Public Sector Magazine T3

The magazine for local government, public sector providers & decision makers

Ireland’s dedicated Magazine for the public sector, semi state bodies and civil service

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the Public Sector Magazine 5

Public Sector Magazine

ContentsIreland’s dedicated magazine for the Public Sector, Semi State Bodies, Local Government and Civil Servants

7 News All the latest public sector news.13 Comreg NISO award for commitment to

health and safety.14 More of the Same Planning for Croke Park mark 2.16 EU Agenda Minister Lucinda Creighton sets

out priorities for EU Presidency.20 Hospitality & Catering Rolling out the red carpet.26 Tourism 2013 The Gathering raises hopes in the

hospitality sector.29 Pay Scale

Ireland´s labor cost competitiveness has improved significantly.

30 RaiseyourProfile A social media guide for

politicians.32 Property Tax Everything you need to know

about the controversial tax.34 Debt Collection The case for outsourcing debt

recovery.36 Championing Innovation ITLG President John Hartnett

discusses entrepreneurship and innovation.

40 Start-Me-Up The recession drives new business

start-up´s.

42 High Fees Sky high pension charges can

threaten your retirement fund.44 Financial Planning Get your finances on track in 2013

with Wealth Alliance.46 Pension Changes The impact of recent changes to

public service pensions. 52 High Fliers Honoring outstanding

achievements.

HEALTH SECTION

58 Opportunity Knocks Targeting the global supply chain.61 James Reilly Interview Shaping a new future for Irish

healthcare.64 Smart Purchases Driving health efficiencies through

smart procurement.70 Health Insurance Check your health cover.72 Future Health A Framework for health service

reform.74 Home Alone Independent living with

Sensormind.76 Global Diagnostics Improving health service access

and reducing costs.

16 EU Presidency36 Championing Innovation 26 Tourism - the Gathering

Managing EditorTommy [email protected] Features ManagerBarry SmallOutsourcing and Procurement Features Manager Tony McCarthyTourism and Trade Sales ManagerMaria WhelanFinance and Energy Features Manager Tony DoyleTransport Features ManagerKevin HoganFeatures EditorTrish PhelanArt and Administration ManagerJoanne PunchCONTRIBUTORSShane CassellsContent KingsLynne NolanDesign: Minx [email protected]

The Public Sector Magazine is an informative guide for Government, Civil, Public Sector and Semi State decision-makers. It is distributed to, amongst others, Government Ministers, Ministers of State, Dáil Members, Senators, Secretaries of Departments, Deputy Secretaries, Assistant Secretaries, Principal Officers, CEO’s of State and Semi-State Bodies, County Managers, County Councillors, Purchasing Officers, Press Officers, IT Managers and Training Officers, Doctors, Financial Institutions, Unions, Representitive Bodies, Embassies, Public and Private Partnerships and Political Commentators.

Email: [email protected] | Tel: 01 2809410 | www.sophos.com

With complete security, you’re safer in our worldComplete IT security protecting every part of your business

Mobile ControlSecure, monitor and control iPhone, iPad, Android and Windows Mobile devices.

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Email ProtectionSecure your email with our software solutions, or choose a remotely-monitored appliance.

Unified Protection (UTM)One appliance that eliminates the complexity of multiple point solutions. It gives you complete security to stop the viruses, spam and hackers that threaten to compromise your business.

Endpoint ProtectionGives you everything you need to stop malware and protect your data in one console.It’s fast, effective and complete security for your users, wherever they are.

Data ProtectionYour confidential data needs protection, and you have to prove it’s protected to the regulators. Our encryption and data loss prevention (DLP) stops data breaches and lets your users securely access, share, store and recover data.


Public Sector Magazine

78 eHealth Investing in healthcare technology.80 Healthy Outlook Population based healthcare

screening in Ireland.82 Waste Management Facing up to waste.86 Rebuilding Construction Recommendations on restoring the

construction industry. 90 Dublin City Council The success of the ´Real Time

Passenger Information System´.93 Smart Parking Managing car park operations. 96 State Property Reducing the cost of the state´s

property portfolio.98 Fit-Out Specialists Oryx:- Commercial Fit-Out that´s

built to last. 101 Jobs Targeted New public sector redundancy

scheme approved. 102 Professional Services Ireland´s leading professional

services firms.

111 Purchasing Priorities Getting value for money and

improving SME access. 113 Public Contract Directive Getting down to business with

Achilles.115 Obvious Option Outsourcing can make a key

contribution to Ireland´s adjustment programme.

118 The Right Candidate Managed Payroll and HR

Solutions. 120 Technological Transformation Getting the timing right is key. 123 E-Invoicing Driving efficiencies and cost

savings through e-invoicing.128OfficeSecurity Simplifying branch office security.130 Safetica Keeping data secure134CloudConfident Building confidence in cloud

computing. 138 Morse Solutions Transforming public service IT

solutions

140 Thread Carefully Why we need a measured

approach to cloud computing. 142 IT Careers Microsoft promote career

opportunities in the IT sector. 146 Payzone Empowering Customers 151 Green Jobs Government targets extra 10,000

green jobs by 2015152 Renewable Assets Bord Gais targets tidal energy

opportunities. 154 Energy Management Measuring, analysing and

documenting energy use. 156 Electric Ireland Delivering innovation and

sustainability in energy. 158 Energy Security Diversifying the range of natural

materials used to create energy.

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8 the Public Sector Magazine

Public Sector News

In the NewsAll the latest Public Sector News

NEW ETENDERS WEBSITE

Brian Hayes TD, Minister of State for Public Service Reform Works has launched a new etenders website designed to simplify the awarding of State contracts.

According to the Minister Hayes the launch of the new etenders website makes a dramatic shift in favour of suppliers who have rightly complained about the endless documentation that is attached to each bid. “Once that documentation is up on the site, it’s there forever,” he said. “The site allows new bids from potential suppliers to simple cut and paste the documentation that is already there.

“Where a business expresses an interest in a specific area within the public sector and some work becomes available, they are notified because they are registered on etenders. A new function on the site is a quick quote which allows buyers to search and then invite suppliers to tender for low value contracts, typically below £25,000.”

With 72,000 suppliers registered on line with etenders, the Minister would “encourage every Irish business, big and small,

to register and to compete for public sector business. “This technology is well ahead of what’s on offer in other EU countries while complying with all EU directives,” he said.

LOSING TRUST IN PUBLIC SERVICE

Irish people have lost trust in the public service, despite a series of reports which show that significant reform and progress have taken place in the sector.

A recent conference hosted by the National Economic and Social Council (NESC) in Dublin, on the quality and standards in the public services, heard there has been a “silent revolution” in the regulation of many of Ireland’s public services in recent years.

A report launched at the conference, based on a series of previous studies on public services, found that many citizens have lost trust in public services as a result of systems failures. However, it stressed there had been progress and reform in terms of the regulation of some services by making them more accountable for standards and outcomes.

NESC director Rory O’Connell said there was greater regulation and oversight in key areas of the service. “There is now greater attention to the quality of services, and the standards underpinning them, thanks to increased oversight.”

The report highlighted a number of key improvements on specific public services, including: n There is now a more effective oversight infrastructure for

investigating complaints against gardaí; n Schools will be required to issue a five-year improvement plan

and regularly evaluate their progress; n There is now considerable momentum towards a personalised

model of care in the disability sector, which could build on much of the innovative work that has been accomplished by non-governmental organisations;

n Hiqa has operated as an effective regulator of care for

residential institutions for older people; n Standards are beginning to be applied in the area of homecare

for older people; n The Hospice Friendly Hospital movement has established

where end-of-life care needs to be improved and has regularly supported and monitored progress on this issue.

However, the report also found that individual organisations need to be supported to improve through collaboration with regulators, other providers and user groups. It also stressed the need for continuous scrutiny of the overall quality and cost of services.

“Irish people have lost trust in the public service, despite a series of reports which show that significant reform and progress have taken place.”


Public Sector News

SENIOR CANDIDATES

Maureen Lynott, the head of the group which makes recommendations to government on senor appointments to the civil service has said that suitable candidates have been put off applying for senior positions because of fears of a media backlash.

The chairwoman of the Top Level Appointments Committee (TLAC) has described the “public lambasting” of how senior civil servants do their jobs as dangerous, unfortunate and damaging. She said some capable civil servants gave concerns over invasion of privacy as the reason for not applying for senior positions.

Ms Lynott, a management consultant said that about 30 per cent of appointments to senior positions in the civil service were now from the outside, including the wider public sector with about 18 percent coming from the private sector. She added that internal candidates were every bit as competitive as those from the private sector.

END IN SIGHT

Three out of four Irish CFOs in large companies would prefer Ireland to see out the current IMF/ECB bailout deal to its conclusion in November 2013 rather than have an early return to the bond markets, according to the latest findings in the Q3 Deloitte CFO Survey.

Asked if the Government should push for a quick return to the bond markets or if Ireland should remain within the IMF/ECB framework and avail of lower rates and guaranteed funding, 76% of respondents favoured the certainty of the current programme.

The results of the survey also show a significant increase in optimism amongst Irish CFOs, from a net 0% in Q2 to a net 31% in Q3, in the wake of the agreement with EU partners in July that bank and sovereign debt should be decoupled. While the exact nature and structure of a deal is yet to be determined, there is a general belief among CFOs that a deal of some description will emerge to enable Ireland reduce the burden of the bank debt.

Overall a clear majority of CFOs believe the Government is having a positive impact on the fiscal stability of the country (71%), while 68% believe the Government has had a positive impact.

DCC AND THE DIGITAL HUB

As part of the Government programme to rationalise state agencies, the Digital Hub Development Agency (DHDA) is to be integrated into Dublin City Council. Created in 2003, the Digital Hub is a government project aimed at creating an international centre of excellence for digital enterprises.

In the November 2011 report on public sector reform, the Digital Hub Development Agency was highlighted for a merger, with either Enterprise Ireland or the IDA. However, according to the Minister for Communications, Energy and Natural Resources, Pat Rabbitte TD, it was decided that the most appropriate arrangement in respect of the Digital Hub Development Agency was that it would transition to Dublin City Council.

“Dublin City Council is keen to develop Dublin as a hub for digital and green enterprises,” he said. “It also has considerable experience in the management and development of property and in urban regeneration. This makes the Council particularly well placed to oversee the continued management of the Digital Hub Development Agency.”

To date, over 170 digital enterprises and over 2,000 jobs have been supported by the Digital Hub. The project also has a significant community development remit: based in the Liberties in Dublin’s south-west inner city, it has focused on regenerating the physical environment on its nine-acre campus and promoting community learning activities, in addition to its enterprise development work, which is specifically focused on the high-growth digital media / internet sector.

Philip Flynn, Chief Executive Officer of the DHDA welcomed the announcement. “Moving to the City Council now will allow the Digital Hub to continue to operate effectively while at the same time helping to realise important cost savings for the Exchequer,” he said. “The move will bring particular benefits in relation to the project’s enterprise, property management, learning and community functions. Dublin City Council has a wealth of expertise in relevant areas and, furthermore, has property interests adjacent to those of the Digital Hub.”

Mr Flynn stressed that the Digital Hub remains open for business and the move will not impact on the tenancy arrangements in place with the 70-plus digital enterprises currently located at the Hub.


Public Sector News

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Public Sector News

MGS in Ireland For The First TimeMGS Manufacturing Group recently opened its first plant in Ireland, bringing its total number of production plants to five.

The new manufacturing facility in Leixlip, Co Kildare, formally named MGS Manufacturing Group Limited, is the company’s fifth production moulding plant and the first outside North America.

The facility manufactures products for the computer, electronics, healthcare and consumer product markets.

