Oireachtas Joint and Select Committees

Thursday, 16 January 2014

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on the Department of the Taoiseach

Estimates for Public Services 2014
Vote 1 - President's Establishment (Revised)
Vote 2 - Department of the Taoiseach (Revised)
Vote 3 - Office of the Attorney General (Revised)
Vote 4 - Central Statistics Office (Revised)
Vote 5 - Office of the Director of Public Prosecutions (Revised)
Vote 6 - Office of the Chief State Solicitor (Revised)

4:10 pm

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael) | Oireachtas source

I am glad to attend this meeting to consider the Estimates for Votes 1 to 6, inclusive. The 2014 Estimates in each case are the President's Establishment - €3.267 million; the Department of the Taoiseach: €19.423 million; the Office of the Attorney General - 14.301 million; the Central Statistics Office - €39.577 million; the Office of the Director of Public Prosecutions - €36.838 million; and the Office of the Chief State Solicitor - €26.309 million. The total Estimates for these Votes in 2014 is €139.715 million, a reduction of 5% from the 2013 Revised Estimates of €146.615 million.

I will briefly describe for the committee the broad areas of work which are undertaken by the Department of the Taoiseach. I will also briefly outline the proposed Estimates 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. As Members will be aware, while I have certain responsibilities to the Oireachtas in respect of administrative matters in the legal offices, they operate independently of my Department. The Minister of State will make a short statement on the Estimates for the Central Statistics Office, for which he has delegated responsibility.

The Revised Estimates for the President's Establishment for 2014 is €3.267 million. This includes just over €2 million for pay and administration, with the balance of €1.2 million to fund the centenarians' bounty. Based on last year's figures and recent trends, it is estimated that over 400 centenarians will receive the bounty in 2014, although this is impossible to predict.

Vote 2 is for the Department of the Taoiseach. A total of €19.423 million has been provided in the Estimates for the Department of the Taoiseach in 2014, a reduction of 12% on the 2013 Revised Estimates. In accordance with the programme for Government, my Department aims to provide a strategic centre which ensures a joined-up approach to the development and implementation of Government policy, and includes a small office to monitor delivery of the programme for Government across all Departments. As well as a number of executive functions appropriate to the centre of Government, much of this work involves support for meetings of the Government and Cabinet committees, including the Economic Management Council.

I believe that there were a significant number of achievements during the course of 2013 to which my Department contributed, working with other Departments and agencies. I will mention a few of these. One was Ireland's successful exit from the troika programme and re-entry into the bond markets earlier this month. This was greatly facilitated by the deal on the promissory note achieved in February and the achievement of fiscal targets in 2013 and in the 2014 budget. Second was the very successful Irish Presidency of the European Union in the first half of 2013 which has been widely commended. This was a major undertaking for the Department and I acknowledge the efforts of all involved, including temporary staff recruited for the Presidency. Third, as well as the EU Presidency, we have continued to restore Ireland's international standing and reputation, including through visits I have undertaken to America, the World Economic Forum in Davos, the G8 summit in Lough Erne, Japan, and most recently the Persian Gulf states. The Global Irish Economic Forum in October 2013 was another important part of this process. Fourth was the effective implementation of the 2013 Action Plan for Jobs and the updated Pathways to Work strategy published in July, which has been reflected in a fall in unemployment to 12.4% and a return to substantial new job creation, although unemployment is still too high. Fifth, there is the continued reform of the public service, in particular through the Haddington Road agreement concluded last June, as well as major reform programmes in local government, health, education and other sectors. Sixth, there was the putting in place of a comprehensive strategy for mortgage arrears, including Central Bank targets for each bank and the establishment of the new insolvency service. Seventh, there were political and constitutional reforms, including a new phase of Dáil reforms introduced last September, the work of the Constitutional Convention and meeting our commitment to hold a referendum on the Seanad. This was the sixth referendum during the lifetime of the Government and we are committed to further referendums in 2015 drawing on the work of the Constitutional Convention.

My Department was involved in many other specific initiatives and issues during 2013, for example, promoting the development of the Irish Financial Services Centre, IFSC, resolving the Priory Hall complex problem and facilitating social dialogue through the National Economic and Social Council.

For 2014, a great deal of further work is required in many of these areas, as well as progressing other priorities identified in the programme for Government and the Department's strategy statement. During 2014, the programme for Government office will continue to oversee implementation of the programme and will publish the third progress report next March.

