Liz McManus (Wicklow, Labour)
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Question 50: To ask the Minister for Social and Family Affairs his plans, announced in an interview with a paper (details supplied) of 2 August 2005, for the establishment of a new agency to take over responsibility for the administration and payment of welfare benefits; when the agency will be established; if same will require legislation; and if he will make a statement on the matter. [4714/06]

Séamus Brennan (Dublin South, Fianna Fail)
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As I stated on 27 October 2005 in my reply to questions reference Nos. 30955/05 and 30980/05, 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 a welfare service modernisation programme.

The proposal for a separate social welfare agency has to be examined in detail before full consideration can be given to its feasibility. It is necessary to determine the best approach to undertaking such an exercise having regard to the range of issues involved as well as the potential scope of its impact. Legal, operational, personnel and industrial relations matters will have to be addressed. Assessments must be made regarding potential improvements in services and the economies or efficiencies that might accrue from a changed structure. My Department will be examining the experiences of countries which have already pursued this approach and taking on board the lessons from those countries so as to avoid any difficulties which could arise.

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 their 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.

The setting up an executive agency to deliver social welfare services would be a major change in the operations of my Department. I am also conscious that my Department is currently embarking on a significant programme of change under the Government's decentralisation initiative. At all times my Department's priority is to provide a comprehensive and caring service to its customers and any proposals for changes in the delivery of social welfare services will be considered in this context.