Dáil debates

Wednesday, 11 March 2009

Ceisteanna — Questions

Departmental Expenditure.

11:00 am

Photo of Eamon GilmoreEamon Gilmore (Dún Laoghaire, Labour)
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Question 1: To ask the Taoiseach the way, in respect of his announcement of 3 February 2009, it is intended to effect the 8% reduction in professional fees for services provided to or funded by his Department; the amount expected to be saved in his Department's budget as a result of this process; and if he will make a statement on the matter. [4747/09]

Photo of Eamon GilmoreEamon Gilmore (Dún Laoghaire, Labour)
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Question 2: To ask the Taoiseach the way, in respect of his announcement of 3 February 2009, it is intended to achieve the general administrative reductions in regard to his Department; the amount expected to be saved in his Department's budget as a result of this process; and if he will make a statement on the matter. [4748/09]

Photo of Caoimhghín Ó CaoláinCaoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 3: To ask the Taoiseach the manner in which it is intended to effect the further savings in his Department announced in February 2009; and if he will make a statement on the matter. [9850/09]

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 1 to 3, inclusive, together.

My Department will effect the 8% reduction in professional fees for services provided or funded by the Department. Preparations are in hand on the final arrangements to give effect to this decision and the details will be announced in due course. It is not possible to estimate the expected savings at this stage.

As a result of the recent Government decision, my Department will achieve further savings of €583,000, which is a total saving of 2.8% on my Department's overall administrative budget for 2009. These savings have been identified across a number of the Department's administrative and programme subheads, including travel and subsistence, consultancy, telecommunications services, office equipment and premises and training. My Department's Revised Estimate for 2009 is €34.603 million, which is a reduction of 8% on the 2008 Revised Estimate.

Photo of Eamon GilmoreEamon Gilmore (Dún Laoghaire, Labour)
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What are the services for which professional fees are paid by his Department? Is it intended that the 8% reduction in professional fees will apply to the Central Statistics Office, Office of the Attorney General and Office of the Director of Public Prosecutions? Are professional fees incurred by the Taoiseach's private office or the private offices of his Ministers of State? If so, will the 8% reduction apply to such fees? Do professional fees include the engagement of consultancy services by the Taoiseach's Department?

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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On the engagement of consultancy services, as I have indicated, we have significantly reduced consultancy services in recent times. The reduction is considerably more than 8% and may be more than 50%. Some time ago, I answered a question on that specific point to that effect.

On the Deputy's specific question on professional fees, the reduction will include professional fees incurred in the following categories: services of a medical, dental, pharmaceutical, optical, aural or veterinary nature; services of an architectural, engineering, quantity surveying or surveying nature; services in accountancy, auditing or finance; services of financial, economic, marketing, advertising or other consultancies; services of a solicitor or barrister or other legal services; geological services; and training services provided on behalf of Foras Áiseanna Saothair. Those are the general areas to which the 8% across-the-board reduction in professional fees applies. I do not have specific details on how the reduction applies to my Department but I will try to obtain them if the Deputy wishes.

In terms of the application of the reduction in professional fees, I understand it will apply to all areas in which the State is being provided with professional services.

Photo of Eamon GilmoreEamon Gilmore (Dún Laoghaire, Labour)
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Is it intended to apply the 8% reduction to fees paid to lawyers engaged in the Moriarty tribunal? We have had questions about the tribunal, which comes within the remit of the Department of the Taoiseach, on a number of occasions in the House. There is a degree of uncertainty about how much longer the tribunal will be in existence, when it will report and whether it will hold further public hearings. Will the 8% reduction apply to legal fees arising from the tribunal?

Is it intended to present a Revised Estimate for the Department of the Taoiseach arising from the reductions of 8% in professional fees, the reductions in consultancy services of the order of 50% to which the Taoiseach referred and the Department's expected compliance with the more general reduction in expenditure across Departments? If so, when will it be presented?

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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A Revised Estimate will not be presented before the supplementary budget which will take precedence. A Department of Finance circular on the implementation of the 8% reduction in professional fees has been issued to all bodies and programmes in the Department's Vote. The Department is reviewing contracts in place for professional services to revise fees downwards by 8% from 1 March 2009 for services to be rendered on or after this date. The 8% reduction will apply to all tribunal legal fees and my Department has been in touch with the Moriarty tribunal to that effect. That is the position.

