Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

The Minister of State, Deputy Patrick O'Donovan, and I are pleased to have the opportunity to appear before the select committee in connection with the 2018 Estimates for my Department's group of Votes. The group comprises a significant number of Votes as follows: the Department of Public Expenditure and Reform andseveral offices under its aegis, namely, the State Laboratory, the Public Appointments Service, the National Shared Services Office and the Office of the Ombudsman. It includes the Votes for superannuation and retired allowances and the secret service. The remaining Vote in the group, the Vote for the Office of Public Works, is handled separately by the sub-committee.

The committee has been supplied with a very detailed briefing document by my Department’s officials on the various Votes. Further detailed material is contained in the Revised Estimates for Public Services 2018 which was prepared by my Department and published on 14 December 2017. It is worth noting that the total net allocation for the 2018 Department of Public Expenditure and Reform group of Votes which comprises eight distinct Votes shows a very modest increase of 2% on the 2017 allocation. The 2018 overall net figure of €520.9 million compares to a figure of €510.2 million in 2017. A difference of €6.2 million is reflected in the superannuation Vote for 2018.

The structure of the Vote remains unchanged in 2018, with two strategic programmes focused on public expenditure and sectoral policy and public service management and reform. The requested resources for each programme, in terms of staffing and funding, are set out in Part III of the Estimate. In 2018 we are seeking a 6% increase in the gross spend under the Vote, bringing the total gross allocation to €59.531 million. The increase is required primarily for the second programme - public service management and reform - as my Department continues to roll out a comprehensive programme of reform. It is largely related to the provision for investment in a resilient and robust technical platform from which to deliver build-to-share applications as part of the remit of the Office of Government Chief Information Officer; the provision for the funding of the Civil Service learning and development shared services project; an additional provision for the design of an administrative system to support the implementation of the single public service pension scheme and the funding of the next phase of work of the Public Service Pay Commission.

On Programme B of the Vote, public service management and reform, members will recall that I had the opportunity to discuss the next phase with the committee during my appearance last week. Nevertheless, I once again draw members’ attention to the main points of the new framework which I launched last December. There has been progress since the first reform programme was started in 2011 in areas which include procurement, shared services and Civil Service renewal, as well as public service reform, all of which continue to play a key role. The key pillars are, first, delivering for the public; second, innovating for the future; and, third, developing people and the organisation.

Work continues to implement the actions included in the Civil Service renewal programme. I published the third annual progress report last June which showed that much had been achieved under the programme of change since the plan had been initiated. While the renewal plan was envisaged as a three-year programme of work and is being delivered on a phased basis, I see Civil Service renewal as an ongoing process. We will continue to embed the changes across Departments and offices this year.

In addition to progress in implementing public service reform, we continue to pursue a wide-ranging reform programme aimed at delivering an open, accountable and ethical Government approach underpinned by a transparent and effective public service. Key areas of focus are the data sharing and governance Bill; the open data strategy; and a statutory review of the operation of the Protected Disclosures Act of 2014 which will be published in the first half of 2018.

I will turn briefly to the issue of public service pay. Last year when I briefed the committee, we were addressing the aftermath of the Labour Court's ruling on Garda pay and the undermining effect it had had on the Lansdowne Road agreement. I outlined a two-phase process designed, first, to stabilise the Lansdowne Road agreement and then to negotiate a successor. We have had success in following this approach. The Government has negotiated the new agreement which is a significant achievement that will deliver the full dismantling of the financial emergency legislation in way that is affordable and that I believe is fair, but challenges remain. The Public Service Pay Commission is examining recruitment and retention issues in the health sector. Legacy issues associated with new entrant grades are also being examined and a report will be submitted to the Oireachtas by March. Both issues are likely to prompt difficult discussions later in the year, but the current environment is largely stable.

As Minister with responsibility for the public service and public service reform, I am committed to ensuring we will continue to use digitisation to deliver more efficient and effective services. Our own surveys have shown that people want to use more public services online. We have seen a positive approach to using the digital services gateway and the public services card and MyGovID, demonstrating that the public understands the importance of having a reliable, authenticated and secure means of online verification. We will continue this work when making services available throughout the year. However, we also want to make sure no one who wants to transact business electronically will be left behind. In that regard, we hope to announce some assisted digital initiatives later in the year.

In 2018 my Department will lead the second phase of the three-year spending review process which will take place in advance of the 2019 Estimates process. It will build on the successful spending review in 2017 which culminated in the publication of more than 20 technical papers. While moderate expenditure growth is planned, there continues to be many public service demands. We must have a continual focus on the totality of spending to ensure public funds will have the maximum effect. The intention is that the spending review process will help to broaden the Government's options in the budgetary process and assist in funding new policy measures.

As members will be aware, last Friday my Department published the national development plan. The plan demonstrates the Government's commitment to meeting Ireland’s infrastructural and investment needs. It reflects an appropriate balance between the need for additional investment, the sustainable capacity of the economy and the need to adhere to responsible spending.

I thank the Chairman for giving me the opportunity to present the Estimates. I will be pleased to answer questions members may have.