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Thursday, 20 Apr 2023

Written Answers Nos. 194-210

Lobbying Reform

Questions (194)

Rose Conway-Walsh

Question:

194. Deputy Rose Conway-Walsh asked the Minister for Finance his plans to extend the lobbying register so that the lobbying of senior officials in bodies such as the Central Bank, ComReg, the NTA and the HSE which have significant policymaking or development functions will need to be reported on the same basis as central and local government, as committed to in the Programme for Government; and if he will make a statement on the matter. [18687/23]

View answer

Written answers

The Programme for Government contains a commitment to "extend the lobbying register so that the lobbying of senior officials in bodies such as the Central Bank of Ireland, Comreg, the NTA and the HSE which have significant policymaking or development functions will need to be reported on the same basis as central and local government."

The intention is that this commitment will be achieved by drafting a Statutory Instrument for Ministerial approval subsequent to my Department engaging extensively with all other Departments and relevant state agencies with a view to identifying appropriate posts. The Statutory Instrument would prescribe those identified in the most senior posts in the targeted public service bodies as designated public officials (DPOs), or "the lobbied", for the purposes of the Act. This will consequently expand the current cohort of DPOs in line with the commitment.

My Department has already engaged with the Standards in Public Office Commission and will shortly write to all Departments and relevant state agencies on this matter.

Departmental Consultations

Questions (195)

Rose Conway-Walsh

Question:

195. Deputy Rose Conway-Walsh asked the Minister for Finance the details of each time his Department, or public bodies under the aegis of his Department, enlisted the services of consultants in 2022; the purpose and value of each contract; and if he will make a statement on the matter. [18731/23]

View answer

Written answers

It was not possible for my Department and a number of the bodies under the aegis of my Department to provide the information sought in the time available. These bodies are the Credit Review Office, Irish Bank Resolution Corporation, Financial Services and Pensions Ombudsman, Irish Financial Advisory Council and the National Treasury Management Agency. I will, therefore, make arrangements to provide the information in line with Standing Orders.

The remaining bodies have provided the information requested in the attached table. It should be noted that Home Building Finance Ireland appoints Legal, Monitoring Surveyor and Valuation firms as part of the due diligence process on each of its loan transactions, with the costs being recovered from the relevant borrowers. These costs have been excluded from the amounts in the attached table.

Body under the aegis of the Department of Finance

Consultant

Purpose of Contract

Contract Value (Excluding VAT)

4C Strategies

Business Continuity Management - Simulation Exercises & Consultancy Services

€28,977

Aecom Ltd

Facilities Management Consultancy Services

€50,000

Deloitte Ireland LLP

Provision of Consultancy for the Development of a Cloud Readiness Roadmap

€97,350

Ernst & Young

Conduct Assessment of Virtual Asset Service Providers

€732,000

Ernst & Young

Individual Accountability Framework Consultancy Services

€91,500

Grant Thornton

Central Credit Register- Process review for the provision audit services

€35,000

Grant Thornton

Operational Controls Review

€45,000

Integrity Communications

Active Directory Standards

€28,350

KPMG

Review of Third Party Service Providers – Information Security Posture

€44,914

KPMG

Markets in Financial Instruments Directive (MiFID) Authorisation Assessments

€203,252

KPMG

Advice in relation to development of a Third Party Management Framework

€300,000

KPMG

New Data Strategy Operating Model

€561,000

Lane Clark and Peacock Ireland Ltd

London Market Thematic Review

€229,885

Oliver Wyman GmbH

Resource Allocation Analysis and Associated Professional Services

€2,500,000

People Performance Ltd

Talent Acquisition Process Review

€40,365

Risk and Resilience Ltd

2022 Cyber Exercise for the Financial Stability Group

€31,750

Central Bank of Ireland

Security Alliance

Expert Cyber Threat Intelligence Consultant Services

€400,000

Credit Union Advisory Committee

BehaviourWise

Facilitate 2 Director focus groups for the purposes of completing an addendum to the CUAC research report on credit union directors

€4,900

Board Excellence

External Evaluation of Board

€19,500

PwC

External Funding Market Assessment

€50,000

KPMG

Market Economy Operator Principle Report (2 year contract)

€35,000

McCann Fitzgerald

Corporate Legal Advices (awarded under existing Framework Agreement)

