on the matter. [56470/22]

Freagraí scríofa

Minister of State at the Department of Public Expenditure and Reform

The Office of Public Works (OPW) in partnership with Cork County Council are engaging proactively to progress a preferred option for a viable flood relief scheme for Ballymakeera/Ballyvourney that will protect 90 properties from significant risk of flooding.

To date the assessments and data that has been produced by the OPW has brought the project to the latter stages of Stage One, Scheme Development and Preliminary Design. There are some elements that are required to close out Stage One for agreement with all relevant stakeholders of a final preferred option. The OPW is engaging with Cork County Council to identify the steps to identify a viable option and to meets the terms of the Water Framework Directive.

Construction of the scheme will be informed by planning permissions that are sought for a preferred option. The Ballymakeera/Ballyvourney Flood Relief Scheme is being funded from €1.3 billion allocated by the Government for flood risk management under the National Development Plan to 2030.

In the interim, Cork County Council has been approved for funding of €187,248 in October 2018 under the OPW’s Minor Flood Mitigation Works and Coastal Protection Scheme. This funding is for the provision of temporary flood defence measures, including sand bag defence structure, increasing of ground levels with ramps and the installation of 2 non-return valves.

Malachy Walsh and Partners (MWP) Consulting Engineers have been commissioned by Cork County Council to complete the design of the temporary flood relief measures in Ballyvourney. This work is now well under way and a design is expected to be ready before the end of this year and the intention is to go to tender for construction shortly thereafter.

Flood Risk Management

Ceisteanna (104)

Alan Dillon

Ceist:

104. Deputy Alan Dillon asked the Minister for Public Expenditure and Reform the level of spend by the OPW on the Crossmolina flood relief scheme since 2015; and if he will make a statement on the matter. [56394/22]

Freagraí scríofa

Minister of State at the Department of Public Expenditure and Reform

In October 2020, the Office of Public Works (OPW) submitted the documentation for confirmation for the Crossmolina Flood Relief Scheme to the Department of Public Expenditure and Reform, under the Arterial Drainage Act of 1945, as amended. As part of this process, the Department sought and the OPW provided it with supplementary information in July 2021.

The Department advised that a further Public Consultation would be appropriate, to include this supplementary information, and held that consultation between 6 May and 1 July 2022.

The Department of Public Expenditure and Reform has engaged consultants to examine the submissions received under the public consultation process resulting from the supplementary information provided to them during the Confirmation process. This work is ongoing and upon completion, the Minister will take into account all relevant information as prescribed in the Arterial Drainage Act 1945, as amended and make a decision on whether to confirm the scheme in accordance with Section 7E(1).

Work on this scheme started in 2012. Spend to date is €1.7m and €1.6m of this is since 2015 for the design of the scheme and the associated environmental assessments. This also includes costs of consultants, surveys and site investigations.

The OPW remain committed to constructing a flood relief scheme for Crossmolina that can protect 106 properties.

In addition, Mayo County Council has drawn down some €230,000 under the OPW's Minor Works and Coastal Protection Scheme since 2009, to provide some localised flood solutions. These works include reconstructing walls, purchase of pumps, removal of shrubbery and installation of flood gates.

Office of Public Works

Ceisteanna (105)

Ged Nash

Ceist:

105. Deputy Ged Nash asked the Minister for Public Expenditure and Reform if he will provide a list of projects under way by the OPW to improve the energy efficiency of the buildings it manages and owns; the budget for such works in 2022; the projected budget for 2023; the square meters of building space that will be retrofitted this year; the role the OPW has in delivering on climate mitigation and adaptation in the public service; and if he will make a statement on the matter. [56430/22]

Freagraí scríofa

Minister of State at the Department of Public Expenditure and Reform

Given the extensive activity ongoing in the Office of Public Works in the area of climate mitigation, adaptation and energy efficiency, the Deputy has agreed with my officials that a comprehensive written response would be more appropriate and will be forwarded as soon as possible.

