Dept. Public Expenditure

Table of Contents

Overview of Establishment

This Minister and Secretaries Act 2012 provides for the establishment of the Department of Public Expenditure and Reform and for the transfer of certain functions from the Minister for Finance to the Minister for Public Expenditure and Reform. In general terms, the Act provides that the following broad functions will be transferred to the Minister for Public Expenditure and Reform:

the entirety of functions relating to the public service;
public service reform functions which will, for the first time, be placed on a statutory footing;
responsibility for managing public expenditure within the overall envelope set by the Government, while the Minister for Finance will retain responsibility for overall budgetary

Transfer of Functions

A broad provision transfers many of the general statutory functions of the Minister for Finance in relation to the public service to the Minister for Public Expenditure and Reform, such as those relating to public sector superannuation, terms and conditions of staff, remuneration etc.,

A large number of remaining statutory functions which are appropriate for transfer to the Minister for Public Expenditure and Reform will be transferred by way of Transfer of Functions Order, which will be timed to commence immediately following the commencement of the Act.

The Act lists functions which will be transferred to the Minister for Public Expenditure and Reform but which he will exercise following consultation with, or with the consent of the Minister for Finance. To reflect the new reform function included in the name of the Department, specific public service reform and modernisation functions are being put on a statutory basis.

The Act also provides for the necessary amendments to miscellaneous pieces of legislation, to take account of the establishment of the new Department or to link the policy role of the Minister for Public Expenditure and Reform in relation to the legislation with the payments role of the Minister for Finance in relation to the Central Fund.

The Government may determine, by order, a day to be the ‘‘appointed day’’ under the Act.

New Department

The 2012 Act provides for the establishment of the Department of Public Expenditure and Reform and the Minister for Public Expenditure and Reform in the English language and An Roinn Caiteachais Phoiblí agus Athchóirithe and an tAire Caiteachais Phoiblí agus Athchóirithe in the Irish language.

The Minister for Public Expenditure and Reform has responsibility for the management of gross voted expenditure and the annual estimates process, general sanctioning powers in relation to expenditure and policy matters relating to the appraisal, review and evaluation of expenditure, while the Minister for Finance will retain responsibility for overall budgetary parameters.

Key Functions

There is provision for the transfer of functions to the Minister for Public Expenditure and Reform. It contains a broad provision transferring the general public service statutory functions of the Minister for Finance to the Minister for Public Expenditure and Reform. A number of Offices currently under the aegis of the Minister for Finance will also transfer to the Minister for Public Expenditure and Reform.

These include the Commissioners of Public Works, Public Appointments Service, Commission for Public Service Appointments, Valuation Office and the State Laboratory. A large number of remaining statutory functions which are appropriate for transfer to the Minister for Public Expenditure and Reform will be transferred by way of a Transfer of Functions Order, which will be timed to commence immediately following the commencement of the Act. The Schedules to the Act list functions which will require to be exercised in cooperation with the Minister for Finance.

The 2012 Act details public service reform and modernisation functions which are being put on a statutory basis to reflect the new reform function included in the name of the Department. The Minister will also assume responsibility for existing non-statutory functions of the Department of Finance and the Department of the Taoiseach in the area of public service modernisation, development and reform.

Modernisation and Reform Agenda

The statutory functions will include the formulation and development of policies required for the modernisation and development of the public service and making proposals to Government in relation to the implementation of those policies, along with the coordination and review of the implementation of these measures across the public service.

The functions also include the promotion of value for money in the provision of public services and the development of policy and procedural frameworks in relation to the procurement of goods and services by the State.

The 2012 Act provides for the transfer to the Department of Public Expenditure and Reform of the administration and business connected with the transferred functions.

Transfer Mechanics

If legal proceedings involving the Minister for Finance are in train in relation to a transferred function immediately before the appointed day, these proceedings will, following the appointed day, be deemed to relate to the Minister for Public Expenditure and Reform.

Any work commenced before the appointed day, by or under the authority of the Minister for Finance in relation to a transferred function, will be carried on and completed by the Minister for Public Expenditure and Reform.

Any legal document made by the Minister for Finance in relation to a transferred function continue to have effect as if it had been made by the Minister for Public Expenditure and Reform.

Any references to the Minister for Finance in relation to a transferred function in any legal document or in the Memorandum and Articles of Association of any company shall be deemed to be references to the Minister for Public Expenditure and Reform.

All property, rights and liabilities, moneys, stocks, shares and securities held by the Minister for Finance in relation to any transferred function will transfer to the Minister for Public Expenditure and Reform without any further legal actions.

The consent of the Minister for Finance is required in relation to the disposal of assets and the application of the proceeds from the disposal of assets of State bodies, where such assets exceed a value of €50m.

Expenditure Approval

The Government approves an ‘‘annual approved expenditure amount’’ which can be reviewed in the course of a financial year if circumstances require. The Minister for Public Expenditure and Reform has full responsibility for the management of gross voted expenditure within the ‘‘annual approved expenditure amount’’ or the ‘‘revised annual approved expenditure amount’’.

The Minister for Finance may make recommendations to the Minister for Public Expenditure and Reform on the apportionment of the ‘‘annual (or revised annual) approved expenditure amount’’ as between current and capital expenditure.

Central Fund

The 2012 Act provides for appropriate changes to the Central Fund (Permanent Provisions) Act 1965 to give effect to the role of the Minister for Public Expenditure and Reform in relation to voted expenditure and to link the policy role of the Minister for Public Expenditure and Reform with the payments role of the Minister for Finance.

The Minister for Finance retains responsibility for payments from the Central Fund. The Secretary General of the Department of Finance will remain as Accounting Officer for both the Central Fund and the Finance Accounts.

Certain functions relating to the promotion and coordination of economic and social planning for the development of the economy and the identification of policies for general economic and social development may be exercised by either Minister but that they shall consult from time to time in relation to those functions.

Where Dep Finance Consent Required

The functions transferred to the Minister for Public Expenditure and Reform may be performed only with the consent of the Minister for Finance. These include provisions of certain Acts mainly relating to borrowings by State agencies.

Responsibility for matters relating to superannuation, remuneration etc of bodies under the aegis of the Minister for Finance remains with the Minister. The Minister for Finance will perform these functions following consultation with the Minister for Public Expenditure and Reform.

List of Transferred Functions

Schedule 2 Part 1 lists the functions of the Minister for Finance which are transferring to the Minister for Public Expenditure and Reform which will be exercised with the consent of the Minister for Finance (Sections 7 and 18 refer)

Schedule 2 Part 2 lists the functions of the Minister for Finance which are transferring to the Minister for Public Expenditure and Reform which will be exercised following consultation with the Minister for Finance (Sections 7 and 18 refer)

Schedule 3 lists the legislation governing payments of superannuation and remuneration from the Central Fund to link the policy role of the Minister for Public Expenditure and Reform in relation to this legislation with the payments role of the Minister for Finance in relation to the Central Fund (Section 16 refers).