Bernard Durkan (Kildare North, Fine Gael)
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218. To ask the Minister for Public Expenditure and Reform the further reforms that may be introduced regarding the manner in which public contracts or procurements are undertaken with a view to identifying the most cost effective and expeditious procedures, thereby eliminating costly delays; and if he will make a statement on the matter. [13538/18]

Bernard Durkan (Kildare North, Fine Gael)
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219. To ask the Minister for Public Expenditure and Reform the extent to which further reforms are required in respect of the awarding of public contracts or procurements with a view to ensuring that business in this country can be undertaken in a way that is competitive with all other European countries; and if he will make a statement on the matter. [13539/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 218 and 219 together.

Procurement is a key element of the Government’s Public Service Reform agenda and is a very significant portion of overall spending. The State buys everything from pens and paper, through to naval vessels and surgical equipment. In this context, it is essential that the Public Service operates in a co-ordinated and efficient way and delivers much needed public services in a sustainable manner. That is why the Government established the Office of Government Procurement (OGP).

The OGP commenced operations in 2014 and, together with four key sectors (Health, Defence, Education and Local Government), has responsibility for sourcing goods and services on behalf of the Public Service. In addition, the OGP also has responsibility for procurement policy and offers advice on procurement procedures.

The OGP has progressed the National Public Procurement Policy Framework which enables a more consistent approach to public procurement across the public sector by setting out the procurement procedures to be followed by public bodies. Last July, my colleague, Minister of State Patrick O’Donovan, launched new Public Procurement Guidelines for Goods and Services. This comprehensive interpretation of the public procurement directives has been designed to improve consistency and promote best practice in the application of the public procurement rules. In addition, the OGP maintains a proactive line of communication with SME stakeholders to ensure they are informed of policy developments and that these are communicated by them to their members.

The OGP together with four key sectors, speaks with “one voice” for the public service to the market for each category of expenditure, eliminating duplication and taking advantage of the scale of public procurement to best effect. This move is in line with best practice in the public and private sector and is part of the continuing reform programme being driven by my Department.

The Government has committed in the Programme for Partnership Government to examining the new procurement structures in place and where necessary make adjustments according to best international practice and in conjunction with Irish business.

Bernard Durkan (Kildare North, Fine Gael)
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221. To ask the Minister for Public Expenditure and Reform when the restoration of the various payments conceded under FEMPI will take place; and if he will make a statement on the matter. [13541/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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As the Deputy is aware the unwinding of the emergency FEMPI legislation commenced with the Lansdowne Road Agreement 2016-2018 and will be completed under the Public Service Stability Agreement 2018 -2020. 

The Public Service Pay and Pensions Act 2017 sets out a specific schedule of measures and dates in respect of deductions made under the FEMPI Acts including provisions in respect of the implementation of the Public Service Stability Agreement 2018-2020 (PSSA), the introduction of the Additional Superannuation Contribution (ASC) for public servants, elimination of Public Service Pension Reduction (PSPR) and a process of engagement in respect of contractor fees.

The Act gives effect to the pay measures of the PSSA 2018-2020, which provide further pay restoration (that is, in addition to that restoration under the Lansdowne Road Agreement/FEMPI Act 2015). In 2019 the Pension Related Deduction (PRD)will be converted to an Additional Superannuation Contribution (ASC) for public servants.

Unwinding of the PSPR is taking place under FEMPI 2015, with PSPR-affected pensioners getting pension increases via substantial restoration of the PSPR cuts on 1 January 2016, 1 January 2017 and 1 January 2018.

The Public Service Pay and Pensions Act 2017, provides for further significant lessening of the impact of PSPR by way of threshold and rate changes to apply on 1 January 2019 and 1 January 2020.  When fully in place from the beginning of 2020, these changes will mean that the vast majority of public service retirees, comprising everyone with occupational pension values up to at least €54,000, will be entirely free of PSPR. 

The 2017 Act also provides an alternative statutory basis for the setting and varying of fees for contractors currently subject to the FEMPI legislation. In future the relevant Government Minister, operating with the consent of the Minister for Public Expenditure and Reform will have the statutory power to set and vary the fees paid to contractors for goods and services based on a range of considerations, including affordability and value for money.