Simon Coveney (Cork South Central, Fine Gael) | Oireachtas source

I will begin with Deputy McNamara's question. The Department has a policy of tendering for consultancy services. For example, consultancy services for the horse racing industry was were by Indecon. There is no arrangement for retired staff to be hired as consultants. One exception was made for good reason because the Department needed that individual's expertise. For example, retired departmental veterinary staff are not hired as consultants.

On the question about IT costs, the increased Estimate for expenditure on IT is related to the implementation of the new CAP and CFP, Common Fisheries Policy. The Department will need to redesign its IT systems to fit the new policy direction. A new scheme will be needed for the new GLAS environmental programme. The new IT system will need to be in place this year to allow for the introduction of the new CAP policy in 2015. The Department manages its own IT services as opposed to hiring outside services. For example, Revenue uses an external consultancy to run its online service. My Department has an internal IT section which requires staff who can write code and design new systems. This work will need to be done this year and this is the reason IT costs will be higher than last year. The expenditure will be used to implement a system to manage the implementation of a new CAP and CFP.

In reply to Deputy Penrose, negotiations on the charter for farmers' rights will commence this month. We gave that commitment to farming representative bodies. It is appropriate to discuss a new charter for farmers' rights at a time when a new CAP is being finalised. We know the policy direction and how much money we need to spend. We will discuss matters such as inspections and the implementation of regulations.

The Department of which I am the political leader has shown a willingness to adapt to change and reform to an extent that is more impressive than any other Department, bar none. We have an outstanding team of people who have accepted and embraced that significant change, such as a reduction in staff numbers, redeployment and office closures. I have nothing but positive things to say about the attitude to reform shown by staff in my Department. There is a difference of opinion on a particular issue between IMPACT - which represents technical staff - and management with regard to a competition for promotion for assistant principal officer positions. We have invited the workers involved to discussions tomorrow and this invitation has been accepted. I am hopeful that any differences can be resolved tomorrow and so avoid any escalation of industrial action that would potentially affect services. The management has an open mind with a view to resolving an issue. I know the workers will also approach the discussion on that basis. Nobody in the Department wants to be involved in industrial action. The Department has provided a lot of good news stories with regard to public sector reform and delivery for our clients. I am hopeful tomorrow's meeting will be an opportunity to end that industrial action before it becomes more serious.

We have clarified the figures for consultancy services raised by Deputy Heydon.

There is a reduction there from €150,000 down to €40,000. Depending on the issues on which I need to obtain advice or in respect of which the Department needs an outside opinion, that consultancy figure can go up or down. We are not budgeting for a significant sum this year.

Deputy Barry raised the issue of the pay bill coming down but the pensions bill possibly increasing. It is general Government policy to seek to reduce the numbers in the public sector. Those numbers rose steadily over a period time until we ended up with a public sector that was larger than it needed to be. That growth was fuelled by overspending at a time when we could afford it. Under this Government and towards the end of the last Government's term, there was a realisation that Ireland as a country could no longer afford a pay bill of that magnitude. We have been successful in reducing numbers across the public sector, including in my Department. In fact, my Department is ahead of its targets in this regard. It was a whole-of-government decision to reduce numbers. Clearly, there is a consequence of that in terms of pensions, but the net cost to the State is significantly down. That is clear from the figures coming from the Department of Public Expenditure and Reform in terms of the overall cost of salaries and pensions across the public sector.