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Written Answers — Department of Finance: European Council Meetings (28 May 2019)

Paschal Donohoe: At the last meeting of the Eurogroup and the Economic and Financial Affairs Council on 16-17 May I met my French counterpart, Minister Bruno Le Maire. We discussed the proposed Budgetary Instrument for Competitiveness and Convergence (BICC) and the current state of play on Brexit. I also had a bilateral meeting with Commissioner Moscovici and discussed the semester process with him.

Written Answers — Department of Finance: Liquor Licence Data (28 May 2019)

Paschal Donohoe: I am advised by Revenue that 7,922 Excise Liquor Licences were issued in 2018. The number and percentage of licences that issued for each of the six Licence Bands are set out in the following table. Turnover Bands Number of Licenses % Band 1 – Under €190,500 3,923 49.5% Band 2 - €190,500 - €380,999 1,862 23.5% Band 3 - €381,000 -...

Written Answers — Department of Public Expenditure and Reform: Public Sector Staff Retirements (28 May 2019)

Paschal Donohoe: I propose to take Questions Nos. 68 and 77 together. On 5 December 2017, the Government made the decision to increase the compulsory retirement age to 70, for public servants recruited prior to 1 April 2004. Primary legislation was necessary in order to bring that change into effect. It was made clear at the time that until such legislation was enacted, the compulsory retirement age of...

Written Answers — Department of Public Expenditure and Reform: Pension Provisions (28 May 2019)

Paschal Donohoe: I would advise the Deputy that for the purposes of preparing the new guidance on the implementation of section 52(6) and (7) of the Public Service Pensions (Single Scheme and other Provisions) Act 2012, referred to in my answer to Parliamentary Question No. 197 of 2 October 2018, my Department has carried out a review into the operation of those provisions. As part of the review, it is now...

Written Answers — Department of Public Expenditure and Reform: National Development Plan Administration (28 May 2019)

Paschal Donohoe: The Government's decision to proceed with the National Broadband Plan (NBP) was taken on the basis that additional expenditure that may be required, beyond that already allocated within the National Development Plan (NDP) framework, will be funded by future revenues and will accordingly not have funding repercussions for other planned projects within the NDP. Based on preliminary...

Written Answers — Department of Public Expenditure and Reform: State Bodies Data (28 May 2019)

Paschal Donohoe: I am informed by the State Laboratory that the estimated full year cost of recruiting eight additional laboratory analysts would be €289,890.16. This calculation is based upon new entrants starting at the first point of the scale, and includes Employers' PRSI at 10.95%. As set out in the 2019 Revised Estimates for Public Services, the State Laboratory's overall gross budget increased...

Committee on Budgetary Oversight: National Broadband Plan: Minister for Public Expenditure and Reform (28 May 2019)

Paschal Donohoe: I am pleased to attend the meeting of the Committee on Budgetary Oversight today in response to the committee’s request to provide clarification on the national broadband plan and advices received from my Department with regard to the development plan and funding for other infrastructure projects; and the future budgetary impact of the national broadband plan, its potential impact on...

Committee on Budgetary Oversight: National Broadband Plan: Minister for Public Expenditure and Reform (28 May 2019)

Paschal Donohoe: In my description of the decision-making process for this project, I am in no way seeking to diminish or dilute my role in it. That is why I am before the committee. I am happy to answer all questions about it, both as Minister for Finance and Minister for Public Expenditure and Reform. While it is true that under the public spending code line Departments are responsible for the...

Committee on Budgetary Oversight: National Broadband Plan: Minister for Public Expenditure and Reform (28 May 2019)

Paschal Donohoe: I can give a brief answer in two phases. The answer to that lies in the work that has already taken place in the Department of Communications, Climate Action and Environment to assess the financial and operational capacity of this consortium to deliver this project. Its assessment is it can and the Department has benchmarked this project and proposal against international standards. As the...

