Written answers

Thursday, 24 November 2016

Department of Public Expenditure and Reform

Public Expenditure Policy

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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154. To ask the Minister for Public Expenditure and Reform the extent to which he expects expenditure targets for various Departments to remain in line with expectations throughout 2016; and if he will make a statement on the matter. [36713/16]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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157. To ask the Minister for Public Expenditure and Reform if he is satisfied that any inflationary tendencies in the economy remain manageable with particular reference to public spending; and if he will make a statement on the matter. [36716/16]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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158. To ask the Minister for Public Expenditure and Reform the extent of reform required to combat any public spending overruns in 2016; and if he will make a statement on the matter. [36717/16]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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159. To ask the Minister for Public Expenditure and Reform the degree to which reform is likely to remain a key element in managing costs throughout the public sector in 2016; and if he will make a statement on the matter. [36718/16]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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161. To ask the Minister for Public Expenditure and Reform if further reform or policy initiatives are required to maintain a stable path towards economic recovery; and if he will make a statement on the matter. [36721/16]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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162. To ask the Minister for Public Expenditure and Reform the extent to which he expects his Department to continue to meet deadlines and to continue to play an important part in economic recovery, with particular reference to the need to ensure stability and sustainable economic growth across the country; and if he will make a statement on the matter. [36722/16]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 154, 157 to 159, inclusive, 161 and 162 together.

Public expenditure has been managed in line with key fiscal targets over the last number of years. To ensure that these targets are met, managing the delivery of public services within budgetary allocations is a key responsibility of each Minister and their Department.  The drawdown of funds from the Exchequer is monitored against the published expenditure profiles.  In this regard, the voted expenditure report published with the end-October Exchequer statement outlines that gross voted expenditure of €44,219 million to end-October was €795 million (1.8%) below profile.

As set out in the Expenditure Report 2017, total gross voted expenditure for 2016 is now estimated at €56.1 billion. This is 0.6 per cent higher than the level set out in the Estimates for 2016. This increase in expenditure reflects an additional €200 million of capital funding for necessary repair work to transport infrastructure arising from flood damage at the start of the year and expenditure arising on school building works. In addition, an amount of €220 million is included to fund a Christmas Bonus to long-term Social Welfare recipients. In line with previous years, it is anticipated that the additional cost of providing this bonus will be offset by year-end savings across a number of Departments. The Christmas Bonus will be funded through both voted expenditure and the Social Insurance Fund. In addition, since publication of the Expenditure Report 2017, given the need to respond proactively to growing uncertainties for Irish based enterprise, additional funding is to be allocated to the Department of Jobs, Enterprise and Innovation in 2016. This additional funding, which by fast-tracking the delivery of certain spending programmes in 2016 through an increased 2016 allocation, should provide the space for increased spending on Brexit initiatives in 2017 within the allocation for 2017 agreed at Budget time. All of these additional amounts will be reflected in the Supplementary Estimates presented to the Dáil.

Given the scale of the under-spend versus profile at the end of October and the level of savings surrendered to the Exchequer at the end of 2015, it is expected that all Supplementary Estimates can be accommodated within the overall gross voted expenditure amount of €56.1 billion set out in the Expenditure Report 2017.

Expenditure Report 2017 sets out total gross voted expenditure of €58 billion in 2017. This represents a year on year increase of under 3½%. This represents a prudent level of increase as we continue to repair the public finances. However, we have to be mindful of the considerable expenditure pressures facing the public finances and it is important that we continue to evaluate how we spend our money to ensure that limited resources provide much needed public services and social infrastructure. Given this context, I announced on Budget day that a spending review will be carried out in advance of Budget 2018.

Given the many competing priorities and demands for resources, there is an ongoing requirement to implement reforms that improve how public services are delivered, and that achieve savings which can be reinvested in frontline services.  The Public Service has delivered significant productivity gains and service improvements over the last number of years, as set out in the Annual Progress Report on the Public Service Reform Plan (published April 2016).  We must build on this progress, and it is essential that targeted recruitment and investment in public services is done in tandem with further public service reform measures. This includes, for example, more digital delivery of services, improved customer service and business processes, and greater use of shared services.  When Departments identify savings arising from such reform measures, such savings are in general made available to Departments to reinvest in the delivery of services.  It is also very important to ensure that the public service workforce operates in a manner which maximises the positive impact on public service provision of the increased staff numbers reflected in the budgetary allocations for 2017.

As the Deputy is aware, a strategic review of infrastructural requirements was undertaken by my Department as part of last year's capital review. This resulted in the publication in September 2015 of 'Building on Recovery: Infrastructure and Capital Investment 2016-2021', which outlined a €42bn framework for infrastructural investment across Ireland. The Plan prioritises spending on what were considered to be the areas of greatest need as the economy continues its strong recovery. There will be a review of Government priorities within the Capital Plan in the context of the mid-term review of the Capital Plan which I announced at Budget-time last month.

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