Jimmy Deenihan (Kerry North-West Limerick, Fine Gael) | Oireachtas source

Tá áthas orm bheith i láthair chun réamhphlé a dhéanamh leis an gcomhchoiste maidir le Meastacháin mo Roinne don bhliain seo chugainn. I thank the Chairman for giving me an opportunity to discuss the pre-budget position for my Department in 2013 with the joint committee. He is aware that engagement with the committee and the opening up of the Estimates and budgetary process to wider public and parliamentary scrutiny are important elements of the reform agenda and the programme for Government. Members of the committee will be aware that the Department of Arts, Heritage and the Gaeltacht oversees and has policy responsibility for the conservation, preservation, protection, development and presentation of Ireland's heritage and culture. The Department seeks to promote the Irish language, support the Gaeltacht and assist the sustainable development of island communities. A gross provision of almost €269 million was provided to the Department for this purpose in 2012, with a further €8.6 million allocated to the Vote of the National Gallery.

As Members will appreciate, a consequence of the significant fiscal deficit facing the country is that sufficient resources have not been available in recent years to fund all the services we would like to provide. The 2013 allocations will reflect this position once more. In the present economic circumstances, unfortunately we have no choice other than to accept the reality that any failure to meet public expenditure targets at this time would have much more serious implications in the years ahead. It would affect our continued ability to maintain, promote and protect Ireland's heritage and culture, develop cultural tourism, advance the use of the Irish language and support the sustainable development of the islands. I hope the material my officials have provided to the committee will assist today's discussions. I propose to provide some further detail in respect of the comprehensive review of expenditure indicative allocations and the key areas of expenditure under my direct responsibility. I will give the committee a broad update on the issue of public sector reform and on the amalgamations and mergers process as they relate to the Department. My colleague, the Minister of State, Deputy McGinley, will speak about the relevant aspects of the Gaeltacht, Irish language and islands programmes.

As part of the comprehensive review of expenditure and the parallel capital review process, which involved a thorough and detailed evaluation of each area of spending under my remit, a number of options for expenditure reductions were identified in line with the guidance of the Department of Public Expenditure and Reform. These reviews set an indicative expenditure ceiling of €276 million - current expenditure of €232 million and capital expenditure of €44 million - for my Vote group in 2012 and an indicative expenditure ceiling of €256 million - current expenditure of €218 million and capital expenditure of €38 million - for the same group in 2013. Members will be aware that my Vote group allocation of €277 million in 2012 was in line with that indicative ceiling. The additional €1 million that was provided relates to delivery of the EU culture programme, which my Department leads. With regard to current expenditure in 2013, an adjustment of some €15 million on this year's allocation will be required to meet the indicative ceiling of €218 million. A further reduction of €6 million on the capital expenditure side would be needed to meet the 2013 indicative ceiling of €38 million. If we are to achieve this level of reduction, an overall decrease of approximately 8% will need to be applied to each of my programme areas, including the National Gallery. In light of the level of reductions across various programme areas in recent times, members will appreciate that this represents a very challenging scenario for my Department and for the National Gallery.

Between 2008 and 2012, the overall programme expenditure provision, excluding departmental administration for my Department's four programme areas, has increased by almost €247 million or 51%.

My Department will continue to focus to the greatest extent possible on achieving savings through efficiencies rather than through reductions in services. However, it must be acknowledged that in addition to the indicative reductions for 2013, there are some significant upward pressures for funding that must be addressed. Among the most notable are the provision of compensation relating to turf cutting in protected areas and meeting the capital requirement for the major renovation programme for the National Gallery. Against this background, the Department is continuing discussions with the Department of Public Expenditure and Reform as part of the Estimates process.

In broad terms, the 2012 allocations to the Department are €141 million for arts, culture and film, including some €63 for the Arts Council; more than €48.5 million for the conservation and protection of Ireland's built and natural heritage; €44.8 million for the Irish language, the Gaeltacht and the islands; and almost €43 million for North-South co-operation, including support for two North-South implementation bodies, Waterways Ireland and An Foras Teanga. Excluding departmental administration elements, these allocations reflect significant overall reductions since 2008, some 39% in the arts sector, 77% in the heritage sector, 64% in the Irish language, Gaeltacht and islands sectors and 25% in North-South co-operation. Clearly the chellenge ahead is how best to balance the competing demands of expenditure reductions and the various upward pressures while at the same time maintaining the Department's core functions and the range of services provided to the public.

