Dáil debates
Wednesday, 16 June 2010
Departmental Agencies
1:00 pm
Batt O'Keeffe (Cork North West, Fianna Fail)
The report of the special group on public service numbers and expenditure programmes made a number of recommendations addressed directly to my Department. The Deputy has outlined most of these recommendations in his question.
In the time available, it is not possible to address all of the recommendations in the special group's report relating to my Department in detail. However, I am circulating, for the benefit of the House, a detailed table which sets out the current position on each of the recommendations in the report that relates directly to my Department. As the Deputy will see from that table, eight recommendations have been accepted in whole or in part and the resulting financial savings have been incorporated into my Department's Estimate for this year.
Some proposals envisaged by the special group, such as the rationalisation of agencies, are quite complex to implement and may require legislative provision if they are to be achieved. There are also a number of recommendations in the report affecting my Department which require cross-departmental consideration and/or consideration at Government level.
As the Deputy will be aware, responsibility for FÁS transferred from my Department to the Department of Education and Skills with effect from 1 May this year. The recommendations made by the special group in respect of FÁS programmes and services are now a matter for consideration by that Department.
Decisions in respect of some recommendations will be a matter for consideration by Government in due course. Any expenditure reductions that may arise will be included in the budget for my Department in future years.
Summary of Recommendations made by the Special Group on Public Service Numbers and Expenditure Programmes in respect of the Department of Enterprise, Trade and Innovation
| Recommendation | Position |
| Create a single funding stream for all science, technology and innovation activities across all Departments. | In the context of Budget 2010, the Minister for Finance announced that the Government was establishing a single funding stream for Science, Technology and Innovation to maximise the efficiency and focus of investment and ensure that Ireland's effort is strategically targeted on those areas that can achieve greatest impact.The transfer of responsibility and associated funding for the Programme for Research in Third Level Institutions (PRTLI) and certain other research functions from the Department of Education and Skills to the Department of Enterprise, Trade and Innovation from 1 May 2010 represents significant progress in relation to implementing this recommendation. |
| Discontinuation of funding for the Irish Council for Bioethics. | The 2010 Estimates made provision for an orderly wind-down of funding from the Department of Enterprise, Trade and Innovation to the Irish Council for Bioethics (ICB) in the course of the year. The then Minister for Enterprise, Trade and Employment agreed with the Minister for Health and Children and the Minister for Finance that the three staff in the secretariat to the ICB should be seconded to the Department of Health and Children, so that their expertise could be availed of appropriately. The funding allocation that had previously been made available to the Department of Enterprise, Trade and Employment for the ICB was accordingly transferred to the Department of Health and Children. Any further decisions in relation to the body are a matter for that Department. |
| Reduction of Departmental civil servants serving the science, technology and innovation programme. | The Special Group proposed reductions in civil service numbers across all of the Department's programmes. The number of serving civil servants in the Department fell by 80 in 2009 and will fall further this year due to the moratorium on the recruitment of staff. The Department is currently in discussion with the Department of Finance on staffing targets for the year. The Department will apply its reduced resources as required to address key priorities which may vary from time to time. The Special Group also proposed reductions in the number of staff in the Department's agencies. Staffing targets for the agencies are also under discussion with the Department of Finance. |
| Consolidate all indigenous enterprise support and sector marketing functions in Enterprise Ireland and the rationalisation the organisations losing functions as appropriate. EI to deliver consolidated services through 8 offices in line with NSS hubs | The proposal made by the Special Group cuts across a number of Government Departments and agencies. Detailed consideration of those aspects that concern only the Department of Enterprise, Trade and Innovation (regarding, for example, the CEBs) is at an advanced stage. |
| Reduction in Enterprise Ireland's Capital spend | The Government considered it appropriate to increase Capital funding to Enterprise Ireland over the last two years to enable the agency to support vulnerable but viable companies, through, for example, the Enterprise Stabilisation Fund. |
| Reduction of IDA's capital and administrative costs including rationalisation of regional offices in Ireland and shared services. | IDA's administrative costs have been reduced by €2.6 million for 2010 compared to the 2009 Estimate provision. This has been achieved through pay and efficiency savings.It is not clear what savings would accrue from a rationalisation of regional offices.IDA Ireland's capital allocation is directly related to its contractual commitments. |
| Efficiency saving in administration and programme prioritisation in Enterprise Ireland. | Enterprise Ireland's administrative budget has been reduced by €7.9 million for 2010 compared to the 2009 Estimate provision. This has been achieved through pay and efficiency savings. |
| The rationalisation of IDA and Enterprise Ireland overseas offices. | The agencies already share office space in most common locations. |
| Reorganisation of Shannon Development. | Consideration of this recommendation is on-going in the context of the special requirements of the Mid West Region in the aftermath of the Dell closure. Any reorganisation of Shannon Development would require approval by the Government. |
| Reorganisation of Forfás. | The Special Group's proposal was that Forfas's existing shared services function (carried out on behalf of a number of agencies) should be relocated to a wider Shared Services operation.The implementation of this recommendation would be contingent on the identification of another body which provides shared services functions more efficiently than Forfas. In the absence of the identification of such a body, the Department requested Forfás to examine the possibility of achieving savings through an enhancement of their existing shared services arrangements and this process is under way. |
| Privatise the Certification Service of the National Standards Authority of Ireland. | The Special Group's proposal was to privatise (rather than outsource) the NSAI's Certification Services. Having considered the recommendation in detail, it was not clear that any benefit would accrue to the taxpayer from such a move, because of the high level of overhead costs that would remain with the NSAI after a sale of the certification business. The more likely result would be increased Exchequer cost. Accordingly, it has been decided not to pursue this proposal at this time. |
| The relocation of all Industrial Relations institutions to a single location. | The Labour Court, the Labour Relations Commission and the Rights Commissioner services are currently located in Tom Johnson House in Dublin. The Office of Public Works and the Department of Communications, Energy and Natural Resources have been requested to facilitate the location of the Employment Appeals Tribunal to the same premises. |
| Merging the Health and Safety Authority and the National Employment Rights Authority into one Work Place Inspectorate. | Further examination of this proposal suggests that: ·there are radical differences between the natures of the two inspectorates; ·overlaps between the two Agencies are minimal;·a merger will not yield appreciable savings;·substantial legislative change would be required.On that basis, it is not propose to proceed with this recommendation. However, both Agencies are, under the aegis of the Department, developing a programme of practical co-operation designed to make most efficient and effective use of their overall resources, whilst having regard to their different remits. |
| Merging the functions of the Registrar of Friendly Societies (RFS) and Companies Registration Office (CRO). | The two offices and their statutory functions are already the responsibility of the same public official. Proposals relating to the future of the Registry of Friendly Societies and its statutory functions will be submitted to Government shortly. |
| IAASA should maximise shared services and reduce the Exchequer's intervention from 40% to 20% | IAASA is endeavouring to maximise the use of shared services, but scope for savings is minimal. The Department currently provides payroll services to the Authority. The level of Exchequer subvention is provided for in legislation and any reduction in this subvention would require detailed policy assessment and legislative change. |
| Savings in corporate services, a reduction in administrative budget and a transfer of foreign posts to Brussels to reduce travel and subsistence spend | Savings of €1 million in the Administrative Budget were delivered in the 2009. Further savings will be achieved in 2010.There are costs associated with the assignment of posts to Brussels (e.g. Rent Allowance). Having analysed the proposal, the Department does not believe that the recommendation would be efficient or achieve economies in an overall context. |
| Merging the Irish Takeover Panel with the Competition Authority | This merger could lead to unnecessary policy conflict and it would not be in line with best international practice. |
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