The Leixlip facility has just over 45,000 sq-ft and currently houses machines ranging from 100 to 350 tons. Plans also include the construction of an ISO Class 8 ( 100,000) clean room for moulding and assembly operations at a later date.

Highly Qualified

“MGS currently employ approximately 50 people,” said John Curley, Operations Manager at MGS. “The current team is one which is experienced and highly qualified within the industry. The majority of the group have gained significant experience within the med tec and plastics industries in Ireland.”

MGS offers services including plastics injection moulding - including an expertise in multi shot mould design and manufacturing, project management and DFM support, mould maintenance and repair, validation and test facilities under ISO 13485 guidelines, semi-auto and fully automatic assembly, and printing.

“Currently all of our products are exported, however we are engaged with a number of Irish customers to support local demand,” explained John. “Our targeted markets include the pharmaceutical and med-tech sector and also high tech consumer sectors.”

MedTec 2013

Representatives from MGS Manufacturing will attend the Med Tec exhibition in October 2013.

The team at the show will be headed up by Bob Bordignon, Director of Sales for the MGS Corporation,. “At MedTec we hope to gain an opportunity to display our capabilities, an

ENGINEERING FOR OPTIMUM PERFORMANCE

Money penny in Location at MGS Ireland

industry update, and to network with current and potential customers and suppliers,” added John. MGS Group has been manufacturing moulds for over 25 years, delivering more than 400 moulds annually, operating over 2,400 active tools, including 500 multi-shot tools.

MGS produces a wide range of moulds to suit the needs of each business, including prototype, injection, single and multi-cavity and blow moulds, all in industry leading delivery times.

UMS products are developed and driven by the need for technology with greater versatility and functionality.·

Active Progression

The UMS product line includes portable injection units, vaccum units, base machines, rotary platens, and horizontal rotary stack systems.

The presses at MGS range from 28 to 880 tonnes. MGS provides customers with value-added operations, including pad printing, ultra-sonic, and welding packaging. Through customer demand and active progression on the company’s part, MGS has been expanding its services since it opened its doors in 1982, and employs over 600 people worldwide The Irish facility is now both ISO 9001 and ISO 13485 certified.

“The current team is one

which is experienced and

highly qualified within the

industry”


Public Sector News

RACISM WITNESSED BY 26% OF CIVIL SERVICE

A survey of racist attitudes carried out by the Public Service Executive Union has found that more than one in four civil service staff have witnessed their colleagues make racist remarks about clients or customers in the last year.

The Public Service Executive Union, which represents executive grades within the civil service, decided to carry out the survey in order to assess the level of workplace training in anti-racism and interculturalism which their members are given.

As well as revealing the extent of the training, the survey also revealed a number of statistics on racist incidents within the civil service. The survey discovered that: n 26% said they witnessed racist remarks being made by

colleagues about clients or customers in the past year; n 7% report witnessing a client or customer being subjected to

racist remarks or behaviour in the past year; n 4.5% reported witnessing a colleague being the subject of

discrimination in the workplace based on race in the past year;n 3.5% reported being the subject of discrimination based on race

in the workplace in the past year. Furthermore, the union surveyed both departments and individual workers on the existence of anti-racism training. Of the 16 departments which responded, all admitted that their department did not have a specific anti-racism and intercultural policy, but 10 of the 16 said they had an equality policy with a specific anti-racism component.

Half said a training plan had been drawn up which included specific anti-racism and intercultural training, and nine said their staff had received anti-racism training.

However, of the staff surveyed, 61% said they did not know if their employer had an equality policy with a specific anti-racism component, and 60% said they did not know if their department offered training which dealt with anti-racism or intercultural issues.

Only 20% said they had been offered training dealing with anti-racism or intercultural issues.

The PSEU’s deputy general secretary, Billy Hannigan, said the union would forward the results of the survey to the diversity section of the Department of Public Expenditure and Reform, as well a number of key stakeholders, including the Irish Congress of Trade Unions, the Irish Council for Civil Liberties, the Equality Authority, and the Minister for Justice and Equality, Alan Shatter.

HIRED HELP

Minister for Communications, Energy and Natural Resources Pat Rabbitte has defended his use of outside consultants.

The Irish Times reported that seven government departments have spent almost €3m in fees to consultants since March 2011.

The Department of Health spent the most money, thought to be over €800,000, whilst Minister Pat Rabbitte’s department came second, spending almost €600,000 on 13 reports.

Minister Rabbitte said that he would have thought his Department should be top of the list. “I would have thought that my department should have been top of the scale in terms of the use of consultants because of the technical nature of the department itself,” he said.

“You simply would not be able to retain the professional people you require [by employing them full-time].”

TAX RISE TO HIT PUBLIC SERVANTS

As many as 1,800 high earners in the public service will have to pay tax of up to 65% on their pensions when new budget measures are implemented according to a government report.

The tax strategy group of the Department of Finance found a cap on taxi relief for pension income of more than €60,000 could force public servants with pension funds worth 2 million to use their entire public service lump sum to pay their tax liability.

The report warns the measure announced in the budget will be unfair for public servants because they cannot opt out of making contributions to their pensions once they hit their tax relief threshold.

“Unlike in the private sector, such individuals who wish to continue serving can exercise no control over this accrual,” the report says. The group warned this is a serious drawback for well paid public servants and could “act as a barrier to the future recruitment of the “best quality individuals into the public sector”.

The Government agreed to implement the cap on tax relief for pensions of more than €60,000 after the Minister for Social Protection Joan Burton argued that it was a better option that reducing the tax relief on all pension contributions from 41% to 20%.

Minister Burton argued that only 27,000 taxpayers would be affected by capping tax relief on pensions of €60,000 or more while more than 500,0000 workers earning at least €35,000 annually would be adversely affected by standardising tax relief on pension contributions.


Public Sector Award

Health & SafetyComReg recently won the National Irish Safety Organisation (NISO) Public Sector Award in recognition of its high standards of Health and Safety. It is the fourth year in a row that the organisation has been recognised by NISO for its commitment to health and safety issues.

Ensuring a competitive and consumer focused communications network for Ireland is the duty of the Commission for Communications Regulation (ComReg) but recently they were the focus of achieving excellence in a different sphere altogether.

ComReg landed the national Public Service Award at the National Irish Safety Organisation awards held in Sligo and were held up as a shining light for achieving excellence in the workplace in the area of health and safety.

It is no fluke that ComReg has been recognised on this national scale as their Head of Human Resources Brendan Kenny leads a team that is totally dedicated to creating a safe working environment for his staff.

Indeed it is the fourth year in a row that ComReg has been recognised by the NISO for their exceptionally high standards in the area of health and safety.

For Brendan Kenny and ComReg, achieving this award shows how they are a professionally driven organization in every aspect of their work including the internal administration of their workplace.

“A key organisational strategy for ComReg has been to position ComReg as a recognised centre of excellence and independent accreditations by external bodies have provided us with the opportunity to benchmark our processes with

other organisations to obtain independent recognition of best practice standards and provide assurance for its

stakeholders”,he remarked.“Our employee safety is a key concern for us and we will continue to strive for the highest possible standards in this regard.

“ComReg has received external recognition and has been awarded a number of major awards for its human resources and consumer service,” he continued.

The importance of what his team are achieving in terms of health and safety in

the workplace cannot be underestimated when one considers the cost to business for those who have poor practices.

Earlier on the same day as the awards ceremony delegates at the NISO conference had heard from Tom Stephenson, group HSE director at Balcas Group, on the topic of the business value for health and safety. Presenting a case study to delegates, Stephenson explained how even a simple accident such as a fractured ankle in a small workplace can amount to costs of nearly €2,000 excluding medical and employers liability.

Dr Su Wang, specialist occupational physician and trustee board director at the International Institute of Risk and Safety Management, made a business case for health and safety and informed delegates how simple interventions such as stop smoking and health and well being programmes can have a positive impact on both business and personal health.

In ComReg’s case they have been focused in ensuring that they achieved improved evacuation systems and disability access both into and in the internal structure of their HQ. Ensuring that everyone who visits their HQ can access it in a safe and easy fashion is something which is very important to ComReg.

Ensuring that we have an efficient communication systems for the country may be a high tech job but making sure everyone charged with that duty works in safety is just as important and in that regard ComReg are top of the class.

Commission for Communications Regulation,Block DEF, Abbey Court, Irish Life Centre, Lower Abbey Street, Dublin 1.

Tel: 01 804 9600 | Fax: 01 804 9680Consumer Helpline: 01 804 9668 / LoCall 1890 229 668

Email: [email protected] Consumer Helpline: 01 804 9707 / LoCall 1890 200 035

Email: [email protected]

Websites: www.comreg.ie | www.askcomreg.ie | www.callcosts.ie | www.phonesmart.ie

The Commission for Communications Regulation (ComReg) is the statutory body charged with the regulation of the electronic communications market in Ireland. Our remit

covers the fixed and mobile phone markets, premium rate services, radio communications & broadcasting

transmissions, as well as the postal sector.


Public Sector News

Play it Again SamPaving the way for an extension to the Croke Park Agreement.

On assuming office, the government made a number of cast iron commitments; there would be no cuts in basic rates of social welfare, there would be no increases in income tax and the terms of the Croke Park deal would be strictly adhered to. In the context of the country’s dire fiscal position it represented a troika of promises that would prove difficult to honour. It was also virtually certain to raise hackles in the private sector where 300,000 jobs have been lost since the onset of the recession and which has had to bear cuts to child benefit and disability allowances while an assortment of obscure allowances were being preserved in the public sector.

From the governments’ perspective Croke Park was the price necessary to solidify the coalition and calm fears of conflict with the trade unions which would be likely to cause ruptures within the Labour Party. Many commentators felt that it would prove impossible to keep the Croke Park Agreement in tact while meeting the targets agreed with the Troika. The fact that the government has done so through the course of two budgets demonstrates that maintaining industrial peace is a core priority for the coalition.

Minister for Public Expenditure and Reform Brian Hayes first signalled the government’s intention to extend the Croke Park Agreement when he invited the unions to talks to assess ways in which €1 billion could be saved in the public service pay and pension bill over the next three years. The government confirmed that the commitments set out in the Croke Park Agreement which protected core pay and guaranteed that there would be no redundancies would remain in force. In return, the government expects concessions from unions in relation to longer working hours for staff while other issues such as increments, premium pay rates and possible reforms to existing grade structures could also be on the table.

The principal objective will be to secure agreement on additional working hours from full time staff which will ensure savings on overtime, premium payments and the cost of hiring agency staff. In addition it will help to maintain services as the numbers working in the public service continue to be reduced. In addition to achieving €1 billion in savings the government is also seeking further reforms aimed at creating a leaner and more effective public service. While an extension to Croke Park will bring political benefits to the Labour Party, further reforms and increased efficiencies will also help placate elements of Fine Gael who remain opposed to the agreement and are seeking blanket cuts in pay.

That same faction were dismayed by the failure to achieve the cuts in allowances targeted by Minister Howlin earlier in the year and it is likely that they will again be on the agenda in talks on the new deal. In advance of the first round of talks with unions Minister Howlin said the government would seek to examine all mechanisms which are regarded as best practice in the private sector. He also said that the government regarded some allowances as part of core pay which will be protected while others, he said, fall outside this category.

Minister Howlin said the government was keen to maintain the agreement but it had to be recognised that the country faced serious problems. He acknowledged that difficult negotiations lay ahead and he said that the unions know what “a desperate state” the country is in. “We’ve explained it and now we need to explain it again to the broad membership,” he said.

The Minister also paid tribute to public servants and recalled that the original agreement was delivered at a time when public and civil servants were engaged in a series of work stoppages and work to rule protests and it would have made the country’s continuing commitment to the terms of the bailout considerably more difficult if these actions had continued. The Minister acreditted the pragmatic approach of public servants and their delivery of comprehensive industrial peace across the public service with having made a substantial contribution to the improvement in the country’s international reputation.

