Alan Shatter (Dublin South, Fine Gael)

The justice and defence sectors, like all public sector areas, must contribute their share to the measures necessary to put our public finances in order. I will address the various constituent parts of the justice sector first and thereafter the defence organisation.

The justice sector has sustained significant reductions in expenditure in recent years, but I am pleased that, even in the current straitened economic circumstances, it has been possible to provide a gross budget of €2.317 billion to the sector for 2012, based on the Estimates published on Monday. The current expenditure budget is €2.261 billion and the capital provision is €56 billion.

There is, of course, a very high proportion of payroll expenditure across the entire justice family. Some 75% of all current expenditure is either pay or pension related and this portion increases to 90% in the case of the Garda Síochána. The remaining 25% of current expenditure is mainly operational in nature, accounted for by the running costs of the Garda Síochána, the Irish Prison Service, the Courts Service, the Property Registration Authority and the Department itself, together with a relatively large number of organisations and agencies which fall under the remit of the justice Estimate. In addition, the limited non-payroll budget must also meet the costs of demand-led areas across the justice sector particularly in criminal legal aid, immigration and compensation payments.

As in other sectors, there has been a reduction in justice sector expenditure in the period 2008 to 2011 in accordance with the Government's overall fiscal target. The budget of €2.261 billion for 2012 will reduce to €2.198 billion in 2013 and to €2.083 billion in 2014. As a consequence, it has been necessary to make reductions across a broad range of areas within the justice family.

Significantly, despite the reductions effected in 2011, the most recent crime statistics from the Central Statistics Office for the third quarter of 2011 show decreases in 12 of the 14 crime groups for which figures are given, compared with the same quarter in 2010, including a 42% reduction in homicide, which includes a 9% reduction in the number of murders recorded; a 15% reduction in the categories of controlled drug offences; and an 11.3% reduction in weapons and explosives offences. The Garda is placing a particular emphasis on preventing and reducing burglary and providing a targeted response, having regard to locations, times, offenders and victims.

Fiscal sanctions and their enforcement are the responsibility of the Minister for Finance together with the Revenue authorities. However, the Garda Síochána continues to work in close co-operation with the Revenue Commissioners in tackling excise crimes, such as fuel laundering and cigarette smuggling, which have serious consequences for genuine businesses and for our communities in terms of longer-term availability of Exchequer funding for our social programmes. In addition, the link between such activity and the funding of organised criminal gangs continues to raise serious concern. During the course of this year, the Garda has been particularly successful in targeting these criminal gangs. The close relationship and co-operation between the Garda and the PSNI have played a particularly important role which, of course, is also of vital importance in countering the threat from the small number of subversives who continue to engage in acts of criminal terrorism.

For comparison purposes, and allowing for some technical adjustments around the transfer of functions between agencies in the past year, the justice Vote shows a €97 million reduction, 4.1%, on the corresponding allocation for 2011. Very challenging budgetary targets have been also set for the two following years. There is a significant transformation programme in place across the justice sector, including in all the main operational areas. The programme, which links closely with the Government's reform agenda, is examining every aspect of how work is done and resources are deployed.

The programme for Government sets out a detailed legislative programme for the justice sector. We have moved quickly over recent months to drive forward key elements of the programme. For example, the Legal Services Regulation Bill, which was published by the Government on 12 October last, gives effect to key structural reforms of the legal sector, including those set out in the programme for Government. These structural reforms, which build on the recommendations of the legal costs working group and the Competition Authority, are also part of our national EU-IMF-ECB undertakings. When I briefed the troika recently on the Bill, they welcomed it as having met both the spirit and the letter of the EU-IMF-ECB memorandum of understanding concluded last year.

A new framework of independent regulation, together with many other modernisation measures in the Bill, represent an opportunity to bring the provision of legal services in the State out of the 19th and into the 20th century. The Bill will address the stark and pressing challenges of structural reform, national competitiveness and economic recovery that we, as a nation, face at this time. The Second Stage debate on this Bill will commence shortly. Its substantive provisions provide considerable protections for the consumers of legal services, greater transparency in relation to legal costs and a new modern framework for legal costs adjudication where disputes arise. It also provides for new structures through which legal services can be delivered, an independent disciplinary structure to address allegations of misconduct by members of the legal profession, and removes many of the restrictive practices from another century which to this day remain unchanged despite recommendations for reform made some years ago by the Competition Authority. The benefits of these reforms were well described by Isolde Goggin of the Competition Authority in last Sunday's edition of The Sunday Business Post.

