Enda Kenny (Mayo, Fine Gael) | Oireachtas source

I am pleased to appear before the select sub-committee as it considers the Revised Estimates for Votes 1 to 6, inclusive. The Estimates in each case are: Vote 1 - the President's Establishment, €3.062 million; Vote 2 - the Department of the Taoiseach, €22.148 million; Vote 3 - the Office of the Attorney General, €14.317 million; Vote 4 - the Central Statistics Office, €39.758 million; Vote 5 - the Office of the Director of Public Prosecutions, €37.414 million; and Vote 6 - the Office of the Chief State Solicitor, €29.916 million. The total for the six Votes is €146.615 million. This represents a 7% reduction on the Revised Estimates for 2012 of €157.633 million.

As with all Departments, the Revised Estimates have been prepared on the basis of the savings which arose under the Labour Relations Commission proposals emanating from discussions with the public service trade unions. The Government's position remains clear, namely, that savings on the public service pay and pensions bill of €300 million in 2013 and €1 billion by 2015 are required. As members will be aware, the Labour Relations Commission is currently engaged in a round of discussions with the public service trade unions to establish if there is any basis for a negotiated settlement. The Minister for Public Expenditure and Reform will report back to Government next Tuesday on the outcome of those discussions.

I propose to outline the broad areas of work which will be undertaken by my Department in 2013. I will also outline briefly the proposed Estimate allocations for the President's Establishment, the Office of the Attorney General, the Office of the Director of Public Prosecutions and the Office of the Chief State Solicitor. Members will be aware that while I have certain responsibilities to the Oireachtas in respect of administrative matters in the legal offices, they operate independently of the Department of the Taoiseach. The Minister of State, Deputy Kehoe, will make a short statement on the Revised Estimate relating to the Central Statistics Office, for which he has delegated responsibility.

The Revised Estimate for the President's Establishment is €3.062 million. This includes just over €2 million for pay and administration, with a balance of just over €1 million to fund the centenarian’s bounty. Based on last year's figures and recent trends, it is estimated that 364 centenarians will receive the bounty in 2013. However, the final figure could differ slightly.

A total of €22.148 million has been provided in the Revised Estimate for the Department of the Taoiseach in 2013. I am pleased that the outturn for 2012 was €22.1 million - well within budget - despite the significant costs associated with the preparations for Ireland's Presidency of the EU, the referendum on the EU fiscal treaty and payment of third-party costs in respect of the Moriarty tribunal. The 2013 Revised Estimate is 6% lower than the 2012 allocation, despite the inclusion of €2.1 million to meet the costs relating to the referendum on the abolition of the Seanad and €2.485 million to meet the costs arising from Ireland's Presidency of the Council of the European Union in the first six months of the year to the end of June.

As I indicated to the select sub-committee at last year's meeting, the Department has been significantly restructured to transform it into the equivalent of a Cabinet office with responsibility for overseeing the delivery of the programme for Government. A small office within my Department is tasked with overseeing progress on the implementation of the programme. This office is actively engaged with all Departments in monitoring progress on all the commitments contained in the programme. The Tánaiste and I launched the second annual report on the programme for Government on 6 March. This highlights the extensive work undertaken and the progress made during the Government's second year in office. Much has been achieved in terms of stabilising the economy and unemployment levels, creating the climate for competitiveness and growth, reducing the cost of the bailout and correcting the public finances.

As I have stated on many previous occasions, the Government's priorities in 2013 include continued action on job creation and economic growth; making sure economic recovery does not bypass jobless households; further work to tackle the problem of mortgage arrears; exiting the EU-IMF programme; continued constitutional and political reform; further changes in public services; and new policy changes to enhance people's lives, including in the areas of health, education and child and family services. These priorities are all reflected in the work of my Department, in particular through the system of Cabinet committees. In 2012, my Department provided secretariat to 50 meetings of the Government, for which 1,108 memoranda were circulated. My Department provides briefings on all these items, as well as recording and communicating the decisions taken. My Department also provided secretariat to 91 Cabinet committee meetings, including those relating to the Economic Management Council. In most instances, Cabinet committees are supported by groups of relevant senior officials and are chaired by my Department.