Committee on Budgetary Oversight: National Broadband Plan: Minister for Public Expenditure and Reform (28 May 2019)

Paschal Donohoe: I know and then when the contract is in place, there is a clawback facility from the State. The State has the ability to claw back 60% of excess return above a certain level and 100% before that and it also has the step-in rights in terms of the contract.

Committee on Budgetary Oversight: National Broadband Plan: Minister for Public Expenditure and Reform (28 May 2019)

Paschal Donohoe: I point the Deputy to my comment that the total cost of this project, at its peak, will be around 0.1% of our general Government balance. The work that we will do in advance of this decision being made is to make the following calls. First, is this something that would affect the budgetary stance of the Government of the day, which is quite a few years away but it is still a decision I take...

Committee on Budgetary Oversight: National Broadband Plan: Minister for Public Expenditure and Reform (28 May 2019)

Paschal Donohoe: Yes, there is.

Committee on Budgetary Oversight: National Broadband Plan: Minister for Public Expenditure and Reform (28 May 2019)

Paschal Donohoe: I shall deal with each of the points in turn. First, I published that advice myself because I decided that for a decision of this magnitude, it is appropriate that all of the information pertaining to it be made available. Deputy Cowen, and I think he may be acknowledging that,-----

Committee on Budgetary Oversight: National Broadband Plan: Minister for Public Expenditure and Reform (28 May 2019)

Paschal Donohoe: -----wrote to me looking for the information. What I decided to do was to release it all once the decision was made. As for why I made the decision I did, I have touched on some of my key reasons in response to Deputy Cowen a moment ago, which is that I went through all of the alternatives regarding how this could be delivered and I decided, on balance, that this was the appropriate...

Committee on Budgetary Oversight: National Broadband Plan: Minister for Public Expenditure and Reform (28 May 2019)

Paschal Donohoe: Sure.

Committee on Budgetary Oversight: National Broadband Plan: Minister for Public Expenditure and Reform (28 May 2019)

Paschal Donohoe: My Department and Secretary General had access to the options paper and work which was ongoing. At three points in the process different options were looked at, namely in 2015, 2018 and 2019. My Department was involved at each of those three points to look at different options. On their costings, work was done, and I think it is something that the Minister for Communications, Climate...

Committee on Budgetary Oversight: National Broadband Plan: Minister for Public Expenditure and Reform (28 May 2019)

Paschal Donohoe: I believe it may have been but I will double check. The Deputy asked about all the advice and economic competence available to me. I answered Deputy Cowen's questions about whose advice I sought quite carefully. It was advice within Departments. Fundamentally the reason I decided on balance that this was the course of action that the Government should proceed with goes back to the...

Committee on Budgetary Oversight: National Broadband Plan: Minister for Public Expenditure and Reform (28 May 2019)

Paschal Donohoe: He did indeed. When we get into the broader debate on this I will ask those who disagree with the Government's decision to offer an alternative that achieves the same level of coverage, which might be cheaper. We will also put this in the round along with all the other things going on in the economy. There has been 4% expenditure growth in recent years compared with 7% ten years ago with a...

Committee on Budgetary Oversight: National Broadband Plan: Minister for Public Expenditure and Reform (28 May 2019)

Paschal Donohoe: On the gap funding model and the front-loading from the tax payers, the key is that we are seeking to expand a broadband network, where we do not own the current network. The fundamental factor which made the gap funding model the appropriate one to take is that we are looking to extend an asset which is not currently owned by the State. If we were looking to create an asset to deliver 100%...

Committee on Budgetary Oversight: National Broadband Plan: Minister for Public Expenditure and Reform (28 May 2019)

Paschal Donohoe: There are a number of options available with regard to how this could be done but I again draw the Deputy's attention to the fact that during the period, the cost of this is due to accrue. Because we are running a surplus this year of 0.2% of national income that, even with the risk we have built in, is due to rise next year and the years beyond that to well in excess of 0.5%, there are...

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