The most important objective for the Department in 2014 will be job creation and, as I said on many previous occasions, 2014 will be all about jobs. Work is now advanced in preparing the Action Plan for Jobs 2014 and the Department will seek to ensure that this is delivered, along with the continued roll-out of Pathways to Work. My Department's work on the implementation of these strategies in 2014 will include some regional and local activities. My Department will also continue to support me in a strategic programme of international engagement, based around jobs, increasing trade and investment.

I recently had the opportunity to visit Japan and the Gulf States. Next week I hope to attend the World Economic Forum in Davos, and I also expect to travel to the United States in March where my focus will again be on building on our strong economic, political and business links with the US and progressing issues of concern to the Irish community, including immigration reform which is matter of increasing importance. During the planning and organisation of my overseas visits, my Department will continue to prioritise value for money and will minimise associated costs.
Through the work of the Cabinet committee on economic infrastructure, we will seek to maximise productive investment across the economy, including delivery of public private partnerships projects and other stimulus investments to support economic growth and employment. We also intend to deliver on the commitments in the medium-term economic strategy to ensure that the banking sector provides credit in a manner that supports economic recovery.
In relation to the European Union, I intend to build on the successful Presidency to develop alliances and work with our partners to advance and defend Ireland's priority interests. This is, and always has been, a core objective for me and my Department.
I continue to play an active part in the Council and, of course, continue our intense engagement across the board with the European Commission. We will also work to maintain the important political relationships established with the current European Parliament and to develop connections with MEPs in the new Parliament following the elections in May of this year. Alongside changes in the European Parliament, a new European Commission will be appointed later this year. Ministers will be making particular efforts to engage with the new commissioners soon after they take up their new roles. We also intend to deepen our long-term relationship with the European Commission and other institutions by maximising the number of Irish people working in these institutions on both a permanent and temporary basis. It is for this reason that the Department’s Estimate provides €1.2 million towards efforts to increase our presence, including meeting the cost of seconded national experts in relevant positions in EU and international organisations. This is an important investment in our future, by increasing our understanding of such institutions, whose work often impacts significantly at national level and thereby improving their understanding of us.
My Department’s 2014 Estimates also include an allocation of €250,000 for supporting EU engagement. This money is spent supporting work in primary schools through the Blue Star programme, in local community groups, non-governmental organisations and others, as well as working with stakeholders to build awareness of the EU jobs available to Irish citizens.
Earlier this week the Government published a new public service reform plan which sets out a new wave of reform across the different sectors. Implementation of this, including delivery on the potential under the Haddington Road agreement, is overseen by the Cabinet committee on public service reform. In addition, my Department is jointly sponsoring an initiative on renewal of the Civil Service with the Department of Public Expenditure and Reform. Together with the consultation process recently launched on Civil Service accountability, this will result in a new vision and set of reforms to ensure that the Civil Service is fit for the challenges it faces in the years ahead. I expect the work to be completed by the summer.
Through the Cabinet committee on health, the focus in 2014 will be on the next phase of the reform process including publication of a White Paper on universal health insurance, implementation of "money follows the patient", structural reforms to move towards a purchaser-provider split in health delivery and full implementation of the hospital groups announced last year.
My Department’s Estimate includes an allocation of €920,000 for the Constitutional Convention in 2014. I believe that the convention has been very successful to date and, following a number of regional meetings in 2013, it has identified two further matters that it will examine this year, namely, Dáil reform and economic, social and cultural rights.
Northern Ireland and North-South relations and relations with Britain will continue to be important priorities for my Department. With regard to Northern Ireland, I was disappointed that the Haass talks concluded on New Year’s Eve without reaching agreement. It should be said and recognised that significant effort went into the talks. I have placed on record my thanks to Dr. Haass and his team for accepting the invitation of the First Minister and Deputy First Minister to facilitate these talks and for their tireless pursuit of an agreement. I hope that the period ahead can be used to build on that effort and provide a basis for a future agreement. The Government is ready and stands ready to work with the Northern Ireland Executive, the British Government and the parties in Northern Ireland to support further efforts to achieve greater peace and build a united community in Northern Ireland. We will also continue to support the work of the North-South Ministerial Council and I look forward to the next plenary session of the NSMC that will take place in Dublin on 6 June 2014.
Another important occasion in 2014 will be the official visit of Uachtarán na hÉireann, President Higgins, to the United Kingdom. The first State visit by the President to Britain will be an important and historic occasion. Following on the very successful visit to Ireland by Queen Elizabeth in 2011, it will be a brilliant opportunity to deepen the relationship. While the visit, of course, is a matter primarily for the Uachtarán, the Government will offer any assistance that it can and that is required to ensure that the visit is a success. My Department and the Department of Foreign Affairs and Trade will provide assistance with logistical and other matters, while all relevant State agencies will also be asked to contribute. Ambassador Dan Mulhall in London will of course be centrally involved.
I am sure and hope that the visit will reflect the deep and growing relations between Britain and Ireland, not just in history and politics, but also in economics, trade, culture and kinship. I understand that it is also intended to have an appropriate event in London during the State visit to reflect our cultural ties that will be supported by Culture Ireland. It will also provide an opportunity for the very large Irish community in Britain to participate in the visit and for their enormous contribution to the life of both Britain and Ireland to be recognised.
During 2013 my Department has organised, or assisted with, a range of commemorative events including the 1913 Lock-out and the foundation of the Irish Volunteers. Of course, 2014 marks the centenary of the start of the First World War.Last December Prime Minister Cameron and I jointly visited a number of memorials in Flanders to pay our respects to those who died during the war, particularly soldiers from all parts of this island who fought in British uniforms. It was a unique occasion at Tyne Cot, Menin Gate and in Flanders. I believe it was important in showing how far relations between Britain and Ireland have come in recent times.
The 2014 commemoration of the 1916 Easter Rising will also take place at the GPO on Easter Sunday, 20 April, while the National Day of Commemoration ceremony will be held in the Royal Hospital, Kilmainham on Sunday, 13 July.
A total of €1.46 million has been provided for the Moriarty tribunal in 2014. The tribunal is currently dealing with applications for third party costs. The single member has indicated to my Department that the majority of applications for costs have been considered by him and that he hopes to have this process finalised in the near future. A new legal costs unit in the State Claims Agency is dealing with bills of costs from third parties at tribunals of inquiry, while the Chief State Solicitor’s office is handling bills received prior to the establishment of the legal costs unit.
The allocation for the National Economic and Social Council in 2014 is €1.99 million, a reduction of 21% since 2010. The council continues to provide a forum for dialogue between Government and the social partners as well as analysing economic, social and environmental issues. Following reports on the economic and social dimensions of the crisis in 2013, its work programme in 2014 will include housing, care of the elderly and jobless households.
I have outlined some of the priorities which the Department will be working to progress during the course of 2014. In all areas the Department seeks to ensure value for money and to maximise efficiencies and will continue to do so in 2014, adhering to best practice in terms of procurement.

