Written answers
Wednesday, 14 January 2015
Department of Jobs, Enterprise and Innovation
Departmental Bodies Data
Patrick O'Donovan (Limerick, Fine Gael)
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231. To ask the Minister for Jobs, Enterprise and Innovation the number of agencies quangos or other bodies within, funded by or established by his Department which have been scrapped, merged or reduced since this Government was formed; the amount saved in each case; the reduction in staff as a result; and if he will make a statement on the matter. [1017/15]
Richard Bruton (Dublin North Central, Fine Gael)
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There is a substantial programme of reform underway within my Department in relation to agencies and public bodies. This will see a reduction in the number of agencies or bodies under the remit of my Department fall by 41. This includes the dissolution of 35 City and County Enterprise Boards, the merging of the Competition Authority and the National Consumer Agency, the integration of Forfás into the Department, the integration of Shannon Development into a new Shannon Group and the consolidation of the five workplace relations bodies into two. The Competition and Consumer Protection Commission, which was established on 31 October, has a dual mandate to enforce competition and consumer protection law and will build on the work of the National Consumer Agency and the Competition Authority to protect and strengthen competition, empower consumers to make informed decisions and protect them from harmful business practices.
The transfer of enterprise functions from Shannon Development to IDA, EI and tourism functions to Bord Fáilte took place during the last quarter of 2013. The legislation to merge Shannon Development and Shannon Airport into a new commercial state company, State Airports (Shannon Group) Act 2014, was enacted on 27 July 2014. Responsibility for the newly formed Shannon Group PLC rests with the Minister for Transport, Tourism and Sport.
As the Deputy may be aware, last year, the 35 County and City Enterprise Boards were dissolved under the County Enterprise Boards (Dissolution) Act, 2014, and on the same day 31 Local Enterprise Offices (LEOs) were established. Under the legislation, the functions, assets and liabilities were transferred to Enterprise Ireland (EI), and these functions are now being delivered on behalf of EI by the LEOs. The reformed structure provides a service which amalgamates national enterprise policy and local business supports in order to strengthen the local business culture and environment. The LEO structure combines the expert knowledge of the former County and City Enterprise Boards (CEBs), the Business Development expertise of the Local Authorities, overseen by the dedicated National Centre of Excellence in Enterprise Ireland which ensures that ‘best-practice’ prevails across the LEO network.
Forfás was integrated into my Department with effect from 1 August 2014 under the Industrial Development (Forfás Dissolution) Act, 2014. As part of this integration the functions of the Irish National Accreditation Board were transferred from Forfás to the Health and Safety Authority.
A Reform Programme also underway will deliver a two tier Workplace Relations structure by merging the activities of the National Employment Rights Authority, the Labour Relations Commission, the Equality Tribunal and the first instance functions of the Employment Appeals Tribunal and the Labour Court into a new Body of First Instance, to be known as the Workplace Relations Commission. The appellate functions of the Employment Appeals Tribunal will be incorporated into an expanded Labour Court.
There will be savings made as a result of shared services and abolition of Boards but, more importantly, the new streamlined structures will provide a quicker, simpler and improved service for the taxpayer.
Details of the position to end December 2014 on the above and other measures are set out in the table below as follows:
Measure | Position to end December 2014 | Associated annual savings | Reduction in Staff |
|---|---|---|---|
| Merge the National Consumer Agency (NCA) and the Competition Authority into one single entity | The Competition and consumer Protection Act 2014 (No. 29 of 2014) amongst other things, provided for the establishment of the Competition and Consumer Protection Commission (CCPC) and the dissolution of the Competition Authority and the National Consumer Agency. The establishment day for the CCPC was 31st October 2014 | Prior to the amalgamation there already has been expenditure in the legacy organisations associated with the establishment of the new body. Savings of approximately €170,000 per annum will be achieved as there will be no fees for a Board or Chairperson to be paid (or associated costs such as travel and subsistence for Board members) while some minor savings might be realised in other areas | In 2008 when the merger was first announced, the combined ECF figure for both organisations was 139 whereas in 2014, the directly comparable figure was 86. (In 2010 an extra 20 posts were added to the ECF of the NCA to cover the new functions assigned to the NCA under the Central Bank Reform Act 2010 in the financial services area.) |
