Ruairi Quinn (Dublin South East, Labour)
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Question 62: To ask the Minister for Social and Family Affairs his plans for the establishment of a new agency to take over responsibility for the administration and payment of welfare benefits which were announced in an interview with a newspaper (details supplied); when the agency will be established; if it will require legislation; and if he will make a statement on the matter. [30955/05]

Trevor Sargent (Dublin North, Green Party)
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Question 67: To ask the Minister for Social and Family Affairs the economies and extra efficiency that will derive from the establishment of the welfare reform agency; and if he will make a statement on the matter. [30980/05]

Séamus Brennan (Dublin South, Fianna Fail)
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I propose to take Questions Nos. 62 and 67 together.

My Department is pursuing a modernisation programme which aims to build on the quality service it provides at present and to ensure an excellent service is maintained into the future. The establishment of a separate agency to administer and deliver social welfare payments is one of a number of options that are under consideration as part of the public service modernisation programme. The concept of a separate agency for the delivery of social welfare services is not new. A number of countries such as New Zealand and Australia have followed the route of setting up separate executive agencies to deliver some of its services.

Most Deputies will be aware of the benefits agency which was set up in the UK as an executive agency within the Department of Social Security. The benefits agency was replaced by Jobcentre Plus in April 2002 and it currently operates under the aegis of the Department for Work and Pensions. The administration of state pensions in the UK is the responsibility of The Pension Service which is also an executive agency of the Department for Work and Pensions.

My Department has been structured on aireacht-executive lines since the mid-1980s. The aireacht is responsible for researching and formulating social welfare policy. It also provides a range of corporate services including personnel and finance. Social welfare services is the executive arm of the Department and is responsible for the administration and management of social welfare schemes and services through a network of local, regional and decentralised offices.

My Department is currently embarking on a significant programme of change under the Government's decentralisation initiative and is extremely conscious of the need to carefully manage change so as to ensure that the service it provides to its customers is not adversely affected. The proposal for a separate social welfare agency is at the embryonic stage and will need to be examined in detail before consideration could be given to its feasibility. Assessments must be made regarding potential improvements in services and the economies or efficiencies that might accrue from such an approach. Issues such as legal, operational, personnel and industrial relations matters will also have to be addressed.

My Department will have the opportunity of examining the experiences of countries which have already pursued this approach. It will be in a position to take on board the lessons from those countries and to avoid any pitfalls or difficulties which could arise. Setting up an executive agency to deliver social welfare services would be a major change in the operations of my Department. A comprehensive examination of all the issues involved will have to be carried out before detailed proposals for such a change can be drawn up.