Photo of Caoimhghín Ó CaoláinCaoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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The Taoiseach indicated the reduction in outgoings on private consultancies would be greater than 8%. Is he aware of or can he confirm reports last November indicating that, collectively, Departments, including his own, were expending in the order of €1.7 million per week on private consultancy engagements, in other words, the figure for the year was in the order of €90 million?

Cé mhéad airgead a chaithfidh Roinn an Taoisigh ar seirbhísí comhairleachta — consultancy services — i 2009? Cé mhéad airgead a chaithfidh an Rialtas go ginearálta ar na seirbhísí sin i mbliana? An bhfuil figiúr ag an Taoiseach le haghaidh 2008 chun comparáid a dhéanamh idir an méid a chaitheadh an bhliain seo caite agus an méid atá geallta ag Roinn an Taoisigh agus ag gach Roinn eile do 2009?

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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Caitheadh €275,000 ar seirbhísí comhairleachta an bhliain seo caite. Tá an figiúr níos ísle — €118,000 — i mbliana de bharr cinneadh an Rialtais. The figure is, therefore, €118,000 rather than €275,000. Tá laghdú de 57% i gceist ón Meastachán a fhoilsíodh i 2008.

A small number of possible consultancy requirements for 2009 have been identified to date. I am satisfied procedures are in place which will ensure expenditure undertaken on consultancy is necessary and relevant guidelines are being followed. Every effort is made by my Department to minimise expenditure on consultancy services. However, where it is necessary to engage consultants to avail of their particular expertise or experience, the procurement of consultancy services is subject to public procurement guidelines and, where applicable, EU procurement rules and guidelines, with selection criteria geared to select the most economically advantageous tender.

It is also our policy that skills transfer from consultants to departmental staff takes place as an integral part of all consultancy engagements. The purpose of this is to increase the knowledge and expertise of departmental staff and reduce and, if possible, eliminate future dependence on consultants in the areas concerned.

Photo of Caoimhghín Ó CaoláinCaoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Gabhaim buíochas leis an dTaoiseach as ucht na figiúirí ó Roinn an Taoisigh. The Taoiseach does not have specific, across-the-board figures on planned Government expenditure across all Departments.

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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Baineann na ceisteanna seo le rudaí atá faoi chúram Roinn an Taoisigh. Níl figiúirí ginearálta agam.

Photo of Caoimhghín Ó CaoláinCaoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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An bhfuil an Taoiseach sásta na figiúirí sin a fháil amach dom?

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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Cén figiúrí arís?

Photo of Caoimhghín Ó CaoláinCaoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Tá mé ag caint mar gheall an ráiteas a cuireadh amach i mí na Samhna seo caite, which referred to €90 million in expenditure across all of the Departments. Does the Taoiseach not agree it is important that this is pointed out specifically, not only in percentage terms of intent, but in realistic terms? He has demonstrated it in the figures with regard to his own Department — I thank him for that — but if those figures are accurate, as were reported back in November, will the Taoiseach undertake to advise the various Opposition parties of the expected expenditure across all Departments in the current year so we can have the opportunity to understand and, I hope, appreciate the comparisons?

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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It is important to mention the context. We are talking about a total spend by Government, throughout all Departments and agencies, of €55 billion. Consultants are required for particular areas of expertise, perhaps for very complex projects and so on. Consultants are employed from time to time to protect the taxpayer's interests. If the figure of €90 million mentioned by the Deputy is correct, in the context of a total spend of €55 billion, that is around 0.1% or 0.2% of total expenditure. In an operation as complex as a modern Government, I do not believe that should be regarded automatically as being out of line with expectations, given the complexity and breadth of the work undertaken by Governments on an ongoing basis.

Photo of Alan ShatterAlan Shatter (Dublin South, Fine Gael)
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In the context of the savings to be effected in this area and others, has any kind of approach been made to the members of the Judiciary to suggest they voluntarily reduce their salaries by an equivalent of the pension levy which is being imposed on everyone else in the public service? I understand there may be constitutional difficulties with reducing judges' salaries, but I am not sure there would be a difficulty in constitutional terms in requiring judges to contribute towards their pensions.

Photo of John O'DonoghueJohn O'Donoghue (Kerry South, Ceann Comhairle)
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There is a problem with these questions, Deputy, as they do not relate in any way to the three questions before the Taoiseach.

Photo of Alan ShatterAlan Shatter (Dublin South, Fine Gael)
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In the context of saving expenditure, has the Taoiseach considered this? Have any steps been taken to raise this in an appropriate manner?