| Dissolve the 35 County Enterprise Boards (CEBs) and transfer their functions to Enterprise Ireland (EI). | The 35 City and County Enterprise Boards (CEBs) were legally dissolved on 15th April 2014 and their functions, assets and liabilities transferred to Enterprise Ireland. | Over time it is expected that there will be some savings from the removal of costs associated with the individual company status of each CEB. In addition, the use of shared services and the reduced rental costs associated with the relocation of offices will result in savings. | Not applicable |
| Dissolve Forfás and provide for the transfer of the agency’s assets, liabilities and staff to my Department and other bodies, as appropriate. | The Industrial Development (Forfás Dissolution) Act 2014 which provided for the transfer of the functions and staff of Forfás to my Department and a number of State agencies was enacted in July 2014. Forfás was integrated into my Department with effect from 1st August. | The rationale for integrating Forfás into my Department was to strengthen the Department’s capacity to develop and implement enterprise policy. The integration will facilitate improvements in the use of existing resources against the backdrop of the moratorium on Public Sector recruitment. The dissolution of Forfás gives rise to a potential saving on Board Fees of approx. €100,000 per annum. | Not applicable |
| Transfer relevant enterprise functions from Shannon Development to IDA, EI and Bord Fáilte and merge Shannon Development with Shannon Airport | Shannon Development’s functions and the associated staff in relation to indigenous enterprises and foreign direct investment have been transferred to Enterprise Ireland and IDA respectively. Shannon Development’s functions in relation to tourism including the Regional Tourism Offices have been transferred to Fáilte Ireland. These changes have been accompanied by the redeployment of staff to other public bodies and the implementation of a voluntary redundancy scheme. The restructuring of Shannon Development has been completed. The Government recently approved legislation "State Airports (Shannon Group) Bill 2014" to establish the Shannon Group as part of a drive to establish an International Aviation Services Centre in the mid-west with the aim of delivering new routes and new jobs for the region. | This is a restructuring and merger of Shannon Development and Shannon Airport. As Shannon Development was self-financing there was no direct cost saving to my Department. There was, however, an elimination of duplication of roles between Shannon Development, Enterprise Agencies and Fáilte Ireland in the region. This restructuring resulted in significant savings for the Exchequer. | |
| Reform of the State’s Workplace Relations Services to deliver a simplified two-tier structure comprising a single body of first instance, the Workplace Relations Commission, and a single body of appeal, in effect an enhanced Labour Court | The process of establishing a new two-tier workplace relations structure is continuing. Significant progress has been achieved to date in relation to the technological, structural, administrative and staffing changes required to underpin the Workplace Relations Reform Programme, including the establishment of a Shared Workplace Relations Customer Relations, a Shared Post-Registration Unit and an Early Resolution Service, the completion of the design of a Customer Relationship Management Solution, the transfer of the Equality Tribunal to the Department, the launch of an e-complaint facility and Workplace Relations website, the design of an Adjudicator training programme, the holding of an open recruitment competition for Adjudicators and the design and implementation of enhanced technologies and business processes. The Workplace Relations Bill 2014, which will give legislative effect to the reforms, was published on 30th July, 2014. The Bill has completed Second Stage and Committee Stage in the Dáil in 2014. Report and Final Stages in the Dáil are scheduled to resume in January, 2015. It is my intention to have the Bill enacted during Q1 2015 with a view to establishing the new workplace relations structures shortly thereafter. | The annual cost of the Workplace Relations Services amounted to just over €20 million in 2010. It is expected that significant savings, in terms of both reductions in staff numbers and increased efficiency and productivity, will be generated by this Reform Programme. Annual savings of €2 million per annum. | Staff reduction of 30 will be generated under the initial phase. |
| Discover Science and Engineering (DSE) Programme | In March 2012, responsibility for the DSE Programme transferred from Forfás to Science Foundation Ireland (SFI). The programme is now named SFI Discover | The transfer of DSE to SFI resulted from synergies between the DSE programme and SFI’s outreach programmes, and this transfer of responsibility was not by itself expected to generate cost savings. The integration of these programmes has achieved economies of scale, minimised duplication of effort, and contributed to operational efficiencies. | Not applicable |
| Office of the Chief Scientific Adviser (CSA) to the Government | The Office of the Chief Scientific Adviser was included in the bodies due for critical review under the Public Sector Reform initiative. Following a Government decision in October 2012 to abolish the separate Office of the CSA, the Director General of Science Foundation Ireland (SFI) took responsibility for the role of Chief Scientific Adviser to the Government in addition to his existing role and co-terminous with his tenure as Director General of SFI. | There is an annual savings of €120,000 arising from this efficiency. | 1 post - Chief Scientific Adviser |
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