Written answers
Tuesday, 29 June 2010
Department of Enterprise, Trade and Innovation
Departmental Expenditure
10:00 am
John McGuinness (Carlow-Kilkenny, Fianna Fail)
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Question 104: To ask the Minister for Enterprise, Trade and Innovation the elements of the report of the Special Group on Public Service Numbers and Expenditure Programmes that have been implemented to date by his Department; his plans to implement any aspects of the plan in the future; if the overall plan has been assessed by his Department; and if so, his views on the benefits of the plans. [28113/10]
Batt O'Keeffe (Cork North West, Fianna Fail)
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The Report of the Special Group on Public Service Numbers and Expenditure Programmes made a number of recommendations addressed directly to my Department. All of these recommendations have been assessed by my Department and the current status of each one is set out on the table.
Eight of the recommendations have been accepted in whole or in part. Other proposals envisaged by the Special Group, such as the rationalisation of agencies, are quite complex to implement and may require legislative provision if they are to be achieved. There are also a number of recommendations in the report affecting my Department which require cross-Departmental consideration and/or consideration at Government level.
As the Deputy will be aware, responsibility for FAS transferred from my Department to the Department of Education and Skills with effect from 1 May this year, and the recommendations made by the Special Group in relation to FAS programmes and services are now a matter for consideration by that Department.
The Report of the Special Group on Public Service Numbers and Expenditure Programmes has made an important contribution to the Government's overall Budgetary process by independently identifying options for the achievement of savings in public expenditure. The financial savings resulting from the implementation of recommendations in whole or in part by my Department have been incorporated into my Department's Estimate for this year. Any further expenditure reductions that may arise from the Report's recommendations will be included in my Department's budget for future years. Summary of Recommendations made by the Special Group on Public Service Numbers and Expenditure Programmes in relation to the Department of Enterprise, Trade and Innovation
| Recommendation | Current Position |
| Create a single funding stream for all science, technology and innovation activities across all Departments. | In the context of Budget 2010, the Minister for Finance announced that the Government was establishing a single funding stream for Science, Technology and Innovation to maximise the efficiency and focus of investment and ensure that Ireland's effort is strategically targeted on those areas that can achieve greatest impact.The transfer of responsibility and associated funding for the Programme for Research in Third Level Institutions (PRTLI) and certain other research functions from the Department of Education and Skills to the Department of Enterprise, Trade and Innovation from 1 May 2010 represents significant progress in relation to implementing this recommendation. |
| Discontinuation of funding for the Irish Council for Bioethics. | The 2010 Estimates made provision for an orderly wind-down of funding from the Department of Enterprise, Trade and Innovation to the Irish Council for Bioethics (ICB) in the course of the year. The then Minister for Enterprise, Trade and Employment agreed with the Minister for Health and Children and the Minister for Finance that the three staff in the secretariat to the ICB should be seconded to the Department of Health and Children, so that their expertise could be availed of appropriately.The funding allocation that had previously been made available to the Department of Enterprise, Trade and Employment for the ICB was accordingly transferred to the Department of Health and Children. Any further decisions in relation to the body are a matter for that Department. |
| Reduction in Departmental and agency staff numbers | The Special Group proposed reductions in civil and public service numbers across all of the Department's programmes.The number of staff serving across the Department and its agencies fell by 322 in 2009 and will fall further this year due to the moratorium on the recruitment of staff.The Department is currently in discussion with the Department of Finance on staffing targets for the years 2010-2012. |
| Consolidate all indigenous enterprise support and sector marketing functions in Enterprise Ireland and the rationalisation the organisations losing functions as appropriate. EI to deliver consolidated services through 8 offices in line with NSS hubs | The proposal made by the Special Group cuts across a number of Government Departments and agencies. Detailed consideration of those aspects that concern only the Department of Enterprise, Trade and Innovation (regarding, for example, the CEBs) is at an advanced stage. |
