Shane Ross (Dublin South, Independent)
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3. To ask the Minister for Public Expenditure and Reform the number of quangos abolished under this Government; the number created; the gross savings made by the reductions; the gross cost to the Exchequer of the new quangos; the net effect of the changes in quangos on public expenditure; and if he will make a statement on the matter. [9472/14]

Shane Ross (Dublin South, Independent)
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I want to ask the Minister the number of quangos abolished under this Government, the number created, the gross savings made by the reductions, the gross cost to the Exchequer of the new quangos, the net effect of the changes in quangos on public expenditure, and if he will make a statement on the matter.

Brendan Howlin (Wexford, Labour)
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As I announced when launching the new public service reform plan for 2014 to 2016 last month, I expect the State agency rationalisation programme to be completed this year. A great deal has already been delivered.

The Government made two commitments in 2011 on the rationalisation and reform of State bodies. First, we undertook to begin immediately with the implementation of 48 identified measures. Second, we agreed to review a further 46 measures targeted at broader rationalisation.

I reported last month that the original 48 measures, involving more than 100 State bodies, have either been fully delivered or will be delivered this year, apart from two measures where the Government decided on reflection not to proceed. These were measures involving the National Cancer Registry into the Department of Health and, in the transport sector, the merger of the Commission for Aviation Regulation and the Irish Aviation Authority, which we were advised at European and domestic level was not the correct course of action.

The review process was completed in the further 46 measures that the Government undertook to review, and we decided to implement 25 of those 46 measures, involving more than 100 State bodies. That will be fully completed this year. In total, full implementation of all of the rationalisation measures – the original 48 measures and the further 25 measures - will be completed. The monetary effect is very modest, with the €20 million target set out in the 2011 plan being achieved this year.

Additional information not given on the floor of the House

The Deputy also asked about the number of new bodies created. As I have indicated, there are a small number of new bodies arising from the merger of two or more existing bodies, as envisaged under the rationalisation programme. There is still important work to be done and public service to be provided. The purpose of the rationalisation programme has been to deliver these services with less. For example, there are 16 new education and training boards doing what was previously done by 33 VECs. There is one new body called Quality and Qualifications Ireland doing what three separate bodies used to do.

Aside from this, there have also been a small number of other bodies established in recent years to address urgent matters of concern to the Government. Examples include where the Government had identified systemic failings of oversight, or considered a need for new resources to tackle priority issues around job creation and unemployment. I refer to the Irish Fiscal Advisory Council, NewERA and the Credit Union Restructuring Board under the Department of Finance, the Residential Institutions Statutory Fund Board and SOLAS under the Department of Education and Skills, Microfinance Ireland under the Department of Jobs, Enterprise and Innovation, Irish Water and the Pyrite Resolution Board under the Department of Environment, Community and Local Government, and the Property Services Regulatory Authority and the Insolvency Service of Ireland under the Department of Justice and Equality.

The rationalisation programme needs to be understood as just one of a package of reform measures, many of which represent much greater savings than the rationalisation measures. For example, the Haddington Road agreement will deliver a €1 billion saving in the cost of the public service pay and pensions bill by 2016; the targeted savings from public procurement reform are €500 million over three years and €127 million in 2014; and the Civil Service human resources and pensions shared services centre, PeoplePoint, when fully operational, will have estimated savings of €12.5 million annually.

Shane Ross (Dublin South, Independent)
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The Minister was just coming to the meat of the question when he had to stop. Is there any way I can let him in and then come back?

Brendan Howlin (Wexford, Labour)
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Perhaps the Deputy can ask a brief question.

Shane Ross (Dublin South, Independent)
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Can the Minister give me the figures I asked for in the first question?

Brendan Howlin (Wexford, Labour)
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The Deputy also asked about the number of new bodies created. There is a small number of new bodies arising from the merger of two or more existing bodies, as envisaged under the rationalisation programme. There is still important work to be done and public service to be provided for the purpose of the rationalisation programme. For example, there are 16 new education and training boards doing what was previously done by 33 VECs. There is one new body called Quality and Qualifications Ireland doing what three separate bodies used to do.

A small number of other bodies have also been established where the Government has identified systemic failings of oversight, or considered a need for new resources to tackle priority issues around job creation and unemployment. We have established the Irish Fiscal Advisory Council, which we were required to do under the stability treaty. We established NewERA to give proper advice on the control and ownership of State and semi-State companies. The Credit Union Restructuring Board has been established under the Department of Finance, the Residential Institutions Statutory Fund Board and SOLAS under the Department of Education and Skills, Microfinance Ireland under the Department of Jobs, Enterprise and Innovation, Irish Water and the Pyrite Resolution Board - a temporary board to deal with the pyrite issue - under the Department of Environment, Community and Local Government, and the Department of Justice and Equality has established the Property Services Regulatory Authority and the Insolvency Service of Ireland to deal with the mortgages issue

Shane Ross (Dublin South, Independent)
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I thank the Minister for his moderately incomplete reply. I am trying to get a handle on the net savings or the net cost to the Exchequer resulting from the reduction in quangos and the creation of quangos. I know the Minister probably cannot tell me exactly, because some of them are not operating, but it would be important to know whether any savings are being made at all.

There was a mushrooming of these quangos during the lifetime of the previous Government, especially under Bertie Ahern.

Brendan Howlin (Wexford, Labour)
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Can the Deputy name one quango we should abolish?

Shane Ross (Dublin South, Independent)
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I know he is very good at interrupting, but he should let me finish. I have very little time. A huge number of quangos were created under social partnership, some of which had to go, some of which have not gone and are still there.

Brendan Howlin (Wexford, Labour)
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Like what?

Shane Ross (Dublin South, Independent)
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If I could speak without interruption, I would be really grateful. I would like to go on to my second question, and then the Minister can ask me questions and we can reverse roles if he likes. The creation of quangos also creates a huge number of paid directors. That creates a power of political patronage, which all governments are inclined to use. During the last Global Irish Economic Forum, at which this Government was well represented and of which it approved, one of the more constructive suggestions was from ex-pats outside Ireland who offered their services free of charge to semi-State bodies. How many of these people, with great business experience, have had their offer accepted?

Brendan Howlin (Wexford, Labour)
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There is an open invite on www.publicjobs.ie. We invite everyone who is interested in applying for any State position to do so, and many have and many have been accepted. The quango issue is a lovely thing to throw away, but when we specifically ask about the quangos we are talking about, we find the big expensive quangos are the IDA, Enterprise Ireland, the National Roads Authority, and the Environmental Protection Agency. They are doing incredibly important work.

Shane Ross (Dublin South, Independent)
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FÁS.

Brendan Howlin (Wexford, Labour)
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FÁS was abolished.

Shane Ross (Dublin South, Independent)
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It is now SOLAS.

Brendan Howlin (Wexford, Labour)
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SOLAS is a new training authority. Should we not have a training body?

Shane Ross (Dublin South, Independent)
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It is huge.

Brendan Howlin (Wexford, Labour)
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It is doing important work. We have a huge set of reform measures, with more than 200 implemented. I know that abolishing or burning a quango makes for a nice tabloid headline, but the real hard work is to save €500 million on procurement over three years, which are we going to do. We will save €127 million this year. To save an additional €1 billion on public pay took six months of hard graft through the Haddington Road agreement. We have established a new Civil Service human resource and pensions shared service centre, PeoplePoint. That is now well on the way to being fully operational and will save €12.5 million every year.