Dáil debates

Thursday, 21 November 2013

10:25 am

Photo of Denis NaughtenDenis Naughten (Roscommon-South Leitrim, Independent)
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9. To ask the Minister for Public Expenditure and Reform the steps he is taking to streamline regulatory policing across the public sector; and if he will make a statement on the matter. [49419/13]

Photo of Denis NaughtenDenis Naughten (Roscommon-South Leitrim, Independent)
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Many of the functions of regulators have been amalgamated, but there are still 58 sectoral regulatory authorities. While we need effective regulation, as well as accountable and competent regulators, do we still need all of them to have separate offices and administrative structures?

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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The Government’s public service reform agenda has delivered and will continue to deliver real improvements in the way public services are provided. A key part of this effort has been the reduction in the number of State bodies under the agency rationalisation programme, the introduction of shared services and a continued focus on streamlining organisational structures and modernising processes. As a result, the public service is much leaner and more efficient than before, with some 30,000 fewer public servants compared to five years ago maintaining service levels across the system, while dealing with more citizens. This has been made possible by real improvements in the way public services are delivered.

The same reform agenda applies to the regulatory sector, too. Effective regulation is a critical part of the State infrastructure, central to ensuring a competitive economy and protecting the consumer. The individual regulatory bodies also have an obligation to operate in an effective and cost-effective manner. To that end, in July the Government published a new policy statement on sectoral economic regulation entitled, Regulating for a Better Future, which was informed by a review carried out by Forfás and public consultation. Progress against this policy statement will be overseen by the Cabinet subcommittee on economic infrastructure.

The Government’s policy statement requires those Ministers with regulators under their aegis to introduce legislative changes to provide for policy and mandate reviews on a statutory basis at least every seven years. It also requires that performance and accountability frameworks for regulators and regulated sectors be put in place.

On the operational side, the statement addresses the issues of efficiencies, requiring parent Departments to develop a shared services approach between economic regulators in their sectors. An overriding principle is that, where appropriate, existing regulatory roles will be extended to take on new regulatory functions.

Under the public service reform plan there have been several critical reviews of amalgamations relating to regulatory bodies. These reviews examined the merits of amalgamating bodies such as the Broadcasting Authority of Ireland and the Commission for Communications Regulation; the Property Services Regulation Authority and the Private Residential Tenancies Board; the Pensions Board and the Financial Regulator; and the Aviation Regulator and the Irish Aviation Authority. These reviews suggested that in some instances amalgamation should not be pursued, for a variety of reasons, including potential conflicts of interest and regulatory concerns.

Additional information not given on the floor of the House

However, where it was deemed to deliver real savings and benefits, progress has been made, most notably through the ongoing merger of the Competition Authority and the National Consumer Agency and the bringing together of the back-office and administrative functions of the Commission for Communications Regulation and the Broadcasting Authority of Ireland. Where similar opportunities arise, particularly in the areas of shared services and administrative efficiency generally, I expect the relevant Ministers to pursue them in line with the Government’s policy statement on regulation and as part of our ongoing commitment to public service reform.

The Forfás report confirmed that further rationalisation of existing regulators would have a limited impact on reducing costs and increasing efficiencies. Instead, the report noted the potential for shared services in relation to front and back office functions.

The new framework on regulation also requires sectoral Departments to facilitate the development of memoranda of understanding between regulatory bodies in order to share functions. Reductions in administrative cost should be targeted, where feasible.

Photo of Denis NaughtenDenis Naughten (Roscommon-South Leitrim, Independent)
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I thank the Minister for his response and commend the movements that have taken place in this area. An argument is made that particular regulatory functions cannot be amalgamated owing to potential conflicts of interest and so forth. However, a regulator can move from one regulatory authority to head up another. Various regulators have different offices and administrative structures. Why can we not designate one building in Dublin to centralise the backroom functions of all these authorities? Why do all 58 have to have their own receptionist? Why does each regulator have to have a private secretary? We can retain the independence of the regulator - I accept the Minister is right that there could be conflicts of interest - but there is no reason the administration of the authorities cannot be streamlined.

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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The Deputy makes much sense. In the review published we set out about having common or shared backroom services between the Ombudsman and the Ombudsman for Children and other ombudsmen. Although most of them are women, the new Ombudsman is a man. It is important we have support services that are rationalised but do not interfere with the regulators’ autonomy and have clear lines of demarcation. We are working on the shared services agenda and requiring every line Department to ensure all regulators under their aegis create synergies. In the case of a new authority to be established, we require the first port of call to be to an existing regulatory body to see if it can be latched on to it.

Photo of Denis NaughtenDenis Naughten (Roscommon-South Leitrim, Independent)
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Will the Minister agree that having an effective regulator should be about putting itself out of business by improving compliance, reducing red tape and simplifying sectoral policing? However, many of us believe the opposite in that they are creating new regulations to justify their existence, administrative back-up and the fees they charge. Why are some of these agencies leasing different offices around the country and this city when there are vacant public spaces available in the Irish Life Centre, for example? Why can we not centralise them in the same office in order that access to them is through the one door?

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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One of the first actions the Government took was an examination of the public property portfolio, on which the Minister of State, Deputy Brian Hayes, has done sterling work. It is the first time we actually have a database of what public offices the State owns.

We discovered that there are many things from which we cannot get out because we are stuck with long-term leases and other contractual arrangements. That is really important work and it is being carried out by the Minister of State to ensure that we sweat out proper value for the buildings we own, many of which are not fully utilised, and that we are not leasing buildings we do not need when we can occupy buildings we already have. Everything the Deputy said is a rock of sense and will be acted upon by the Government.