Committee Reports > List of Committees > Dáil > 1986 > Committee on Public Expenditure > Annual Progress Report - Dáil Committee on Public Expenditure 1986

1986 ANNUAL PROGRESS REPORT

1. INTRODUCTION

1.1This is the third Annual Progress Report of the Committee on Public Expenditure as required under paragraph (7) of the Orders of Reference laid down by Dail Eireann on 21 June, 1983. The report summarises the Committee’s activities during the period January to December, 1986.

1.2The Committee’s Orders of Reference and membership are set out at the front of this report.

1.3Since its establishment the Committee has produced a total 25 reports (including the present one), of which were adopted and laid before Dail Eireann during 1986. Appendix 1 attached lists the reports to date.

2. IMPLEMENTABLE SAVINGS

2.1The Committee’s 20th report (PL4424) entitled “A Schedule of Recommendations arising from the Work of the Committee relating to Immediately Implementable Public Sector Savings and Management Improvement”, summarised the main recommendations which, in the Committee’s view, were likely to be immediately feasible and to result in immediate savings to the Exchequer.

2.2The Committee’s above-mentioned report (PL 4424) dealt with six main areas

-Capital projects

-Exchequer funding

-Management of the public office portfolio

-State-Sponsored Bodies

-Accounting for the public sector

-Grants and subsidies; sales and payments.

2.3An Appendix to the above report contained a series of recommendations which were contained in submissions received from the Committee’s Advisory Panel and those issues will be considered further by the Committee in due course.

2.4The “Implementable Savings” report was issued to coincide with the annual Budget preparation process and a copy was sent to the Minister for Finance for his attention.

3. REPORTS LAID BEFORE DAIL EIREANN

3.1The following is a summary of the reports laid before Dail Eireann during 1986.

3.2Annual Progress Report 1984/85. This report (PL 3980) contained a summary of the Committee’s work between October, 1984 and December, 1985.

3.3Shannon Free Airport Development Co. Ltd.

The report (PL 4034) was the result of an examination of a number of major aspects of the activities of the SFADCo.

The key recommendations of the Committee dealt with

-Traffic promotion and tourism

-Cost of job creation

-Annual report and accounts

-Shannon Town

-SFADCo authority.

3.4State Support and Services to the Fishing Industry

This report (PL 4021) reviewed the cost-effectiveness of the State expenditure programmes on the fishing industry and dealt with the Department of Tourism, Fisheries and Forestry, Bord Iascaigh Mhara and the Central Fisheries Board.

The Committee’s recommendations dealt with

-Fisheries statistics

-Harbours policy and expenditure on harbours

-Investment in the fishing fleet

-Aquaculture

-Fisheries research and development

-Quality control

-Marketing, processing and added value

-Future role of Bord Iascaigh Mhara

-Training

-Fisheries protection

-Salmon licensing and quota system

-Future role of the Central Fisheries Board.

3.5Institute for Industrial Research and Standards

This report (PL 4214) reviewed the cost-effectiveness of the IIRS in some of its major areas of operation.

The key recommendations dealt with the following:-

-Managing major capital projects

-Standards

-Annual report and accounts

-Equipment, deficit and working capital

-Self-sufficiency of the IIRS.

3.6Review of Procedures relating to road openings by utilities

The Committee’s report (PL 4383) arose from concern about the present system operated by public utilities in the excavation of public roads and footpaths.

The key recommendations dealt with the following:-

-Proposed development of a coordinated, interlinked joint utilities mapping and data base.

-Imposition of legal obligations on local authorities in relation to benchmarks.

-Rights of utilities to undertake reinstatement work.

-Introduction of a charge system for disruption of roadways.

-Protection of the environment.

-Provision of training courses.

3.7Proposed Dublin Dental Hospital

The Committee’s report (PL 4386) outlined the background to the proposed building of a dental hospital and clinical sciences complex in Dublin and the Committee’s concern about certain aspects of the proposal.

The main recommendations were as follows:-

-Revenue from fee income should be increased.

-The feasibility of providing for a minimum of two years service with the Health Boards should be considered.

-A comprehensive assessment of dental manpower needs should be undertaken before a final decision is taken on the new project.

-Discussions on rationalising dental training facilities should take place.

-The report also set down recommendations in relation to project appraisal procedures.

3.8The Prize Bonds Scheme

The Committee’s report (PL 4385) arose for concern about the perceived lack of adequate provision for the future development of the Prize Bond Scheme.

The main recommendations were as follows:-

-The Department of Finance should offer for tender the franchise to develop and operate the scheme.

-The Department of Finance should revise the scheme itself.

-The prize fund should be revised downwards.

-Comparable schemes in other countries should be examined.

-The Department of finance should have no executive role in a revised scheme.

3.9Proposed Department of Defence/Army Headquarters

The Committee’s concern in this case related to a decision to build a new Department of Defence/Army headquarters at a cost of £20 million.