Unemployment remains at an unacceptably high level and my Department's first priority is to support job creation and economic growth. During 2013, my Department will continue to support the work of the Economic Management Council, which normally meets on a weekly basis. It plays a key role in overseeing the Government's programme in the context of economic planning and budgetary matters, negotiations with the EU-ECB-IMF troika, and banking policy. The Cabinet committee on economic recovery and jobs is primarily focused on delivery of the Action Plan for Jobs and other policies to support job creation and the restoration of economic activity. The monitoring group for Action Plan for Jobs meets regularly to ensure the delivery of the plan and reports progress to the Cabinet committee.

It also publishes quarterly reports on the implementation and the targets for each quarter. Some 92% of measures in the 2012 Action Plan for Jobs were successfully delivered. I have extended the secondment of two staff from Forfás to my Department for another year to ensure the vigorous implementation of the Action Plan for Jobs in 2013.

A sub-committee also oversees delivery of the Pathways to Work strategy. This aims to transform our activation and labour market policies and to ensure that as many people as possible from the live register return to work.

The Cabinet committee on economic infrastructure seeks to maximise productive investment across the economy. Its work includes the commitments in the programme for Government in regard to NewERA and the support of commercially financed investment in next generation infrastructure and networks. My Department also supports the IFSC Clearing House Group, which provides a forum for the public and private sectors to work together to maximise employment and growth in that sector.

The cabinet committee on climate change and the green economy ensures a co-ordinated approach to this complicated and cross-cutting area of policy. The Cabinet committee on health oversees the ambitious health reform process, following through on the Future Health framework which was published last November. The Cabinet Committee on Social Policy has responsibility for relevant reforms, including areas such as education, carers and older people, while the Cabinet committee on public service reform oversees the Government's extensive programme of these reforms.

The Cabinet committee on mortgage arrears was established last year and met frequently to put in place a framework to help families in mortgage difficulties. This includes enactment of personal insolvency legislation, establishment of an information and advisory service and enhancement of capacity within the banks. It will continue to drive this process during 2013.

The Cabinet committee on Irish and the Gaeltacht seeks to promote the Irish language and to support Gaeltacht communities and Irish-speaking households. The Cabinet committee on european affairs ensures a co-ordinated national approach to European Union affairs and is playing a very important role in Ireland's current Presidency of the EU. Planning and strategic management of the Irish Presidency of the Council of the EU has been a major focus of my Department during the past 13 months. Throughout 2012 the Department led the preparations, including policy co-ordination across Government, drafting the Irish Presidency and trio Presidency programmes, developing the Presidency website, organising specialised training for Irish working group chairpersons, and planning the calendar of Presidency meetings and events. The Department's focus in 2013 is on co-ordinating, communicating and giving strategic direction to the work of the Presidency, addressing any challenges that may arise, and ensuring that the Irish Presidency delivers results that promote stability, jobs and growth, which are our three pillars, across Europe and in Ireland.

I am pleased with the progress that we have made to date in delivering on the objectives set out in our Presidency programme last January and in driving the EU agenda and its economic recovery forward. The agreement reached by the Presidency on the single supervisory mechanism is an important step in breaking the link between banks and sovereigns, which decision was made last year on 29 June, while the deal that we secured on the capital requirements directive with the European Parliament will provide greater protection to European taxpayers by building stronger banks and limiting banker bonuses. As EU President, Ireland will continue to progress the remaining banking union proposals to promote stability in Europe's banking sector which is required to promote the confidence that the European economy needs to grow and to fund recovery.

Following the agreement reached at the February European Council on the EU's budget from 2014 to 2020, the Presidency will continue to work to secure the assent of the parliament for a budget that will support growth and jobs in Europe. That is not an easy challenge. I have met Presidents Barroso and Schulz for talks on a number of occasions in recent months to secure compromise and to stress the urgent need for an agreement to dispel uncertainty and to fuel the EU's economic recovery. Members should be aware that I travelled to Brussels on Monday with the Tánaiste. I had a meeting with President Barroso and President Schulz on this specific matter and also regarding the deficit for the Union in respect of 2012-13. We reached agreement at that meeting on a convergence of these two matters and formal discussions in respect of the MFF will commence next Monday in trilogue and will be led for the Presidency by the Tánaiste at that meeting. We hope to be able to conclude that during the course of our Presidency.