€31,000

RW Nowlan

Planning Advice

€7,500

Home Building Finance Ireland

Willis Tower Watson

Insurance Advisory

€7,500

Deloitte

Provision of secondee to support ICCL processing and paying certified compensation claims to investors that suffered losses arising from the failure of Custom House Capital Limited (in liquidation)

€34,192

Investor Compensation Company DAC

ISAS

Provision of information security assurance services

€63,148

Radius Technologies Ltd

ICT services

€ 4,950

BSI Cybersecurity and Information Resilience (Ireland) Ltd

ICT services

€ 95,000

CBRE

Valuation

€ 4,500

Colliers International

Valuation

€ 37,250

Senior Counsel

Legal advice

€ 5,000

Junior Counsel

Legal advice

€ 3,000

Colliers International

Valuation

€ 50,000

REA Grimes

Valuation

€ 5,000

Eversheds Sutherland (Salford UK)

Legal services

€ 13,455

KPMG

Asset search

€ 1,500

Dillon Eustace

Legal services

€ 5,000

Fieldfisher Ireland

Legal services

€ 11,000

Galvin Donegan LLP

Legal services

€ 25,000

Tesselate

ICT services

€ 6,198

McCann Fitzgerald

Legal services

€ 10,000

O'Donnellan & Joyce

Valuation

€ 950

Hayes Solicitors

Legal services

€ 90,000

Mazars Ireland

Statutory Audit Services

€ 860,000

Cushman & Wakefield Dublin

Valuation

€ 9,950

Lisney

Valuation

€ 53,000

Jones Lang LaSalle

Valuation

€ 13,000

Hayes Solicitors

Legal services

€ 85,750

Pinnacle Computing Ltd.

ICT services

€ 106,000

Byrne Wallace

Legal services

€ 750

Dillon Eustace

Legal services

€ 50,000

RSM Ireland

Asset search

€ 4,500

Sherry Fitzgerald

Valuation

€ 550

Hayes Solicitors

Legal services

€ 1,500

Fieldfisher Ireland

Legal services

€ 100,000

Senior Counsel

Legal advice

€ 2,500

Gordon MRM

Press Office and Communications Services

€ 320,000

Pinnacle Computing Ltd.

Sage Licencing and Services

€ 140,000

National Asset Management Agency

Ernst & Young Dublin

Business Analyst

€ 211,200

Philip Lee LLP

Legal services

€30,200 paid to date

Royal Irish Academy

Archival research and publication relating to commemoration of the centenary of the Office of the C&AG in 2023

€98,333

Moore

Strategic audit of a body audited by the C&AG

€22,000

Office of the Comptroller & Auditor General

Moore

Quality review of a sample of audits

€60,000

Acorn Fashions Service Ltd

Advisory Services for Customs Uniform Tender

€6,273

Adams

Valuation Advice – Section 1003 Donation

€11,378

Alan Davy

Expert Advice on R&D Services

€6,440

Carl Newell

Expert Advice on R&D Services

€2,760

Crosswood Developments Ltd

Health and Safety height-at-work Review

€1,845

De Vere White and Smyth

Section 1003 Valuation Advice

€1,230

Elizabeth O Byrne

Consultancy in the development of a certified training module

€9,720

Fergus O’Kelly Marine Consultant

Valuation Advice

€450

Fonsie Mealy Auctioneers

Section 1003 Valuation Advice

€3,998

Hitesh Tewari

Expert Advice on R&D Services

€2,760

John S Smith

Expert Advice on R&D Services

€2,760

Leslie Lennox Dr

Expert Advice on R&D Services

€2,760

Mark Keane

Expert Advice on R&D Services

€4,140

Mark Southern

Expert Advice on R&D Services

€10,584

Ohss Safety Consultants

Health and Safety - Environment Testing

€1,747

Padraig Molloy

Expert Advice on R&D Services

€2,760

Peter I Mitchell Phd Cphys

Radiation Protection Consultancy

€11,040

Phoenix Environmental Safety Ltd

Asbestos Consultancy Services

€18,000

Scientific Safety & Health

Customs Risk Assessments

€440

Office of the Revenue Commissioners

Seamus Lennon

Expert Advice on R&D Services

€2,760

Strategic Banking Corporation of Ireland

Oxera Consulting LLP

Benchmarking SME Loan Price

€49,000

Keystone Procurement Ltd.

