Oireachtas Joint and Select Committees

Wednesday, 11 February 2015

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

Estimates for Public Services 2015
Vote 11 - Public Expenditure and Reform (Revised)
Vote 12 - Superannuation and Retired Allowances (Revised)
Vote 14 - State Laboratory (Revised)
Vote 15 - Secret Service (Revised)
Vote 16 - Valuation Office (Revised)
Vote 17 - Public Appointments Service (Revised)
Vote 18 - Shared Services (Revised)
Vote 19 - Office of the Ombudsman (Revised)
Vote 39 - Office of Government Procurement (Revised)

2:00 pm

Photo of Seán FlemingSeán Fleming (Laois-Offaly, Fianna Fail) | Oireachtas source

On subhead A9, consultancy and other services, and subhead A10, Office of Regulator of the national lottery, there is a reduction in the consultancy fees because the national lottery was tendered and the cost is not coming in on this Estimate. What were the specific savings on that? The lottery regulator is answerable to the sub-committee and this is the first opportunity we have had to discuss this issue. The Estimate has a figure of €150,000 for the office. The Minister stated it is anticipated that the new licensee, Premier Lotteries Ireland, will be in a position to commence funding the office in 2015 and, therefore, a relatively small budget is required to cover the early costs of the office. This sub-committee has been asked to provide funding for that office as part of this Estimate.

It is extraordinary, however, that as soon as we give the new licence to Premier Lotteries Ireland, for the first time in 30 years the lottery did not take place due to some problem. What is the role of the lottery regulator in the process? Will the Minister give us a report from the lottery regulator’s office as to when it became aware of the difficulties before the recent €10 million draw had to be postponed? On the day it occurred, what actions did the lottery regulator take? Was the office informed of all procedures? Was the decision not to carry out that Wednesday night lottery taken by the regulator or by the operator? Whose function is it to make that decision? I want to know the power of the regulator. We have seen right across the Oireachtas regulators established which then have become just poodles. We have seen this with the communications regulator. The energy regulator has control over Irish Water. However, when the Government made a decision on water prices, the regulator heard about it just like everybody else. We have established regulators but ensured they have little power because we have circumscribed their functions. If the lottery regulator’s office is to be funded through this Vote, we need to know why a draw was not held for the first time in 30 years.

The Minister stated the State assets disposal programme was brought to completion in 2014, yielding special dividends to the State from the sale of assets of Bord Gáis Éireann and the ESB of €350 million in 2014 and approximately €1.4 billion in total over 2014 to 2016. Will the Minister inform us what funding is expected to come through in 2015 and 2016? If the programme has been brought to a conclusion, does that mean there will be no decision to sell the Government’s 25% shares in Aer Lingus?

There has been a significant increase in subhead B5, consultancy and other services, from €100,000 last year, with an outturn of €102,000, to €450,000 this year. The increased allocation in this subhead reflects several new expenditure pressures including legal costs. The budget has been allocated in respect of costs awarded on foot of a legal challenge taken by the Garda Representative Association on the inclusion of gardaí in cuts to sick leave entitlement for public servants. Will he explain the background to this case? Why is this Vote being used to pick up the costs? Whose decision was it to take this challenge to the courts? Was it necessary to defend it? Could common sense not have prevailed before getting into these legal costs? Are we paying costs for both sides? What is the practical outcome of this? Did the Attorney General have a role in this case? Is that the same Attorney General that the Oireachtas was meant to rely on yesterday? If it was, the Attorney General may have got this badly wrong too. We want some details on this particular issue.

On the reform agenda, the outturn last year was approximately €700,000 but this year the Minister is looking for €2.4 million. What reforms will happen this year? Why is the reform agenda three and a half times more expensive this year compared to other years?

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