We are driving the EU's trade agenda forward. Opening up new markets will be essential to future growth within the EU economy. The progress we are making here will facilitate growth in trade and employment for businesses to create jobs and deliver competitive benefits for consumers. While it has required an increase in staffing and expenditure in my Department during 2012 and 2013, we have adopted a very cost-conscious approach towards this Presidency. For example, almost all the meetings are being hosted in State-owned venues like Dublin Castle, thus minimising accommodation and travel costs. I think the citizens of the country understand that to be the case in comparison to Presidencies in previous years.

A successful EU Presidency will enhance Ireland's international standing and reputation. As such, it will complement my Department's ongoing work to support a strategic programme of international engagement based around job creation and increasing trade and exports. During the planning and organisation of these visits my Department will seek to achieve value for money and to minimise any associated costs.

Already this year I have paid a successful and productive visit to the World Economic Forum in Davos where I met a number of current and prospective investors in Ireland as well as international leaders. I travelled to the United States in March for a week long programme of engagements in New York, Washington, Los Angeles, San Francisco, San Jose and Seattle. I met President Obama, Vice President Biden and a number of political and business leaders as well as many Irish community organisations. My main focus was on driving trade, jobs and investment and advancing progress on an EU-US trade agreement and US immigration reform. I have met the organisations associated with that and I am glad to see that progress is being made.

My Department will also support me in my engagement with G8 members in Lough Erne in Fermanagh in June as well as any associated incoming visits. I also expect to participate in other trade and jobs focused international engagements during the year.

When I came to office Ireland was not just in the throes of an economic crisis, but also a reputational crisis. Since then, we have all seen a clear improvement in Ireland's international reputation and in the way that others look at us from abroad. We have made a successful return to the bond markets on a phased basis and we have seen a significant fall in bond yields from 15% down to less than 4%. A number of other reputational indicators also point to a dramatic improvement in Ireland's international reputation over the past year and a half, not the least of which is the continued strong line of both interest and investment here and foreign direct investment but also in the series of announcements being made by international companies.

Another important aspect of the work of my Department is in supporting lasting peace and reconciliation in Northern Ireland. I continue to work very closely with the political leaders in the Northern Ireland Executive and with the British Government to ensure that the continued implementation of the Good Friday Agreement is fulfilled. Events in Belfast in recent months show us that there is still a great deal of work to be done and no room for any complacency. Building relationships between divided communities takes time, sustained effort and investment. Last year, I initiated a series of visits with families of victims on all sides of the community in Northern Ireland as a sign of my own desire to help find a lasting resolution to the deep and emotional trauma and hurt of the past. I will continue my engagement with the victims of the conflict with a number of meetings scheduled for later this year. These include residents from Ballymurphy and yesterday we had invitations from relatives of the victims of the Omagh bomb. As is normal before any such meetings take place, officials from my Department met with these personnel and the same will happen in these cases.

North-South economic co-operation remains a priority for the Government. Last year, I attended two plenary sessions of the North-South Ministerial Council which continues to work very well. I will chair the next plenary meeting of the council in July in Dublin. Members will be aware that issues such as road developments, health co-operation, connections across the Border and issues in regard to Departments are all part of these discussions. The work between both Ministers and their counterparts, by and large, is very good and progress has been made in a number of areas to which we can legitimately point.

In January 2012 I hosted the British-Irish Council, BIC, summit in Dublin Castle. I also attended two other BIC summit meetings in Cardiff and Edinburgh. The next BIC summit meeting will be held in Derry in June.

We continue to deepen our partnership with the British Government. I met with the Prime Minister, Mr. Cameron, recently in London and we renewed our support for the joint statement agreed in March 2012, setting out areas for enhanced co-operation across a wide range of areas of mutual interest, including economic co-operation and trade and investment.

