Written answers

Thursday, 23 May 2013

Department of Public Expenditure and Reform

Public Expenditure Targets

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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77. To ask the Minister for Public Expenditure and Reform if he will indicate the extent to which any alternatives have been examined to meet savings and targets identified by the Troika and agreed by his predecessor in the context of savings or reductions in public expenditure; and if he will make a statement on the matter. [25006/13]

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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The Government is making good progress on achieving all of our targets and priorities, as articulated in the Programme for Government. We are bringing public expenditure back to a sustainable level and driving forward the public service reform agenda to ensure that efficiencies and reformed work practices play a full part in contributing to the overall budgetary consolidation effort.

With regard to the cost cutting measures implemented to date, the Government began its process of medium-term expenditure management with the Comprehensive Review of Expenditure (CRE) exercise in 2011. This review was carried out by all Departments in order to identify the most appropriate ways of reducing expenditure, in line with commitments under the Joint EU/IMF Programme of Financial Support for Ireland.

Each Department was required to produce an Expenditure Report (all of which are available on my Department's website) which represented a line-by-line examination of the spectrum of public services designed to refocus delivery and achieve better value for money. Building on this process, the Expenditure Report 2013, published on 5 December 2012, includes further well-specified expenditure savings measures across every area of Government spending.

It should also be noted that during its time in office, the Government has successfully renegotiated significant elements of the Troika Programme Conditions- for example the Jobs Initiative, the ending of further asset transfers to NAMA, reversal of the Minimum Wage cut, a more progressive use of the proceeds from the sale of state assets, the provision that fiscal measures specified in the programme could be substituted by others of equally good quality and we successfully renegotiated the interest rate charged for the loans, along with important changes on the extension of maturities of our EFSF, EFSM loans.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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79. To ask the Minister for Public Expenditure and Reform if he will indicate, by Department, the extent to which savings as identified in the Troika have been met to date; whether any particular sectors have achieved their targets to a greater extent than others; and if he will make a statement on the matter. [25008/13]

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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To date, good progress has been made on delivering savings and implementing change across all Departments and all quantitative fiscal targets set as part of the EU/IMF Programme of Financial Support have been met in full. This is a vital part of our approach to bring the public finances back onto a sustainable footing and thereby supporting economic recovery. The expenditure ceilings and savings target for individual Votes are agreed by Government within the context of the overall fiscal targets. It is a matter for each Minister and their Departments to ensure that the Vote-level allocations are adhered to while at the same time ensuring that they continue to provide essential services and respond appropriately to increasing demands.

Our new Medium Term Expenditure Framework aims to incentivise Departments through the implementation of a new “carryover” facility for Departments who successfully manage their allocations within budget in any year, so that they can use unspent funds in the following year. Those Departments that are proactive in driving reform, innovation and structural planning will naturally be best-placed to avail of this facility into the future. The consequence on Departments who exceed their current expenditure ceiling in any given year will be the assimilation of an offsetting adjustment in their envelope for the following year, and they will be required to devise appropriate policy measures to live within the reduced allocation. It will be a matter for Ministers and Heads of Department/Office to devise forward-looking plans and policies and to ensure adherence to the Ministerial Expenditure Ceilings.

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