Oireachtas Joint and Select Committees

Wednesday, 28 November 2012

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Public Expenditure and Reform

Estimates for Public Services 2012
Vote 12 - Superannuation and Retired Allowances (Supplementary)

3:00 pm

Photo of Ciarán LynchCiarán Lynch (Cork South Central, Labour) | Oireachtas source

I wish to add some of my own comments and broaden what the Minister of State has said. A reformed, efficient and effective public sector is a key part of the Government's programme of recovery, because as an operating pillar the public sector is critical to our economic recovery.

Before I joined the House, certain Deputies were responsible for introducing the Criminal Assets Bureau legislation. Lobbying went on from certain sectors of society such as the agricultural community, which sought to be exempted from the CAB legislation. There was extensive lobbying from certain sectors of society which may have acquired wealth by not conforming to the general provisions of the law. Representations were made from certain sectors in agriculture to the effect that agriculture should be exempted from CAB work, but this was found to be legally impossible.

The law cannot be implemented in a way that is not equal to all sections of society.

I return to a matter that concerns process and is not specific to what we are discussing this afternoon. This afternoon, we are talking about a demand-led scheme the cost of which cannot be predicted because people will come into it at different times. I am concerned with a matter that arose this year and will continue next year. Managers of budgets need to practise fiscal discipline which may not have been in the culture of Departments in previous years. At the ends of years hard cases, particularly in Departments such as health, often come back to select committees looking for extra money. I have witnessed departmental budgets coming before committees in that regard.

A certain fiscal discipline and maturity has now come into the Irish economy with the arrival of the IMF and the troika, in that we expose our accounts to examination by others. That is done on a quarterly basis. In areas that are not demand-led and where there is more control over expenditure could we consider looking at figures on a quarterly basis to see how those figures are being met, so that when Supplementary Estimates are presented we would have looked at the figures in previous quarters? Let us suppose, for instance, a saving of €10 per week has to be made over a 52 week period. If the saving is not made in the first, second and third quarters, a saving of €40 per week has to be made in the last quarter. Such an approach creates difficulty because the hit a specific Department has to take may have consequences for savings in another area.

I suggest that the committee look at those figures on a quarterly basis, as part of the Estimates process. Government and Opposition parties share the responsibility to make such savings. A saving that is proposed may not be realisable. It would be better to know that in the first or second quarter so that a different approach can be taken in the second and third quarters.

If this route is not taken we can end up with one of three difficulties. First, the saving may not be made because it is not being managed and the issue may be one for the Committee of Public Accounts or it may be necessary to invite managers to attend this sub-committee to explain why the savings are not being made. Second, if the direction of the saving is not realisable because of an over-estimation the responsibility lies with the Minister and his or her officials. Third, there may be an overall management issue as to why the savings are not being made.

I propose this process for next year. I propose that we look at projections of Estimates on a quarterly basis as much as Estimates adjustment.

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