Brendan Howlin (Wexford, Labour) | Oireachtas source

Overall gross voted expenditure for 2006 - I am surprised the Deputy picked that year - amounted to just over €50 billion compared to a gross expenditure figure of €53 billion for 2014.  This represents an increase, in nominal terms, of €3 billion or 6% over the nine-year period the Deputy has specified.  The 2014 Estimate for gross current expenditure is €49.7 billion, a nominal increase of €6.3 billion or 15% over the period while capital expenditure has decreased in nominal terms by €3.3 billion or 50% since 2006. While overall expenditure levels show an increase between 2006 and 2014, it is important to note the rapid and unsustainable escalation of expenditure which occurred between 2006 and 2009.  I am sure this was in no way connected to the general election which took place during that period. Overall gross spending increased by over €13 billion or 26% during the period in question and stood at over €63 billion in 2009.

As the Deputy is aware, we have been undergoing very challenging economic and fiscal corrections which have necessitated significant expenditure consolidation.  The consolidation measures this Government has introduced have ensured Ireland's successful exit from the EU-IMF programme of financial support. To fully appreciate the scale of the consolidation, it must be noted that it has been achieved against the backdrop of being obliged to respond to increased needs for public services and supports. The numbers on the live register increased from 160,000 in January 2006 to just under 400,000 in January 2014. Pressure on primary social protection payments, such as pensions, working-age income supports, working-age employment supports and illness-related supports, also increased during the period. This pressure is reflected in the allocation of €19.6 billion to the Department of Social Protection this year. That is €6.1 billion above the amount allocated in 2006.

Additional information not given on the floor of the House

Consolidation of health expenditure has taken place within a context of significant demands for services. The numbers of medical and GP cards increased from approximately 1.2 million in 2006 to approximately 2 million at the end of 2013, a significant increase of over 800,000. While funding for the education and skills Vote has increased by €900 million between 2006 and 2014, this was primarily due to the national training fund and FÁS transferring to the Vote in 2011. During the period in question there have been increased demographic pressures on services with the number of students at primary and secondary school increasing from about 814,000 in 2007 to almost 890,000 in 2013.

While the provision and costs of public services remain the responsibility of the relevant Ministers and their Departments, my Department has introduced measures to help ensure that expenditure targets continue to be met and that public expenditure remains sustainable. The medium-term expenditure framework - with three-year ceilings for ministerial Vote groups - was placed on a statutory footing with the enactment of the Minister and Secretaries Amendment Act 2013. This provides greater clarity and certainty about expenditure allocations and allows for structural, medium-term planning and prioritisation within each area. On 14 January, my Department published a new public service reform plan which covers the period 2014 to 2016.  The new plan includes more than 200 actions, with clear timelines for delivery.  The implementation of the new plan, alongside the measures introduced to enhance expenditure management, will enable the Government build a new public service that is focused on protecting and improving public services within the constraints set by the overall national and EU level fiscal frameworks.

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