Roderic O'Gorman (Dublin West, Green Party) | Oireachtas source

I thank the committee for making time available today to consider the second Supplementary Estimate for the Department of Children, Equality, Disability, Integration and Youth. In October last, I sought and received €1.090 billion of additional funding by way of an initial Supplementary Estimate. The funding utilised the remaining balance available for non-core, or contingency, funding as was provided under the 2023 Government expenditure ceiling and was split between funding for Ukraine, at €871 million, and international protection accommodation services, at €219 million.

This second Supplementary Estimate addresses cost overruns of €221 million for this year, including €20.5 million in relation to the Workplace Relations Commission, WRC, pay agreement, double payments in foster care, the blind welfare allowance and the monthly mobility allowance payment. Offsetting savings of €52.1 million are also forecast across various subheads, principally early years and pay. This brings the overall value of the Supplementary Estimate to €171 million.

The need for this second Supplementary Estimate occurs principally due to cost pressures associated with the growing demand for services being provided by Tusla the Child and Family Agency and the HSE, as well as the continuing demands associated with the Ukraine response and international protection arrival numbers. Pressures are also arising in respect of the Adoption Authority of Ireland and the asylum, migration and integration fund.

I will now turn to the various components of the Supplementary Estimates. In respect of Tusla, there is a forecast supplementary requirement of €84.1 million. Tusla is dealing with very significant and increasing service demands in 2023. The lack of available residential placements from all legacy providers, including statutory, private, and the community and voluntary sector respectively, means that there is huge reliance on the more costly special emergency arrangements, SEA, to provide accommodation and staff to care for high-risk and emergency placements. Tusla has experienced significant growth in service demand, and particularly in the area of separated children seeking international protection. As of 15 October, Tusla had 203 children in SEA. Over the course of 12 months, there has been a 244% increase in number of SEAs, predominantly driven by the need for such placements for these separated children. In addition to the service demands, the supplementary requirement of €84.1 million includes: €4.08 million in relation to the 2023 costs of the WRC settlement in relation to pay adjustments; and €1.8 million relating to the foster care double payment in 2023.

Specialist community-based disability services, which are delivered directly by the HSE or through service level arrangements with section 38, section 39 and for-profit providers, are also experiencing pressure at this time. The Department is forecasting a supplementary requirement in this area of €112.5 million. This is made up of a service delivery requirement of €98 million, a further €14.2 million in respect of the recent WRC negotiated settlement, and €0.37 million relating to double payments for the blind welfare allowance and the monthly mobility allowance payment respectively. The service delivery requirement of €98 million incorporates a transfer of funding from the Department of Health of €27 million. The main drivers of the service delivery requirement of €98 million are in the areas of residential services at €66 million, agency and overtime at €22 million, and other smaller areas at €10 million.

Cost pressures are also being felt in respect of international protection accommodation services, IPAS, Ukraine, the Adoption Authority, and the asylum migration and integration fund, but to a lesser extent. In contrast, there are savings across a number of areas of my Department with the largest of these in respect of the Department’s payroll budget at €11 million, and in the early learning and childcare and school age childcare budget at €20 million. Savings are also occurring on the mother and baby institutions programmes and schemes as work continues to fully implement the recommendations of the commission.

In addition, I am also presenting a request for a Supplementary Estimate for €0.224 million on Vote 25 in relation to the Irish Human Rights and Equality Commission, IHREC. The majority of this relates to legal casework costs of €158,000. The balance relates to ICT expenditure at €27,000 and payroll matters at €39,000.

I note to the committee that officials from my Department and the Department of public expenditure have been monitoring and continue to monitor the expenditure and allocation to the Department by way of fortnightly meetings since the start of the year. I bring a memo to Government on a quarterly basis in respect of my Department’s expenditure position.

In conclusion, I recommend these Supplementary Estimates for the Children, Equality, Disability, Integration and Youth Vote and the Irish Human Rights and Equality Commission Vote to the committee. I am happy to address any questions that members may have. The Minister of State, Deputy Rabbitte will make a statement also.