Both the Government and the unions expect that negotiations aimed at achieving the €1 billion in savings will be more difficult than those which lead up to the first Croke Park Deal in 2010. Siptu vice president Patricia King said it was difficult to tell if an agreement could be reached. “This will be a much more difficult set of negotiations,” she said. “Our members have already suffered losses on a number of fronts and have seen their income drop significantly, so there are question marks over whether such an agreement can be done. I wouldn’t underestimate the difficulties in getting to a conclusion.”

“Maintaining industrial peace is a core priority for the coalition.”


Public Sector News

Ireland’s EU PresidencyThe key objective of Ireland’s Presidency of the Council of the European Union will be on restoring economic stability, creating the conditions for growth and prioritising job creation, writes Lucinda Creighton, Minister of State for European Affairs.

On 1st January, Ireland assumed the Presidency of the Council of the European Union for the seventh time in our forty year history of EU membership. Our Presidencies have often coincided with defining moments in the history of the European Union – from the reunification of Germany in 1990 to the accession of ten new Member States in 2004. Once again, as we approach the fifth year of the economic crisis, we will take the Presidency at a decisive moment in European history.

The Irish Presidency programme has not been spun from political rhetoric and high ideology. Our priorities are grounded in the realities which are emerging from the crisis – the need for stability, growth and jobs. This is a powerful triumvirate for affecting sustainable change in the Irish and European economies and it will guide every action we take during our six months in office.

Indeed, as the Taoiseach said in a recent speech on the Presidency, “if Europe and its economies can get on a sustainable path, if we can stabilise the euro and can fix our banking problem, then we’ve laid the foundations for recovery that lasts.”

EU Budget

Of course, stability cannot flourish without financial certainty, and we will work hard to secure agreement on an EU Budget that is fit for purpose and focussed on stimulating growth.

Across the eleven Council configurations and one hundred and fifty Working Groups/Committees, the Presidency will work to restore stability in the EU economy. Effective implementation and management of initiatives such as

Lucinda Creighton , Minister of State for European Affairs


Public Sector News

the European Semester process as well as achieving progress on the banking union proposals will be key to this objective.

The Irish Presidency will have a strong focus on facilitating economic recovery in Europe through a number of initiatives which are designed to stimulate growth and job creation. Realising the full potential of the Single Market through the development of the digital economy and agreeing outstanding measures under the Single Market Act I will be frontrunner initiatives.

There are over twenty three million SMEs in Europe, accounting for 99% of all registered firms. They are the life blood of our economies and we will also work to ensure that these enterprises have easier access to European financial supports for research and innovation.

Creating Jobs

Youth unemployment is also one of the major challenges facing Europe today. Tackling this issue is of paramount importance to this Government and, as such, it will be a key driver of our efforts during our Presidency. In particular, we will work to reach agreement on a Council Recommendation for a Youth Guarantee following the publication of the Commission’s Youth Employment Package.

Presidencies do not operate in a vacuum and the Civil and Public Service will play a critical role in delivering our objectives. Each Department has been integrally involved for over two years in preparations – from setting the priorities

for each Council configuration to logistical planning. Ireland will not take the Presidency of the Council of the European Union again for another fourteen years and the success of our upcoming term depends on all our civil and public servants – not just those which are on the front line of negotiations.

The European Union works to improve all aspects of its Member States – collectively and individually. Ireland will have a unique opportunity, for a short period of time, to guide the Union’s actions and the continued input and involvement of our public sector is, without a doubt, a central factor.

STUNNING VALUE!WEEKEND BREAKFor a night of luxury, room only ratesFrom only e99 per nightWith breakfast from e54.50 pps

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Do you have a system in place for managing business travel spend? Do you have the same for your meetings?

Research by business travel and meetings and events specialist Carlson Wagonlit Travel (CWT) indicates that while most companies have a central system in place for managing their travel budget, money spent on meetings remains difficult to track and manage.

CWT Ireland can now offer companies additional savings and advice on how to save up to 25% by combining travel and meetings spend with its newly formed division CWT Meetings & Events Ireland. This follows the acquisition of Dublin-based AC Events, a specialist provider of meetings and events management services to Irish companies since 2005.

Work as a teamThe main challenge is that individual departments usually manage their own meetings, making the overall spend on a company-wide basis difficult to track and measure. By centralising these costs, CWT studies show that savings of between 10% and 25% can be achieved when best practice is implemented across sourcing, policy, and compliance. Clear objectives, approval processes and inter-departmental communications are key in getting the whole team on board.

Tried and tested processes from a company’s business travel programme - tracking spend or management information reports, for example - can provide useful benchmarks and highlight potential savings.

www.carlsonwagonlit.ie

Negotiate with suppliersWhy not use preferred suppliers from your business travel programme for meetings? As well as reinforcing long-term relationships, increased volumes across both programmes can facilitate significant savings therefore easing contract negotiations.

When negotiating with venues, don’t just focus on discounts. Consider, for example, whether complimentary Wi-Fi or breakfast might better appeal to your attendees.

Implement standard contract terms and conditions across both business travel and meetings programmes in order to get consistent service from suppliers.

Make each meeting a successThere are a few steps that that will ensure a meeting or event’s success:

Define objectives (what you want to achieve by having this meeting), and stick to them

Follow an agreed approval process, and define a budget

Choose a convenient location

Plan well in advance

Outsource where necessary for the appropriate expertise

After each meeting or event, take time to evaluate. Follow up with clients and stakeholders. Ask whether anything might be improved. Examine supplier performance and calculate return on investment (ROI) for your company. By doing so, you’ll ensure your company’s travel and meetings programmes meet their objectives, and keep improving.

Talk to CWT Meetings & Events Ireland about your meetings and business travel needs:

219 9666 Email: [email protected] Web: www.carlsonwagonlit.ie

SAVE MONEY ON YOUR BUSINESS TRAVEL AND MEETINGS

COMBINE YOUR COMPANY’S MEETINGS AND TRAVEL SPEND FOR UP TO 25% SAVINGS

Carlson Wagonlit Travel and CWT Meetings & Events provide effective business travel and meetings management, helping companies unlock potential savings and understand the balance of growing your business while keeping the travel and meetings budget in check. Contact us today to find out more on 219 9666 or visit our website.

Do you have a system in place for managing business travel spend? Do you have the same for your meetings?

Research by business travel and meetings and events specialist Carlson Wagonlit Travel (CWT) indicates that while most companies have a central system in place for managing their travel budget, money spent on meetings remains difficult to track and manage.

CWT Ireland can now offer companies additional savings and advice on how to save up to 25% by combining travel and meetings spend with its newly formed division CWT Meetings & Events Ireland. This follows the acquisition of Dublin-based AC Events, a specialist provider of meetings and events management services to Irish companies since 2005.

Work as a teamThe main challenge is that individual departments usually manage their own meetings, making the overall spend on a company-wide basis difficult to track and measure. By centralising these costs, CWT studies show that savings of between 10% and 25% can be achieved when best practice is implemented across sourcing, policy, and compliance. Clear objectives, approval processes and inter-departmental communications are key in getting the whole team on board.

Tried and tested processes from a company’s business travel programme - tracking spend or management information reports, for example - can provide useful benchmarks and highlight potential savings.

www.carlsonwagonlit.ie

Negotiate with suppliersWhy not use preferred suppliers from your business travel programme for meetings? As well as reinforcing long-term relationships, increased volumes across both programmes can facilitate significant savings therefore easing contract negotiations.

When negotiating with venues, don’t just focus on discounts. Consider, for example, whether complimentary Wi-Fi or breakfast might better appeal to your attendees.

Implement standard contract terms and conditions across both business travel and meetings programmes in order to get consistent service from suppliers.

Make each meeting a successThere are a few steps that that will ensure a meeting or event’s success:

Define objectives (what you want to achieve by having this meeting), and stick to them

Follow an agreed approval process, and define a budget

Choose a convenient location

Plan well in advance

Outsource where necessary for the appropriate expertise

After each meeting or event, take time to evaluate. Follow up with clients and stakeholders. Ask whether anything might be improved. Examine supplier performance and calculate return on investment (ROI) for your company. By doing so, you’ll ensure your company’s travel and meetings programmes meet their objectives, and keep improving.

Talk to CWT Meetings & Events Ireland about your meetings and business travel needs:

219 9666 Email: [email protected] Web: www.carlsonwagonlit.ie

SAVE MONEY ON YOUR BUSINESS TRAVEL AND MEETINGS

COMBINE YOUR COMPANY’S MEETINGS AND TRAVEL SPEND FOR UP TO 25% SAVINGS

Carlson Wagonlit Travel and CWT Meetings & Events provide effective business travel and meetings management, helping companies unlock potential savings and understand the balance of growing your business while keeping the travel and meetings budget in check. Contact us today to find out more on 219 9666 or visit our website.


Public Sector News

GATHERING TRAVEL CONFERENCE

Minister for Transport, Tourism & Sport Leo Varadkar has welcomed the decision by the International Air Transport Association (IATA) to host its World Passenger Symposium in Dublin in 2013, as part of the year of the Gathering Ireland.

The organisers informed Minister Varadkar that: ‘We believe that the Gathering Ireland is a great opportunity for IATA and the aviation industry to showcase the initiatives that we are driving together to make our industry more secure, innovative and profitable’. The 2012 IATA Symposium in Abu Dhabi was attended by 500 people over five days. The organisers decided to host their 2013 symposium in Ireland having considered an alternative proposal from Spain.

Minister Varadkar said: ‘This sends out a clear message that Ireland is a good place for international organisations to do business. Fáilte Ireland has been working hard to promote Ireland

as a conference venue. I want to thank Fáilte, along with the Irish Aviation Leadership Group led by Brian Stapleton, for their work in helping to secure the conference’. The conference will be held in the National Convention Centre Dublin next October. Minister Varadkar also welcomed the news that Ireland has been voted the world’s best tourist destination among a survey of 28,000 high-earning frequent flyers. The Global Traveller survey of international business people found that Ireland topped the list as a visitor destination.

Price of the PresidencyTaxpayers foot the bill for EU presidency costs

European Affairs Minister Lucinda Creighton has said that Ireland´s six month presidency of the European Council would be marked by prudence in keeping with the current economic climate and a bill of €60 million is envisaged - considerably less than the €95 million bill incurred in 2004 when Ireland last hosted the EU presidency.

“It won’t be bells and whistles and the high-profile salubrious venues that might have been seen in the past,” she said.

One spokesperson said that the lavish displays such as motorcades of limousines carting officials to luxury venues which were a feature of Ireland´s previous EU presidency would not be repeated and he acknowledged that the public would not tolerate such displays of extravagance. The Government, he said, was aiming for substance over show.

The most significant costs will be on accommodation, catering, interpretation and the cost of hiring venues, all of which is estimated to cost €24 million. A further €20 million will be spent on the extra staff which will be required for Government Departments.

Dublin Castle which will host the bulk of the most important meetings is being refurbished while additional office space for Ireland´s embassy to the EU, stationary and an accreditation system for the visiting delegates will cost up to €12 million. Meanwhile, a cultural programme of as many as 300 events planned by the Arts Council which will take place in Ireland and abroad will account for a further ‹3 million.

Over 15,000 officials are expected to visit Ireland through the course of the six months of the Presidency and a number of Dublin´s most luxurious hotels including the five star Westerbury Hotel off Grafton Street and the Herbert Park Hotel in Ballsbridge, have already signed contracts with the Department of Foreign Affairs to accommodate visiting delegations while further contracts have also been agreed with a number of chauffeur companies to ensure visitors are

transported in the utmost comfort. The department has said that it will be paying accommodation

costs for a small number of visiting delegations who will be attending some of the 200 meetings scheduled to take place during Ireland´s EU presidency.