In all areas, the Department seeks to ensure value for money and to maximise efficiencies and will continue to do so in 2014, adhering to best practice in procurement. The Department already participates in a number of shared service projects and is scheduled to join the Civil Service human resources shared service during 2014.

In respect of Vote 3, the Office of the Attorney General, for 2014 the Office of the Attorney General has a net budget of €14.301 million. This is broken into €12.885 million for the administrative subheads, €2.204 million for programme expenditure and appropriation-in-aid of €788,000. The majority of the administrative expenditure relates to staff salaries, which will cost €10.834 million in 2014. The next largest expenditure is provided for in subhead A4 and is €2.091 million in respect of the Law Reform Commission. Funds for the operation of the commission are channelled through the Vote as a grant-in-aid. Since 2008, the Vote's gross budget has reduced by 22.8%. 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 office is fully engaged in all the public service reform initiatives.

In respect of Vote 5, the Office of the Director of Public Prosecutions, the Estimate for the Office of the Director of Public Prosecutions is €36.838 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 2014 represents a drop of 2%, or €576,000, over the 2013 Estimate. The biggest single factor in this drop is the reduction in the provision made in input A4, general law expenses. This input covers the payment of legal costs awarded by the courts in judicial review matters and other applications connected to legal proceedings. The provision of €2.121 million in respect of this input for 2014 represents a decrease of €1.213 million over the 2013 allocation. This reduction is possible because of an underlying reduction in the amount paid in respect of law costs awarded against the office over recent years. This has been driven by a costs settlement policy implemented by the office.

In respect of Vote 6, the Estimate for the Chief State Solicitor’s office is €26.309 million. Salaries, wages and allowances account for €14.8 million out of a total of €16.969 million. A figure of €11.2 million is allocated for the payment of legal fees incurred by the office. This can be broken down into an amount of €9.6 million for counsel fees, €1.4 million for general law expenses and €200,000 for the use of external solicitors. The remaining €2.2 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 upkeep of offices. The figures for salary and legal expenses, combined, account for 98% 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 and I commend the Estimates to the committee. The Minister of State, Deputy Paul Kehoe, will make a statement on the Estimates for the Central Statistics Office, for which he has ministerial responsibility.

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