Mr. Denis Leamy:

I thank the Chairman and members of the committee for the invitation to meet them today to discuss our work in Pobal. I am joined by my colleague, Jerry Murphy, who is deputy CEO.

Pobal, formerly known as Area Development Management, was established in 1992 by the Irish Government with the European Commission to manage an EU grant for local development. We work to support communities and local agencies towards achieving social inclusion and development. Our activities and priorities are shaped by the context and policies laid out in several reports, including the programme for Government, the Action Plan for Jobs, Pathways to Work, the Action Plan for Rural Development, the framework policy for local and community development in Ireland, Putting People First, and EU 2020. We are in the process of developing a new strategic plan for 2018 to 2021 which will form the basis of how Pobal responds to the needs of communities and our funders over the next three years. We will ensure that our new strategy takes account of the principles contained within the national planning framework when it is finalised later this quarter.

Pobal’s work supports the delivery of valuable services to marginalised communities in Ireland. Some of the groups supported by Government through Pobal include the long-term unemployed, young people, farmers, fishermen, families, Travellers, older people and ex-prisoners. We have formed alliances nationally and internationally to advance our service delivery model, including close working relationships with the OECD and ESRI. Our day-to-day work involves assisting on programme design, assessing grant applications, proposals and plans, managing contracts, distributing funding, monitoring progress, and auditing beneficiaries. We provide good practice case studies, evaluations, and demographic information that support Departments in making policy decisions. We make tools such as Pobal Maps and the Pobal HP deprivation index freely available to allow policymakers and communities respond to needs identified by these sets of tools.

Through our work, Pobal supports collaborative approaches to planning and decision-making. We work to promote good relationships between the community sector, State agencies and other stakeholders. In keeping with our goal to operate a balanced regional approach to service delivery, we operate from office bases in Dublin, Monaghan, Sligo, Clifden, Letterkenny, Galway city, Limerick and Kilkenny. The Department of Rural and Community Development is our lead Department and I will later discuss some of the governance and regulatory mechanisms under which we operate.

In 2017, Pobal managed 23 programmes, primarily for four Departments. The full list of programmes is detailed in the supporting information provided to the committee. In managing these programmes, Pobal distributed almost €615 million to beneficiaries. We had contracts with almost 5,000 groups throughout the country, channelled funding to 4,360 child care providers which support 162,848 children, and supported 24,780 people in employment and enterprise programmes in 2016, with an additional 7,960 supported into employment or self-employment through the social inclusion community activation programme, SICAP. This activity was achieved with an average of 356 staff, 45% of whom are based outside of Dublin.

Our total administration spend for 2017 was €26.4 million, or 4.1% of programme costs. This is down from 5.68% in 2008, 4.60% in 2015 and 4.44 % in 2016. Pobal’s work has grown significantly in recent years, with the amount of funds disbursed rising from €257 million in 2011 to the current level of €615 million in 2017. Significant amounts of that growth have taken place within the early years sector, as support to parents and child care providers has grown.

In preparing for today, we decided to focus in detail on those programmes which we administer on behalf of the Department of Rural and Community Development. Members should have a separate briefing paper detailing these programmes. If members of the committee have any questions on other programmes, I and my team would be happy to furnish them with the details at a later stage.

Over the course of our 25 years, Pobal has evolved in response to Government priorities. We are dedicated to supporting communities and civic society in responding to local needs. Our board and staff are committed to supporting Government in its work to make Ireland a fairer place to live for all of our communities. We are also aware of the need to ensure that our procedures are fair, not overly burdensome and are appropriate to the size of the funds being allocated. This is not easy in a world where there is a need and expectation for increased governance, oversight and financial prudence.

It is company policy to identify the minimum data requirements needed for the effective administration of a given scheme. However, issues such as European level data requirements must be factored into this design process. Key achievements over the past 12 months have included reducing by more than one third the non-financial annual reporting requirements under the scheme to support national organisations, SSNO, significantly reducing the minimum participant information required under the new SICAP programme for 2018 to 2022 as of 1 January 2018, and reducing some of the contractual obligations on seniors alert scheme community groups.

