Brendan Howlin (Wexford, Labour)

I was anxious this architecture would come about because of the analysis we had done in advance of the general election that required, if genuine reform was to be achieved, a Cabinet Minister with access to the expenditure line. We were advised by the best authorities who had carried out significant public sector reform abroad that this was the model to replicate. I had meetings with the head of the civil service in New Zealand, which is undergoing public sector reform, when he was visiting here to learn from us. I told him we had only been doing this for 100 days and he replied that we have good ideas. I want to learn from New Zealand in return and I have asked them to send back ideas arising from their reform process. This structure will work.

For the avoidance of legal doubt, we said that where a function might arise in the future that cannot be envisaged at present, and that is presumed to be a matter for the Minister for Finance or the Minister with responsibility for public expenditure, it is deemed to be legal. It important because there might be Exchequer requirements for such a belt and braces approach to ensure the State is not exposed to any cost.

It is a limited provision, applying only to the general description in section 7(1) relating to public service matters and section 7(4) relating to a broad range of functions transferred for bodies under the aegis of the proposed department of public expenditure and reform. If something new arises and there is a lack of clarity over whether it should be a matter for the Minister for Finance or the Minister with responsibility for public expenditure, there must be a mechanism to determine it lawfully, legally and quickly, which is that it should be determined by the Taoiseach, as we have allowed for here.

There was a question about the Financial Services Ombudsman Council. It has seven members appointed for five years. They are representatives of industry, academia and the money advice and budgeting service. It is chaired by Mr. Jewell of the Consumers Association of Ireland. Its role is to ensure the efficiency and effectiveness of the Financial Services Ombudsman, to advise the Minister on matters relevant to the operation by the board of the scheme, and to prescribe guidelines under which the ombudsman operates.

We will have an interesting time in future going through all these functions to see if they are justified. We must ensure every agency established in the past ten or more years has an enduring function and cannot merge or disappear with causing damage to the operation of the State.

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