Consultancy advice for the procurement of a new case management system

€18,275

Holmes O’Malley Sexton Solicitors

Legal advice in relation to the procurement of a new case management system

€3,920

Tax Appeals Commission

Crowleys DFK

Provision of internal audit services

€8,738

European Court of Human Rights

Questions (196, 204)

Ged Nash

Question:

196. Deputy Ged Nash asked the Minister for Finance if he and the Revenue Commissioners are concerned about the implications of the recent European Court of Human Rights judgment on Ireland's legislative framework which provides for the publication, under certain conditions, of the names of tax defaulters and certain details of their cases; what actions are open to him and the Revenue Commissioners to ensure that the regime which has been in place in Ireland since 1983 can be maintained in light of this judgment; and if he will make a statement on the matter. [18759/23]

View answer

Pearse Doherty

Question:

204. Deputy Pearse Doherty asked the Minister for Finance his views on the implications of the recent judgment by the European Court of Human Rights in a case, L.B. v Hungary, concerning the publication of the personal data of taxpayers, on the ability of the Revenue Commissioners to publish the details of tax defaulters; how he will respond to this development; and if he will make a statement on the matter. [18824/23]

View answer

Written answers

I propose to take Questions Nos. 196 and 204 together.

I am aware of the recent judgment by the European Court of Human Rights in the case of L.B. v Hungary and Revenue and my Department are considering its implications for Ireland’s legislative framework which provides for publication of tax defaulters.

There are significant differences between the Irish and Hungarian provisions for publication of tax defaulters, which may have a bearing on how the Irish publication system is viewed under the European Convention on Human Rights.

At present, Revenue is legally required to compile and publish lists of certain tax defaulters. This system has been in place since 1983 and was revised most recently in Finance Act 2021, which provided for the current publication regime in section 1086A Taxes Consolidation Act 1997. The lists are compiled on a quarterly basis and published in Iris Oifigiúil within 3 months of the end of the quarter to which they relate.

Revenue does not have any discretion in the decision to publish these lists; it is legally obliged to publish them to comply with the legislation. Any change to the current publication regime would require a legislative amendment.

It should be noted that the taxpayers who makes a settlement over a certain sum with Revenue do not have their names and addresses automatically published in the quarterly list of tax defaulters. Settlements are not published where the penalty forming part of the settlement does not exceed 15% of the tax default; where the amount of tax forming part of the settlement does not exceed €50,000; or where the taxpayer has made a “qualifying disclosure” to Revenue. A qualifying disclosure means a disclosure of complete information in relation to, and full particulars of all matters occasioning a liability to tax that gives rise to a penalty, which is:

• made in writing, signed by or on behalf of the taxpayer,

• accompanied by a declaration, to the best of that person’s knowledge, information and belief that all matters contained in the disclosure are correct and complete, and

• payment of the tax and interest for late payment of that tax.

This means that the cases which feature on the list of tax defaulters are those where the penalty is over 15% of the tax due, the tax due exceeds €50,000, and where the taxpayer has either chosen not to make a qualifying disclosure, has made a disclosure which was not qualifying, or was not entitled to make a qualifying disclosure because they are subject to a Revenue investigation.

Tax Residency

Questions (197)

Éamon Ó Cuív

Question:

197. Deputy Éamon Ó Cuív asked the Minister for Finance the reason non-resident landlords must arrange for a collection agent to undertake to make annual tax returns and account to the Revenue Commissioners on their behalf; if he intends changing this to allow the landlord themselves fulfil these obligations without an agent; and if he will make a statement on the matter. [18763/23]

View answer

Written answers

I am advised by Revenue that non-resident landlords are not obliged to arrange for a collection agent to undertake to make annual tax returns to the Revenue Commissioners on their behalf. Revenue can, however, deem a person resident in the State to be a collection agent for a non-resident person. The purpose of this provision is to ensure that the correct tax is collected from non-resident individuals with Irish source income.

Where a non-resident landlord has a collection agent, the tenant (or other person paying rent, such as a local authority) may make rent payments to that agent, rather than directly to the landlord. In these circumstances the non-resident landlord is assessable and chargeable to income tax in the name of the Irish collection agent (section 1034 Taxes Consolidation Act (TCA)). The Irish collection agent is currently not entitled to deduct withholding tax from the rent and should not issue a Form R185 to the landlord. However, the collection agent may retain a sufficient portion of the rents to satisfy the tax payable on the rents (section 1046(2) TCA). This should be paid to Revenue when filing the tax return. While the assessment is in the name of the Irish collection agent, the tax to be charged is the amount which would be charged if the non-resident landlord was assessed in her own right. This means what is assessed to tax is the rental profit, after claiming any allowable deductions. The non-Irish resident landlord may also be entitled to personal credits, even when chargeable and assessable in the name of the collection agent.

