Mr. John McCarthy:

We are present for two purpose - to discuss the Department's report under the European Union (Scrutiny) Act 2002; and to share some reflections on the wider business priorities of the Department and the challenges arising as I commence my term as Secretary General.

In so far as EU business is concerned, the period in question followed on from Ireland's successful EU Presidency in the first half of 2013, during which we achieved a significant element of agreement on legislative files and represented the EU on the international stage on a range of important issues, for example, climate, waste and sustainable development.

The second half of last year was the period during which Lithuania held the Presidency for the first time. Lithuania made substantial progress on a number of important environmental files. The climate agenda was a heavy focus for that Presidency, particularly in light of the 19th Conference of the Parties, COP19, on climate change that took place in Warsaw in November. This was an important stepping stone towards the Paris Conference at the end of 2015, when the objective is to reach a new global agreement on climate change. There will be two further important staging points on the way to that conference. First, the UN Secretary General will hold a high-level summit on climate matters in September of this year. Second, the process will move on to COP20 in Lima in December. The European Commission has published a new policy framework for climate and energy in the period from 2020 to 2030. This will be important in shaping the EU's contribution to the international negotiations.

The main elements of business that the Lithuanian Presidency dealt with were files relating to CO2 emissions from cars and emissions from shipping. The latter was a first step in a longer-term strategy to deal with emissions from shipping, one that will be delivered through an agreement by the International Maritime Organization, IMO. Other issues that Ministers discussed during the second half of the year focused on waste shipment inspection regimes and a proposal from the Commission in that regard. Ireland is strongly supportive. We had some reservations on a number of its aspects, but those have been dealt with in revised texts developed by the Lithuanian Presidency.

The final significant environmental dossier that the Lithuanians dealt with related to invasive alien species. I will not go into much detail on the matter, but the work is being led in Ireland by the Department of Arts, Heritage and the Gaeltacht and managed through the environment Council at European level.

Before turning to the wider priorities and challenges for the Department, I will mention one further item of business at European level, that being, the funding of European political parties. The Department has been involved in dealing with two proposals at European level.

An information note provided by the Department was discussed by the committee last December. There has been some progress on those files which deal with funding of European political parties. The regulations have now been agreed between the Council and the Commission and are before Parliament this week with a view to final agreement, although they will not come into force until 1 January 2017. All of the issues referenced in the note discussed by the committee last December have been addressed in the final text that is now in course of being adopted.

I will now speak to the Department's priorities and challenges for the period ahead. As the chairman will be aware I was only recently appointed Secretary General. During the next few years the Department's work will be heavily influenced by the programme for Government and other Government initiatives of a cross cutting nature, particularly the Action Plan for Jobs, coupled with the Department's own departmental strategy which encapsulates its core mission to pursue sustainable development in its social, economic and environmental facets. Delivery of all of this will inevitably involve a significant programme of legislation which I am sure will come before the committee at various stages over the next few years.

I will now comment on domestic environmental matters. Climate policy is an area in which this committee has a strong interest. It is also an area in which the Minister has taken a lead role in terms of his programme of policy and legislative development. We are grateful for the committee's input in the development of that programme. That input, and the committee's report, has fed into the final proposals for the heads of the climate action and low carbon development Bill and an associated policy statement, which are currently before Government and will, I expect, be published shortly.

Environmental protection and economic development are not mutually exclusive. A key challenge for us will be bringing them together to underpin the transition to what will ultimately, by 2050, be a competitive low carbon environmental sustainable economy. In parallel with this, we will have to deal with the inevitable impacts of climate change. As such, implementation of the climate change adaptation framework, which we published in December 2012, will be a key focus for us as we move forward. As I mentioned earlier, there is an ongoing process at EU level in relation to the EU's 2030 level of ambition in relation to climate change. The Department will continue to feed into that.

A second priority in the environment area is waste. A new policy statement on waste was published in 2012. Key business for the Department in the coming number of years will be putting in place new regional waste management plans and a new regulatory system for household waste collection. Also in relation to environment, we remain on track to merge the Environmental Protection Agency and the Radiological Protection Institute of Ireland this summer. Legislation to underpin this is at an advanced stage. I would expect it to be published within a matter of weeks, following which it will be brought before both Houses for consideration.

