Oireachtas Joint and Select Committees

Wednesday, 17 October 2012

Joint Oireachtas Committee on Finance, Public Expenditure and Reform

Public Expenditure and Reform Vote: Discussion with Minister for Public Expenditure and Reform

5:10 pm

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour) | Oireachtas source

The stimulus package is not in the figures in that it is predicated on an external funding source, namely, the sale of State assets plus investment money from external investors including the European Investment Bank. We will explain how that fund is to be structured once we get closer to accruing money. It has been signalled that a number of State assets will go to market next year. I will come back to the committee with detail on the matter when we get closer to the mechanisms for doing so.

I answered the question on the cost of shared services at the outset in the context of additional pressures of superannuation and shared services. I want to drive the agenda and we must find the resources to do it as we go along. They are investments in savings elsewhere because as we save money across all other Departments by, for example, locating human resource management into one centre, we are saving pockets of money all over the place. In that instance it is €12.5 million annually.

There is an outflow of money to set it up of the order of €10 million, but that will repay itself very quickly. If any member of the committee has views on other areas that might be suitable for shared services I would welcome that.

I have already indicated that the anticipated potential savings from shared services in the human resources area is €12.5 million per annum, with a reduction of 149 full-time equivalent staff.

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