Dáil debates

Wednesday, 30 April 2008

Other Questions

Departmental Agencies.

1:00 pm

Photo of Joe CareyJoe Carey (Clare, Fine Gael)
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Question 9: To ask the Minister for Enterprise, Trade and Employment if his Department will complete an efficiency review and audit of all State agencies and bodies under the responsibility of his Department; if he has plans to merge or abolish any State agencies or bodies; and if he will make a statement on the matter. [16703/08]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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In accordance with the initiative announced by the Tánaiste and Minister for Finance in his 2008 budget speech, my Department carried out an efficiency review earlier this year which encompassed the Department, its offices, agencies and associated bodies.

The efficiency review for my Department will be considered by the Government, along with similar exercises carried out by all other Departments. The overall objective of the exercise is to achieve efficiencies which will reduce the cost of the delivery of public services and achieve greater value for money. It would be premature to comment on the specifics of my Department's efficiency review in advance of a full consideration of the overall exercise by the Government.

The current efficiency review must also be seen in the context of ongoing efficiencies which have been initiated by my Department and its agencies over a long number of years. My Department and its agencies have a proven record of proactively seeking to achieve efficiencies and finding better ways to deliver services to clients. These actions have included, where appropriate, the rationalisation of agencies to eliminate duplication and provide a more strategic focus to service delivery. The establishment of Enterprise Ireland as a single dedicated agency to promote indigenous industry is a case in point. This merger brought together Forbairt, An Bord Tráchtála and the services to business function of FÁS.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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I am amused at the Government's newfound interest in efficiency. Everyone knows my view on this issue and the extent to which the Government has been a proliferator of State agencies has been phenomenal. There are nearly 1,000 such agencies. One of the worst offenders is the Department of Enterprise, Trade and Employment which has almost 100. I doubt the sincerity of the Government's new-found interest given that the legislative programme features 19 Bills which will establish 17 new agencies, extend the power of five agencies and allow one agency to establish a sub-agency. Much of what the Tánaiste says is bluster and of no substance.

A number of departmental agencies — the National Employment Rights Authority, NERA, Rights Commissioners, Equality Tribunal and Equality Authority — have a role in the area of employment law compliance. Is there not a case for establishing a single pathway for employment law compliance? Could we not take action on training given that six organisations are involved in this area? The figure is 41 if one includes the city and county enterprise boards which award training grants. Is there not also a case for consolidation in the awarding of grants for alternative energy, which is done by Sustainable Energy Ireland, the Environmental Protection Agency and Science Foundation Ireland? There is considerable potential for achieving efficiencies in these areas.

Does the Minister agree that the establishment of NERA and the National Consumer Agency was a knee-jerk reaction to the scandal involving Gama Construction Limited and the "Rip-Off Republic" television series by Mr. Eddie Hobbs? What was really needed was the appointment of a substantial number of labour inspectors. The establishment of a quango, with a board, website and headquarters, will not necessarily achieve the desired objective. If sufficient inspectors had been in place, it would not have been necessary to spend a fortune on a new agency.

This argument also applies in the area of consumers. If the Director of Corporate Enforcement was properly resourced and empowered, we would need a massive new agency with a large number of board members who incur substantial expenses. There is little evidence to show the establishment of the National Consumer Agency has reduced prices or improved conditions for consumers.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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The Deputy's predecessor as Fine Gael spokesperson on enterprise, trade and employment attacked my predecessor and me for what he claimed was our delay and prevarication in establishing a national consumer agency.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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We called for the appointment of a consumer enforcer, not the establishment of a quango full of the Minister's appointees.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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When we introduced the relevant legislation the Deputy's predecessor said it was about time, only to oppose it later. Even in the context of NERA and Gama Construction Limited, we heard cries from the other side that we needed——

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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The Minister is in Government.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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I will return to the issue of the Government's role. The cries were not only for a greater number of inspectors but also for sufficient legal capacity to take on unscrupulous employers who exploit workers. This requirement could not be satisfied by appointing additional inspectors without legal context or proper capacity to take on such employers in the courts. The Deputy will recall that our first attempts to address the problem with Gama Construction ended in the Supreme Court, where the matter has not yet been resolved, because we could not publish a report under the existing legal framework. It was for this reason that the legislative template had to change.

The Government adopted a constructive approach based on partnership with the social partners because it emanated from the social partnership agenda. While it remains within the aegis of the Department, it is a separate stand-alone approach which has sufficient focus to ensure compliance with employment law. It was done in a good, informative manner from a policy perspective.

The Government's approach to the consumer issue emerged from the consumer strategy group. It was not a response to the series of programmes by Mr. Eddie Hobbs but was well advanced prior to its broadcast, as anyone who reviewed the sequence of events would discover.

On labour law, I ask the Deputy to consider the number of strikes we had in the 1970s, review the performance of the Labour Court and Labour Relations Commission and assess the current status in terms of industrial conflict and the reduced number of strikes. The performance has been phenomenal.

While some agencies work well, there is scope for others to amalgamate. Why were the county enterprise boards established more than a decade ago in a policy initiative taken by the then Taoiseach, Mr. Reynolds? The reason was that people on the ground believed the larger agencies had no interest in minor enterprises of the type we discussed a few moments ago.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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The county enterprise boards and development boards could easily be amalgamated.

Photo of Willie PenroseWillie Penrose (Longford-Westmeath, Labour)
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The main problem with the large number of agencies is that Members cannot obtain a reply from the relevant line Minister when we raise an issue in the House. In other words, no one is accountable to the people or their representatives.

It is not feasible to abolish some State agencies. Bodies such as NERA are essential if we are to pursue those who do not comply with the law. While I accept there is duplication among certain agencies and it will be necessary to focus our attention on this issue, the main problem is the lack of accountability to the Oireachtas.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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I accept the need for reform to make State agencies more accountable to the Legislature, through the relevant Minister. The OECD report makes an important point on the need for greater connectiveness in the wider public service, Civil Service, political system and, ultimately, Parliament.