Following publication of the Bill, I arranged that copies of it be furnished to the Law Society and the Bar Council and invited both organisations to furnish to me any constructive amendments they considered desirable to improve the Bill. I also invited them to meet me. It is disappointing that seven weeks after publication of the Bill, no substantive proposals of any nature have been received from either body. I await with interest any submission that either may make. It is most disappointing that, rather than constructively engaging, both bodies have launched a campaign of opposition to the Bill. I note from newspaper reports this week that instead of constructively contributing to its development, both bodies joined in a conference alleging that the legal profession is under attack and that the Bill poses a threat to its independence. Neither is the case. There is nothing contained in the Bill which in any way prevents members of either profession from continuing to, as they currently do, provide legal services, but the alternative business model options contained in the Bill provide significant opportunity of employment not alone for currently unemployed solicitors and barristers but for those currently employed who are struggling to make ends meet. It also provides alternative mechanisms through which consumers can obtain legal assistance. There is nothing contained in the Bill which in any way interferes with the freedom of lawyers to represent their clients fully and properly and to take any action required in their clients' interest, including actions against the State. It is time that both professions realised that self-regulation is no longer acceptable and that independent regulation is in the public interest and is Government policy. The constant refrain that all proposals of reform affecting the legal profession are a threat to its independence is rapidly becoming a debased currency.

Unfortunately, it has not proved possible to bring the proposed landlord and tenant (business leases review) Bill before the Dáil. Earlier this year, I brought before Government proposals to provide relief for tenants whose businesses might otherwise be viable were it not for the adverse impact of the commercial rent paid by them being significantly above prevailing market levels. However, it was the view of the Attorney General that this particular approach gave rise to significant constitutional difficulties. The Government was advised that any model would require the payment of compensation to landlords whose rights were infringed to ensure that the proposal would be compatible with the Constitution and the European Convention on Human Rights. Given the current economic circumstances, the Government is strongly of the view that payment of compensation to landlords in such circumstances could not be justified.

The Minister for Finance spoke yesterday of the role that NAMA can play in dealing with the problems caused by upward-only rent reviews where they apply to NAMA properties. NAMA has now published its policy guidance which provides it with an opportunity to approve rent reductions where rents are in excess of market levels and the viability of a tenant's business is threatened. The policy provides for the appointment of an independent valuer to ascertain current market rent. I welcome NAMA's pragmatic approach to this matter. It is a model which I would commend to those landlords who have yet to engage with their tenants and yet to accept the fact that current market realities require a greater measure of flexibility than has been shown heretofore. I hope that the now announced decision will remove the uncertainty for those contemplating investment in the commercial property market and bring about renewed activity in this sector.

The personal insolvency Bill will provide for a new framework for settlement of debt and for personal insolvency. The commitment under the EU-IMF programme of financial support for Ireland is to publish the Bill in the first quarter of 2012. The heads of the Bill are at an advanced stage and I will be presenting them to Government later this month for approval and formal drafting by the Office of the Parliamentary Counsel. It is also my intention to refer the scheme of the Bill to the Committee on Justice, Defence and Equality for consideration. Reform of our insolvency law was recommended in the recent Keane report as one of the critical elements which could contribute to assisting certain persons in mortgage arrears difficulties. I anticipate that the development of new statutory approaches to insolvency will encourage financial institutions to adopt more realistic alternative methods of reaching agreements directly with their clients who may be struggling with significant debt problems.

The Garda Síochána budget for 2012 will be €1.425 billion for gross current expenditure and €20.4 million for capital expenditure. This is a reduction on the budget for 2011. I fully recognise that it will be challenging. The Garda Síochána participated in the comprehensive review of expenditure which recently concluded. The review provided a basis for the Garda Commissioner to assess how policing services are currently delivered and to identify the scope for introducing new efficiencies. As the Garda Commissioner has stated, the Garda Síochána, like every other part of the public service, has had to examine how it does its business to identify savings within a reduced budget and to provide a policing service with greater efficiency.

The Garda Commissioner's examination covered every aspect of policing activity, including courts, escorts, protection posts, training, civilianisation and specialisation, as well as the opening hours of Garda stations in Dublin and across the country. Arising from that examination, the Commissioner submitted to me his policing plan which details his priorities for 2012 and provides for the closure of 31 Garda stations throughout the country and for a reduction in public opening hours of ten Garda stations in the Dublin metropolitan region. It also formally recognises the closure of eight other Garda stations which, while still listed as Garda stations, are already non-operational and will not re-open.