Eager to restore Ireland´s tarnished reputation no expense is being spared on mementoes and gifts for visitors and contracts worth about €200,000 have been agreed for specially made scarves and neck ties for VIP guests. Merchandise is also being bought for visiting ministers, officials, and EU journalists, including thousands of tote bags and USB keys.

To offset some of the costs the Government has agreed sponsorship details with a number of prominent companies including Eircom, Audi, ESB and UPC. Up to €1.5 million has been raised so far and talks are continuing with other potential sponsors who will be given “controlled use” of the presidency logo for one year and have their sponsorship acknowledged on the presidency website as well as receiving “limited branding” opportunities at presidency event venues.

While the €60 million which is expected to be spent hosting the presidency is equivalent to the sum spent by Cyprus, the last country to host the EU council presidency it is almost as much as the 35 million which was spent by Denmark during the first half of 2012.

The Government has insisted that it will not abuse its position to push for a deal on bank debt and while it says there is nothing untoward with continuing to articulate Ireland’s own position, the main focus of the presidency had to be the stability of the Eurozone and continuing to work towards jobs and growth. The view is that the goodwill generated through a positive and pro-active presidency would ultimately help lead to a good deal for Ireland.


Public Sector News

PARTY TIME

After four years in which Christmas parties and new year breaks were reined in due to the recession, the pursue strings appear to have loosened and companies are more engaged with the festive spirit and rewarding staff for their loyalty and hard work. Meanwhile families are also showing signs of being prepared to dip into their savings and take their family on a break to celebrate the new year.

In recent years the repercussions of the financial collapse for the hospitality sector during the traditionally strong periods of Christmas and New Year have been disastrous. Traditionally, a strong period for hotels, restaurants and bars, Companies have been scaling back and even cancelling events in order to demonstrate fiscal restraint and avoid shows of extravagance.

However, there are signs of a pick up in mood this year with a higher level of booking for both Christmas parties and New Year breaks and festivities. Companies were in a better mood to celebrate and holiday bookings also picked up, even while a more economical and last-minute approach to parties prevailed.

While it may not quite match up to the hedonistic celebrations enjoyed during the Celtic Tiger era when expense was no object and vast sums of money were lavished on corporate entertainment, the increase in bookings and corporate spend is welcome news for the hospitality sector. There is now a cautious optimism that signs of green shoots of recovery apparent from the boost in Christmas party bookings and New Year breaks and celebrations point to a potential recovery for the sector in 2013.

According to the Dublin Chamber of Commerce said there

were “significant increases” in Christmas party bookings among its members this year and some venues even had to turn away customers due to excessive demand.

The Citywest Hotel in Saggart has recorded a 35 per cent increase in bookings but according to General Manager Glenn Valentine there is a more frugal approach to parties in the present climate and the era of free bars for the night are past, people are going home earlier and there is a marked reluctance to ´splash the cash´.

A Similar story is apparent at the Blu Royal Hotel on Golden Lane in Dublin where bookings have almost trebled but celebrations are considerably more modest, according, to general manager Tim Whyte. While he believes that worst of the recession is now behind us he says that parties have moved away from the five course meal and the free bar and people are now opting for buffet style meals.

But besides all that – after a year of chasing deadlines, hitting targets and balancing figures, isn’t it time we all had some fun to look forward to?

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About Us

John Coughlan Catering Limited are based in Lucan, County Dublin. Our Directors and Management team have over 30 years of experience in providing first class food and service to a wide range of clients for Corporate and State Events, Sporting and Entertainment Events, Wedding Receptions, Banquets, and for Corporate Dining, covering all areas of Ireland.

Our services range from dedicated contract catering, including a total on site food and beverage service, to a casual but top quality buffet. Our experience is unrivalled in green field, banquet and event catering and a testament to the quality of what we do is that we have continued to retain some of the most prestigious catering contracts in Ireland year after year.

All of our staff have a passion for food, service and quality; we continually improve our services to cover trends, market forces and client needs and at an affordable, sustainable, end user price. As a business we are growing, attaining new contracts and consistently improving on those we currently have.

No catering requirement is too large for us to handle, from a simple buffet meal to a multi-location premier catering service we can provide consistently good quality, innovative food and service time after time. We have year on year, catered for some of the most prestigious state events, sporting and entertainment events, banquets and weddings and are currently the contracted caterer of choice for:n The Curragh Racecoursen Powerscourt Golf Club and Wedding Venuen Heineken Cup Rugby Final Fanzonen New Years Eve In Dublin Hospitality, Sponsors, Bars and

Mobile Foodn Police and Fire Games Belfast August 2013 Competitor catering n Police and Fire Games Public Catering management

Opening and Closing Ceremonies.n Ireland V’s England International Cricket n The Men’s European Golf Tourn The Ladies European Golf Tourn Electric Picnicn The Bavaria City Race Dublin City Centren Body and Soul Festival n Pod Productions Concerts and Hospitalityn The Tullamore Shown Dublin Castle and Farmleigh Government Event’sAnd many other prestigious events each year.

Our testimonials keep getting better and the standards of our food, service and value for money keep improving.

Food is our passion…..

Ireland has some of the finest food resources in Europe and we work closely with Bord Bía, Good Food Ireland and other Irish

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We pride ourselves in using only the freshest, finest quality and locally sourced ingredients, organic wherever possible, in all of our catering services. Our master chef’s excel in creating innovative menus using some of the best ingredients possible, cooked to perfection and served with style.

So when you need a professional catering company please do contact us for a no obligation quotation for your corporate event, gala dinner, private party, wedding reception, civil ceremony, staff party, product launch, catering contract or for any occasion where the highest standards of food, catering and service are required. We will be delighted to hear from you.

Contact: John Coughlan Catering - Tel: 01 621 4556 Email: [email protected] Website: www.jccatering.ie

mailto:[email protected]


http://www.jccatering.ie


Tourism

Luxury Travel SpecialistsLast year Eirebus, one of Ireland´s leading luxury coach hire and destination management companies celebrated forty years in business. The company offers a comprehensive range of tour management services for corporate and leisure groups and provides all the professional expertise required to ensure that your event exceeds expectations.

Eirebus is one of Ireland’s leading coach operators, with over 40 years’ experience in providing luxury coach transport to clients throughout Ireland, the UK and internationally. Since its inception in 1971, Eirebus has grown exponentially and today boasts a fleet of 45 deluxe coaches and minibuses. Throughout the years, Eirebus has forged strong relationships with thousands of corporate, government and private clients and the company prides itself on the consistent provision of professional and reliable coach hire services.

Eirebus is a recognised and respected coach operator, and is a long standing member of the Coach Tourism & Transport Council of Ireland (CTTC), the Irish Tour Operators Association (ITOA) and the Dublin Convention Bureau (DCB). It is also an ISO 9001:2008 quality approved company, ensuring the excellent standard of coaches provided.

Following a turbulent few years in Ireland, it is hoped that 2013 will be a little brighter. Ireland’s presidency of the EU Council will see the spotlight placed firmly back on our country and this, coupled with Tourism Ireland’s 2013 “The Gathering” initiative, should help to give incoming tourism exactly the boost it needs. Although our country has changed dramatically since our last presidency of the EU Council in 2004, Ireland still has a lot to offer and the 2013 presidency gives us the opportunity to present our strengths to a global audience and to demonstrate Ireland’s ability to be at the centre of decision making in Europe. It is therefore crucial that our seventh term in office is well executed.

Eirebus has worked closely with many Government departments and corporate clients over the years and we are experts in the movement of large groups. We operate an annual new vehicle investment policy and all of our deluxe coaches are owned by us and maintained at our headquarters in Dublin 15, just minutes from Dublin Airport. We are a quality focused company and our fleet of coaches and minibuses are equipped with WC, DVD, AC, PA systems as standard. Our drivers are professional, reliable and discreet and our coaches, which range in size from 16-49 seats, are top of the range.

We are perfectly equipped to offer quality coach hire for EU presidency conferences, seminars and events and we would welcome the opportunity to quote for any business arising from Ireland’s 2013 EU Presidency and beyond.

For further information: Tel 353-1-8242626, email [email protected] or visit www.eirebus.ie.

“Eirebus has worked closely with many Governmentdepartments and corporate clients over the years and we are experts in the movement of large groups.”

“Ireland’s presidency of the EU Council will see the spotlight placed firmly back on our country and this, coupled with Tourism Ireland’s 2013 “The Gathering” initiative, should help to give incoming tourism exactly the boost it needs.”

[email protected] www.eirebus.ie

A4 FLYER:Layout 1 03/06/2011 17:16 Page 1

– 45 coaches ranging in size from16-49 seats –

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Tourism

‘Hope on the Horizon’Plenty of festive cheer as Irish hotels look forward to “the Gathering” and a prosperous 2013.

Hotels in Ireland are renowned throughout the world as places of exceptional warmth, welcome and professional service.

Over the past decade we have seen an explosion in the number of rooms available for domestic and international visitors and the standards in service have improved due to the high range of college and higher education training courses now provided for those who work in the industry.

However, there is no getting away from the fact that the hospitality sector has taken a battering during this recession and along with the construction sector has felt the impact more harshly and quickly than any other.

With large staff numbers and heavy fixed overheads the impact of falling trade on balance sheets was acute. Tie in the fact that not only was there a domestic recession which was impacting on trade but a global one which was decimating international visitor numbers.

The onset of the economic crisis saw a dramatic deterioration in profitability within the hotel sector, with revenue per room falling 30% since 2007 and profit per room slumping 44%.

Average room rates fell from €97 in 2007 to €72 in 2011.Despite the cheaper accommodation prices, occupancy rates

fell from close to 70% in 2007 to 61.4% in 2011.

Global Marketing

There is hope on the horizon though and the Irish Government’s global marketing campaign in the form of the ‘Gathering’ is providing a massive opportunity for the hotel industry in Ireland in 2013

It is a most welcome boost as hotels across the country work harder and most importantly smarter to keep their enterprises afloat during this difficult time.

Christmas as always provided a welcome boost to coffers with office parties, special events and winter weddings providing business of a significant nature to the catering and drinks side of the operation.

It is but a fraction of what used to be collected though as the free bars offered by companies to their employees at Christmas

“Baby steps are being taken on the road to recovery and everyone is hoping that the return to the shores of so many of our Diaspora in 2013 with bring a much needed boost to this vital industry.”


Tourism

time are a thing of the past and the extravagant wine lists are substituted for house versions.

Against all of this the resilience shown by the industry is impressive and they have been getting a helping hand from government in addressing their costs and implementing strategic initiatives to boost trade.

Two very significant recent developments have been the commitment to the tourism industry in Budget 2013 and the granting of full independence to Shannon Airport from Dublin.

Reducing VAT

The decision by the Minister for Finance to retain the reduced tourism VAT rate at 9% in the recent budget was warmly welcomed by the Irish Hotels Federation CEO Tim Fenn. Acknowledging the significant boost provided to date by the 9% tourism VAT rate Mr Fenn welcomed the Government’s confirmation that the reduced rate will continue into 2013.

He noted that the measure had received an overwhelmingly positive response among hotels and guesthouses with over nine out of ten (93%) in a survey earlier this year saying retention of the measure would continue to have a positive impact on business into 2013.

However, noting that international tour operators book some 18 months in advance, Mr Fenn urged Minister Noonan to go further by removing any uncertainty around the tourism VAT rate’s retention into 2014 so that it doesn’t become a barrier to securing sustained growth in visitor numbers.

In light of the severe pressure on public finance spending, Mr Fenn welcomed the decision by the Government to limit cuts to the Tourism Services allocation to only 2% which would result in current levels of marketing and product development funding for Fáilte Ireland and Tourism Ireland being broadly maintained in support of The Gathering in 2013.

