Mr. David Moloney:

I thank the Cathaoirleach and the members of the committee for the opportunity to attend to discuss the appropriation accounts for 2023. Much of what I have in my opening remarks has been covered by the Comptroller and Auditor General so I will endeavour to summarise it quickly. I am here to discuss Vote 11 - Office of the Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation; Vote 12 - Superannuation and Retired Allowances; Vote 39 - Office of Government Procurement; Vote 43 - Office of the Government Chief Information Officer; and Chapter 3 of the Report on the Accounts of the Public Services 2023.

In each of these instances the mission of my Department is to drive the delivery of better public services, living standards and infrastructure for the people of Ireland. To support this, we undertake a range of actions under our three strategic goals of enhancing governance, building capacity and delivering effectively. In 2023, the surplus to surrender of €4.6 million was partly due to savings on payroll of €2.7 million and a saving of €2.2 million related to the management of EU programmes.

During 2023, the Department implemented a divisional reorganisation following a strategic review of its operating model in 2022. This means the Department now works in a more integrated and joined-up way. Where there were previously two separate programmes, there is now a single, unified programme.

In respect of Vote 12 - Superannuation and Retired Allowances, the net outturn for 2023 was €195.9 million, compared to an Estimate of €306.7 million, giving a surplus of €110.8 million. The surplus primarily arose due to greater than anticipated contributions received from the single public service pension scheme, as well as underspend on established Civil Service pensioner lump sums.

I am the Accounting Officer for Vote 12. As provided for under the public financial procedures and in accordance with the relevant legislation, I discharge my obligations by preparing to the best of my ability an accurate appropriation account, ensuring lawful and efficient use of funds, maintaining internal controls, co-operating with auditors and being accountable to oversight bodies. In relation to shared services, I rely on a letter of assurance from the NSSO.

During the course of the Comptroller and Auditor General's audit of the Vote 12 appropriation account for 2023, and as set out in the statement of internal financial control, weaknesses were identified in the internal control environment within the NSSO and within the Vote 12 oversight processes. The issue related to the payment of chargeable excess taxes to the Revenue Commissioners by the NSSO. A review of the Department’s internal controls was concluded and we made changes to our oversight arrangements.

In relation to the OGP, over the past decade public procurement has grown to become a much larger part of public spending, now accounting for an estimated €18.5 billion of public money awarded through procurement competitions each year. Public procurement has also taken on a much more strategic role. It is now a key tool for delivering broader economic and policy goals, such as managing inflationary pressures, supporting SMEs, advancing green and social initiatives or driving innovation and new technologies. In relation to the OGP’s financial performance in 2023, the appropriation account shows a net outturn of €18.25 million, giving a surplus to surrender of €3.4 million. The surrender was driven in the main by savings on pay costs and some delays in commencing two projects that aim to digitalise existing procurement processes.

In relation to Vote 43, the OGCIO Vote supports the Department’s vision for a single, shared ICT platform across the Government and drives the digital government agenda. It leads on digital service delivery and innovation, oversees ICT initiatives across Departments, and represents Ireland at EU level on public service ICT and egovernment.

A Supplementary Estimate of €4.9 million was approved in November 2023 via the Brexit adjustment reserve fund and this funding was used to extend the national low latency platform, NLLP, to the ports of Dublin, Rosslare and Cork.

In regard to chapter 3, in terms of overall performance, gross voted expenditure in 2023 was €94.9 billion when spending on the Social Insurance Fund and National Training Fund are included. Spending in 2023 supported investment in the public sector workforce; improvements in public services for a growing and changing population; investment in digitalisation and climate initiatives; and enhancing infrastructure. Spending in 2023 also reflected measures to address external developments, such as cost-of-living packages, aid for those affected by the Ukraine war, and supporting public services with the legacy impact of the Covid-19 pandemic.

Thank you for the invitation, a Chathaoirligh. We are happy to take any questions the committee may have.