Another priority for my Department in 2013 is the referendum on the abolition of Seanad Éireann. The Department has an allocation of €2.1 million to fund the cost of the referendum. Work on drafting the necessary constitutional amendment Bill to abolish the Seanad is proceeding and it is the intention to publish the Bill in the current Dáil session. That will allow time for a full debate on the Bill prior to a referendum later in the year.

Last year the Convention on the Constitution was established under my Department and its work has gained momentum this year. The convention has held three working meetings to date and has already submitted its first report. I am sure members will agree that this represents a significant amount of progress in a relatively short space of time. The convention is, of course, independent of Government and reports directly to the Houses of the Oireachtas. The Government has given a formal commitment to respond to recommendations from the convention within four months of the laying of the relevant reports before the Houses. The Government’s response will be debated in both Houses.

My Department has also made an allocation of €1.6 million for the Moriarty tribunal. The tribunal is currently dealing with applications for third-party costs. The sole member has indicated to my Department that the majority of applications for costs have been considered by him and that he anticipates completing his consideration of the remaining applications in the coming months. A new legal costs unit has been set up in the State Claims Agency which will deal with bills of costs from third parties at tribunals of inquiry. That will help to manage these costs as effectively as possible.

My Department’s Estimate includes an allocation of €2 million for the National Economic and Social Council, NESC. Its 2013 work programme builds on its earlier work on the promotion of recovery and employment andwill also identify a number of cross-cutting economic, social and environmental challenges for deeper study and to develop policy recommendations. The council’s staff and budget have been considerably reduced in recent years. In addition, a number of its staff have been assigned to work on priority issues in my Department and other Departments.
In respect of Vote 3 on the Office of the Attorney General, the office hasa net budget of €14.317 million. This is broken into €12.914 million for the administration subheads, €2.191 million for programme expenditure and an appropriation-in-aid of €788,000. The majority of the administrative expenditure relates to staff salaries, which will cost €8.949 million in 2013. The next largest expenditure is provided for in subhead A4 and is €2.103 million in respect of the Law Reform Commission. Funds for the operation of the commission are channelled through the Attorney General's office Vote as a grant-in-aid. Since 2008 the office has reduced its gross budget by almost 17%. Measures taken include reductions in expenditure wherever possible and a 28% reduction in administrative staff numbers. Staff losses have been confined to administrative positions in order to avoid any interruption of the core work of the office, that is, the provision of legal advice and drafting services to its clients.

The total amount under Vote 5, which is for the Office of the Director of Public Prosecutions, is €37.414 million. This provides for the salaries and expenses of the director and her staff, the cost of the local state solicitor service, fees to counsel engaged by the director to prosecute cases in the various courts, and legal costs awarded against the State arising out of judicial review and other legal proceedings. The Estimate for 2013 represents a drop of 4%, or €1.433 million, over expenditure in 2012. The biggest single factor in this drop is the reduction in the provision made in input A4, general law expenses. This covers the payment of legal costs awarded by the courts in judicial review matters and other applications connected to legal proceedings. Expenditure in 2012 included the cost of settling a small number of unusually expensive cases. The other main factor driving the reduction is the effect of anticipated savings from pay cuts under the new public sector pay agreement.

In respect of Vote 6, the gross 2013 Estimate for the Office of the Chief State Solicitor Office is €31.776 million. Within the administrative budget, salaries, wages and allowances account for just over €14.4 million out of a total of €17.2 million. A figure of €14.6 million is allocated for the payment of legal fees incurred by the office. This can be broken down into an amount of €11.85 million for counsel fees, €2.5 million for general law expenses and €248,000 for the use of external solicitors. The remaining €2.9 million is attributable to the general running costs of the office and includes provision for items such as IT services, training, security, cleaning, utilities and the upkeep of offices. The figures for salary and legal expenses combined account for 97% of the net allocation in the Revised Estimates of €29.92 million. Appropriations-in-aid are estimated at €1.86 million and will include legal costs recovered by the office along with the recoupment of the pension levy. In conclusion, I thank members for their attention and I commend these Estimates to the committee.