The policing plan has been laid before the House and I have made public the details of the stations to close and those with reduced opening hours. These changes are part of a process of reform designed to ensure that resources are focused on front-line operational services and that the best possible policing service is maintained. The Garda Commissioner has publicly stated that resources could be better deployed and more effectively used on the front line if these particular stations no longer had to be staffed and maintained. Those who argue against any station closures must contend with the professional judgment of the Garda Commissioner that the closures will result in a better use of resources.

Ten Garda stations in Dublin, currently open to the public on a 24 hour basis, will from January next be open to the public from 8 a.m. to 10 p.m. daily, the hours when the vast majority of visits to Garda stations are made. This means gardaí, rather than being behind the public counter in stations at night when there is very little demand for that service, will be freed up for front-line operational duties. The number of closures is small compared with the 703 Garda stations listed throughout the country, including 47 stations in the Dublin area. These are high figures by international standards. They have hardly changed since the foundation of the State despite huge advances in transport, communications and technology in recent years. I expect that there will be further rationalisation of Garda stations in the years ahead.

In the context of a reduction in Garda numbers, it should not be forgotten that there are 2,141 whole-time equivalent civilians working in the Garda Síochána who not alone bring hugely valuable skills to the force but also make it possible for gardaí to be released for front-line policing, thus increasing Garda operational strength. In addition, we have almost 900 members of the Garda Reserve who are not a replacement for gardaí but an extremely valuable support, freeing up gardaí for more front-line policing. The Garda Síochána now has much better equipment and technical capability than in past years. In particular, the PULSE system has been developed into an extremely effective resource for every member, while Garda communications have been transformed by the recent introduction of a digital radio system. These are all factors which must be taken into account when considering a reduction in Garda numbers. We will still have a strong and capable force which will have a presence throughout the country, but it will be a force which will be deployed more efficiently and which will deliver a policing service more effectively.

The prison Vote, the gross allocation for which is €336 million, is made up of current expenditure of €312 million and a capital budget of more than €24 million. Despite significant efficiency savings through revised staffing arrangements and other savings in areas such as procurement, the demands on the Prison Service continue to grow.

There has been a constant increase in the total prisoner population in Ireland over recent years, with dramatic increases in the number of sentenced prisoners and those being committed on remand, as well as a trend towards longer sentences. The number of sentenced persons committed to prison annually has increased by 145% since 2005, rising from 5,088 then to 12,487 now. The average numbers in custody rose by 11.84% between 2009 and 2010 and while the increase in the current year is not as dramatic, the trajectory is still upward.

It is crucial, therefore, that the outstanding progress being made under the transformation programme in the Prison Service be sustained. Under the programme, the service will deliver savings of €21 million in payroll costs alone in terms of cost avoided due to increasing prisoner numbers and new prison spaces coming on stream. In other words, in the absence of the transformation agreement, the Exchequer would have been obliged to provide an additional €21 million in payroll funding because of the increased demands on the Prison Service. I refer to costs of €10 million in 2011 and €12 million in 2012, rising to €21 million for each of the years 2013 and 2014.

It already is known the Government next year is not in a position to proceed with new construction works at the Thornton Hall site or at Kilworth in Cork. However, it has been possible to make provision in the 2012 estimates to complete the current construction work in the Midlands Prison and in the Dóchas Centre, which together will provide approximately 370 much-needed additional prison spaces.

The Courts Service's current expenditure allocation of more than €98.39 million for 2012 shows a reduction relative to 2011. The service also has available a capital allocation of €7.7 million for 2012. The Courts Service is undergoing a multifaceted transformation programme including the restructuring of court offices into unified multi-jurisdictional structures, for example, through combining District Court and Circuit Court offices, the rationalisation of court venues, the centralisation of certain functions, the greater use of information technology systems in court proceedings and the development of the role of county registrars. The Courts Service also is reviewing on an ongoing basis the network of court venues it provides. While the provision of court venues obviously is a matter for the Courts Service and board, I fully support this review, particularly in the current financial climate, when we must find all possible ways to optimise the use of resources.

The justice and equality Vote has a gross allocation of more than €395 million available in 2012, as well as a carry-over of unspent capital from 2011 of €460,000, which is being allocated to the Forensic Science Laboratory. The justice Vote covers nearly 60 subheads and includes allocations of funding to agencies and organisations in the areas of integration, equality, disability and human rights, charities, youth justice and others. The allocation for 2012 represents a reduction of €15 million on the 2011 figure and, in allocating the available funding, priority will be given to those organisations that are actually providing front-line services. This means there will be limited funding available for non-governmental organisations that are largely engaged in an advocacy role.

