The promises, the plans, the pledges . . . and what was actually delivered

The programme for government outlined the Coalition’s plans, some ambitious, some attainable

Banking & the troika deal

We will seek a reduced interest rate . . . to ensure sustainability of our public finances.

After almost two years of inactivity, Michael Noonan pulled off a coup this week with a commitment from fellow EU ministers to a rescheduling of loans. The details will determine a lot, but, along with the deal on the promissory note, it has made the past month a very successful one for the Government.

We will end further asset transfers to Nama.

Nama was a dirty word for the Coalition in 2011, but it has since completely changed its mind on the assets agency. Now Nama is taking over the assets of the former IBRC. A complete reverse.

Extend scope of bank liability to include unsecured, unguaranteed senior bonds .

The European Central Bank said no.

Dispose of the public stake in banks as soon as possible.

Bank of Ireland had a successful foray when seeking private investment. The Irish Life sell-off was a more recent success. However, the State’s massive stake in the banking sector looks like remaining for a long time.

Establish a strategic investment bank .

A major Labour idea with plans for an initial €2 billion in funding for strategic investments. A “strategic investment fund” was established instead as part of funding arrangements for New Era. Labour has had difficulty explaining that this was something other than a sop.

Jobs, the labour market & exports

Jobs Fund

This was originally a jobs budget but was downgraded to a “fund”. The programme committed the Government to cuts in VAT, a lowering of PRSI and a reverse in the cut to the minimum wage. Its budget is €2 billion over four years, partly funded by a levy on private pension funds. Promised 13,000 jobs and an additional 15,000 places in training.

A study on the VAT reductions in tourism showed 6,200 additional jobs in the sector but couldn’t say if any or all were attributable to the jobs fund.

New graduate, apprentice, intern and education schemes with 60,000 new places that were not available before.

The Government has certainly made inroads through a number of schemes but some of them overlap or replace old schemes. Getting there, but still way short of 60,000.

Replace Fás with a National Employment and Entitlement Service, and a single delivery unit in social protection, including one-stop shops.

Part of the break-up of Fás has happened and the rest of it will be absorbed into the VECs this year. After protracted wrangling with unions, a small number of the one-stop shops in social welfare offices have opened but progress has been too slow for the troika’s liking.

We will exempt from VAT service companies that export more than 90 per cent of their outcome.

The Government was told it was not in accordance with EU VAT laws and it was quietly dropped.

Innovation & commercialisation

Ireland as a “digital island”, a first mover on e-government and a leader in “cloud computing” in the public sector.

While there has been progress in terms of new ICT in schools, there has been less progress in other areas. An expert group report concluded that public sector cloud computing was a long way off.

A network of technology research centres focused on applied technological research.

Largely achieved. Recent announcement of €300 million in public and private funding to these clusters.

Supporting SMEs & credit to business

We will fast track the reforms needed for our bankruptcy legislation.

Achieved through the Personal Insolvency Bill which reduced the term for discharge of bankruptcy.

Reform of the joint labour committee structures.

A troika demand. Largely achieved, though only after the old system was struck down by the courts.

End to upward-only rent reviews.

Government reversed on this policy, claiming constitutional problems.

A temporary partial credit guarantee scheme for job-creating firms.

A 75 per cent loan guarantee from Government. Planned €150 million of additional lending per annum. Legislation enacted in July 2012, and became operable last winter. Very low uptake so far.

We will create a €100 million microfinance start-up fund .

Didn’t become reality until late 2012. Funding of over €90 million, but again low uptake to date. Mixed result.

Sectoral strategies

We will legislate to ban “hello money” in the retail sector.

Little action until the horse meat scandal this year. Legislation is promised as part of the merger of the Competition Authority and the National Consumer Authority.

We will abolish the €3 travel tax.

This was contingent on Ryanair and Aer Lingus reopening routes. Minister Leo Varadkar said they would not play ball and the travel tax remains in place.

We will double funding for home efficiency. After 2013 we will roll out a “pay-as-you-save” scheme for home insulation.

Pat Rabbitte got the fund increased from €60 million to €90 million in 2011 but it has fallen back to €60 million this year. The number of homes being insulated has dropped sharply. Pay-as-you-save envisages one million homes being insulated by 2020. A recent NESC report expressed doubt about the Department of Energy’s preparedness. The department says the new scheme will begin later in 2014.

Investment & fiscal policy

We will draw up a new National

Development Plan for 2012 to 2019.

Not a word has been heard about it since March 2011. The 2007 to 2013 NDP is still the official plan. The Government has announced a number of capital plans (including a €2.25 billion plan from July 2012 for roads, schools and health centres) but there is no over-arching strategic long-term plan. Ergo, a failure.

Sale of €2 billion in State assets.

The Government convinced the troika that 50 per cent of funds raised could be used for investment. It’s a slow grinding process. The sale of Bord Gáis Energy’s energy business will be launched this year. The ESB will be proceeding with selling its 50 per cent stake in UK and Spanish energy generators this year. Coillte’s harvesting rights will be sold . The Government will also sell its stake in

Aer Lingus, but only when market conditions are right.

Keep the corporate tax at 12.5 per cent.

A sacrosanct policy. Retained.

Maintain current income tax rates, bands and credits.

Retained so far.

Consider a site valuation tax.

Troika insisted on this. Property tax to commence in July.

Review the Universal Social Charge.

The Coalition never seriously contemplated removing it as there were no ready alternatives and it took 300,000 lower earners out of the net.