Where the tenant or other person paying the rent makes rent payments directly to the non-resident landlord, the person paying the rent is obliged to deduct income tax at the standard rate (currently 20%) from the payments and remit that amount to Revenue (sections 238(2) and 1041 TCA 1997) using Form R185. The non-resident landlord can claim credit for the tax withheld by the tenant when declaring the income on their income tax return. The non-resident landlord is also entitled to claim relief for expenses allowed in arriving at the rental profit and may be entitled to a portion of personal allowances.

Finance Act 2022 introduced a new process for collection agents of non-resident landlords. The new process will relieve collection agents of the obligation of being chargeable and assessable for the income of a non-resident landlord, if the collection agent deducts withholding tax from rental payments, remits that tax to Revenue and gives Revenue certain information related to the payments (including the address of the property, the rental payment, and the name and address of the non-resident landlord). These new provisions also require tenants and other persons who pay rent directly to a non-resident landlord to provide certain information required by Revenue concerning the landlord and the rental income on which tax is being withheld. The new provisions are not yet operational as they are subject to a commencement order.

Construction Industry

Questions (198, 199, 200, 202)

John Paul Phelan

Question:

198. Deputy John Paul Phelan asked the Minister for Finance the specific means through which his Department intends to achieve its objective of “establishing a deeper and more robust domestic capital markets environment for homebuilding” as per Parliamentary Question No. 139 of 30 March 2023; and if he will make a statement on the matter. [18779/23]

View answer

John Paul Phelan

Question:

199. Deputy John Paul Phelan asked the Minister for Finance what contingency measures are in place to ensure capital is made available for homebuilding in the event that institutional investors continue to leave the Irish market; and if he will make a statement on the matter. [18780/23]

View answer

John Paul Phelan

Question:

200. Deputy John Paul Phelan asked the Minister for Finance the availability of public funds to bridge any gap between funds required and funds invested by private investors for home building in the event that institutional investors continue to leave the Irish market; and if he will make a statement on the matter. [18781/23]

View answer

John Paul Phelan

Question:

202. Deputy John Paul Phelan asked the Minister for Finance if, in the event that the Government increases the targets for housing delivery, the funding for same that would be expected to come from public or private capital sources; and if he will make a statement on the matter. [18783/23]

View answer

Written answers

I propose to take Questions Nos. 198 to 200, inclusive, and 202 together.

As the Deputy will be aware, the Housing for All plan aims to increase the supply of housing to an average of 33,000 homes per year, with an estimated development funding requirement of approximately €13.5 million per annum. This development funding will comprise both debt and equity, and will be deployed from a number of sources including direct State expenditure, State-supported funding sources and both domestic and international private capital sources.

The Housing for All Investment Workstream was established to support the delivery of the Government’s Housing for All plan and a key commitment of the Investment Workstream has been to advance understanding of the funding landscape for residential development in Ireland.

To support this objective, the Investment Workstream has engaged with public and private funding partners and has also commissioned a report on the drivers of the cost and availability of finance for residential development, to also include data and commentary on the funding landscape.

The report found that there is reasonable availability of debt and equity for viable residential development and the most significant factor impacting on the availability of capital for residential development is the underlying viability of projects. Other factors such as planning, infrastructure requirements, location, scale and tenure type will also impact the availability of funding.

The report found that in the past 12 months, the residential development sector has seen significant and worsening viability challenges which have, in particular, impacted high density apartment development. Therefore, supporting the viability of developments will be an important factor in achieving the Government’s Housing for All targets, and in turn will support access to funding from all sources, which will continue to be available and deployed to viable residential development projects.

Under the Housing for All Action Plan Update published in November 2022, the Department of Finance, through the HFA Investment Workstream, committed to assessing the findings and recommendations arising from the report and agreeing a set of actions for implementation. The outputs from this work will continue to be advanced through the Housing for All Investment Workstream.

Question No. 199 answered with Question No. 198.
Question No. 200 answered with Question No. 198.

