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Written Answers — Department of Public Expenditure and Reform: Shared Services (20 Jun 2019)

Paschal Donohoe: This query relates to the National Shared Services Office (NSSO), which is an independent Civil Service Office under the aegis of the Department of Public Expenditure and Reform. I have asked the NSSO to respond to the Deputy directly. The matter concerns personal information and I understand that the NSSO has been in contact with the requester on a number of occasions about the response. I...

Written Answers — Department of Public Expenditure and Reform: Public Sector Staff Remuneration (20 Jun 2019)

Paschal Donohoe: Important measures are in place to ensure that our expenditure and budgetary targets are being achieved on an ongoing basis. Managing the delivery of public services within budgetary allocations is a key responsibility of each Government Minister and Department. The Department of Public Expenditure and Reform is in regular contact with all other Departments and Offices to ensure that...

Written Answers — Department of Public Expenditure and Reform: Public Sector Reform Implementation (20 Jun 2019)

Paschal Donohoe: As mandated by Government, my Department’s statutory functions include responsibility to formulate, develop, and coordinate the implementation of policies to further modernise and develop the public service and enable the efficient and effective provision of services by public service bodies. I can therefore assure the Deputy that this reform agenda will continue to be an integral part...

Written Answers — Department of Public Expenditure and Reform: Economic Policy (20 Jun 2019)

Paschal Donohoe: I propose to take Questions Nos. 92 to 94, inclusive, together. Overall our economy is in good shape and is expected to grow this year and next. Indeed modified domestic demand, an underlying measure of growth in the economy, grew by 4.5 per cent for 2018 as a whole. One of the best barometers of the heath in the economy is the labour market. The strong growth in employment over the...

Written Answers — Department of Public Expenditure and Reform: Public Expenditure Policy (20 Jun 2019)

Paschal Donohoe: My Department has recently published its Annual Report for 2018 on the Gov.ie website ( ). This report provides a comprehensive overview of the work of the Department in 2018 across a broad range of areas of public expenditure management and reform of the Civil and Public Service, as it continues to implement its Statement of Strategy 2016-2019. The report includes sections on managing...

Written Answers — Department of Public Expenditure and Reform: Brexit Preparations (20 Jun 2019)

Paschal Donohoe: Within my Department and across the public service, preparations for Brexit have been underway since before the UK referendum in 2016. The Government’s Contingency Action Plan, published at the end of last year and updated at the end of January, sets out the comprehensive, cross-Government preparations for Brexit. All Departments have sector-specific plans in place identifying key...

Written Answers — Department of Public Expenditure and Reform: Public Expenditure Policy (20 Jun 2019)

Paschal Donohoe: I propose to take Questions Nos. 97 and 98 together. Managing the delivery of public services within allocations is a key responsibility of each Minister and Department. Important measures are in place to ensure that our expenditure targets are being achieved. Officials in the Department of Public Expenditure and Reform are in regular contact with all other Departments and offices to...

Written Answers — Department of Public Expenditure and Reform: Public Sector Staff Expenses (20 Jun 2019)

Paschal Donohoe: All Government Departments and public bodies in receipt of public funding must comply, as appropriate, with the relevant requirements of Public Financial Procedures, the Public Spending Code, Government Procurement Rules and Department of Public Expenditure and Reform relevant Circulars. The rules governing travel and subsistence, both domestic and foreign, in the civil and public...

Summer Economic Statement 2019: Statements (25 Jun 2019)

Paschal Donohoe: Today, the Government published its summer economic statement which is, as the House knows, a key element of our reformed budgetary process. Before I outline the key points from this statement, it is appropriate to take stock of where we are now in terms of the economy. Our economy is now very different from that which prevailed a decade ago when Ireland entered the most acute phase of...