The IHF has also welcomed the granting of full independence to Shannon Airport from Dublin and the decision to merge it with Shannon Development as they feel it provides a boost for the region and the hotel industry.

Michael Vaughan, President of the IHF stated that it provided a momentous boost for the Shannon region and a powerful platform for the rejuvenation of Shannon Airport.

Welcoming the transfer of Shannon Development’s tourism functions into Fáilte Ireland, Mr Vaughan says the move injects

a much-needed clarity of purpose to tourism within the area and that the IHF is already working with the Fáilte Ireland team on a regional business plan for 2013. He stated that, despite the loss of Aer Rianta International, the plan is on balance a fair and just result that gives Shannon a sound basis on which to survive and develop to its full potential.

“Minister Varadkar has delivered on a promise to create an autonomous debt free entity. The region must now galvanise its efforts in the spirit of the pioneering early days of Shannon. Hotels and guesthouses look forward to working closely with Shannon Airport and playing their part in marketing the airport as a tourism hub for the wider Shannon region. This is of vital importance to local tourism businesses in light of The Gathering next year,” remarked Mr. Vaughan.

“Our focus now is on doubling our efforts, developing all possible new routes into the area and realising the enormous potential that exists to promote Shannon as a vibrant holiday destination to overseas visitors, particularly in the lucrative North American market.”

All of these initiatives by government are extremely welcome especially considering that Irish hotels are still carrying a total debt of €6.7 billion.

A report for the Irish Hotels Federation, compiled by economist Alan Ahearne, found that as much as €2.5 billion of that needs to be restructured to lower that debt burden to levels that will be sustainable in the long term.

`One of the obstacles to resolving the debt problem, the report said, is that it is difficult to attract investment particularly from abroad for smaller hotels outside the main urban areas. Among the solutions Alan Ahearne proposed is the use of qualifying investor funds which would select a group of hotels to invest in and allow investors from here and abroad to pool money for that object.

The IHF points out that the sector has a critical role to play in contributing to recovery in the country’s tourism sector and the wider economy. Tourism provides about 196,000 jobs in the economy, which represents about 11% of total employment. More than 50,000 people are directly employed by hotels and guesthouses.

‘’Now is the time for the Government to take decisive action to help improve access to equity finance and restore financial stability to the sector,’’ commented Tim Fenn, CEO of the Irish Hotels Federation.

With the statistics showing clearly what a key part the hotel industry plays in the Irish economy the need for government to continue to support the Hotel Federation’s members is clear. Baby steps are being taken on the road to recovery and everyone is hoping that the return to the shores of so many of our Diaspora in 2013 with bring a much needed boost to this vital industry.

Minister for Tourism Leo Varadkar

“Tourism provides about

196,000 jobs in the economy,

which represents about

11% of total employment.

More than 50,000 people are

directly employed by hotels

and guesthouses.”


Public Sector News

Pay Slides

THE Central Bank recently claimed that Irish labour costs are too high and said wage cuts of up to 10% were required across the board in order to restore competitiveness. There were few facts provided to support the justification for calling for further pay cuts and the comments conflict with the latest OECD report which says that Irish labour cost competitiveness has returned to levels last seen in 1998.

The trade union UNITE subsequently released details of Irish labour costs using data from the EU Commission’s data agency, Eurostat which shows that Ireland ranks 10th out of the EU-15 countries in terms of private sector labour costs. Nine other countries have higher labour costs but when Irish labour costs are compared to those of EU-Core countries (excluding the poorer peripheral countries), Ireland falls to 11 per cent below average, ranking second to last and when compared to economies with a similar structure as our own (small and open, heavily reliant on exports), Irish Ireland falls 18 per cent below average, ranking last.

In the low wage hospitality, wholesale & retail sectors, Irish labour costs are seven to eight per cent below the average of the other EU-15 countries. When compared with EU-core countries this falls 16 to 18 per cent below average and to a startling 26 per cent below average when compared to similar small, open economies.

This hardly supports the Central Bank view that wages in Ireland remain excessive. In addition, while the EU Commission data only goes up to 2010 they provide provisional data for labour cost trends between 2010 and mid-2012 which shows Irish labour cost falling even further behind EU averages. Wage costs in all EU countries are increasing with the exception of Ireland and Greece.

Wage rates in Finland, Germany and Italy increased by 9.7, 7.5 and 7.1 per cent respectively between 2010 and the end of June this year and even the recession plagued economies of Spain and Portugal saw wages increases of 4.4 per cent and 3.9 per cent. However, wage rates in Ireland fell by 0.7% during the same period.

Despite warnings from the Central Bank that wage cuts of up 10% are required the OECD says that Labour cost competitiveness in Ireland has improved significantly.

In addition, the latest report from the OECD says that labour costs in Ireland have returned to levels which existed prior to the euro. It also warned that unemployment in Ireland is unlikely to decline substantially from its current high levels due to the weak European economy.

Competitiveness in labour costs in Ireland and Greece is back to 1998 levels, relative to the rest of the Eurozone according to the OECD and it could be even higher for Ireland if the public and private sector costs were separated, given the comparatively more significant declines which have occurred with respect to incomes in the private sector. . The OECD report noted that Germany’s unit labour costs are 23% below what they were in 1998, and they would need to rise by an equivalent percentage to restore relative competitiveness levels with the rest of the eurozone.

Praising the Government for “doing its homework” and exceeding consolidation targets the OECD said that improvements in the budget positions next year and in 2014 still need to be implemented. However, if growth proves weaker than forecast it said that adjustment timelines should be extended and any such decisions should be taken at EU level and not left to individual countries, as this could leave them vulnerable to markets.

The report also warns that only a full multi-pillar banking union will break the adverse negative loop between sovereigns and banks. Warning of a sharp slowdown in global growth it added its voice to that of the IMF and the Irish Government in calling for retrospective recapitalisation of Irish banks, which it says would substantially ease the repayment of the sovereign debt burden caused by the bank bailouts.

SALARIES SLIDEAverage annual wages have declined by over 4.5% since 2008 according to the latest CSO figures and last year dropped below €41,000. According to the figures the average annual salary fell from €41,226 in 2010 to €40,775 last year — a drop of 1.1%.

This figure includes other labour costs such as PRSI, tax and the pension levy introduced in the public sector in Mar 2009. If such costs are not included, the average annual earnings amounted to €35,905 last year, down from €36,117 in 2010. This drop is slightly smaller than the decrease of 1.9% recorded between 2009 and 2010.

The highest annual wage last year, excluding costs, was €50,985 and was in the financial, insurance and real estate sector. The lowest was in the accommodation and food services sector at €16,910.

The total wage bill in the State last year, excluding costs, was €54.9bn, a fall of 2% compared to the €56bn earned in 2010 and almost 15% lower than the €64.5bn in 2008.

Across the economic sectors, average earnings fell in eight of the 13 sectors recorded by the CSO, when compared with 2010.

http://www.centralbank.ie/publications/Documents/Quarterly%20Bulletin%20Q4%202012.pdf

http://epp.eurostat.ec.europa.eu/portal/page/portal/product_details/dataset?p_product_code=LC_AN_COST_R2

http://epp.eurostat.ec.europa.eu/portal/page/portal/product_details/dataset?p_product_code=EI_LMLC_Q


Social Media

#SocialMedia #Political #Revolution Social media is the media of the people and successful politics is of the people too. In this article Conor Lynch, CEO, SocialMedia.ie aims to show you the reason why successful political organisations are embracing social media and shares some of their secrets.

The power social media has in politics is growing every day. Examples such as the organisation online of political movements, lobbying groups, rally events, protests and fundraisers have all shown the possibilities available.

Social Media is still in its infancy having only started to be employed effectively in politics over the last four years. It is an extremely powerful medium that allows two way communication thus creating a closer relationship between politics and the people. Of huge value is that social media can also be used as a live listening tool for gauging the mood of the people via online conversations.

The adoption of social media tools and technology is what often separates different organisations which can be dictated by their team and budget. Many basic tools are free and as an example, SocialMention.com is a website that allows you to set up alerts for particular trends, topics or any mention of words you wish to monitor such as a politicians name, political party or hot political topic.

Obama Wins The Social Media Battle Again

To further demonstrate the impact of using social media in politics, Barack Obama is a perfect example with his recent re-election.

As reported in Forbes magazine, the real secret to Obama’s success was taking its intelligence and distributing it through social and mobile channels. They profiled and matched Obama volunteers with potential voters, so that they had a better chance of making a connection with the voters and were more likely to persuade them to vote for Obama.

In short, they analysed, socialised and mobilised their voter base to victory. Obama knew that his “Four more years” message on social media would spread faster and wider, including through the mainstream media, than any staged victory speech could.

As one Obama insider said: “The community around the Obama campaign became more intelligent over time by constantly testing and sharing what worked.”

Obama’s celebration hug photo has become the most shared piece of content in social media history with millions of shares!

Below shows the figures of support online for Barack Obama and Mitt Romney. It clearly shows Obama in the lead by a huge amount on certain Social Media pages and demonstrates the importance of social media in politics. Now after the campaign is over, he has surged to 33,150,257 Likes on Facebook and 23,068,920 Followers on Twitter.

While the New York Times estimates that $985million dollars was raised by Barack Obama in the 2012 US Election, Mashable estimates that 10-12% of that budget would have been spent on social media.

Social Media in Irish Politics

Closer to home a study into last year’s Irish Elections conducted by Dr Ciaran McMahon, a lecturer in psychology at Dublin Business School showed the following interesting statistics:n 78% of candidates had a Facebook account while 57% had a

Twitter accountn Candidates who had a Facebook account received 4,402

votes on averagen Candidates who did NOT have a Facebook account received

2,100 votes on averagen Candidates who had a Twitter account received 4,885 votes

on averagen Candidates who did NOT have a Twitter account received

2,676 votes on average

BARACK OBAMA MITT ROMNEY

Followers FollowersFacebook 30.7 Million Fans 8.8 Million Fans

Twitter 21 Million Followers 1.3 Million Followers

Google + 32.2 Million Fans 967,000 Fans

YouTube 237,000 Viewers 23,000 Viewers

Instagram 1.4 Million Viewers 42,000 Viewers

Play Like Dislike ShareHi!

http://www.forbes.com/sites/markfidelman/2012/11/11/5-ways-romney-could-have-won-the-election-with-data-social-and-mobile/


Social Media

An example of a politician who has created and is using Social Spaces is Independent TD Stephen Donnelly. All his social media spaces are easy to find on the homepage of his website where you will also find his blog where he posts regularly. He has over 7,000 Twitter Followers, 2,800 Facebook Fans and has very impressive engagement levels on these pages.

