Written answers

Tuesday, 4 July 2017

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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144. To ask the Minister for Public Expenditure and Reform the details of measures to improve debt collection across Government; and the administrative costs associated with debt collection initiatives across Government, in tabular form. [31503/17]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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In 2013 the Department of Public Expenditure and Reform commissioned a review of the management of debt across five areas: the HSE, Local Government, the Department of Social Protection, the Department of Agriculture, Food and Marine and the Courts Service. Following a procurement exercise, BearingPoint were appointed to conduct the review.

The Debt Management Review was published by the Department of Public Expenditure and Reform in July 2014. The review contained a number of cross-departmental recommendations such as data sharing, attachments to bank accounts/earnings, cross-sectoral sanctions and offsetting against state payments. A copy of this review is available on the Department’s website.

Arising from the initial review, the Department of Public Expenditure and Reform established a Debt Management Implementation Project Board to carry out a number of measures to improve levels of debt collection across the five in-scope bodies. This Project Board was chaired by Lorcan O’Connor, Director of the Insolvency Service of Ireland and was comprised of senior representatives from in-scope bodies and relevant Departments. The Department also procured and contracted a Project Manager with significant expertise in the field of debt collection to administer this programme of work.

A detailed outline of the work of the Project Board is contained in the final report of the Debt Management Implementation Project. This document is also available on the Department's website.

The Project Board's final report sets out the significant progress that has been made since the publication of the initial Debt Management Review in 2014. Since the original Review was published, collections covering the periods of  2014 and 2015 increased by over €160m.

Improvement programmes introduced by the Debt Management Implementation Project Board (including qualitative and quantitative targets for 2016 – 2018) have been set for each of the in-scope public service bodies. If implemented successfully, the improvement programmes for 2016-2018, in tandem with improved economic conditions, are projected to contribute an additional €700m in collections for the exchequer.

Finally, in order to encourage consistency across the Public Service concerning how debt is managed, the Department of Public Expenditure and Reform procured and published a best practice guide on debt management. The Department also provided Finance Officers across Government with a set of sample policies and procedures in relation to the management of debt.

The costs associated with this cross-Departmental programme of work are outlined in the following table:

Programme Item:Successful Tenderer:Cost (including VAT and expenses):
Review of Debt Management (published in July 2014)BearingPoint€135,514
Project Manager for the Debt Management Implementation ProjectBearingPoint€220,147
Best Practice Guide for the Management of Debt in Public Service Bodies (including a set of sample policies and procedures)BearingPoint€30,387

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