| Reduction in Enterprise Ireland's Capital spend | The Government considered it appropriate to increase Capital funding to Enterprise Ireland over the last two years to enable the agency to support vulnerable but viable companies, through, for example, the Enterprise Stabilisation Fund. |
| Reduction of IDA's capital and administrative costs including rationalisation of regional offices in Ireland and shared services. | IDA's capital allocation is directly related to its contractual commitments.IDA's administrative costs have been reduced by €2.6 million for 2010 compared to the 2009 Estimate provision. This has been achieved through pay and efficiency savings.It is not clear what savings would accrue from a rationalisation of regional offices. |
| Efficiency saving in administration and programme prioritisation in Enterprise Ireland. | Enterprise Ireland's administrative budget has been reduced by €7.9 million for 2010 compared to the 2009 Estimate provision. This has been achieved through pay and efficiency savings. |
| The rationalisation of IDA and Enterprise Ireland overseas offices. | The agencies already share office space in most common locations. |
| Reorganisation of Shannon Development. | Consideration of this recommendation is on-going in the context of the special requirements of the Mid West Region in the aftermath of the Dell closure. Any reorganisation of Shannon Development would require approval by the Government. |
| Reorganisation of Forfás. | The Special Group's proposal was that Forfas's existing shared services function (carried out on behalf of a number of agencies) should be relocated to a wider Shared Services operation.The implementation of this recommendation would be contingent on the identification of another body which provides shared services functions more efficiently than Forfas.In the absence of the identification of such a body, the Department requested Forfás to examine the possibility of achieving savings through an enhancement of their existing shared services arrangements and this process is under way. |
| Privatise the Certification Service of the National Standards Authority of Ireland. | The Special Group's proposal was to privatise the NSAI's Certification Services.Having considered the recommendation in detail, it was not clear that any benefit would accrue to the taxpayer from such a move, because of the high level of overhead costs that would remain with the NSAI after a sale of the certification business. The more likely result would be increased Exchequer cost. Accordingly, it has been decided not to pursue this proposal at this time. |
| The relocation of all Industrial Relations institutions to a single location. | The Labour Court, the Labour Relations Commission and the Rights Commissioner services are currently located in Tom Johnson House in Dublin.The Office of Public Works and the Department of Communications, Energy and Natural Resources have been requested to facilitate the location of the Employment Appeals Tribunal to the same premises. |
| Merging the Health and Safety Authority and the National Employment Rights Authority into one Work Place Inspectorate. | Further examination of this proposal suggests that:· there are radical differences between the natures of the two inspectorates;· overlaps between the two Agencies are minimal;· a merger will not yield appreciable savings;· substantial legislative change would be required.On that basis, it is not proposed to proceed with this recommendation. However, both agencies are, under the aegis of the Department, developing a programme of practical co-operation designed to make most efficient and effective use of their overall resources, whilst having regard to their different remits. |
| Merging the functions of the Registrar of Friendly Societies (RFS) and Companies Registration Office (CRO). | The two offices and their statutory functions are already the responsibility of the same public official. Proposals relating to the future of the Registry of Friendly Societies and its statutory functions will be submitted to Government shortly. |
| IAASA should maximise shared services and reduce the Exchequer's intervention from 40% to 20% | IAASA is endeavouring to maximise the use of shared services, but scope for savings is minimal. The Department currently provides payroll services to the Authority.The level of Exchequer subvention is provided for in legislation and any reduction in this subvention would require detailed policy assessment and legislative change. |
| Savings in corporate services, a reduction in administrative budget and a transfer of foreign posts to Brussels to reduce travel and subsistence spend | Savings of €1 million in the Administrative Budget were delivered in the 2009. Further savings will be achieved in 2010.There are costs associated with the assignment of posts to Brussels (e.g. Rent Allowance). Having analysed the proposal, the Department does not believe that the recommendation would be efficient or achieve economies in an overall context. |
| Merging the Irish Takeover Panel with the Competition Authority | This merger could lead to unnecessary policy conflict and it would not be in line with best international practice. |
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