Oireachtas Joint and Select Committees

Thursday, 23 November 2017

Joint Oireachtas Committee on Social Protection

Money Advice and Budgeting Service Restructuring: Discussion (Resumed)

10:45 am

Chairman:

I fully understand where Ms Mangan is coming from in terms of the report, but in its executive summary it says:

The reorganisation involves the expenditure of public funds to provide a service to private citizens. Consequently, it is necessary to identify a rationale for the expenditure, the proposed change must constitute a feasible proposition and any proposed expenditure must be viable in that it can reasonably be expected to have a positive impact.

That is what we are trying to underpin and need to understand. I understand that the process was not begun as a cost-saving mechanism because the executive summary says:

There is currently a clear market failure in the form of a principal agent problem that has resulted in a poor alignment of the objectives of the CIB and local service delivery companies. This provides the rationale for the proposed change.

I accept and understand that the rationale for the change is to have a top-down organisation instead of independent companies introducing their own programmes and workloads and so forth. However, the financial consequences, implementation, staff positions and so forth are of concern to the committee. That is why the report was commissioned and why we must understand the assumptions made therein.

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