Flood Risk Management

Ceisteanna (106)

Holly Cairns

Ceist:

106. Deputy Holly Cairns asked the Minister for Public Expenditure and Reform if he will provide an update on the flood relief scheme in Bantry, County Cork. [56220/22]

Freagraí scríofa

Minister of State at the Department of Public Expenditure and Reform

The Flood Risk Management Plans launched in May 2018 included a recommendation to progress the design, planning and construction of a flood relief scheme for Bantry. A Steering Group, comprising of representatives from the Office of Public Works (OPW) and Cork County Council, is in place to progress this Flood Relief Scheme protecting some 198 properties.

In February 2022 I visited Bantry to announce the appointment of J.B. Barry and Partners Ltd., in joint venture with JBA Consulting Ltd., by Cork County Council as engineering and environmental consultants to carry out the design of a viable scheme for the town. The scheme development and design is progressing with environmental surveys and hydrological modelling continuing in the area. The Site Investigation Contractor has now been appointed and site investigation work will commence on site in the coming weeks. This will help to both inform the options for a major flood relief scheme for Bantry as well as the separate works being planned by Cork County Council to upgrade the Bantry Mill Culvert.

Consultation with statutory and non-statutory bodies, as well as the public, will take place at the appropriate stages to ensure that all parties have the opportunity to input into the development of the scheme. A project website is available at www.bantryfrs.ie. A number of Public Participation Days will be held throughout the delivery stages of the project, the first of which was held on 18th May 2022, with the second due to take place in Q2 2023.

In tandem with progressing this scheme, Cork County Council is progressing the repair and re-construction in Bantry of a culvert on Main Street, the Mill Culvert Upgrade Project. An application for a Section 50 has been submitted by Cork County Council to the OPW for approval. The OPW is reviewing this request and once approval for the Section 50 is granted, a tender by Cork County Council for Consultancy Services for the detailed design and construction of the culvert will be advertised. The culvert has been identified as a significant element contributing to flooding on Main Street, New Street and north and south of Wolfe Tone Square in recent months. The OPW and Cork County Council are liaising on the integration of these works with the flood relief scheme for the town.

Under the Minor Flood Mitigation Works and Coastal Protection Scheme my office approved a total of €183,917 in funding to Cork County Council for interim works to mitigate flooding in Bantry. The installation of non-return valves on gullies and the storm pipe non-return valves have been completed and sandbags have been purchased for deployment in case of forecasted extreme weather events.

Separately, Cork County Council are working on developing an Individual Property Protection Scheme for Bantry. Expressions of interest for the scheme were requested, with positive responses received. Surveys of a proportion of the properties which would benefit from Individual Property Protection have been undertaken. These surveys need to be completed before issuing agreements for signing to all interested property owners. Once this has been completed an application for further funding under the OPW Minor Works scheme can be applied for.

Capital Expenditure Programme

Ceisteanna (107)

Éamon Ó Cuív

Ceist:

107. Deputy Éamon Ó Cuív asked the Minister for Public Expenditure and Reform the total underspend on capital allocated to Departments to the end of October 2022; the steps taken to streamline and speed up capital expenditure; and if he will make a statement on the matter. [56383/22]

Freagraí scríofa

Minister for Public Expenditure and Reform

As the Deputy is aware, my Department is responsible for the allocation of public funds across each area of Government spending and seeks to ensure that expenditure is managed by Departments in line with these allocations. The responsibility for the management and delivery of investment projects, within the allocations agreed under the National Development Plan 2021 – 2030 (NDP), rests with the individual sponsoring Department in each case.

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 Fiscal Monitor for October 2022, published on 2 November, recorded gross capital expenditure of almost €5.5 billion to end-October, which is €1.3 billion or 24.5% behind profiled spend of €6.8 billion. The expenditure figure of €5.5 billion does not include capital carryover from 2021 spent in 2022. The amount of capital carryover spent to end-October amounted to almost €750 million, giving an overall capital spend of just over €6.2 billion for this period. In year-on-year terms, gross capital expenditure is over €400 million higher, excluding capital carryover.

Capital expenditure by its nature tends to be lumpy, with a particularly high drawdown at year-end. It is therefore not unusual for Departments to record an under or over spend against profile throughout the year. There can be any number of reasons for projects to diverge from the profiles submitted at the beginning of the year, such as delays in planning, delays caused by the rising level of costs, supply chain disruptions, fuel costs and skilled labour shortages. These factors may contribute to completion delays and therefore create a variance between the profiled drawdown of expenditure and the submission of invoices by contractors.