Capital Expenditure Programme

Questions (201)

John Paul Phelan

Question:

201. Deputy John Paul Phelan asked the Minister for Finance the scope to expand the funding capabilities of Home Building Finance Ireland, which has supported the development of over 5,700 homes to date; and if he will make a statement on the matter. [18782/23]

View answer

Written answers

Home Building Finance Ireland was set up by the Government in 2019 to provide funding directly to housebuilders to build homes for owner occupiers, renters and those in need of social housing.

Since then, HBFI has provided funding of €1.25bn to fund 5,717 new homes across 21 counties. 68% of the funding provided to date is for houses and 32% for apartments.

Over the last number of years HBFI has been agile and responsive to the changing funding landscape and, by engaging with stakeholders, has adapted its product offering as required. HBFI provides funding for all types of supply from smaller schemes of five units up to larger schemes of 300 units. It also launched a product specifically to support social and affordable housing schemes and a Green loan to support sustainable house building across Ireland.

During Covid 19, HBFI also launched a temporary "Momentum Fund" to ensure larger housebuilders continued to get access to funding to bring forward much needed supply at a time when the availability of funding was more challenging.

HBFI’s broad product range and ability to adapt its offering to respond to changing market conditions ensures that finance is available for all commercially viable schemes. HBFI will continue to engage with stakeholders and has the ability to further evolve its product offering if required.

Question No. 202 answered with Question No. 198.

Tax Collection

Questions (203)

Paul McAuliffe

Question:

203. Deputy Paul McAuliffe asked the Minister for Finance if he will provide an update on the vacant home tax; the number of properties qualifying for the tax; the anticipated revenue from the tax in 2023; and if he will make a statement on the matter. [18816/23]

View answer

Written answers

The introduction of the Vacant Homes Tax follows from my Department's commitment under Housing for All to collect data on vacancy with a view to introducing a vacant property tax. The Finance (Local Property Tax) (Amendment) Act 2021 facilitated the collection on data on vacant property through Local Property Tax (LPT) returns.

A preliminary analysis of the vacancy data was published by Revenue in July last year, following the LPT revaluation in November 2021, and can be found on their website: www.revenue.ie/en/corporate/information-about-revenue/statistics/local-property-tax/lpt-stats-2022/index.aspx

The analysis indicates that the vacancy rates captured by LPT returns are low across all counties, averaging nationally at 3.2%, which is within a range that is considered to be in line with a functioning housing market. It is important nonetheless that the Government acts to ensure all viable housing stock is being used. Accordingly, a new Vacant Homes Tax was announced in Budget 2023 and brought into effect by Finance Act 2022.

A residential property will be within the scope of the new tax if it has been occupied as a dwelling for less than 30 days in a chargeable period. Each chargeable period will commence on 1 November and end on 31 October of the following year. The first chargeable period commenced on 1 November 2022. The first self-assessed returns are due on 7 November this year and the tax will be payable on 1 January 2024.

The Vacant Homes Tax will be charged at a rate equal to three times the property’s existing base LPT liability, and must be paid in addition to LPT. The number of properties in scope and the amount of tax payable will depend on the self-assessed returns submitted by property owners, the number of properties declared as liable and the number of property owners entitled to claim available exemptions from the tax. A small number of exemptions are available to ensure that home-owners are not excessively penalised for normal temporary vacancy.

This measure aims to increase the supply of homes for rent or purchase to meet demand rather than raise revenue. It is not expected to yield significant revenue, with estimates in the region of €3-4 million at most. I anticipate this tax will influence behaviour and lead to property owners putting their vacant properties to more effective use. As such, the number of properties who will be subject to this tax and the eventual yield may be lower than the estimates provided.

In arriving at the estimates, certain assumptions were made based on the Revenue data and took into account the number of long-term vacant properties (those unoccupied for greater than 12 months), their valuation band, as well as their reasons for lying vacant which may correspond with an exemption from the tax. It is tentatively estimated that less than 15% of the total properties reported as vacant may be in scope of the tax.

This measure aims to increase the supply of homes for rent or purchase, rather than raise revenue. The estimated yield is low; as I anticipate this tax will influence behaviour and lead to property owners putting their vacant properties to more effective use. As such, the number of properties who will be subject to this tax and the eventual yield may be lower than the estimates provided.

Question No. 204 answered with Question No. 196.

