Written answers

Wednesday, 25 March 2015

Department of Public Expenditure and Reform

Public Service Reform Plan Measures

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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65. To ask the Minister for Public Expenditure and Reform the extent to which his Department can encourage reform or policy initiatives with a view to maximising the potential for economic recovery and development in the future; and if he will make a statement on the matter. [12330/15]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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66. To ask the Minister for Public Expenditure and Reform to indicate the degree to which he expects public expenditure constraints and reform policies, effective in the context of economic recovery, to be used as a basis for prudent economic development in the future; his plans to implement innovation, in this regard in the future, to maximise economic benefit; and if he will make a statement on the matter. [12331/15]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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67. To ask the Minister for Public Expenditure and Reform the most effective policies pursued by his Department over the past four years in addressing the economic needs of the country, with a view to identifying the most likely and effective strategy to be followed in terms of public expenditure and reform, and the future economic needs of the country; and if he will make a statement on the matter. [12332/15]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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68. To ask the Minister for Public Expenditure and Reform the extent to which all Government Departments and their subordinate bodies have met the targets set down by his Department, in the context of public expenditure and reform; and if he will make a statement on the matter. [12333/15]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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69. To ask the Minister for Public Expenditure and Reform the extent to which the Croke Park and Haddington Road agreements have achieved their objectives; the extent to which this is likely to influence policy in the future; and if he will make a statement on the matter. [12334/15]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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73. To ask the Minister for Public Expenditure and Reform the extent to which he expects savings to continue to be made throughout the medium of public procurement in the coming year; and if he will make a statement on the matter. [12338/15]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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74. To ask the Minister for Public Expenditure and Reform the extent to which he remains satisfied regarding the adequacy of the budget for each Government Department to meet its requirements over the next twelve months; if any particular measures are required to address specific issues; and if he will make a statement on the matter. [12339/15]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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75. To ask the Minister for Public Expenditure and Reform the extent to which the requirements of the Troika, which he inherited from his predecessors, have been met; and if he will make a statement on the matter. [12340/15]

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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I propose to take Questions Nos. 65 to 69, inclusive, and 73 to 75, inclusive, together.

With Ireland subject to an EU-IMF programme this Government faced the challenge of restoring stability to our public finances and creating the correct environment to support sustainable economic growth and job creation.  Having successfully exited the Troika programme in December 2013 our fiscal target for 2015 is a General Government Deficit of 2.7% which, when achieved, will ensure Ireland's exit from the Excessive Deficit Procedure. 

This Government has made some very difficult but necessary decisions which have resulted in us successfully meeting our targets as a result of the fiscal policy objectives and reforms that have been introduced over the course of the last four years.  All Departments have played their part in ensuring the prudent and sustainable management of the public finances, often while meeting increasing demands on the services they deliver.

Public Service Reform has been a key element of the Government's overall strategy for recovery.  The reforms delivered over the past four years have enabled us to maintain and improve public services in the face of the necessary reduction in staff numbers and budgets, at a time of increased demand for public services.

A new Public Service Reform Plan was published in January 2014 and sets out the priorities for reform for the period 2014 to 2016.  While maintaining an emphasis on efficiency and reducing costs, this Plan puts a particular focus on improved service delivery and achieving better outcomes for service users. 

A Progress Report on the Public Service Reform Plan 2014-2016 was published earlier this month.  A copy of the report was sent to all Members of the Oireachtas and it is also available at www.reformplan.per.gov.ie.  As well as setting out the progress made on reform over the past 12 months, this report also outlines the priorities for the coming year.

The Deputy will also be aware that the Taoiseach and I published a Civil Service Renewal Plan in October last year.  The implementation of this ambitious three year plan will lead to very significant changes right across the Civil Service.

Over the last few years, this Government has delivered wide-ranging reforms to the budgetary architecture that have enhanced how we manage the public finances, including the introduction of the Medium Term Expenditure Framework. The multiannual expenditure ceilings provide clarity about the resources available to Departments over a three-year period and facilitate a more strategic approach to resource allocation.  The reforms are informed by the core principle that a more open and transparent process, allowing for clearer accountability and oversight, supports the efficient use of public funds to deliver effective services for citizens.

In respect of savings on public procurement, I have been advised that the Procurement Reform Executive is targeting €150m savings in 2015, of which €80m is being targeted by the Office of Government Procurement across the eight spend categories for common goods and services that it manages and the remainder across the eight spend categories managed by the four sector sourcing organisations (Health, Local Government, Education and Defence).

It is important to note that the OGP and the other sourcing organisations can only forecast procurement savings, the realisation of actual savings is a matter for the relevant customer organisations who hold the budgets and make the purchases and payments and must avail of contracts and frameworks put in place by the centralised sourcing organisations.

The Haddington Road Agreement (HRA) underpinned by the Financial Emergency Measures in the Public Interest (FEMPI) Acts 2009-2013, forms the cornerstone of pay policy in the public service until 2016 when it is due to expire.  The Agreement, which contains a number of measures directly affecting the pay of staff, is delivering and is making a significant contribution to the achievement of the Government's fiscal consolidation deficit target.  In the period from end 2009 to end 2014, the Exchequer pay cost reduced from a peak of €17.5 billion gross to €13.8 billion net of pension related deduction, a reduction of €3.7 billion or more than 21%. 

With the recovery in the economy and the improvement in the fiscal outlook, the Government expenditure allocations for 2015 provide for targeted increases in expenditure to support the delivery of key social and economic objectives.  The allocations provided in the Revised Estimates Volume 2015 across Government Departments for 2015, will assist with ensuring the ongoing provision of vital public services at an affordable cost while also serving to further support the nascent but strengthening economic recovery.

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