We recognise that there is significantly more work to do on this area and it will be an important element of our new strategic plan. We are increasingly using online platforms as a measure for reducing red tape while at the same time ensuring sufficient checks, balances and audit trails are in place to protect taxpayers' money. The seniors alert scheme is a good example of a technical solution that was delivered by Pobal and the Department to reduce administration and delays in getting personal monitored alarms fitted in vulnerable older people’s homes. We can turn requests for personal monitored alarms around within a 24-hour period, or shorter in the case of emergencies.

In recent years, Pobal has established a formal feedback and engagement process, which ensures that the voice of beneficiary organisations are factored into operational decision-making. As part of this project, an independent organisation was recently commissioned to undertake a series of workshops to identify areas for improvement in Pobal’s administration of grants on behalf of Government. This report, currently in draft stage, has highlighted a number of successes as well as areas for development and improvement. The report finds that among beneficiaries in the social inclusion sector, 85% believed that Pobal provides clear guidance and information on the application process, 76% reported that Pobal provides good customer service, and 78% reported that training events are useful and helpful. The issue of the level of information required by Pobal was identified as an area for possible improvement and, as I have mentioned, a number of steps have been and continue to be implemented to reduce the administrative burden on beneficiary organisations.

A commitment to social inclusion is at the heart of Pobal. While there have been improvements in Ireland’s social and economic landscape, there are still a number of key issues requiring attention, funding and collaborative solutions. A few key findings from our 2016 deprivation index are that affluence is highest in the urban peripheries and gradually declines as one moves towards rural locations. Dublin has fared the best over the past ten years, being less impacted by the effects of the recession, as well as disproportionately benefiting from the recent years of recovery. Small towns of 1,000 of 5,000 people have been the worst affected over the past ten years, having been disproportionately hit by the recession and benefiting less from the recovery than the most urban and the most rural areas. We would also attest to the need for further targeted initiatives and responses for those on the margins of our society.

Pobal operates on the basis of a framework agreement with the Department of Rural and Community Development and programme-specific service level agreements with individual Departments.

Each year a programme of work is agreed with each Department for any work Pobal is requested to undertake.

Key features of Pobal's governance structures include that members of the board work on a voluntary basis and are appointed at the discretion of the Government. The State board appointment process is utilised by the Department of Rural and Community Development for the initial selection of interested and suitable parties to be appointed to the board. The term of office of our current chairperson, Mr. Seamus Boland, is due to conclude in 2018 and I expect a new chair-designate will be before the joint committee later this year.

Pobal is responsible for adhering to all relevant legislative provisions, Department circulars, guidelines and public financial procedures issued by the Government. We are subject to the 2016 code of governance for non-commercial State bodies and audited by the Comptroller and Auditor General annually. Pobal is registered with the Charities Regulatory Authority and is fully compliant with all its obligations in that regard. Pobal reports to Departments through regular governance meetings, and delivery of programme reports and data and is subject to regular audits by Departments.

Over time, Pobal has adapted its skill sets and competencies to respond to the changes and challenges in the socio-economic landscape. We are in the process of developing a new strategic plan, while also undertaking a leadership review of the organisation. It is hoped both processes will ensure the organisation is lean, fit for purpose and responsive to the future needs of communities and government.

It goes without saying that the unsung heroes of the work in which we are involved are the boards, committees and volunteers that work to make their communities better places to live. A great strength of community development is that it emerges from communities. The State relies heavily on community groups to deliver services. Pobal, with 25 years of experience, supports the continued sustainability of these services in towns and villages throughout Ireland. As the chief executive officer of the organisation, I am confident in the work Pobal delivers daily. As the company continues to grow and adapt to the requirements of Government, we have the expertise and people needed to support communities in future.

I thank the Chairman and members for this opportunity to appear before the joint committee. Mr. Murphy and I will be please to answer questions members may have.