It is, therefore, with regret that I have had no option but to reduce funding to bodies such as the National Women's Council of Ireland and have withdrawn funding from the umbrella group, People with Disabilities Ireland, where a disproportionate amount of funding was absorbed by administrative overheads, so that funding may be maintained, in so far as possible, for other bodies supported by my Department in providing front-line services tackling complex and difficult issues such as domestic and sexual violence and to organisations providing assistance to victims of crime such as, for example, Women's Aid, AdVIC and Support after Homicide. The National Women's Council of Ireland has now received considerable philanthropic funding to support its work and I believe the reduced contribution from my Department is adequate to enable the council to contribute on behalf of the women of Ireland to the ongoing programme of Government activities that aim to achieve de facto gender equality, principally through the implementation of the national women's strategy.

It has been possible to increase the provision for some areas, such as the Forensic Science Laboratory, the Criminal Assets Bureau and State Pathology Service, relative to 2011 expenditure levels. I am determined, in so far as possible, to maintain the funding levels in these key areas, which are crucial in the fight against crime. The Criminal Assets Bureau, for example, together with other specialist Garda units, is to the forefront in the fight against serious and organised crime and utilises the proceeds of crime legislation and other legislation to appropriate the ill-gotten gains of criminals for the benefit of the State.

I also am conscious of the need to maintain funding for the probation and youth justice services at in or around 2011 expenditure levels because of the very important work these organisations carry out. The Probation Service provides cost-effective alternatives to custody that I am determined to continue and grow during my time as Minister. The Youth Justice Service, while providing places of detention for young offenders, also administers and funds a range of essential diversion and community-based programmes. These programmes aim at deterring young people in particular risk categories from getting involved in crime.

The challenges in the justice Vote are reflected in the budgetary reductions in areas such as criminal legal aid and the immigration and asylum areas. In 2011, the former Minister for Finance made available €47 million for the criminal legal aid scheme. The estimated outturn at the end of this year will exceed €57 million, approximately €10 million more than budgeted for at the start of the year. The need to contain the costs of the criminal aid scheme in the public interest, while also ensuring that the rights of alleged offenders are fully protected, resulted in my being obliged to reduce fees payable under the scheme this year. However, following the Director of Public Prosecution's decision also to reduce fees payable to prosecuting lawyers, parity of fees was maintained as between the prosecution and the defence.

A provision of €47 million has again been allocated for criminal legal aid in 2012. Given the likely outturn for this year, this allocation represents a considerable challenge to achieve essential savings. In this context I find the threatened strike action from the newly formed Criminal Law Practitioners Organisation, CLPO, to be absolutely extraordinary. This organisation, last September, expressed concern that the principle of parity in respect of legal fees would no longer apply to lawyers representing both the prosecution and the defence. As previously explained, this concern proved groundless. Until the formation of this new organisation, issues of this nature were addressed by my Department in dialogue with the traditional representative bodies of the legal profession, namely, the Law Society of Ireland and the Bar Council of Ireland. Although both bodies have naturally represented the interests of their members when cuts have arisen, both bodies, and indeed their members, generally have demonstrated the responsible attitude one would expect from the legal profession in these very difficult times.

The contrasting approach of the newly formed Criminal Law Practitioners Organisation has been marked. Bearing in mind its leadership comprises some of the highest earners in the criminal legal aid scheme, I must deplore the threat made last Friday to withdraw services tomorrow from criminal legal aid clients. Although I believe that with more than 2,000 solicitors and 850 barristers on the legal aid panels, there will be adequate representation available, I am concerned and astounded by this proposal to withdraw services from clients who have been granted criminal legal aid by the courts and assigned legal representation and who have an expectation of being appropriately represented by their legal team in court. I should add that whether lawyers are entitled under the law to undertake this kind of action is extremely questionable. I understand the Competition Authority wrote yesterday to the CLPO expressing concern about a potential infringement of the Competition Act. I have previously invited the Criminal Law Practitioners Organisation to furnish its proposals for reducing the cost of criminal legal aid, while continuing to ensure the rights of defendants are properly protected. To date, that organisation has failed to furnish me with any substantive response to this request. The conduct of this organisation to date starkly illustrates the need to implement reforms with regard to the legal profession and to enact the Legal Services Regulation Bill to ensure proper competition in the provision of legal services.