Photo of John O'DonoghueJohn O'Donoghue (Kerry South, Ceann Comhairle)
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That is outside the remit of these questions, but if the Taoiseach wants to be helpful he may.

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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As the Ceann Comhairle says, it is outside the remit of the questions. As the Deputy knows, we need to recognise the constitutional position and not say or do or indicate anything that would in any way interfere with the independence in the role and functions of those important public servants in the Judiciary who serve us well. I do not wish to say anything more about it, but I am trying to be helpful.

Photo of Alan ShatterAlan Shatter (Dublin South, Fine Gael)
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Would the Taoiseach acknowledge that the wider public expects everyone in the public service, with no exceptions, to make a contribution to resolving the current economic crisis in which we find ourselves?

Photo of John O'DonoghueJohn O'Donoghue (Kerry South, Ceann Comhairle)
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The Taoiseach has been helpful on this matter. Deputy Shatter can put down a question to the Minister for Justice, Equality and Law Reform or raise the issue on the Adjournment.

Photo of Jan O'SullivanJan O'Sullivan (Limerick East, Labour)
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Tuigim go mbaineann na figiúirí atá ag an Taoiseach lena Roinn féin, ach tá ceist ghinearálta agam.

Much of the money that is coming back in professional fees will be collected by specific Departments, particularly the Department of Health and Children, which will collect money from pharmacists' and doctors' fees. Will these savings go back to each Department's budget? For example, the Department of Health and Children must save more than €1 billion on the general health budget. Will the savings under discussion go back to this or any other Department, or will they go into a general pool of Government savings?

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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In the context of overruns and budgetary pressures, the question of reducing costs to the Exchequer is not a matter of diverting funds but of saving them in budgets that are already under stress. The Minister for Health and Children outlined in last night's debate the extent of the overrun and the fact that a certain amount has been catered for in the service plan. The net figure she gave is less than the figure mentioned by the Deputy. It is not a question of saving some money which can then be put towards the health service. What we are doing is saving money that is being spent by the health service in respect of those who have a contractual relationship with the health service for the provision of services. It is a question of reducing output costs rather than providing extra money for subsequent spending in other areas.

Photo of Jan O'SullivanJan O'Sullivan (Limerick East, Labour)
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Could the Taoiseach clarify that? For example, in the health budget there is an overrun because of money paid to pharmacists under the Hickey judgment and other issues. However, there will be savings of 8% on money paid to pharmacists, so can these two things be balanced against each other?

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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I do not think they can be balanced against each other. The overall budgetary pressures on health — for example, the reduced contribution from the health levy due to the lower numbers of people in employment — are a countervailing pressure point to the saving obtained due to the 8% reduction in professional fees. If the Deputy understands my point, in the context of the full budget, the achievement of a saving in one area does not allow one to ring-fence that saving and put it towards improvement of services in that general area, because there are budget overruns on the other side which must be catered for.

Photo of Jan O'SullivanJan O'Sullivan (Limerick East, Labour)
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Can we keep it within the Department?

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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It will not be going anywhere.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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The reduction in consultancy fees was to take effect from last Sunday, 1 March. Where projects have been running for some time, will the reduction take effect in respect of those projects from last Sunday? For example, in early 2008 the Economist Intelligence Unit — a brilliant name — undertook on behalf of Government to carry out an independent benchmarking review to assess the comparative efficiency and effectiveness of key Irish economic regulators. That was the remit. The cost was supposed to be €306,000 and the report was to be published last September. It was then pushed out to November and then to mid-February. It is now almost halfway through March and it still has not been published. When will this report be published, and will the reduction in consultancy fees in this case take effect from last Sunday? In other words, will the work done since last Sunday, whenever the report is published, be subject to a reduction of 8% in consultation fees?

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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I cannot give the specifics as to when the report, which is still in preparation, will be published. However, the Department of Finance circular, which sets out the rules for the implementation of the 8% reduction, has been issued to all bodies and programmes within the Department Vote, as I said. Our Department reviews contracts in place for professional services to revise the fees down by 8% from 1 March for services to be rendered on or after that date. The answer to the Deputy's question is that it is envisaged the fee will be reduced by 8%——

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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From that date?

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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——in respect of work done on and from that date, not beforehand.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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Does the Taoiseach have any idea when we are going to see this wonderful document?

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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No, I do not.