Shane Ross (Dublin South, Independent)
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3. To ask the Minister for Public Expenditure and Reform the current net quango count under this Administration; the numbers compared to the previous Government and the net saving to the State, specifically in view of the Government's commitment to quango reform; the number of reductions in quangos due to merger or abolition and the number of newly created State agencies and semi-State bodies; and if he will make a statement on the matter. [42427/14]

Shane Ross (Dublin South, Independent)
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In view of the Irish Water fiasco which has continued for many weeks and in view of the fact that the Minister has rightly set out new parameters for the appointment of directors to semi-State bodies and State agencies, I wonder if the Government has a new policy or a new attitude towards quangos. The point of the question is to try to elicit whether there are statistics available to show what has happened during the lifetime of the Government in terms of its commitment to reform quangos.

Brendan Howlin (Wexford, Labour)
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I thank the Deputy for the question. I am pleased to set out the remarkable achievements we have made in three years. There have been two phases to the rationalisation programme for State bodies, involving two separate tranches of rationalisation measures.

As I explained to the House in February when the Deputy last inquired about this matter, the Government made two commitments in 2011 shortly after taking office. The first was to begin immediately implementation of phase one of the rationalisation programme, which involved 48 measures. Each measure had multiple impacts. The second commitment was to review a further 46 measures targeted at broader rationalisation that would constitute phase two. Through implementation of both phases, the Government set two high level targets against which the success of the programme could be measured. As we set out in 2011, the first target was to achieve savings of €20 million for the Exchequer. The second target was to reform this sector of the State system - meaning a less crowded administrative landscape, reduced duplication, greater democratic accountability and clearer lines of responsibility.

In overall terms, the latest assessment by my Department, based on information provided, is that measures involving more than 90% of the bodies we set out to have merged, rationalised or abolished have been completed. That means that there are 169 fewer State bodies than when we took office in 2011, with a further 12 yet to be abolished.

That is a remarkable achievement in three years.

The same analysis shows that Exchequer savings of more than €18 million have been achieved to date, with a further €9 million profiled to come in when the final phase is achieved. That is €27 million in savings to the Exchequer. Of the €18 million already achieved, €15 million is a recurring annual saving accruing, while €3 million is revenue from a once-off property disposal. Of the further €9 million profiled to come in, the Deputy will understand from his own background that, just as in the private sector, some mergers have upfront costs, which is why there is a delay in the additional €9 million coming in.

In addition to these figures, the latest assessment suggests net savings of a further €40 million will accrue annually to the local authority sector on foot of the reform and rationalisation measures that have been taken. There is a lot more detail that I will supply to the Deputy, but it has been a remarkable achievement.

Additional information not given on the floor of the House

Regarding the rationalisation programme's second key target of reform, as I have mentioned, as a result of the programme there are 169 fewer State bodies today than there were in 2011. A total of 141 bodies have effectively been abolished and moved into existing public service structures, while 51 old bodies have been streamlined into 23 new bodies. In doing this the Government has tackled duplication and streamlined citizen access and accountability.

The Deputy also asks about the newly created bodies. A small number of new bodies have been established in recent years to address urgent matters of concern to the Government such as systematic failings of oversight or a need for new resources to tackle priority issues around job creation and unemployment. For such reasons, the Government has established the Irish Fiscal Advisory Council, the Credit Union Restructuring Board, Microfinance Ireland, the Insolvency Service of Ireland and the Charities Regulatory Authority. There will also be a new policing authority in the near future. These are critical bodies responding to important issues of value to the State and the citizens. It reinforces the point that State bodies play an important and legitimate part in implementing Government policy and delivering public services. What is essential is that this happen in a structured and coherent manner and that their impact and performance are understood, reviewed and managed. To this end, new provisions will be included in an updated code of practice for the governance of State bodies which will be published later this year and ensure a smarter and more targeted use of State bodies into the future.

Shane Ross (Dublin South, Independent)
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Certainly, on the surface it appears as though 169 removals of State bodies mark an improvement. It certainly tells us what an awful state the quangos were in before the Government took office and how they simply had been created willy-nilly. However, when one gets down to assess the figures - I hope I heard the Minister's statement correctly - the savings have been worth €27 million to the Exchequer thus far. That would not keep FÁS going for one week. It is very difficult to know what the equivalent figures are because FÁS has been divided up, but it certainly cost €1 billion per year to run a couple of years ago. Therefore, in the overall context, Members are talking about absolute peanuts. If one is to learn anything from the Irish Water debacle, it is that semi-State bodies and, in particular, State monopolies, are utterly reckless with public money. Does the Minister have further initiatives in mind to ascertain whether other State bodies are indulging in the practices in which Irish Water is indulging? What are his intentions in this regard?

Brendan Howlin (Wexford, Labour)
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Again, I am proud that there are 169 fewer State bodies than when the Government took office. A total of 141 bodies have been abolished or moved into existing public structures, while 51 old bodies have been streamlined into 23 new bodies. The Government has tackled duplication, streamlined accessibility and accountability and carried out a root and branch analysis. The Deputy will be aware that there will be a demand for new bodies. I have examined the proposals the Deputy has brought to the House during this term and in his own legislation he has proposed the creation of a new broadband commission, a new judicial appointments council, a new public appointments board, a new guardianship board and several more.

Shane Ross (Dublin South, Independent)
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I thank the Minister. I could give him a list for the abolition of at least 500 bodies on top of them.

Brendan Howlin (Wexford, Labour)
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That is true.

Shane Ross (Dublin South, Independent)
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While the number of bodies I would create is less than half a dozen, I would abolish 500. The Minister is absolutely correct and, of course, I do not suggest there is no need for State bodies. I simply make the point that they duplicate one another in various ways. Will the Minister tell Members about his plans for new directors - an issue which is part of the sickness of new bodies - in the first instance? I have not seen them, which may be my fault. Second, he should give a ballpark figure for how much it costs the State to appoint politically appointed directors, political proteges, to these bodies and how much could be saved by not paying them fees at all?

Brendan Howlin (Wexford, Labour)
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I strongly agree with the Deputy. Some of the most effective instruments of State policy are State bodies such as IDA Ireland which is envied around the world and Enterprise Ireland. Moreover, the work done by the National Roads Authority and all the other parties involved in maintaining the environment such as the Environmental Protection Agency and so on is really valuable. The Deputy has asked a different question about the Government's new proposals for State boards and a separate question has been tabled on this issue. It will be ground-breaking. I have approved guidelines which will be circulated to my Cabinet colleagues and which I hope to bring before the House as soon as I have them signed off.

Shane Ross (Dublin South, Independent)
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Will it be this month?

Brendan Howlin (Wexford, Labour)
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Yes.