Construction Industry

Questions (205)

Rose Conway-Walsh

Question:

205. Deputy Rose Conway-Walsh asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the total number of construction technical professionals, including architects, engineers, quantity surveyors, and so on, employed by his Department, or public bodies under the aegis of his Department, to oversee construction projects on behalf of public bodies; and if he will make a statement on the matter. [18722/23]

View answer

Written answers

I wish to advise the Deputy that there are no staff of the nature specified in this question employed by my Department.

With the exception of the Office of Public Works (OPW), this is also the case for the bodies under the aegis of my Department. The information with regard to the OPW is set out in the table below.

Professional Detail

Number of Staff

Engineers (Flood Engineers that work on flood relief and drainage and coastal projects, Civil and Structural, Assistant Chief Engineers)

130

Architect

52

Senior Architect

37

Quantity Surveyor (includes Principal Quantity Surveyor)

10

Assistant Principal Architect

5

Departmental Consultations

Questions (206)

Rose Conway-Walsh

Question:

206. Deputy Rose Conway-Walsh asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the details of each time his Department, or public bodies under the aegis of his Department, enlisted the services of consultants in 2022; the purpose and value of each contract; and if he will make a statement on the matter. [18737/23]

View answer

Written answers

I wish to advise the Deputy that my Department publishes on a regular basis a schedule which details its consultancy fees, professional fees, legal fees and advisory fees by year. The information for 2022 can be accessed at the following link:

www.gov.ie/en/organisation-information/8b97d6-consultancy-costs/

With the exception of the Office of Public Work (OPW), the information requested by the Deputy for the bodies under the aegis of my Department is set out in the tables below. The National Shared Services Office have advised the Department that the Office did not engage any consultancy services during the period specified.

The OPW have advised that there are a number of areas across the organisation that could potentially use consultants for a variety of projects and that the collating of this information will take considerable time. However, the OPW have assured me that they will commence collating this information and will reply directly to the Deputy as soon as possible.

Public Appointments Service

Consultants

Purpose

Total of Contract Value

Grant Thornton Consulting Ltd

Provision of Business and Management and ICT Consultancy Services. This is in support of Project Nova, which is a project to replace the recruitment system; it is a multi-year contract from July 2021 (2022 spend of €144,000)

€800,000

Version 1 Software Ltd

STAR (recruitment system) and database support.

Contract to provide annual IT support services and maintenance for the PAS core recruitment software and environment

€235,206

Real Event Management/Real Nation

Educational Consultants - School Engagement and Competition Management & "The Pitch" support, multi-year contract

€165,745

IPSOS MRBI

Customer Engagement Strategy. Includes the development of a Customer Engagement Framework for obtaining ongoing feedback from client departments and candidates for public service roles

€100,000

Hays Specialist Recruitment Ltd

Executive Search Contracts - this is used when client bodies request executive search as part of a recruitment process for senior or difficult to fill roles (2022 spend of less than €2,000)

€93,000

DHR Communications

Communications advice

€36,960

CPL Solutions Ltd

Strategic Planning & Business Development Supports

€25,000

Economic and Social Research Institute

Research & Analysis

€24,921

Neil Scott

Review of Assessment of Under-represented Groups

€14,490

DHR Communications

Support for the Schools Project "The Pitch" competition

€4,956

Office of the National Lottery Regulator (ORNL)

Consultants

Purpose

Total of Contract Value

Behaviour and Attitudes

Market Research

€151,290

Gibney Communications

Communications consulting (3-year contract)

€104,550

Mason Hayes & Curran

Legal Consulting (3-year contract)

€72,570

Recruitment Plus

Recruitment services

€33,210

Petrus Consulting

Financial consulting (3-year contract)

€18,450

Mazars Consulting

IT Consulting

€12,977

Public Authority Pension Services

Pension consulting services (3-year contract)

€11,808

Millman Actuarial Services

Actuarial consulting services on Lottery games

€11,685

Office of the Ombudsman

Consultants

Purpose

Total of Contract Value

Crowleys DFK

Audit Services

€22,000

CW SYSTEMS Integration Ltd

IT Consultancy

€15,553

Brian Gageby BL

Legal Consultant

€14,637

D-PIT Solutions

IT Consultancy

€7,509

John Riordan

Audit Services / Financial

€6,975

Niamh O’Donoghue

Management Consultancy

€6,000

Integrated Engineering Consultancy Ltd

Environmental Consultancy

€2,214

Quadra Ltd

IT Consultancy

€1,267

State Laboratory

Consultants

Purpose

Total of Contract Value

O’Meara Consulting

Internal Audit

€23,576

Public Procurement Contracts

Questions (207)

Rose Conway-Walsh

Question:

207. Deputy Rose Conway-Walsh asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if he will outline the benefits of establishing the Office of Government Procurement on a statutory basis; if he will provide a timeframe for establishing the OGP on a statutory footing; and if he will make a statement on the matter. [18743/23]

View answer

Written answers

In commencing the procurement reform programme in 2013, the Government decided that the Office of Government Procurement (OGP) be established initially as a Division within my Department, with an intention to establish it thereafter on a statutory basis.