We will ensure that tax exiles make a fair contribution to the Exchequer

Precious little done on this issue. Former minister Brian Lenihan’s domicile levy of €200,000 for wealthy individuals is still in place but only 10 paid it in 2012. Indications are this promise is being put on a very long finger.

Constitutional & political reform

Abolish the Seanad.

Referendum promised this year.

Referendum to reverse the Abbeylara judgment and allow Oireachtas committees carry out full investigations.

Referendum rejected. Legislation will give committees limited investigation powers.

Referendum to cut judges’s salaries.

Passed in October 2011.

A referendum for children’s rights.

Passed but with a paltry turnout.

Constitutional Convention to report within 12 months.

Was not even set up within 12 months but is currently in session. Seven issues to be decided. Hybrid of politicians and citizens seems to be working well. Some complaints that topics so far are minor.

Reduce the number of committees .

Reduced them too much and had to rejig and separate transport from environment. Committees cover too much ground with some areas (like Irish and the arts) lucky to get mentioned once a year.

Strengthen Freedom of Information Act; introduce whistleblowers legislation. Introduce a statutory register of lobbyists.

Bills on FOI and whistleblowers to be published before spring. Register of lobbyists well advanced.

Reduce the limits on political donations and ban corporate donations.

Limits reduced, but the Attorney General advised that corporate donations could not be banned outright. Reduced to €250.

Political funding for political parties will be tied to level of women candidates.

Phil Hogan has introduced quotas for parties, with a reduction in funding for failure to comply.

50 per cent increase in Dáil sitting days; Dáil will sit four days a week.

There has been an increase in sitting days up to 123 in 2012 compared to 101 in 2010 when Brian Cowen was taoiseach. Still a long way short of the 151 needed. The Dáil only sits four days a week once a month.

Friday sittings for committee reports and private member Bills to break Government monopoly on legislation .

Only once a month and no votes. Really poor attendance record, with only a third of TDs in attendance. Little of the legislation introduced has got anywhere.

Restricting the use of guillotine motions.

The Coalition has proved almost as enthusiastic as the previous government for beheading debates.

A committee week every four weeks to replace Dáil business.

Never happened.

More effective financial scrutiny

Establish a Fiscal Advisory Council .

Up and running and chaired by NUIG’s John McHale, although enabling legislation painfully slow. Government has not taken up its substantive “tough medicine” advice so far.

We will open up the budget process to the full glare of public scrutiny .

Hasn’t happened.

We will conduct a comprehensive spending review.

Now part of the political landscape with three-year expenditure ceilings set for all departments. Troika has criticised the fact that the ceilings are not set in stone, there are no sanctions, and that there are ample get-out clauses for errant departments.

Public sector reform

Reduce the number of public sector employees by 18,000 to 21,000 .

Looks like it will be achieved. Howlin has gone further and wants number reduced to 282,000 by 2015 – from a high of 320,000 in 2008.

We will make substantial cuts to the number of State bodies and companies.

The “quango cull” has been hugely modified. Only a third of first tranche of 48 was completed by the end-of-2012 target date, although all but one will eventually go ahead. Almost half of second possible tranche of 46 have been withdrawn or deferred indefinitely. Meanwhile, a small number of new agencies have been established.

Health

Universal Health Insurance.

An implementation group was formed but the crucial white paper on financing UHI promised for “early in the Government’s first term” has yet to materialise, with a promise it will be published in 2013.

Universal primary care.

This was what Labour got in exchange for agreeing to Universal Health Insurance - free GP care for everybody on a phased basis. Already behind schedule. The first phase for those with chronic illness should already be in operation. Legislation is now due to be published this spring. But no negotiations have yet taken place with GPs.

A special delivery unit to cut waiting lists.

It has come at a cost but there is no doubt that it has delivered. Waiting lists no longer featuring in daily headlines.

The National Children’s Hospital .

St James’s Hospital is now the chosen site but will not be built before the end of the Government’s term of office.

The delay can be ascribed to the adverse decision by An Bord Pleanála on the Mater site.

Expert group to make recommendations on ECHR judgment in ABC case and on X-case.

Report has been published. Legislation to give effect to X-case judgment will be published soon. The Inclusion of a threat of suicide as lawful grounds for abortion will cause internal difficulties within Fine Gael.

Other issues

A forum on patronage and pluralism in education.

Has happened and local communities have been balloted, although the method and low uptake have been criticised.

Ending long-term homelessness.

Jan O’Sullivan recently pledged goal would be achieved by end of Government term. Nearly 4,000 are homeless in Dublin but O’Sullivan believes coming up with long-term housing solutions for homeless people will reduce the dependency on emergency hostels.

An anti-corruption law to punish white-collar crime.

Promised for over a year. The draft of the Bill has been approved but the Government has given no indication as to when the Bill will be published.

We will establish a DNA database.

Bill on the A list and due to be published before Easter.

We will end the practice of imprisoning people who cannot pay fines and debt.

Alan Shatter’s proposals to replace prison terms with attachment orders on wages or the dole have yet to be published. Bill is expected in mid-2013. Some 7,500 were imprisoned in 2012 for not paying fines or debts.

Establish a judicial council.

Has been talked about for 20 years but with little momentum. Bill is on the B list and is scheduled to be published later this year.

A permanent Civil Court of Appeal .

Requires a referendum.

We will maintain social welfare rates.

Has been achieved to date.

We will support the 20-year strategy for the Irish language and deliver on achievable goals.

Cabinet committee on Irish language re-established and Gaeltacht Act passed. However no senior minister for Irish and the Gaeltacht, and little interest at Government level in fate of language.

Climate Change Bill .

Bill has been published but has been harshly criticised for not including

targets for 2030 or 2050.