Mr. Seamus McCarthy:

Forfás is the national policy advisory board for enterprise, trade, science, technology and innovation. It is an agency of the Department of Jobs, Enterprise and Innovation and works with it and its sister agencies, Enterprise Ireland, IDA Ireland and Science Foundation Ireland, to ensure the coherence of policies across the agencies in support of enterprise growth and job creation. The primary source of income for Forfás is Oireachtas grants, which totalled €51.4 million in 2012. These were paid from Vote 32 - Jobs, Enterprise and Innovation.

In addition to its policy functions, Forfás activities in 2012 also included the accreditation of laboratories, certification bodies and inspection bodies through the Irish National Accreditation Board, which is a sub-board and division of Forfás. Forfás also provides certain shared corporate services to its sister agencies, including property management of buildings occupied by them and responsibility for the costs arising from lease obligations for two properties previously leased for the former Industrial Development Authority.

In 2012, some 22% of Forfás expenditure related to its policy, corporate and shared services activities. Pension costs accounted for the remaining 78% of the agency's expenditure in 2012. Forfás is the legal employer of staff across the development agencies, including Enterprise Ireland, IDA Ireland, Science Foundation Ireland and some staff of the National Standards Authority of Ireland. Forfás centrally manages the pension schemes for all the agencies and their predecessor organisations. All pension benefits arising for retiring and retired staff are paid on an ongoing basis by Forfás. In 2012, payments to pensioners amounted to €43.4 million.

The Forfás Financial Statements for 2012 were certified on 27 June 2013 and an unqualified opinion was given. However, my audit certificate drew attention to non-effective expenditure of €1.4 million arising from rent and associated costs related to unoccupied office space. On foot of a Government decision, it is planned that the policy and research functions of Forfás will be integrated with the Department of Jobs, Enterprise and Innovation. I understand that the Government has agreed that Forfás will be dissolved by way of legislation and that all of its functions, responsibilities and liabilities will be transferred to other legal entities, with consequential changes in accounts and reporting arrangements. Forfás will continue as a legal entity until enactment of the legislation.