As such, capital carryover is in place to assist Departments with the management of their capital spend across years to alleviate pressures and delays caused by timing issues and the impact of unexpected occurrences. This procedure is also designed to promote value-for-money in the use of capital funding, in particular by mitigating any incentive on the part of public bodies or Departments to spend any remaining capital allocation at end-year in an accelerated manner rather than surrender it to the Exchequer.

The Government has committed to investing €165 billion in capital programmes and projects across a range of investment sectors, as set out in the NDP 2021-30 published last October. Over €12 billion is available to spend on vital infrastructure this year, including capital carryover from 2021. This will ensure investment continues to be made in areas such as housing, transport, education, enterprise, sport and climate action.

We will continue to monitor and report on capital expenditure developments as the year progresses.

In addition, in terms of improving efficiencies and innovation in the construction sector, there are a range of measures currently underway through the Construction Sector Group which is chaired by the Secretary General of my department. Of particular note is the establishment of the Construction Technology Centre, funded by Enterprise Ireland, to accelerate research and innovation within the construction and built environment sector, and the Build Digital Project funded by my department to support the construction sector in its transition to digital. Both initiatives are aimed at driving greater efficiencies in both human and material resources.

The Construction Technology Centre (CTC) has mobilised in the University of Galway supported by UCD, TCD, UCC and the Irish Green Building Council. In its early work, the CTC is implementing research projects on various housing challenges to be completed by year end. Furthermore, the Department of Enterprise, Trade and Employment, supported by the Construction Sector Group, has established a Modern Methods of Construction Leadership and Integration Group. This group will support the development of MMC to ensure its adoption, and improve innovation in the construction industry with a particular focus on residential construction.

The commitment to a Building Information Modelling (BIM) mandate prompted the Construction Sector Group to add a BIM focussed action to the work of the Innovation and Digital Adoption subgroup. The adoption of BIM will lead to greater productivity and efficiency across the construction and built environment sector. BIM is of particular importance given the current economic climate of increasing prices, as it can assist in ensuring greater cost certainty.

Capital Expenditure Programme

Ceisteanna (108)

Willie O'Dea

Ceist:

108. Deputy Willie O'Dea asked the Minister for Public Expenditure and Reform if capital expenditure is within profile for the year to date; and if he will make a statement on the matter. [56447/22]

Freagraí scríofa

Minister for Public Expenditure and Reform

As the Deputy is aware, my Department is responsible for the allocation of public funds across each area of Government spending and to ensure that expenditure is managed by Departments in line with these allocations. The responsibility for the management and delivery of investment projects, within the allocations agreed under the National Development Plan 2021 – 2030 (NDP), rests with the individual sponsoring Department in each case.

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 Fiscal Monitor for October 2022, published on 2 November, recorded gross capital expenditure of almost €5.5 billion to end-October, which is €1.3 billion or 24.5% behind profiled spend of €6.8 billion. The expenditure figure of €5.5 billion does not include capital carryover from 2021 spent in 2022. The amount of capital carryover spent to end-October amounted to almost €750 million, giving an overall capital spend of just over €6.2 billion for this period. In year-on-year terms, gross capital expenditure is over €400 million higher, excluding capital carryover.

Capital expenditure by its nature tends to be lumpy, with a particularly high drawdown at year-end. It is therefore not unusual for Departments to record an under or over spend against profile throughout the year. There can be any number of reasons for projects to diverge from the profiles submitted at the beginning of the year, such as delays in planning, delays caused by the rising level of costs, supply chain disruptions, fuel costs and skilled labour shortages. These factors may contribute to completion delays and therefore create a variance between the profiled drawdown of expenditure and the submission of invoices by contractors.

As such, capital carryover is in place to assist Departments with the management of their capital spend across years to alleviate pressures and delays caused by timing issues and the impact of unexpected occurrences. This procedure is also designed to promote value-for-money in the use of capital funding, in particular by mitigating any incentive on the part of public bodies or Departments to spend any remaining capital allocation at end-year in an accelerated manner rather than surrender it to the Exchequer.

