Written answers

Thursday, 30 April 2015

Department of Social Protection

Money Advice and Budgeting Service

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Independent)
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56. To ask the Minister for Social Protection further to Parliamentary Question No. 49 of 23 April, 2015, if she will establish with the Citizens Information Board if a cost-benefit analysis has been conducted of the proposals in relation to governance changes for the Money Advice and Budgeting Service; the information she has at this point regarding the nature and amount of savings that will arise, as indicated in her reply; if she is aware that there are opposing views within the sector that such proposals would lead to increased costs; that the consultant's report into such matters did not suggest the changed structures that are now being proposed; and if she will ensure that a full risk assessment is carried out of the potential impact of such changes on local service delivery and the personnel who operate these services. [17133/15]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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At the outset, I wish to reiterate the Government’s commitment to maintaining and strengthening the Money Advice and Budgeting Service (MABS) and its local delivery of services. The work which is underway exploring how to optimise resources and governance arrangements across the network of 93 local companies under the remit of the Citizens Information Board (CIB) has the aim of ensuring that any efficiencies and savings achieved in governance arrangements can be used to expand and enhance local service delivery.

The Pathfinder Feasibility Study commissioned by CIB identified a number of options for greater organisational consolidation and or integration of its delivery partners. The Board of CIB considered this Study in September 2014 and tasked a Design Group with outlining and recommending new structural models, using the Study as the key resource document to inform the process. The work of the Design Group was guided in its deliberations by specific Terms of Reference and Design Principles as agreed at the outset, in order to identify possible new structural models for presentation to the Board of CIB for its consideration.

Following extensive consultation with key stakeholders, the Design Group has identified as an option for consideration by the Board of CIB in due course, that the 51 Boards of MABS companies and the 42 Boards of CIS companies could be consolidated across six (6) regions, resulting in six (6) independent MABS companies and Boards, and six (6) independent CIS companies and Boards, all reporting to the board of CIB. It is important to note that any such consolidation would be at Board level only. All existing MABS services would remain unaffected. Local service delivery and personnel would not be adversely impacted and would continue as before.

The Design Group’s recently proposed option will require further development, to include estimates of costs that may arise and potential savings that may accrue from moving to a reduced company and Board structure, together with a risk assessment. At this early stage, indicative high level savings arising from a reduced governance structure, from 93 companies and Boards to 12, suggest there may be savings achievable in the amount of €340,000 per annum. It may be possible to take any savings that arise and use them for enhancing local service delivery or indeed offering additional services.

It is important to note that neither this option nor any alternative has yet been considered by the Board of CIB. Accordingly, no decisions have been made by the Board and no proposal has been formally made by it to my Department for consideration.

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