The report (PL4384) set down the following main recommendations.

-The full cost of capital projects should be charged to the benefiting Department and its servicing costs should be provided for in subsequent estimates of that Department.

-Where architects are retained on major public capital projects, their selection should be by open competition.

-Comprehensive manpower planning exercises should be undertaken in relation to any new proposals for new office accommodation.

-The entire system of management and maintenance of public sector accommodation should be subject of a major review.

-The specific approval of the Department of Finance to commence the planning or examination of a new capital project should be a prerequisite to undertaking the planning process.

-The approval of the Dail should be required for projects involving expenditure of the £10 million or more.

-The Department of Defence brief to the Office of Public Works should be revised.

-Priority should be given to the option of buying a suitable alternative Defence building and combining this with one of the existing buildings.

-Other recommendations related to

(a)the production of a more modest plan for the new Defence/Army headquarters and

(b)the question of funding the project.

3.9The Forest and Wildlife Service

The Committee’s business advisory panel submitted a comprehensive report on the State’s forestry programme.

The Department of Tourism, Fisheries and Forestry, which commented on that report, subsequently gave evidence before the Committee as did the timber and sawmilling interests.

The Committee’s comprehensive report (PL 4425) which emerged from a series of hearings contained the following key recommendations:-

-An appropriate management and reporting system for the management and development of the State’s forests should be established immediately.

-A review of the marketing of timber should be the responsibility of a new agency, with a view to developing the full potential of the forest products industry.

-There should be a declared policy objective of increasing private forestry to 40 per cent of national planting. State grants to private forestry should be brought into alignment with EEC aid for private planting.

-Efforts should be made to encourage direct private involvement in afforestation through pilot programmes and greater flexibility for financial institutions.

-Non-forestry revenues should be increasing on a planned basis.

3.10Review of the Public Expenditure Programme for the Eradication of Bovine Tuberculosis

During 1986 the Committee undertook a major review of the public expenditure aspects of the Bovine TB Eradication Scheme. The Committee had the benefit of submissions from an expert panel as well as comprehensive oral and written evidence from the Department of Agriculture, veterinary and farming interests. A sub-Committee under the Chairmanship of Deputy Colm Hilliard produced a report which was then considered and adopted by the main Committee (PL 4426).

The following were the key recommendations in the report:-

-The Animal Health Council and the Department of Agriculture’s expert consultative group should be restructured and merged and charged with the task of formulating a new disease eradication programme.

-An Executive Unit should be established to take over the District Veterinary Offices.

-An Advisory Council to the Executive Unit should have authority to determine the appropriate levels of disease levies aimed at funding 50 per cent of the total cost of disease eradication.

-Procedures for cattle testing should be improved.

-A herd register system should be introduced and linked to the movement permit system.

-known reactor animals should be strictly segregated.

-Provision should be made for co-funding by the Executive Unit and farmer cooperatives in relation to disposal of reactors and follow up action.

-Alternative testing by private veterinary practitioners should be considered. Breaches of the professional code should be pursued vigorously.

-Suitable supplementary tests should be researched and developed.

-A comprehensive review of all herd numbers and farms should be undertaken.

-The report also made a number of recommendations of an administrative nature.

4. OTHER REPORTS

4.1In December, 1986 the Committee produced three further reports.

(1)International Comparisons of Parliamentary accountability for public expenditure

This report summarises the Committee’s findings arising from delegation visits to England, the United States and Switzerland between 1985 and 1986. The main recommendations relate to suggested changes and improvements in systems for the evaluation and control of public expenditure in Ireland.

(2)Tourism

This report arose from a review of Bord Failte. The Committee considered submissions from its advisory panel, Aer Lingus Bord Failte and tourism interests. Evidence was also heard from the Department of Tourism Fisheries and Forestry.

The Committee’s report points the way to greater cost-effectiveness of public expenditure on tourism and suggests how the tourist industry could benefit from a more coordinated and better planned approach by all the agencies involved.

(3)The Industrial Development Authority - a view of certain aspects of its public expenditure.

This report, though not a full review of the IDA, examines its performance in effecting the transition from selling Ireland a an industrial location to fostering and supporting enterprise and assisting in the planning, development, growth and rationalisation of indigenous industry. The Committee in its review, examined the IDA’s corrent/advertising campaign which is geared to promotion of enterprise and industry in Ireland.

5. Conclusion

5.1In accordance with earlier decisions the Committee has sought reports from Departments and State-Sponsored Bodies on follow up action taken on its reports to date. This will be subject of a separate Committee report when comprehensive replies have been analysed and compiled into a single document.

6. Acknowledgement

6.1The Committee wishes to record its appreciation of all the public sector and private sector organisations and individuals who assisted the Committee in its review work during the past year.

6.2The Committees also wishes to thank the Business Advisory Panel for the relevant and expert submissions sent to the Committee during the year.