How to Create a Social Media Plan

Unfortunately there are too many cases where poor use of Social Media has negatively affected a politician or political party. To stop these mistakes from being made SocialMedia.ie has designed a Personal Branding Plan that can be used by any political organisation to help create a Social Media plan. The methodology uses a simple 6 step process -

1. Define Your BrandTo define your brand you first must conduct a SWOT Analysis (Strengths, Weaknesses, Opportunities and Threats). Once this has been conducted ask yourself the following questions - n What are your political & social media goals?n What are you passionate about?n What makes you remarkable?TOP TIP - Use a social media monitoring tool like Social Mention to listen to online conversations

2. Create Your IdentityOnce you have answered all these questions you can begin to create your identity. Invest the time upfront to develop your personal brand identity. When building your identity it is important to consider what your target audience needs. Things to consider in a logo or brand are name, tagline, shape and colours but yet many don’t even do the basics right.TOP TIP - Get a branding expert to work on your identity - for lower budgets ask a skilled graphic designer to help

3. Create Social SpacesThe next step is to create your branded social spaces on Facebook, Twitter, Google+, LinkedIn, YouTube and maybe Pinterest or Instagram. At the heart of your social spaces is your website or blog which should be where you post regular news for your target audience. TOP TIP - Use Hootsuite to manage your conversations across the various channels

4. Create ContentWordpress is one of the most popular blogging websites and easiest to use. Readers will relate more easily to you if you write with personality and with a conversational style. If you act as a guest blogger for other blogs this is to widen your appeal to an audience that would not follow you online. Make sure to write regularly and support it with photos, images and digital videos.TOP TIP - Add a Wordpress blog to your website and embed content from Twitter, YouTube and Slideshare

5. Grow ConnectionsYou should grow your connections online and offline using digital marketing, social media, email marketing, offline marketing and PR. By developing a visible platform you can

start and join conversations which will be shared online. Cultivate relationships with your constituency, peers, press and grow your database of valuable contacts.TOP TIP - Irish company BOSS Metrics has created cloud based software to help you measure your digital marketing performance against your competitors

6. Create a CommunityCreating a community of fans and followers is key for any political organisation to retain support and build on the following they have already created. Building this community involves joining relevant groups on social networks, sharing your knowledge with them, be it from a political point of view or a hobby/interest you have. Blog, tweet and post about these experiences and try your best to keep them positive. Running events is a great way to build your own community.TOP TIP - Use a tool like Klout to measure your social influence and see the impact of your activities on your target audience.

Conclusion

SocialMedia.ie suggests that a social media strategy should be implemented for all political organisations. By having a social media strategy, this will help identify goals, build a content strategy and identify key influencers to build relationships with both online and offline.

There are many cost effective social media tools available to help manage, measure and monitor social media. Hootsuite is an excellent management tool which makes management of multiple social media pages easy and time saving. BOSS Metrics is a tool that measures your and your competitor’s performance on social media, advises you on best practice and how to develop a customised social media strategy to improve performance and return on investment.

The social media revolution is well underway. Don’t delay in hoisting up your flag and rallying your supporters!

Conor Lynch: CEO SocialMedia.ie & BOSSmetrics.com Conor has over 14 years digital marketing experience and is one of Ireland’s top experts, his awards include the Irish Internet Association’s Award for ‘Best Use of Social Media’ in 2011. He lecturers in digital marketing in NUI Maynooth and has trained numerous corporate clients.

Conor Lynch: CEO SocialMedia.ie & BOSSmetrics.com


Public Sector News

Property TaxIt was always going to prove contentious but the new property tax is already causing a stir ahead of its introduction next July writes Shane Cassells.

With the various rates and valuation bands now announced people are starting to get an idea of what they will be liable for next year and more importantly in 2014 when the full amount for 12 months will be due.

Although the Christmas turkeys and pudding may only be digested and the tax is not due until July the process for implementing this countrywide is already kicking in.

The first thing the government - and more specifically the Revenue Commissioners as the collecting agents - are trying to establish is who is actually liable for this charge.

Revenue is developing a register of residential properties in the State using Revenue data and other sources such as Local Government Management Agency (LGMA) Household Charge data, Non-Principal Private Residence (NPPR) data and Private


Public Sector News

Residential Tenancies Board (PRTB) data.Following the enactment of the LPT legislation Revenue

now have the necessary statutory basis to obtain information from other bodies, such as utility providers, which will be used to further develop the register of residential properties. This will allow them to contact liable persons in March 2013.

It is at this point that the general public is really going to become aware of the Property Tax. Unlike the Household Charge where no bills were actually issued the property tax will be arriving straight through your letter box.

Revenue will write to residential property owners in March 2013 and will include an LPT Return form for completion along with an LPT explanatory booklet.

The booklet will explain everything the householder will need to know about assessing the value of their property, working out how much you will have to pay, completing the LPT Return form, and deciding what option will suit you best to pay your LPT.

The completed LPT Return form will have to be sent back to Revenue by the 7thof May if filing a paper form. If you file your LPT Return form electronically you will have until 28th May to file it online.

Minister for Finance Michael Noonan in his speech to the Dail on Budget 2013 set out to members that the return people submit in 2013 will be valid for the years 2013 to 2016 unless your circumstances change or you wish to select an alternative payment method.

The amount you pay will depend on the market value of your residential property on May 1st 2013. For the purposes of calculating LPT, property values will be organised into market value bands.

The initial band will be €0 -€100,000; Subsequent bands will be organised in values of €50,000 width up to €1,000,000. The tax liability will be calculated by applying the tax rate to the mid-point of the band. The rate of LPT will be 0.18% for properties up to a market value of €1m.

Residential properties valued over€1m will be assessed at the actual value at 0.18% on the first €1m in value and 0.25% on the portion of the value above €1m (no banding will apply).

Certain properties will be exempt from assessment such as newly constructed, unoccupied and unsold residential properties. Also where ownership is vested in a public body or an approved charitable body and used to provide accommodation to people with special housing needs such as the elderly or people with disabilities.

Exemptions will also apply in the case of new and previously unused properties that are purchased from a builder or developer between 1 January 2013 and the end of 2016 will be exempt until the end of 2016. Second-hand properties purchased by a first time buyer between 1 January 2013 and 31 December 2013 will be exempt until the end of 2016.

This was an important step by the Minister for Finance who wanted to ensure that there was no new hurdles being erected to the recovery of the property market which showed small signs of growth during 2012.

However, one very contentious inclusion on the list of properties which will be liable was that of local authority housing and social housing. These will not be exempt unless it

The LPT explanatory

booklet will explain

everything the householder

will need to know about

assessing the value of their

property, working out how

much you will have to pay,

completing the LPT Return

form, and deciding what

option will suit you best to

pay your LPT.

is provided to people with special housing needs such as the elderly or people with disabilities. Liability will rest with the local authority or social housing organisation as owner.

This has caused a lot of anger among councillors throughout the country as finance departments in local authorities now move to offset this extra charge, which they had not anticipated, by increasing rents on tenants.

Considering the majority of tenants in social housing stock on LA books are in receipt of social welfare payments this increase will have a devastating impact on many homes.

However, there is just as much concern among people in middle income Ireland who are really feeling the squeeze on their incomes and wondering how they will pay the new charge in 2013.

Considering Central Bank figures at the end of 2012 showed that almost one on four family home mortgages are either in arrears or have already been restructured there is a view among many that the introduction of a property tax at this time is a major mistake.

Regardless of this the government’s determination to press on with the introduction of the property tax is resolute and the methodology for a widening of the tax base has been set out. The funding of local government beyond the business people who pay rates in our towns and villages is something which could lead to a lessening of the burden on small business owners.

Government has also made provision in future years to allow local authorities increase or decrease the relevant bands in each of their own counties and this will lead to a further scrutiny by the public of how elected members spend their money.

So the wider debate on local democracy is going to become even more intensified when you have the scenario of local councillors setting the rates of property tax rather than central government.

As the saying goes “that’s when the real fun will start.”

70 Sir John Rogerson’s Quay

Dublin 2

Ireland

Tel: +353 1 775 1900

Fax: +353 1 775 1910

Email: [email protected]

Web: www.abwolfe.ie

ouR knoWlEDgE. youR SuccESS.

The experienced team at AB Wolfe & co advises a broad range of clients across all industry sectors on the control, management and recovery of debt. our well-established practice is recognised as a national leader in the field of debt resolution.

We can offer debt recovery services to suit all businesses, and are known for offering practical and pragmatic advice, while taking decisive action for our clients when required.

contact liam Fitzgerald, Eddie Barron, cEo, or David Walsh at 01 775 1900.


Funding

Outsourcing Debt RecoveryDebt must be collected to fund local government writes Eddie Barron.

Funding for local government is becoming an increasingly difficult issue and a refusal by some businesses to pay rates and levies is making the situation worse.

Attempting to address this problem adequately is proving difficult as local government is also experiencing pressure as a result of increased workloads and fewer resources. A possible solution to these issues is to outsource debt recovery work to an external agency.

Some central government bodies have been engaging others to look after their debt recovery work for years. Those bodies still outsource today, which suggests that they are comfortable with both the concept of outsourcing as well as the cost of benefit return from outsourcing debt recovery work.

A defined collection strategy is the main aspect of achieving success with regard to debt recovery work. The benefits of outsourcing are the redistribution of resources within local government as well as gaining the benefits of experience and expertises from well recognised and well established debt collection law firms.

‘Early Intervention is Key’

Local government has always been competing with commercial interests for the recovery of debt. In the past, some local governments may have adopted a “we will recover in due course” approach to the collection of debt. Now that there is less money available for collection, especially for debtors to distribute amongst their creditors, recoveries will only be achieved by the organisations that act the fastest. The ethos of debt recovery experts is that “early intervention is key”.

“Early intervention is key” is the fundamental basis on which the defined collection strategy must be designed. The mantra of “early intervention is key” must begin, for example, with the issuing of an invoice right the way through to making the decision to “go legal” and if the invoice is still not paid then right the way through to the pursuing of the legal proceedings until the matter comes to a conclusion. There are a number of reasons why people engage in legal proceedings to recover debt.

Such reasons are: the enforcement of a judgment to recover a debt; the determination of the liability with regard to the debt and when there is no money available to recover the obtaining of a judgment as a priority over other judgment creditors in the future.

With regard to the issue of “cost benefit analysis” as mentioned above in relation to central government bodies it should be remembered that while funding available to local governments is reduced or cutback the fixed and variable costs of running a local government has not decreased in proportion to the level of reduction or cutback in funding. Essentially this means that the drain on resources is greater then the Local Government can sustain. This is where the benefit of outsourcing debt recovery work maybe two fold. The first

benefit is the freeing up of resources within the office of the local government. The second benefit is the increased possibility of recovering the money due to the local government, as a result of the efforts made by experts through the legal process.

Local Government funding

As local government has to become more reliant on self funding it needs to be more proactive in collecting the money owed to it. Briefly looking into the future for local government we know that there will be far greater strains on local business. An appropriate analogy could be the water in the well. While the water in the well is not gone we know the level has dropped.

Somebody somewhere is going to experience the potency of the problem. The introduction of the Personal Insolvency Legislation is designed to share around what water is left as well as protect local government. That said, local government will still feel the effect of the legislation indirectly because when the local government gets their portion of the water from the well the piece that’s left to share around may also have to be accounted for to the local government from other local businesses who don’t escape the effects of the legislation. Needless to say if there is less water to share around amongst other local business there is less water to be accounted for to local government.

Eddie Barron is Chief Executive with the debt recovery firm AB Wolfe & Co

Eddie Barron, Chief Executive, AB Wolfe & Co.


IT

Powering InnovationIn a wide-ranging interview, John Hartnett, President of the Irish Technology Leadership Group discusses his views on the current state of the IT sector in Ireland, reflects on its relative strengths and weaknesses and suggests a series of proposals and policy measures which he believes can help to attract new technology opportunities.

Established in October 2007, the Silicon Valley-based Irish Technology Leadership Group (ITLG) is an independent organisation comprised of high-level Irish American and Irish technology leaders and firms who are committed to promoting the technology connection between Ireland and Silicon Valley, and helping Ireland address the challenges of pursuing new technology opportunities.

The initial objective was to bring together “a few hundred” technology leaders as part of a formal network and with the headcount now approaching 5000 members, the original expectations have been far exceeded, according to its president and founder John Hartnett.

In addition the extent of the influence enjoyed by the ITLG in both the US and Ireland is increasingly apparent. “We’re connected to the four places in the US that we believe are critical and the four strongest brands in the world: Silicon Valley for technology; Hollywood for entertainment; New York for Wall Street and finance; and Washington for its connection to Government,” says Hartnett.