Summer Economic Statement 2019: Statements (25 Jun 2019)

Paschal Donohoe: The way in which we will handle that issue is by looking at a matter the Deputy raised. I agree with his point that in the event that there is a disorderly Brexit, we would have to mobilise resources to help the country to respond to the consequences and protect key front-line services. The choices the Government could make about the sum of €700 million and the deficit would be...

Summer Economic Statement 2019: Statements (25 Jun 2019)

Paschal Donohoe: When looking at what temporary, targeted supports will be needed, I will look at other measures that could be taken to fund them which may include, most notably, a level of borrowing. This is an issue with which we will deal when we move into the budgetary process itself. We have to get the mixture right. We have to ensure that the resources are in place to support public services. I then...

Summer Economic Statement 2019: Statements (25 Jun 2019)

Paschal Donohoe: The Deputy made a proposal in this area, although I saw the merit in doing it. He suggested a process be put in place to form a view on sustainability. The IFAC outlined a very broad range of scenarios. It suggested that €3 billion to €6 billion of the approximately €10 billion we collect may be at risk. That is very broad guidance from which it then advises me to...

Summer Economic Statement 2019: Statements (25 Jun 2019)

Paschal Donohoe: It is precisely because of the analysis of our current expenditure projections offered by the Irish Fiscal Advisory Council that we have increased them for the summer economic statement. The average rate of projected economic growth in the SPU was 2.5%. In the forecast for the medium-term projection, which underpins the two different scenarios, I have increased the rate of expenditure...

Summer Economic Statement 2019: Statements (25 Jun 2019)

Paschal Donohoe: The change to which I referred is in respect of the year 2021 onwards; it does not take account of 2020 because the rate of expenditure growth for that year will depend on the decisions made on budget day. I am not in a position to indicate what those decisions will be right now because we have made no budgetary decisions. Predicting a gross rate of expenditure growth of 3.25% when the...

Summer Economic Statement 2019: Statements (25 Jun 2019)

Paschal Donohoe: A custom and practice has built up with regard to the payment of the Christmas bonus. Another Deputy appeared to allege that because the Christmas bonus is not referenced in the summer economic statement, it is not going to be paid. The Christmas bonus payment has been included in most budgets, including all recent budgets. At this stage I do not have any plans to change that provision....

Summer Economic Statement 2019: Statements (25 Jun 2019)

Paschal Donohoe: To deal with the first point, I disagree with the Deputy's analysis that the Christmas bonus would be subtracted from the €700 million, leaving €400 million. The payment of the Christmas bonus is in our base. Traditionally when we determine the allocation of new resources, which are outlined in the summer economic statement, we are referring to expenditure on top of the base.

Summer Economic Statement 2019: Statements (25 Jun 2019)

Paschal Donohoe: With regard to how we would fund new activity to support the economy in the event that there is a disorderly Brexit, as I have already indicated to Deputy Michael McGrath, were we to be in that situation I would recommend to the Government that we look at how to fund such support, which might include making decisions on borrowing or in respect of the rainy day fund.

Summer Economic Statement 2019: Statements (25 Jun 2019)

Paschal Donohoe: I thank the Deputy for reminding me of that. The Christmas bonus was paid last year. It is in our expenditure base.

Summer Economic Statement 2019: Statements (25 Jun 2019)

Paschal Donohoe: Both of those are budget day decisions. I will not comment on what Deputy Michael McGrath or other political parties might be saying about this. The budgetary process will begin in September. Members of the House are commenting on what we have said today. I will be approaching budget 2020 in good faith and in a professional way with Deputy Michael McGrath and Deputy Cowen. It is not the...

Summer Economic Statement 2019: Statements (25 Jun 2019)

Paschal Donohoe: I always admire that, unlike some other Deputies, Deputy Boyd Barrett will put forward costed ways in which funding can be raised. He and I strongly differ about their consequences. The financial transactions tax, FTT, is the classic example of one. The FTT is likely to be implemented in some European Union member states in coming years. I believe that will happen. From the point of view...

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