Michael Noonan (Limerick City, Fine Gael)

It is intended to establish a new Department of public expenditure and reform which will have responsibility for all public expenditure as well as the modernisation and reform of the public service. The Minister for Finance will retain responsibility for overall budget, tax and spending parameters while the Minister with responsibility for public expenditure and reform will be responsible for managing public expenditure within the overall envelope set by the Minister for Finance.

The setting up of the Department of public expenditure and reform and the transfer of public expenditure and reform functions from the Department of Finance to the new Department will require primary legislation. The functions and responsibilities which are being transferred to the new Department and Minister need to be clearly identified in the legislation to ensure that there is a sound legal basis underpinning the new Department and ministerial responsibilities, as well as ensuring there is clarity of roles and responsibilities. Work on the legislation has commenced and is being given top priority. The public expenditure and reform functions will formally transfer to the Minister, Deputy Brendan Howlin, and the new Department of public expenditure and reform when the necessary legislation has been put in place.

Broadly speaking, the sectoral policy division and the public service management division of the Department of Finance will transfer to the new Department, as will the modernisation functions from the Department of the Taoiseach. Precise arrangements in relation to functions, responsibilities and staff are being finalised at present.

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