The patriotic Limerick man, who has more than 20 years of

senior management experience, first started being approached in Silicon Valley by young Irish entrepreneurs and CEOs, eager for his help and introductions a decade ago. “Having witnessed at first-hand the considerable strengths of Irish entrepreneurs and equally their weaknesses, I felt I was in a great position to assist a number of these companies to fulfil their objectives and become global players,” he says.

Hartnett started working at 17 and his career in high tech boasts some of the industry’s leading companies such as Palm, Handspring, Metacreations, Claris/Apple, AT&T, Digital Equipment, and Wang. Hartnett was Chief Executive Officer at G24 Innovations, a leading thin film solar company and previously, he worked as Senior Vice President of Global Markets at Palm, Inc. Prior to that, Hartnett was an integral member of the executive leadership team at Handspring, Inc. that led the 2003 merger of Handspring and palmOne to form what is known today as Palm, Inc.

When he decided to move to the US while working for Metacreations, Hartnett had the support of his wife, who was also working in the technology field for Intel.


IT

Sales & Communication

Hartnett remains optimistic in relation to Ireland’s future prospects and says that the country has particular strengths in relation to the financial, operational and engineering elements of businesses which will serve the country well in competing internationally. However, correspondingly our weaknesses are typically found in sales and marketing fields – a factor which he attributes to the fact that sales is just “not as appreciated and as highly regarded in Ireland” as it is in the US

“However, if you’re a successful global company, perhaps 1% of your sales will be in Ireland, but 99% of your sales will be to other destinations, largely the US, Europe or Asia,” Hartnett comments.

For that reason, companies must ensure their sales people are able to “sell and communicate in those countries and they require the ability to establish and build relationships and break down doors in those markets, if they are to achieve success,” Hartnett believes. Nor do the sales people necessarily have to be Irish and John believes we are frequently too parochial in these matters and tend to overlook the significant advantages of hiring local people who are familiar with the market you are attempting to penetrate.

Irish companies are “conservative by nature” compared to US entrepreneurs, in that “we try to do everything ourselves and do everything from Ireland,” and equipping Irish entrepreneurs with the skills to network and articulate their value propositions in a skilful and convincing presentation is pivotal to succeeding in business environments in the US.

Over the past three years, however, Hartnett has witnessed a “dramatic improvement” in the networking ability of Irish entrepreneurs, who have recognised its importance and the need to network outside Ireland. “There is no reason why that [networking] cannot be a very strong area for us because we are natural socialisers and great story tellers,” Hartnett comments.

Irish Innovation Centre

Hartnett aptly describes the Irish Innovation Centre and the Irish Technology Capital Fund which he also established as “two halves of a pie. “You need to be able to invest in companies and then you need to be able to work with companies and both of these facilities are there to facilitate that objective,” he says.

The Irish Innovation Center is the Silicon Valley launch pad for international technology companies, providing an environment for like-minded entrepreneurs to gain access to venture firms, bankers, customers, suppliers and employees that will enable their companies to grow and flourish. The Irish Technology Capital Fund, meanwhile, provides resident companies with access to potential funding options such as venture capital, angel investors, corporate investors and private equity. “We felt that both of these facilities were vital,

particularly if you’re going to invest in a company. Part of the investment is cash, but a big part of the investment is providing mentorship, getting involved and helping those companies with their strategies,” Hartnett says.

“We have about 30 companies in the centre today; some of them would be physically there and some would use it as an outpost and they travel back and forth,” he adds.

Recent investments have included 3D printing company Mcor Technologies, with the ITLG assisting the company by hiring the leading salesperson from a US competitor, as well as its top European salesperson. “So we really helped to move the company forward and it now has a very strong future ahead of it and it is well on track to achieve its objective of being a significant global player in its sector.”

The ITLG’s ‘Global Technology Leaders Summit’ gatherings tend to attract the leading and most innovative technology companies, he says, and one of the advantage of having a network is it ensures access to ‘an expert’ in each of the specific areas which are vital to the growth, development and success of a company. “So, as is the case with all the companies which we are interested in, we had a panel of experts who evaluated Mcor’s technology, the calibre of the team and the potential of the company. Ultimately, you’re investing in people and the first thing I look at is leadership and the people driving the company.”

Innovation & Leadership

Companies must have the capacity to “innovate, to break the mould in technology and change the game”, while a great leader should demonstrate the ability to “lead the company both from an employee perspective and by setting the culture in the company; communicating with customers; and basically by being a strong leader both internally and externally.”

In addition to mentoring companies and making people who have been world leaders and built successful track records available to them, the ITLG and Dublin City University’s Ryan Academy for Entrepreneurship recently formed a major

ITLG President John Hartnett pictured in discussion with US Secretary of State Hilary Clinton at the Northern Ireland Forum.


IT

partnership, to deliver Kauffman entrepreneurship and innovation programs in Ireland. “The Kauffman Foundation, a world authority on entrepreneurial innovation and economic growth, was a key part of the Startup America Partnership with President Obama and we have partnered with them to bring Kauffman education to Ireland,” he says.

Hartnett was also honoured when the ITLG was selected to spearhead US Secretary of State Hillary Clinton’s Global Diaspora Forum, which aims to engage with not only the Irish diaspora but the diaspora from India, China, Israel and other nations.

Having met with and listened to pitches from CEOs at about 700 companies over the last five years, Hartnett says he now sees a level of ambition that hasn’t always been so apparent in the past. “Before, they were happy to be side players, whereas now they really want to go for it,” he says. “There is greater confidence and more determination to make an impact among our entrepreneurs and that will serve us well in the future.”

SkillPages, the social networking hub for job seekers, is an example of such a company, he says. The winner of the ITLG’s innovation award in 2011, SkillPages’ CEO Iain McDonald is a “super leader,” Hartnett says. With more than 9 million members, the company recently closed a $9.5 million Series B funding round to boot.

Investing in Entrepreneurship

“Creating multinationals ourselves is something we’ve got to focus on in Ireland and we can achieve this by investing in entrepreneurship and being “world-class in terms of education in Maths, Science and Engineering,” says Hartnett. “We need to make sure we’re producing great talent and capable engineers. I think we got majorly distracted during the boom years. I’ve seen so many guys and girls who have studied all the professional services, from real estate to law, but that’s not

going to create the next Facebook,” he says.Creating a gateway between Ireland and Silicon Valley is

hugely important, he believes, as is allowing young Irish people the opportunity to visit Silicon Valley and inspiring them to appreciate the opportunities that studying Maths and Science affords. “Getting that experience can be invaluable. We brought over girls and boys from Limerick from the age of 12 upwards for the last four or five years and they go back all inspired,” he says.

Asked about the impact of the recession in California, Hartnett points out that although the dot-com bust resulted in a considerable number of job losses, Google and Facebook were among the successful companies to emerge from it, and while the financial crisis hit markets hard, “Silicon Valley rode the wave to some extent” with Apple emerging to become the biggest company in the world. “Crisis can create opportunity and this is something that we need to remind ourselves of in Ireland,” says Hartnett

Hartnett and the ITLG liaise closely with the Department of Foreign Affairs and he is grateful for the support provided by the Department to assist the ITLG in fulfilling its remit of building closer alliances between Silicon Valley and the IT sector in Ireland. Hartnett also has huge respect for the IDA, the agency responsible for attracting and developing foreign investment in Ireland, and their achievements over the last three decades. “Bringing in Intel was a watershed moment in the history of Irish technology,” he says. “However we have to ask the question: how do you do better, how do you set the bar higher again and how do you really knock the ball out of the park?”

“I think there needs to be a higher presence outside Ireland in the IDA, and if California or the West Coast represents 40% of the investment coming into Ireland there should be a bigger presence here in Silicon Valley and in LA,” he says.

He believes there should be an audit carried out in relation to what has and has not been done by the Innovation Taskforce and the McCarthy Report in Ireland. “I think we were on the right track. Let’s just implement what we had planned to do and not get emotionally tied to whether it was a Fianna Fáil initiative or some other party’s idea. The question is: What is the right thing to do for the country?”

Education is Key

Another focus should be elevating Ireland in the World University Rankings, he says, as the top 10 is currently dominated by the US and the UK. In addition, more attention needs to be given to sales and marketing.

To push Ireland up in the university rankings, Hartnett proposes the creation of a taskforce comprising Government, education and business leaders, examining what is required to do that. “We may have good universities, but in my view the enemy of great is good. Good is not good enough, we’ve got to be great,” he adds.

“Bringing in Intel was a watershed in the history of Irish

technology, but how do you do better, how do you set the

bar higher again and how do you really knock the ball out

of the park?”

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ITLG PResident John Hartnett pictured with the Minister for jobs, Innovation and Enterprise, Richard Bruton.

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Public Sector News

New Start-Ups

Last year saw an increase in entrepreneurial activity, according to the Global Entrepreneurship Monitor (GEM) Report which estimates that approximately 2,200 people set up a new business each month last year. This is an increase from the previous year.

The report also found that almost three quarters of these entrepreneurs expect to become employers and while the majority of the businesses will remain small, the employment impact of the enterprises is significant when taken together.

The report also notes that there are two and a half times as many men as women who are entrepreneurs. A significantly higher proportion of Irish entrepreneurs are working in medium or high technology sectors (11%) which compares to an OECD average of 7.3% and an EU average of 7.9%.

The Global Entrepreneurship Monitor (GEM) provides an annual assessment of the entrepreneurial activity, aspirations and attitudes of individuals across a wide range of countries. GEM is the largest on-going study of entrepreneurial dynamics in the world and the GEM report is supported by Enterprise Ireland, Forfás, the European Social Fund and the Department of Justice and Equality as well as by the Department of Jobs, Enterprise and Innovation. The authors of the report are Paula Fitzsimons of Fitzsimons Consulting, who is the National GEM Co-ordinator, and Dr Colm O’Gorman, Professor of Entrepreneurship, DCU Business School.

Speaking at the launch of the report Richard Bruton, Minister

The recession is driving more people to start businesses with approximately 2,200 people starting a new venture every month.

for Jobs, Enterprise and Innovation noted that it is successful businesses, and not Government, that create jobs. ‘’That is why the Government’s action plan for jobs includes a series of new measures to support entrepreneurs and new start-ups, and to drive continued growth in this critical sector of the economy,’’ he said. ‘’It is good to see increased numbers of enterprising individuals determined to turn difficult circumstances into an opportunity for personal and commercial success.”

The GEM report sets out clearly the many positives around entrepreneurship in Ireland but it is also clear that there are areas where significant challenges remain. “My determination through the Action Plan for Jobs is to provide further support for the Irish entrepreneurial community to generate even greater numbers of innovative entrepreneurs to create strong, export led businesses in the coming years,” Minister Bruton added.

However, the report also found an increase in those who are motivated to set up their own businesses by necessity. The previous 2010 GEM report noted that the reasons motivating people to become an entrepreneur had altered significantly from former years, with a very marked increase in the number of individuals starting a new business through perceived necessity (32%). This trend continued in 2011 (31%). Ireland has a higher rate of necessity entrepreneurs than the norm across the OECD and the EU, including Spain and Greece.

Disappointingly the report also found that the prevalence

‘’It is good to see increased numbers of enterprisingindividuals determined to turn difficult circumstances into an opportunity for personal and commercial success.’’

http://www.rte.ie/news/2012/0924/gemreport.pdf


Public Sector News

of those aspiring to be an entrepreneur in Ireland in the future was at a very low level (8.5%) last year and followed the pattern set in 2010 when there was also a low numbers of people who expressed interest in becoming entrepreneurs. This is a significant change to the relatively high levels of previous years and now places Ireland behind the average across the OECD and EU. The belief that entrepreneurship is a good career choice is also much lower in Ireland than it is in other countries.

