GOVERNMENT DEPARTMENTS AND STATE AGENCIES:THE EXPENDITURE review group has recommended that the departments of Community, Rural Gaeltacht Affairs, and Arts, Sports Tourism be closed down as part of a major overhaul of the structures of government and its various State agencies.
If the proposal is adopted, their functions would be transferred to other departments and the move would result in respective Ministers Éamon Ó Cuív and Martin Cullen losing their posts.
“Adopting the proposals would allow for the creation of up to two other departments, whose creation could reflect emerging priorities for the Government,” the report states.
At present, there are 15 departments of State.
In relation to Arts, Sport Tourism, the review group has identified savings of €104.8 million and a reduction of 170 in its 1,433 staff.
This would result in a reduction of €17.7 million in the Irish Sports Council’s 2009 allocation of €52 million – a move that would impact heavily on the 60 sports bodies funded by the council.
In addition, the group has recommended a €16.4 million cut in funding for the horse racing and greyhound industries. Sports Campus Ireland at Abbotstown, once to have been a centrepiece of the so-called Bertie Bowl, would be scrapped.
The group supports a reduction of €37 million on arts and culture expenditure and a €27 million reduction in spending on tourism activities. This accounts for about 18 per cent of Fáilte Ireland’s current budget. In relation to the Department of Community, Rural Gaeltacht Affairs, the review group has identified potential savings of €151.1 million – just less than one-third of its budget. This would involve a reduction in staff numbers of 196, about one-quarter of its total. The functions of the department would be moved to other ministries.
The group has also recommended that Enterprise Ireland (EI) assume the responsibilities of a number of local agencies.
These include county and city enterprise boards, business innovation centres, the Western Development Commission and the enterprise functions of Údarás na Gaeltachta, Shannon Development, Bord Iascaigh Mhara, the Leader National Rural Development Programme and Teagasc.
The Irish Film Board would be folded into a new Enterprise Ireland.
It estimates that this would yield a saving of €10 million. “The group’s approach would permit the elimination of duplication in schemes, structure and administration and encourage the logical prioritisation of resources on activities that would deliver the best economic return,” the report states.
About 200 administration staff at EI could also be let go, netting a saving of €36 million, the report states. It also recommends a €10 million cut in capital supports offered by EI.
It said there was no “objective justification” for the existence of Shannon Development and recommends it be closed, saving €2 million a year.
The group says assets owned by Shannon Development, and not required by either EI or the IDA, should be sold, with the receipts accruing to the exchequer.
The group wants to take the axe to the network of offices operated overseas by EI, the IDA and An Bord Bia. EI and the IDA operate 47 overseas locations and the Colm McCarthy-led group says this should be reduced by 20 per cent to eliminate overlap.
McCarthy’s group has also proposed a major streamlining of the activities of State agencies. It has identified 43 “rationalisation measures” that would give rise to more than €170 million in savings.
Among its proposals would be a merger of ComReg and the new Broadcasting Authority of Ireland (BAI) and a transfer of the Irish Film Classification Office into the BAI. These moves would yield savings of €1.4 million.
The Ordnance Survey of Ireland and the Property Registration Authority would also be merged while the Digital Hub Development Agency would be folded into either EI or the IDA.
In education, it is recommended that the number of VECs be reduced from 33 to 22 along with an amalgamation of smaller primary schools.
It is also proposed to combine the National Roads Authority with the Railway Procurement Agency. One single transport safety body should be set up, the report says.
The group also wants the Law Reform Commission closed and the Pensions Board merged with the Financial Regulator.
The review group has also suggested a major overhaul of spending on research and development in the areas of science and technology with funding streamlined into a single area. The report identifies savings of €101.2 million – or 15 per cent of the budget in 2009 – in this area.