In progressing legislation to establish a body on a statutory basis, there are a number of factors that I must assess including potential benefits, costs, regulatory considerations, risk, etc. I am currently considering this matter. As the Deputy is aware, primary legislation is required to establish the Office on a statutory basis and, to that end, it is included in Government's Summer Legislative programme.

Public Procurement Contracts

Questions (208)

Rose Conway-Walsh

Question:

208. Deputy Rose Conway-Walsh asked the Minister for Public Expenditure, National Development Plan Delivery and Reform when the OGP will produce an information note to give guidance to public bodies on how apprenticeships can be incorporated into public procurement contracts; and if he will make a statement on the matter. [18744/23]

View answer

Written answers

The Office of Government Procurement published a new Information Note on Apprenticeships and Public Procurement on 18 April 2023 which can be accessed via the below link:

www.gov.ie/en/publication/8b008-apprenticeships-and-public-procurement/

This information note, developed in collaboration with the Department of Further and Higher Education, Research, Innovation and Science, provides information for public bodies on the inclusion of apprenticeship provisions within public-sector tendering processes.

Capital Expenditure Programme

Questions (209)

Rose Conway-Walsh

Question:

209. Deputy Rose Conway-Walsh asked the Minister for Public Expenditure, National Development Plan Delivery and Reform when the review of the Capital Works Management Framework which commenced in March 2019 will be published; and if he will make a statement on the matter. [18745/23]

View answer

Written answers

The Capital Works Management Framework (CWMF) represents the tools that a public body must use to procure and manage the external resources necessary to deliver a public works project that is to be delivered under the Exchequer-funded element of the National Development Plan. It consists of a suite of best practice guidance, standard contracts, generic template documents and procedures that cover all aspects of the delivery process of a public works project from inception to completion of the construction stage and the review of its delivery.

A review of the policies and practices deployed in the procurement of public works projects commenced in March 2019 and is ongoing. The focus of the review is on improving the delivery of construction projects in terms of quality, timely delivery and cost outcomes. The review will deliver significant changes to the CWMF over the coming years. The review process involves extensive engagement, both with industry stakeholders, and with the public bodies charged with the delivery of public works projects on a broad range of issues such as:

• price variation;

• risk management;

• creating a better quality: price balance in the award of contracts;

• adoption of BIM on public works projects;

• liability, indemnity and insurance requirements;

• performance evaluation;

• encouraging collaborative working.

A high-level strategy has been developed by the Office of Government Procurement (OGP) with the Government Construction Contracts Committee (GCCC) that will guide the implementation and will be addressed primarily through the progressive refinement and enhancement of the CWMF.

Covid19 impacted the review in 2020 and 2021, followed in 2022 by exceptional inflation pressures. These events necessitated the redeployment of resources to address the contractual and procurement issues that arose. Ex-gratia measures were introduced to safeguard public works projects that were under construction in 2020, 2021 and 2022 which have been followed up by amendments to the suite of public works contracts which extend those entitlements to new contracts.

Despite the disruption, progress has been made on a number of workstreams as summarised below:

• The initial focus in the review is on the engagement of consultancy services, which is aimed at driving better project definition, in order to provide greater certainty for all those engaged in the construction stage. Overall improvement in project definition is required through establishing minimum standards for information at the different stages of a project’s development. Work is ongoing on the detailed implementation aspects of the review of the engagement of consultancy services, which will be delivered by means of changes to the template tender documents, publication of new guidance material and exploring digital solutions. A series of bi-lateral meetings with the main bodies representing construction professionals was held in March to discuss draft guidance on brief preparation. Further engagements are being planned for Q2 to review scope of service requirements.

• A review of the price variation mechanisms used in both the CWMF consultancy and construction contracts is currently underway. Initial research to review the inflation provisions in both the CWMF consultancy and construction contracts has been completed by consultants. Significant increases in construction material costs continues to impact tenders and contracts. Procurement guidance for ‘live’ tenders was published in November 2021. Interim amendments to the provisions in the public works contracts to address inflation in construction materials were introduced in January 2022.