Local government reform is a significant area of work for the Department in terms of functions, structures and finance. It has been an area to which considerable effort has been devoted over the past number of years in the context of the local elections on 23 May and the establishment of new councils on 1 June. Members will be aware we will in future have 31 councils as opposed to 114. A significant element of the implementation action will fall to the new councils to deal with.

The Putting People First - Action Programme for Effective Local Government sets out a vision of local government as the primary vehicle for governance and public service at local level. This will be a key focus as we move ahead. In regard to local and community development, there is an ongoing programme of work in terms of securing greater alignment between local government and local development. This will be taken forward through the new local community development committee structures to be established under the Government's reform programme. Also on the community development side, development of the new community development programme will kick in from 2015 and the new Leader programme will kick in next year as part of the next round of EU funding. Work in both areas is ongoing.

In terms of planning, the Department's aim is to ensure we ultimately achieve a planning system that is not reactive in nature but instead is proactive and provides a strong basis for sustainable development, ensuring that the right development occurs in the right place at the right time while protecting the common good. We are in the process of developing new legislation, including legislation that will bring forward proposals for a new office of planning regulator. We will also be considering future arrangements for spatial planning at national and regional level and on new planning guidance.

Housing is a significant area of activity for the Department. It accounts for approximately 70% of the Department's voted expenditure for this year in terms of social housing, our role in the private rented sector and the operation of the housing market generally. A significant piece of work by the Department that will continue into next year and onwards is the new housing assistance payment which is being developed to replace rent supplement for a significant cohort of people. A range of regeneration and retrofitting programmes, along with small scale construction of new build, are also ongoing. Addressing special housing needs will continue to be a key priority for the Department, particularly in the area of homelessness. New arrangements are being put in place to implement the report of the homelessness oversight group and to meet the needs of people through the housing grants for older people and people with disabilities.

New legislation is being developed in relation to the private rented sector, particularly around tenancy deposit protection. Members will be aware of the new building regulations and requirements introduced in this area. A key priority for the Department will be ensuring these bed down and continue to work effectively. On the water sector, members will be aware there is a considerable programme of reform under way in this area which is focused on improving the resilience of our water system, addressing leakage and ensuring that we have a secure supply for the future needs of households and businesses. A centrepiece of this is the establishment of Irish Water, new funding arrangements and the introduction of independent economic regulation of the sector through the Commission for Energy Regulation.

Other matters on which the Department is focusing include the local and European elections due to be held on 23 May. Later in the year work will be ongoing on two constitutional amendment Bills on the voting age for general and presidential elections. On the fire and emergency management side, the policy statement, Keeping Communities Safe, which was launched last year will continue to be the focus of concerted implementation in the period to 2015. Along with our colleagues in Met Éireann, which was formerly part of the Department, we will continue to try to ensure it can deliver a service that will support social, economic and environmental activities, particularly in terms of how meteorological information can contribute to this.

On corporate issues, the Department continues to operate in a tight fiscal environment and with declining staff resources. That said, we still have a significant budget provided for in the Department's Estimates this year. A key challenge for us will be to continue to ensure that we use those resources for maximum efficiency and effectiveness, to promote job creation and sustainable economic recovery, environmental protection and, ultimately, better outcomes for those most in need in our society. We will also be heavily involved in continuing to progress the public service reform agenda, not alone at Civil Service level but in terms of our role with the local government sector, where a significant programme of reform is ongoing. While we will continue to see reductions in staffing resources we will do everything we can at management level and across the Department to ensure we can continue to deliver on our ECF targets while at the same time continuing to deliver on the key priorities of our business agenda.

We will keep our business under ongoing review to ensure we can match as best we can the available resources and skills we have to deliver on the important business that has been assigned to us by the Government and, ultimately, to serve the broad range of constituencies we are here to serve, not least the Members of both Houses and the general public.