We will, within the resources available, continue to place emphasis on supporting jobs in the film and television sector and in the Gaeltacht, targeting investment in priority areas in the culture and heritage sectors that will support cultural tourism as one of the most important elements of Ireland's tourism product, on complying with the EU directives, including with investment in alternative solutions for those affected by the cessation of turf cutting in special areas of conservation, and on supporting the built heritage, the strategic development of national parks and the development of our waterways in the context of the implementation of the Good Friday Agreement and the St. Andrews Agreement. We also accept, however, that at this stage there are no easy decisions remaining and I am therefore looking forward to discussing these matters with the committee and to receiving any inputs the committee might have in this regard.

There are three areas of particular significance within my Department's ambit: the EU Presidency, the decade of commemorations and the public sector reform plan. Ireland's upcoming Presidency of the European Union in 2013 offers a new platform for cultural links with our key European partners. My Department is actively involved in the ongoing preparation for the Presidency, including preparations for events on both the European and wider international stage in the lead-up to and during the Presidency. In particular, I am overseeing development of a cultural programme to accompany the Presidency. This programme represents an important opportunity to showcase Ireland's cultural heritage and artistic talent and to win positive publicity for Irish creativity both on the European stage and further afield.

As the committee is aware, we are now at the commencement point for a number of important commemorations in our country's history. The decade from 1912 to 1922 was one of considerable economic, political and social change, not just in Ireland but in Europe and globally. I am proud to serve as chairman of the all-party Oireachtas consultation group on centenary commemorations which is dealing with the commemorative programme for the decade of centenaries, 1912 to 1922. The programme will seek to respect the various traditions on this island in a way that is sensitive, fair and reflective of our growth as a people of shared, disparate and sometimes conflicting interests, heritage and culture. I look forward to working with partners in both the North-South and east-west context, as the various commemorative events take place in the years ahead.

I reaffirm my support for the vital work of public sector reform. The Government decision of 17 November 2011 announced a streamlining of State bodies, including a number of bodies funded from my Department's Vote group. The Department has been engaged in a process of consultation over recent months to determine the best way to implement the Government decision and achieve savings and efficiencies while maintaining the integrity of the cultural institutions. This process has involved consultation by the Department with each of the relevant institutions. In addition, I met the chairmen of the various institutions involved in this process to afford them an opportunity to express their views. Meetings took place with a range of stakeholders and interested parties on these issues.

Following this period of assessment, consultation and review, the Government recently considered progress made to date and noted and agreed the range of reform actions to be undertaken. These include a streamlining of all boards and advisory councils, with fewer members and all serving without fees; co-operation between institutions in a real and practical way across a wide range of services like communications, procurement, security, retail services and marketing; making greater use of the Department in providing support services such as HR, IT, legal services and finance to some institutions so those organisations can concentrate on offering core services to the public; aligning the work of relevant organisations with the broader agenda of Government, which is focused on driving investment into Ireland and rebuilding our reputation overseas; encouraging organisations to proactively attract philanthropy and fund-raise nationally and internationally to bolster the funding they receive from the taxpayer; and strengthening the programming, curatorial and operational independence of directors.

The committee should note that savings of €20 million in enhanced service efficiencies and value for money were targeted in the public service reform plan. In this context, it is expected that savings in the region of approximately €1 million will be made initially across the institutions involved in the reform programme which are funded from my Department's Vote group, with further savings to be identified as various cost saving measures are implemented. The real benefit from the rationalisation of State agencies will be a less crowded administrative landscape, resulting in greater democratic accountability, less duplication of effort and clearer lines of responsibility for the citizen. I am confident these reforms will save money at a time of scarce resources and will modernise how these institutions co-operate and work with each other. The organisations funded by the Department understand the challenge Ireland faces and that we must do more with less in the years ahead. I also firmly believe we have an opportunity for reform that should not be lost. I am ambitious for Ireland's cultural and heritage offering and want to equip our organisations with the skills and structures they need in the challenging times ahead.

I will be happy to expand on any matter members may wish to raise. Before passing over to my colleague, the Minister of State, I want to assure the committee I will listen to any proposals the members would like to make. The Estimates for 2013 have not been finalised so if the committee would like to place emphasis on any particular area, this is a good opportunity.