Local Fine Gael TD and Minister of State, Brian Hayes has welcomed the Government’s new Pathways to Work initiative which aims to help 75,000 long term unemployed people move into the workforce by 2015.

“A large number of people in Dublin South West have been affected by the unemployment scourge, either directly or through a loved one who has lost their job. Pathways for Work aims to stop the slide of people into long term unemployment (over 12 months) and to ensure that as many job opportunities as possible are filled by people who are on the live register. The State will engage with every jobseeker to make sure that their first day out of a job is also their first step on the pathway back to work.

“This involves a more streamlined approach, with the establishment of the National Employment and Entitlements Service (NEES). In addition to processing welfare entitlements, NEES employees will actively provide needs assessments and engage with newly unemployed people. It will then offer job search assistance or appropriate education, training or work experience opportunities to increase their employability.

“Many of the measures involved represent basic common sense and reflect international norms in relation to State involvement in supporting jobseekers. Unfortunately, under the last Government, State support for jobseekers cost a huge amount and delivered little as was evidenced by the FÁS debacle.

“I urge jobseekers in Dublin South West to engage with their local employment office and to avail of all opportunities to avail of jobs or training opportunities. Jobseekers who refuse to avail of these opportunities will see a reduction in the jobseekers benefit.

“Similarly, I urge local businesses in Dublin South West to re-engage with their local employment office when they have a vacancy to fill so as they can be matched up with the most suitable jobseekers. The Government has incentivised job creation by reducing VAT in labour intensive sectors such as tourism and halving the lower rate of employers PRSI.

“We have a highly skilled and educated workforce and this Government is determined that the mistakes of the 1980s and 1990s, when unemployment remained high even after economic recovery took hold, are not repeated. No one who loses their job should be able to drift without support into long term unemployment.”

Local Fine Gael TD and Minister of State, Brian Hayes has today (Wednesday) welcomed clarification from the Minister for Education, Ruairi Quinn, that 235 DEIS teaching posts, which had been due to be axed under Budget cuts, will now be retained.

Minister Hayes stated “I am relieved that the Minister has taken on board the concerns of teachers and parents in relation to the proposed cuts at DEIS Band 1 and Band 2 schools. This is a welcome development as we attempt to combat disadvantage and tackle issues regarding literacy and numeracy among young vulnerable children.

Minister Hayes concluded. “I would like to commend the Minister for listening to the concerns expressed by myself and other Deputies in recent weeks and allowing DEIS status schools retain these vital important teaching posts.”

Eurogrip Meeting 20th Febrary 2012

Brian Hayes TD, Minister of State with special responsibility for the Office of Public Works (OPW), today announced funding for two areas that have been badly hit by flooding in County Kerry; Cromane and Kenmare.

Speaking in County Kerry this morning, Minister Hayes said: “I am pleased to announce that my office, the Office of Public Works, through our Minor Flood Mitigation Works Scheme, has today allocated €100,000 for embankment strengthening works in Cromane and €99,000 for works at Finnihy Bridge in Kenmare.  Both of these areas have received a considerable amount of coverage in recent times as a result of damage caused by floods and my colleagues in County Kerry have kept me apprised of the situation that has been developing here. I was keen, therefore, to visit the areas for myself and I had the opportunity to do so for the first time this morning”.

The Minister continued: “I can see now, at first hand, the importance of taking action in these areas, so I am allocating money for the removal of a beam and for the provision of a drain under the Finnihy Bridge in Kenmare.  I am also allocating funding towards the installation of gauges and the establishment of a monitoring programme at this location. It is important that I stress that it is still possible for Local Authorities to avail of funding under this Minor Works scheme and it is an area that is continuously given consideration by the officials in the OPW’s Flood Risk Management section”.

Minister Hayes was on a visit to County Kerry, during which he visited the above areas and also Rossbeigh beach.  He also visited Killarney House and Derrynane House to inspect ongoing renovation works.

“Borrowing for current spending robs our children’s future”

 “Interest payments on national debt climb from 2billion to 7.4billion in just 4 years”

The debate surrounding our national finances in recent years has focused on expenditure cuts, tax increases, bailouts and bond markets. The debate needs to be widened to take into account two issues which too date have not been part of that national conversation.

Both issues relate to borrowing and our national debt. The first is inter-generational equity and the second is the burden of interest payments.

It’s important that we differentiate between borrowing for investment purposes and borrowing for current spending. Borrowing at reasonable levels of interest rates for capital investment makes sense if the investment generates adequate returns. That is why the government will stay focused on the investment, enterprise and jobs agenda for 2012. We are determined to get this country growing again.

Borrowing for current spending however is much more problematic. There are serious questions of inter-generational equity to be addressed.

Borrowing for current spending is in effect this generation robbing its children in order to maintain existing standards of living. Effectively we are asking our children to take less in order that we might have more. Loading our children with the responsibility of repaying our ballooning debt is reckless and irresponsible.

