Brendan Howlin (Wexford, Labour) | Oireachtas source

Let me answer the questions in general terms first.

Deputy Sean Fleming asked about the new comprehensive review of expenditure, CRE. We stated it would be every three years. It should be a permanent feature that there should be a review of expenditure. We conducted the first one in 2011 and I would be anxious to hear the committee's views in its regard. Ultimately, if the new budgetary system is going to work, it cannot be simply monitoring the expenditure. It has to be making an input into what the expenditure is intended to do. We will work with the committee to see how we can model the process of expenditure review over the next few weeks. We will get it up and running, and see how we can create it.

At the end of the day, the deficit targets that we set out in the medium-term economic plan remain unaltered. Clearly we hope that the evident recovery will be sustained. There are some good indications, even today, in terms of good consumer confidence - car sales in the first couple of weeks of the year are good. That might give us additional tax buoyancy and indicate that there will be greater growth than we anticipated because there are more optimistic projections of growth emerging. We will see what resources the State has and we will engage in dialogue with the committee on what is the appropriate balance of spend, but the deficit targets that we set through the medium-term economic plan must be indicated.

The Deputy mentioned the difference between the outturn figures and the Estimate figures. The net Estimate figure for both divisions of the Department, the public expenditure and sectoral policy, PESP, and public service management and reform, PSMR, we set out at the beginning was €35.737 million. The outturn was €32.883 million and the new Estimate we propose is €35.898 million. The increase, compared to the original Estimate, is €161,000, which is a fraction of 1% and keeps the Estimate particularly flat.

We did not spend the Estimate in full because we made savings and I will outline them. Some €1 million of the savings are on the pay bill, driven mainly by staff who left the Department who we have not yet replaced or who are on long-term secondment. Therefore, there is €1 million in payroll savings. There is €850,000 on PEACE-INTERREG subhead. That arises out of uncertainty about the timing of project and the drawdown of funding. We did not expend €850,000 on PEACE and INTERREG. There was another €700,000 on the reform agenda unspent last year and approximately €500,000 on surplus appropriations-in-aid. We got more appropriations-in-aid than had been anticipated.

Notwithstanding the increase in the volume of work, particularly in the two areas the Deputy mentioned, specifically the second in regard to the development and expansion of shared services, the development of the Chief Information Officer and the development of the role of the Office of Government Procurement, which have ambitious targets to be met this year, we estimate we will do it for the same money that we allocated at the beginning of last year.

On Vote 18, Shared Services, and the Vote on the Office of Government Procurement, Deputy Fleming asks a reasonable question. If one will have shared services, one is centralising and there is a cost to do so but there will be a saving elsewhere. The Deputy inquired about that. We will identify that for him. It is more manifest in those that we have up and running. We cannot say in terms of the payroll shared service, because it is not yet up and running, from where staff will migrate and what Departments will second staff into this new department. There will be payroll savings in the payment Departments that transfer the staff into the new shared service.

Deputy Fleming asked a number of specific questions on both the ESRI and the IPA, on some of which I need to come back to him because they involve such level of specificity. I am told that both pay receipts to my Department, through appropriations-in-aid, of approximately €1.2 million between pension levy deductions and pension deductions.

The Deputy asked a question about top-ups. We wrote to all subsidiary bodies of this Department, as requested by the Committee of Public Accounts, and are compiling our returns. There is a general regulation that we do not provide for or allow top-ups. We undertook to come back to the Committee of Public Accounts in that regard. We will do so and perhaps include the committee, if it is interested, in our findings in that regard. Both bodies are State agencies for pension purposes and provide public service pensions accordingly.

As Deputy Fleming will be aware, under the Act the Office of National Lottery Regulator will be self-funding but it can only start funding itself from the time that the licence becomes operable, which will be towards the latter portion of this year. I am making a provision now through the Estimate to ensure that it is in place in good time for the establishment of the new national lottery regime.

The Deputy asked the total consultancy fees that were paid to Davy, the main consultant on the national lottery sale. I do not have the figure directly before me. Someone will correct me if I am wrong, as I am going from memory rather than digging into my own brief here. As the Deputy will be aware, it was a complex arrangement. It was of the order of €1.4 million. When one considers that the sale price that we got was €405 million, to do that well was an important and successful use of the skills-base which was used to supplement the internal departmental skills-base.

The Deputy asked two further questions, one of which was on the valuation process that is being rolled out. The Deputy knows there is a new valuation Bill. It will provide for a number of processes, including self-valuation. There will have to be a process to verify that. We want to make the system more efficient.

With regard to the revaluation process, the big mistake was that there was no revaluation for a very long period. The areas I have examined in regard to the revaluation demonstrate a 50:50 ratio. Approximately the same quantum in terms of money is associated with those who have been valued up and those who have been valued down. Needless to say, those who have been revalued down significantly, often in the hospitality sector, want the revaluation applied immediately. Those revalued up want a significant delay in application. All of this has implications for the income level of local authorities, which must proceed in a structured way. We are rolling out the revaluation and the new legislation will simplify the process and quicken the pace.

The last question the Deputy asked was on the Office of the Ombudsman. The new Ombudsman Act has greatly expanded the role of the Ombudsman. SIPO has expanded its role and we have acknowledged that by apportioning additional staff and allocating the bones of €1 million extra to the Office of the Ombudsman. We must obviously keep this under review. We talk to the Ombudsman all the time. We had very close contact with the previous Ombudsman and her staff in regard to the enactment of the legislation. She was happy to take it on using existing resources. We want to make sure the process is efficient and this depends on the quantum of business. I am sure the committee will want to do this.

I was asked about particular Bills. The Freedom of Information Bill is expected to be enacted in this session. I will be tabling Report Stage amendments. I have been thinking very deeply about it. We have done a lot of research on foot of the very good and helpful advices given by Members on Committee Stage.

The lobbying legislation will be published in this session. In the Dáil, we must complete the legislation on the reduction in the leader's allowance and the requirement to have the Independents' money vouched. I want that enacted this session. It will be the first Bill and it will be dealt with in the House in the next fortnight. During the following week, it is expected that we will take the lobbying Bill. I will give the members firm dates for the introduction of the Bills.