A significant transformation programme is in place right across the justice sector and in this context, I am pleased I already have got a number of initiatives off the ground that are aimed at ensuring more streamlined interaction between the various areas in the criminal justice sector. A programme of structural reform also is being furthered in the immigration and asylum areas with the objective of achieving a more streamlined and cost-effective operation, while also maintaining the transparency and high standards pertaining to our current immigration process. A key catalyst for further measures in this area will be the passage of the residency and immigration Bill through the Oireachtas in the new year.

In line with the Government's proposals for the rationalisation of State bodies, the arrangements for the merger of the Equality Authority of Ireland and the Irish Human Rights Commission are proceeding. It is expected that the pooled resources of the organisations will provide a strong and vibrant body that will promote human rights and equality issues in a more effective, efficient and cohesive way.

Arising from one of the proposals in the comprehensive review of expenditure report, the funding provision for the Legal Aid Board has been streamlined in the current Estimates, with the allocation for the Refugee Legal Service being amalgamated with the grant-in-aid provision for the board. In this context also, €2.8 million has been included in the Legal Aid Board subhead for the Family Mediation Service, which reflects the change in responsibility for this service in November this year. I am pleased we are able to maintain funding in 2012 for civil legal aid and for the Free Legal Advice Centres, FLAC, at 2011 levels.

Turning to the defence area, it faces difficulties that are very similar to those in justice, when it comes to maintaining operational effectiveness within reduced budgetary allocations. The defence organisation has a proud record of reform and modernisation, unique within the public service. In the past decade defence expenditure has reduced in real terms while capabilities and services have been improved. The task in 2012 is to make the changes necessary to maintain operational effectiveness within a restricted financial allocation. Achieving this task will require a firm commitment to change, prioritisation, cost reductions and effectiveness. I know the Defence Forces, in which we should take great pride, are up to this task, and will in 2012, with courage and dedication, continue to play an important role in peacekeeping duties abroad and in their domestic duties at home when required. Because the Defence Forces have downsized faster than the rest of the public service and are already 11% below the 2000 strength level, the Government has decided that there will be no further reduction below the strength level proposed in the comprehensive review of expenditure. While the strength will be maintained at 9,500 there will be a major streamlining of the organisation.

The reorganisation of the Defence Forces in the context of the reduced strength will prioritise front-line service delivery. This will include a reduction from three to two in the number of Army brigades, which will free up military personnel from administrative and support functions. The reduction in the number of Army brigades will require a redefining of territorial areas of responsibility. Further barrack closures are not envisaged as part of this process. I have asked the chief of staff and my Secretary General to prepare reorganisation proposals for my consideration. This will also include proposals relating to the Reserve Defence Force, which is currently organised along similar lines to the Permanent Defence Force.

The recently announced barrack closures are a key element in absorbing the reductions in the strength of the Defence Forces while minimising the impact on front-line services. The consolidation of the Defence Forces formations into a smaller number of locations has been always a key objective of the defence modernisation programme. The location of personnel in a large number of locations has created major difficulties in the provision of collective training, while the manning and security of non-essential barracks takes personnel away from operational duties. It also imposes unnecessary costs and overheads on the Defence Forces in terms of barrack management, administration and maintenance.

In addition to the reduction in strength, a range of cost reduction measures are being introduced to deliver savings. These include the reprioritisation of equipment plans and associated planned reductions in procurement expenditure. A recent re-examination of the defence ten-year equipment plan has identified the minimum priority equipment required up to 2017 which will inform equipment purchases in 2012. The procurement of the two naval vessels will continue from within the reduced defence allocation. The first new naval vessel is scheduled for delivery in early 2014 with the second following one year later.

There is no escaping the fact that difficult decisions will continue to have to be made until we get our public finances back in order. That being said, I am confident that, with the resources available and through the changes in the way in which both sectors do business, we will maintain viable and effective justice and defence sectors in the challenging times ahead.

In the context of the defence sector, I am glad the Government has made a decision to ensure that the strength of our Defence Forces remains at 9,500, that there will be no further barrack closures in the next number of years, and that planning to switch from a three to a two brigade structure can take place in a certain environment in which the funding available to the defence establishment for the next three years is clearly known and where there is a degree of certainty with regard to numbers and barracks, and that there are no further issues of barrack closures arising for members of the Defence Forces, save for the four already announced.

See this speech in context