Each generation has a responsibility to live within the means available to it. It is neither just nor fair that we should ask our children to pay the bills for our spendthrift ways. There needs to be a much stronger engagement by young people on the issue of borrowing and how it will be financed into the future.  At a time of economic crisis and national renewal we don’t want young people standing on the sidelines. Their view on this debt mountain that they are being asked to shoulder for a very long time is crucial in framing our discussion on the public finances.

Those who oppose the government’s efforts to bring into balance revenues and spending also wilfully ignore the elephant in the room – interest payments on our national debt.

The figures are truly staggering.

In 2008 interest payment on our national debt came to 2.1 billion euro, which was equivalent to 5.1% of tax revenues. In 2012 interest payment on our national debt is forecast to reach 7.4 billion euro that is equivalent to 20.7% of tax revenues.  Interest repayments for 2015 are expected to reach 9.2 billion euro, equivalent to 21.3% of tax revenues.

The vast bulk of Irish government borrowing is from external sources. Only a small percentage of the national debt is held by Irish citizens.  This means that interest payments on the national debt is leaving the country. As far as the Irish economy is concerned interest payments on the national debt is worse than dead money. It is a river of resources leaving the country every year.

Those who advocate increased government spending never address this critical issue. They seem happy to watch the debt mountain climb as more and more scarce resources leaves the country.

In all the talk about bailouts, borrowing and bond markets we need to keep some simple principles in mind.  There has to be a balance between revenues and spending, we need to stop growing the pile of debt and we need to be acutely aware of the wasteful treadmill that is interest repayments.

Just because we can borrow doesn’t mean we should do so. When a country borrows to excess it puts its hand in the dog’s mouth.

There remains an urgency regarding government borrowing and interest repayments on that debt.  Stop growing the debt pile and controlling interest repayments will continue to be priority issues. Failure to do so will restrict our ability to grow the economy, will further damage our children’s prospects and will seriously undermine our capacity to sustain public services and public sector pensions into the future.

We were here before in 1980s. This government is determined to learn from the mistakes that were made then. Small open economies that are highly privatised, such as Ireland, must control their national debt. Getting the Debt down, over time, as a percentage of national income is an absolute priority.

Brian Hayes TD, Minister of State with special responsibility for the Office of Public Works (OPW), today gave details of a range of procurement initiatives launched by the National Procurement Service (NPS) of the Office of Public Works (OPW).  The Minister was making a keynote speech at the opening of the National Procurement Conference in the Alexander Hotel, Dublin 2.

Minister Hayes said: “Public Service expenditure (all-island) on the procurement of works, goods and services amounts to approx €21 billion per annum.  This represents approx 10% of GDP, a very significant volume of economic/commercial activity.  The new Programme for Government has identified the role public procurement can play in becoming a tool to support innovation and to ensure access by Small and Medium Sized (SME) businesses to the public service market”.

“Only this week I launched a prime example of innovation: the Framework for Managed Print Services which is expected to generate savings of up to €22 million annually over the next two to four years. A managed print service provides a print solution that is strategic and cost effective.  It provides the public sector access to a modern and reliable service that has been tailored for the specific needs of the organisation. It is a tool for real public service reform that provides transparency in cost, and generates savings that will be of direct benefit to all of the taxpayers of this country.  Last week I launched a pilot project on e-Invoicing across a number of Government Departments and other public sector bodies.  The full rollout of e-Invoicing could lead to multi-million euro savings for the exchequer in terms of reduced administrative and transactional costs, as well as providing savings to suppliers to the public sector. In addition, Irish service providers in this area could become leaders in this technology across the EU Member States”.

The Minister continued: “there is a need for Government to achieve increased value for money from the marketplace.  In 2011 centralised procurement arrangements realised savings in excess of €29 million through the establishment of cost effective, centralised contracts in many areas of large spending including: electricity, gas, stationery, clothing and uniforms, paper, cars/vehicles, advertising and janitorial supplies amongst others. These contracts also result in considerable savings on administration costs. The Public Service needs to realise real and immediate efficiencies in the procurement process that will translate into verifiable savings”.

Minister Hayes continued: “The publication by the Department of Finance of Circular 10 of 2010 is a very significant development in ensuring that SMEs are not excluded from public procurement.  This emphasises the need for transparency: placing tenders valued at €25,000 or above on www.etenders.gov.ie. It ensures that criteria & insurance are proportionate to risk/value of the contract. It reduces the administrative burden by allowing tenderers self-declare their capacity to undertake the contract and it puts an emphasis on contracting Authorities encouraging joint bidding among tenderers”.

“The launch of a new Suite of Procurement documentation in June 2011 considerably reduces the administrative burden on both suppliers and buyers.  It means that suppliers wishing to compete for contracts can now expect to receive the same documents regardless of which public body issues them. Such a development should significantly reduce costs for suppliers when transacting business”.

“For Irish Public Service procurement the www.etenders.ie website is a very important platform. Through this website, suppliers wishing to do business with the State can see, and compete for, all contracts over the value of €25,000. In 2011 the NPS expanded the number of suppliers registered on this site to in excess of 80,000”.

