Three Government departments are now subject to “special measures” relating to spending, an Oireachtas committee has heard.
Under measures agreed by the Government earlier this year, departments that exceed agreed budgets face closer supervision by officials from the Department of Public Expenditure and Reform (DPER).
At a meeting of the Oireachtas Budgetary Oversight Committee, officials from the Department of Public Expenditure and Reform told Labour Party finance spokesman Ged Nash that new oversight groups have been set up this year with the Department of Education and Department of Children.
This is in addition to an existing such group in the Department of Health, which has been in place for several years.
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Officials told Social Democrats TD Cian O’Callaghan that the Department of Education has had a hiring freeze put in place on the recruitment of administrative staff – which does not affect frontline roles such as teachers and special needs workers.
The department is subject to higher levels of scrutiny under a plan for expenditure controls approved earlier this year, Fine Gael TD Joe Neville was told.
Officials from the Department of Public Expenditure and Reform told Neville that in these budgetary oversight groups, departments have to explain policy and “give a level of information that is much greater” than they do under normal arrangements.
Significant levels of overspending in the Department of Education have led to a levy being placed on other departments worth €446 million. The committee was told there is additional oversight now in place in that department on staffing levels, school transport and reforms within special education policy, as well as other matters.
In the Department of Children, extra oversight has been brought in to assess what were described as “significant spending challenges” regarding HSE spend in the disability sector and an associated need for strengthened governance.
The committee also heard the Department of Health is €400 million overbudget this year, with Sinn Féin spokeswoman on public expenditure Mairéad Farrell telling the committee that there was also an overspend of €89 million in the Department of Social Protection, while the Department of Justice was also ahead of its spending profile for the year.
The overspend in the Department of Social Protection is driven by the Government decision to extend the fuel allowance by four weeks, according to responses to parliamentary questions put down by Farrell. In Justice, it is largely down to the number of people in prison, which is at its highest level – accounting for 125 per cent of total bed capacity.
The committee was told there has been “some level of moderation” in the growth in health expenditure in recent weeks after the HSE directed managers to put “immediate corrective measures” and cost-saving plans in place.
Under the levy put in place to backfill the overspend in the Department of Education, other Government departments have to bring forward proposed savings and efficiencies before the end of this week.
However, the committee was told that no department has submitted its proposals yet.
Speaking after the committee meeting, Labour’s finance spokesman Ged Nash told The Irish Times it was “very significant” that three departments “are in what I’d describe as ‘special measures’ and are having their homework checked by senior officials in the Department of Public Expenditure”.
“Given the clear spending pressures, it is clearer than ever ahead of October’s budget that Fine Gael and Fianna Fáil must focus on enhancing and improving health, education and disability services, and in so doing avoid their tendency to spend lavishly on wasteful giveaways to sectors that don’t need financial support.”