• Following further inflationary pressures arising out of the Russian invasion of Ukraine concerns have been raised about the ability of contractors to withstand prolongation of elevated materials prices coupled with increases in energy and fuel prices. In the interest of safeguarding the delivery of the NDP and key projects underway, a new inflation co-operation framework was introduced for those parties engaged under a public works contract. The framework facilitates the parties to engage with one another on an ex gratia basis for the purpose of addressing the impacts of exceptional inflation in construction materials and energy, and supply chain disruption. Consultation on broader changes will commence with stakeholders later in 2023.

• Building Information Modelling (BIM) has the potential to transform the processes surrounding project and data management on construction projects and can drive significant efficiencies. The OGP is currently engaged with the Build Digital Project in developing supports for public bodies procuring projects through BIM. The aim is to ensure a consistent approach to its application across the public and private sectors. An implementation plan will be published later in 2023 setting out dates for a phased adoption of BIM on public works projects. A series of masterclasses is ongoing to prepare public bodies for the implementation of BIM. External advisers have been engaged to draft contract amendments to incorporate BIM into the CWMF and to prepare template procurement documents for publication.

• The OGP is engaging with key stakeholders on the issue of liability, indemnities and insurance and is reviewing broader aspects of the required terms in the contracts used to engage design teams and contractors. Engagement with the insurance sector and construction industry stakeholders has also taken place on issues relating to cost increases on Professional Indemnity Insurance (PII) premiums and the reduction in cover available. Arising out of the engagement, amendments to CWMF documents and additional guidance was published in February 2022 to address PII challenges. A further recommendation arising out of that engagement was to introduce caps on liability into the suite of CWMF contracts to provide certainty to all those engaged in the delivery of public works projects as to the extent of their liability in the event of a breach. The first phase has concluded with the publication of amended contracts used to engage consultants on 31 March 2023 with the necessary amendments to the suite of public works contracts to follow in this quarter.

• Engagement is ongoing in developing standard metrics for life cycle costing and life cycle analysis that can be applied to the evaluation of projects’ cost of use in service and full life cycle analysis, including the carbon impact of individual projects. The OGP is liaising with the GCCC and the Irish Green Building Council in developing these metrics.

• The Cost Control Templates published under the CWMF are undergoing review to incorporate the International Construction Measurement Standard (ICMS). A working group has been established and revised templates will be published in before Q3 of 2023. ICMS is a global standard for benchmarking and reporting of construction project cost and covers both capital and whole life costing while providing a way of presenting costs in a consistent format.

• A review into the performance of alternative dispute resolution (ADR) provisions that were introduced in 2016 has also taken place in 2021. A final report on the review has been prepared by consultants, which will form the basis of a position paper on ADR provisions in the public works contracts.

Together these reform processes will lead to meaningful policy change and will assist in delivering better value for money for the taxpayer in the implementation of Project Ireland 2040.

Office of Public Works

Questions (210)

Paul Kehoe

Question:

210. Deputy Paul Kehoe asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the status of the long-standing application with the OPW on the delivery of the new Coastguard Station in Kilmore Quay (details supplied); and if he will make a statement on the matter. [18785/23]

View answer

Written answers

The Irish Coast Guard, a Division of the Department of Transport, has 44 Coast Guard Units based in 58 coast guard stations around the country. The Coast Guard building programme, which includes the provision of new or upgraded facilities at a number of locations across the country, is managed by the Office of Public Works (OPW) on behalf of the Department of Transport, from planning design to build and on-going maintenance. These projects are funded by the Department of Transport.

My office provides advice and assistance on the design of such projects, site feasibility studies, acquisition of sites from the local authority or others, planning and detail design, and manages the delivery in line with the requirements of the Department of Transport and Coast Guard Service.

New accommodation for the Kilmore Quay Coast Guard Unit is included as one of the key priorities on this delivery programme. There were some delays in the identification and acquisition of a suitable site however in recent years the Commissioners of Public Works have acquired a site in Kilmore Quay from Wexford County Council and a feasibility study on a proposed new facility has been approved by the Coast Guard Service.

The next steps of this project will be progressed, including the appointment of full design team, progressing planning permission and the detailed design of the new facility subject to the availability of resources.

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