The Minister concluded by recommending all delegates visit www.procurement.ie, a dedicated NPS website which is a valuable source of information for both buyers and suppliers. It is recommended that companies register as suppliers through this site, view upcoming opportunities and avail of a range of guidance material across the Government procurement spectrum.

“The Action Plan for Jobs will make it cheaper and easier to do business and to create jobs. It will support existing Irish businesses and new start-ups, while helping to attract inward investment from overseas. The Plan will set the environment to achieve the Taoiseach’s aim of having 100,000 more people working and making Ireland the best small country in the world in which to do business by 2016.

“The Plan changes the way Government interacts with business, by cutting costs and red tape. It contains 15 key actions to make it easier to do business and grow jobs. Under a key element of the plan, County Enterprise Boards will be replaced by a new One Stop Shop micro enterprise support structure. Through a new network of Local Enterprise Offices in local authorities, Enterprise Ireland will provide expert help to start-up businesses at a local level.

“We want to encourage firms in Dublin South West to sell their products abroad in lucrative export markets. Enterprise Ireland will identify a wider group of potential exporting companies under a new Potential Exporters Division. The corporation tax exemption for start-ups will be extended to 2014, and a new Development Capital Scheme will help fund mid-sized indigenous companies with major growth potential.

“Accessing credit remains a major challenge for many firms in Dublin South West; this will be directly addressed by the Partial Credit Guarantee Scheme and the Micro Finance Fund, which will help businesses struggling to get loans. To help indigenous firms grow their business here public procurement will be made more accessible to SMEs and it will be easier for small businesses to win contracts with large multinationals. Funding will also be increased for mentoring and development programmes for SME managers.

“A range of initiatives will target sectors that have high potential for growth including manufacturing, life-sciences, cloud computing, digital gaming, agri-food and tourism. This sustainable model will consign the bubble-economics policies of the previous Government to history.

“This Plan is a working document and its targets will be closely monitored and updated on a quarterly basis. Every Government department must play its part. By restructuring the banks, reforming our employment and training services, establishing NewERA and introducing a more sustainable taxation system the Government has already taken the steps necessary to rebuild our broken economy. This Plan will build on this progress with the ultimate aim of getting Ireland back to work.”

For the majority of public sector bodies their current office print regime is rather ad-hoc.  A typical Government office has multiple print and imaging devices such as; photocopiers, scanners and faxes.  These devices come from a wide range of different suppliers with separate supply and servicing arrangements.  The ratio of print devices to staff is often in the region of 1:2 and in some cases as low as 1:1 as a large number of staff would have their own desktop printer.  Un-managed print environments result in a plethora of supply arrangements generating a multitude of monthly invoices for processing, covering the supply of; toner, devices, repairs, maintenance and spare parts amongst others. This type of print environment is costly, inefficient and impossible to manage.

A Managed Print Service provides a print solution that is strategic, cost efficient and provides the public sector access to a modern and reliable service that has been tailored for the specific needs of the organisation. A single, yet comprehensive, invoice is issued every three months that covers all aspects of the print service.  All-inclusive costs are measured simply and transparently on a per click basis.  Framework Members will provide a minimum service level of 98% up-time and will manage the operation of the service remotely.  Remote monitoring will allow for the development of preventative strategies and rapid responses.

This Framework Agreement has been established following an open competitive process, on E-Tenders and in the Official Journal of the European Union, by the National Procurement Service (NPS) of the Office of Public Works (OPW). The Framework, which is valued at €100 million over a two year period, is available to the entire, non-commercial, public sector clients including; Central Government Departments, Offices and non-commercial agencies, Local Authorities, the Irish Health Sector, the Education Sector, An Garda Siochana, the Defence Forces and the Irish Prison Service.

The Managed Print Service Framework is made up of seven pre-qualified suppliers, three of which are multi-nationals and four are indigenous SMEs, (see Appendix 1).   All Framework Members have a significant operational presence in Ireland. SME participation in the Framework is broad and ranges from direct membership, to SMEs delivering the services on behalf of Framework Members.

At the launch Minister Hayes said: “This Framework Agreement ticks all of the boxes as far as whole of Government Policy is concerned; it promotes indigenous SME involvement, it satisfies green public procurement requirements and it helps to fulfil many of the requirements of the Croke Park Agreement and Public Sector Reform Agenda.  More significantly however, this Framework will deliver significant savings of up to €22 million per year.  Subject to a full uptake, it is estimated that in the first two-years duration of the Framework, there are potential savings of €44 million.   Using this Framework Agreement cuts the operating cost and substantially reduces the time required to go to market for individual Client Authorities”.

The Minster concluded by saying: “This Framework provides a tool for real public service reform that generates transparency in cost and generates savings that will be of direct benefit to all of the tax payers in this country”.

[1] The Framework Agreement will be in a place for two years with an option to extend by a further two years up to a maximum of four years.