We will continue to monitor and report on capital expenditure developments as the year progresses.

Flood Risk Management

Ceisteanna (109)

Thomas Gould

Ceist:

109. Deputy Thomas Gould asked the Minister for Public Expenditure and Reform if he will provide an update on the Glashaboy flood relief scheme. [56451/22]

Freagraí scríofa

Minister of State at the Department of Public Expenditure and Reform

The Glashaboy River Flood Relief Scheme at Glanmire / Sallybrook, Cork is being progressed by Cork City Council. The Office of Public Works (OPW) in partnership with Cork City Council are engaging proactively to progress the flood relief scheme for Glanmire.

The Glashaboy Flood Relief Scheme was confirmed in January 2021 by the Minister for Public Expenditure and Reform under the Arterial Drainage Acts 1945 to 1995. The scheme is being funded from the €1.3 billion in flood relief measures under the National Development Plan to 2030, and as part of Project Ireland 2040.

The Glashaboy River Flood Relief Scheme will protect 103 properties from a significant risk of flooding.

The tender documentation for the procurement and appointment of a contractor was issued in September 2021 with a return date of 24th January 2022. Unfortunately, Cork City Council was not in a position to appoint a Contractor for the works on foot of this procurement process. However, Cork City Council is proceeding towards issuing updated Tender Documents in the coming weeks with the works scheduled to commence in Q2 2023. Key project partners are working to minimise the overall delay in the completion of these works.

Public Sector Pay

Ceisteanna (110, 127)

Peadar Tóibín

Ceist:

110. Deputy Peadar Tóibín asked the Minister for Public Expenditure and Reform if his Department has conducted any recent evaluation on public sector pay rates or the minimum wage in view of rising rate of inflation; and if he will make a statement on the matter. [56212/22]

Niamh Smyth

Ceist:

127. Deputy Niamh Smyth 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. [56284/22]

Freagraí scríofa

Minister for Public Expenditure and Reform

I propose to take Questions Nos. 110 and 127 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 pay agreement is ‘Building Momentum – A New Public Service Agreement 2021 – 2022’ which was due to expire at the end of 2022. As the Deputy will be aware, discussions concluded earlier this year between the parties to the Agreement following the triggering of the review clause in Building Momentum by public service unions and associations due to the increases in the cost of living.These were challenging discussions given the impact high levels of inflation are having on living standards of workers but also because of the uncertainty in the global economic outlook. The Government’s aim in these talks was to strike the right balance and seek to achieve a deal that is fair and affordable to both taxpayers generally and public service employees.

The outcome of these discussions was a set of proposals put forward by the Workplace Relations Commission to extend Building Momentum for a period of 12 months to the end of 2023. Three additional pay adjustments totalling 6.5% are provided for under the Building Momentum extension over 2022 and 2023. These are:

- An increase in annualised basic salaries for public servants of 3% backdated to 2 February 2022.

- An increase in annualised basic salaries for public servants of 2% on 1 March 2023.

- An increase in annualised basic salaries for public servants of 1.5% or €750, whichever is greater, on 1 October 2023.

These pay adjustments have now been endorsed by relevant unions and representative associations and are in the process of being implemented.

The cost of theses pay adjustments under the extension to Building Momentum is estimated to be €1.6 billion spread over three calendar years - 2022, 2023, and 2024. This extension makes Building Momentum a three year pay deal. The extension acknowledges the higher than anticipated rates of inflation that have emerged since 2021 and in particular the impact of cost of living pressures.

The existing Building Momentum Agreement provided headline benefits of 3%. In total, including the existing Agreement and the extension, headline benefits over the lifetime of Building Momentum amount to 9.5%, or just over 3% per year. In respect of public servants at lower pay levels, the extended Building Momentum provides for increases of 12.5% over its lifetime, which is an average of just over 4% per annum.

It should also be noted that Government has provided a winter cost of living package as part of Budget 2023 which contains temporary, targeted cost of living expenditure supports for individual households and businesses amounting to €2.2 billion which will be implemented in 2022.

An agreement on public service pay plays an important role in underpinning stability, minimising industrial unrest and supporting the continued delivery of reform and quality public services over the period ahead.

Question No. 111 answered orally.