Ireland’s position in the ranking of entrepreneurial activity across EU-15 countries has declined in recent years. For many years Ireland had a leading position within Europe in respect of these countries. In 2011, four countries, the Netherlands, Greece, Portugal, and the UK ranked higher in terms of rates of total early stage entrepreneurial activity. Moreover, entrepreneurial activity in Ireland is considerably behind the higher rate of entrepreneurial activity in the newer accession countries. The prevalence of early stage entrepreneurs in Ireland (7.3%) also lags significantly behind that in Australia (10.5%) and in the United States (12.3%).

The report also found that there are fewer investors and a decline in the amount of money being invested.

While welcoming the positive trends in employment expectations and the fact that a significant minority (20%) of early stage entrepreneurs expect to employ 20 or more people after five years, Declan Hughes, Manager of the Enterprise and Trade Division, Forfás, said the decline in both the number of investors and amount of investment being committed is a concern and the number of people becoming entrephreneurs through necessity was also troubling. “The positive trends, though significant, are but one part of the picture, with significant challenges to entrepreneurship also existing,” he said.

The report finds an increase in those who are motivated to entrepreneurship by necessity (30% in 2011 and up from 19% in 2008 and 6% in 2007). There are also fewer investors and a decline in the amount being invested. There is a need to continue to improve the perceived attractiveness

GEM REPORT: MAIN FINDINGSn 71% of early stage entrepreneurs expect to become employers.

A significant minority of early stage entrepreneurs have ambitious growth aspirations (20%) and expect to employ 20 or more after five years. This level of ambition is well ahead of EU and OECD averages.

n A relatively high proportion of Irish entrepreneurs are engaged in medium or high technology sectors (11%) compared to averages across the OECD (7.3%) and EU (7.9%).

n A high level of early stage entrepreneurs continue to be motivated by necessity (31%) as was the case in 2010. Ireland has a higher rate of necessity entrepreneurs than is the norm across the OECD and the EUl including Spain and Greece.

n Men are 2.5 times more likely to be an early stage entrepreneur than are women. There has been no narrowing of the ratio in Ireland between the rate at which men and women are engaged as established and early stage entrepreneurs, as there has been in many other countries.

n There has been a significant increase in the rate of owner managers closing a business - 2.8% in 2011 compared to 1.2% in 2010. This is a higher rate of closure than OECD or EU averages. 60% of those closing a business cite lack of profitability. This is at the highest rate noted in Ireland in the previous ten years.

n The very low prevalence rate at which people in Ireland are seeing opportunities for new businesses (26%) showed no signs of any real increase in 2011 over 2010 (23%) and continued at historically low levels.

n The prevalence of those aspiring to be an entrepreneur in Ireland in the future was at a very low level (8.5%) in 2011, continuing the low levels observed in 2010. This is a significant change to the relatively high levels of previous years and now places Ireland behind the average across the OECD and EU.

n There is a continued decrease in the perception of entrepreneurship as a desirable career. In Ireland less than half the adult population (46%) considers entrepreneurship to be a good career choice. This rate has been declining year on year since 2006, when it stood at 70%.

n Successful entrepreneurs in Ireland have a high level of status and respect for them remains higher in Ireland than in many other countries.

n The prevalence of informal investors declined slightly and the average amount invested is lower than the norm across the OECD and EU, with the average amount invested in Ireland over a three year period falling to an average of €26,000 per investor in 2011 from €46,000 in 2010.

of entrepreneurship as a career option and of perceived entrepreneurial opportunities.”

Kathleen Lynch TD, Minister for Disability, Equality, Mental Health & Older People, welcomed the focus on the potential of women as entrepreneurs in the 2011 GEM report and the inclusion of profiles of enterprising women, who had recently set up new businesses throughout the country. “The challenge now is not only to get more women to start new businesses, but to encourage more of them to start innovative businesses focused on exports, growth and job creation,” she said.

Kathleen Lynch TD, Minister for Disability, Equality, Mental Health & Older People, welcomed the focus on the potential of women as entrepreneurs in the 2011 GEM report.


Finance

Pension ChargesPensions report highlights a lack of transparency and excessive fees which can account for up to a third of the value of a pension plan.

The report on pension charges published by the Department of Social Protection and launched by Minister Joan Burton recently shows that most people who are saving for their retirement are unaware of the impact fees and costs have on their fund.

According to Minister Burton the report raises serious questions over the fees levied on people saving for their retirement. “This is the first comprehensive Government report on this subject and it is clear from the research that many schemes and individuals are paying more than they need to,” she said. “The research particularly points to small occupational schemes and individual pension policies incurring high costs.”

The purpose of the report was to gather information on the level of pension charges levied to assess whether charges are reasonable and transparent, to report on the findings and make recommendations. The report obtained information from

occupational pension scheme trustees, pension providers, pension advisors and investment managers.

The report highlights a wide range of issues in relation to pension charges and identifies a number of serious problems. While the provision of pension schemes cannot be cost free, it is clear that there are major challenges to be addressed in the two main areas of reasonableness and transparency of charges.

In relation to transparency, the report concludes that there are deficiencies and inconsistencies in current practices and a culture of providing clear information in a simple manner is not evident. A move towards greater clarity and transparency of pension charges is needed, in particular, so that consumers should understand that a modest charge can have a very large impact on the final pension. Initiatives must focus upon increased consistency across all pension types relating to the

“The research particularly points to small occupational schemes and individual pension policies incurring high costs.”


Finance

KEY FINDINGS INCLUDE:n There is a wide variation in charges. n Individual pension charges are expensive: An individual with a final pension fund of €400,000 could lose up

to 30% or €120,000 in charges n Occupational pension charges can be reasonable, but many

schemes are paying more. A person in a defined contribution scheme with a final pension

fund of €400,000 could lose up to 15% or €60,000 in charges n Strong economies of scale exist – smaller occupational schemes

pay more. n There is considerable evidence of re-brokering (scheme review and

amendment) in recent years which needs further examination.

application and the real impact of pension charges as well as informing and educating consumers.

Minister Burton pointed out that planning and saving for retirement is now important than ever in view of the country’s ageing population and with people living longer. “A key part of this is to know what level of pension you are likely to receive in retirement and understanding the very significant impact pension charges can have on your final pension fund. The report shows that apparently small percentages can add up to big reductions in a pension fund over time,” she said.

For example, if an individual age 35 saves €250 per month for

a pension for 30 years, a fund of approximately €200,000 is created which results in a pension of about €10,000 per annum. Apply the average charge of 2.18% per annum to this fund and the final fund is reduced by 31% i.e. the fund is reduced by €62,000, resulting in a lower pension of €6,900 per annum. This impact would be significantly higher where the maximum charges apply.

A further conclusion from the research is that trustees of schemes and individuals may not fully understand the charges and how they apply, and that the information provided on charges is not as clear as it could be. Minister Burton said that this is an area which she intended to prioritise and as with any service, “consumers should be able to compare prices and obtain the best value available”.

Improvements in disclosure requirements, including those for pensions, were introduced in the Central Bank’s 2012 Consumer Protection Code and these should enhance transparency for those consumers covered by the Code. There are also various ongoing developments at EU level which should lead to stronger consumer protection over time. Minister Burton invited comments on the report saying: “As this report is a fact finding study, which is technical and complex in nature, I would also like to give interested individuals and bodies an opportunity to consider the report and its recommendations and respond over the next 3 months (end of January 2013). I will then propose to Government any further policy or regulatory action necessary.”

PENSION REFORM DELAYS

Legal and constitutional challenges have been restricting progress in terms of further reductions of premium pensions for politicians and office holders, according to Minister of State at the Department of Public Expenditure and Reform Brian Hayes. He made his remarks as Independent TDs from the Technical Group called for a 50% cut to pensions for politicians and state-appointed officials as well as reductions in expenses.

According to the Technical Group the huge sums being paid to senior politicians, public servants and judges make it impossible for the public to accept the case for austerity. Recently the Oireachtas said that TDs, senators and ministers would earn €11.7 million in expenses on top of their salaries - amount to €20 million.

Some TDs such as Dublin North TD Finian McGrath believe there should be cuts of as high as 50%. “How can people be earning so much with cuts to services for home help and those with disabilities. We want at least a 50% cut in pensions and allowances,” he said.

Mr Hayes told the Dáil that at the end of September there were 84 former civil servants and 28 former office holders currently being paid pensions of over €100,000. But he said increasing cuts for this group would “save limited amounts of money and would potentially affect only a small number of public service pensioners”.

There was also the potential of a legal challenge “as a pension is generally taken to be deferred income and therefore covered by the constitutional protections that apply to property,” he said.

SPEED UP 41% PENSIONS TAX

SIPTU has said the Government can generate €125m extra for the exchequer next year through the earlier introduction of a new tax on high-value pensions. During the recent Budget, the government confirmed it would claim 41% of the value of pension payments in excess of €60,000 per year.

That measure will not be introduced until 2014, as there are legal issues that must first be dealt with. However, SIPTU’s Jack O’Connor said Enda Kenny could expedite the process.

“What has to be done is to find ways of generating the money,” he said. “In this Budget, here is a measure that has been announced (ie the 41% pension tax), and simply implementing it more rapidly would obviate the need for (many) cuts. It doesn’t change the budgetary arithmetic by one cent.”


Financial Planning

A Wealth of Experience A relatively new player in the market, the team at Dublin-based Wealth Alliance boasts combined experience of more than 100 years in financial planning and advice, and are intent on providing a unique service tailored to the specific needs of each client.

Despite celebrating its official launch at the RDS just a few months ago, Dublin-based firm Wealth Alliance is already on track to becoming one of Ireland’s leading firms of independent certified financial planner (CFP) professionals and Qualified Financial Advisors (QFAs).

CERTIFIED FINANCIAL PLANNER professionals are certified by the Financial Planning Standards Board (FPSB) Ireland, which is affiliated to FPSB Ltd, an internationally recognised body that promotes and monitors rigorous international competency, ethics and practice standards for CFP professionals.

Regulated by the Central Bank of Ireland, Sterner Holdings, t/a Wealth Alliance designs simple solutions enabling clients to meet their financial goals now and in the future. Each client is assigned a CFP professional and/ or a QFA, with a view to developing a mutually beneficial, long-term relationship.

Their aim is to design financial strategies that focus on achieving its clients’ short, medium and long-term life goals,

and employ suitable implementation programmes to achieve same. The firm is independent and not linked to any fund manager, provider or insurance company.

Two of Wealth Alliance’s co-founders Brenda Rogan and Jane McAleese met whilst working together at KBC Bank Private Banking. Together they have almost 40 years of experience in the financial sector. Both women subsequently moved to Ulster Bank Wealth, a division of Ulster Bank Corporate Markets, prior to leaving the banking industry to establish Wealth Alliance.

“The confidence to leave and pursue our vision of establishing an independent fee based financial planning business was founded on our passionate belief that people now more than ever needed unbiased impartial advice and that there was need to create an open and transparent financial planning offering in Ireland where the client’s interests would be placed at the core.

Although giving up the security of their jobs was a major

Pictured (from Left), Jane McAleese, Brenda Rogan, John Lyons and Stan Pyke.


Financial Planning

step, “this is something that we really do believe in,” Rogan says. “We were of the opinion that this kind of transparent offering

could not be provided for within the banking sector especially given the public’s growing lack of trust towards them, fuelled by the substantial number of contentious media articles being generated on a near daily basis. We believe that, this negative sentiment has resulted in the banks moving further away from the bespoke advice space, providing a more restrictive offering and focusing instead on managing their reputational risk.” Rogan recalls.

“On numerous occasions, Brenda and I had had discussed our frustration at working within the constraints of a large corporate institution and the limitations it put on the service provided. Although the institutional offering employs elements of financial planning to a high standard, they need also incorporate external resources such as legal and tax advice in order to deliver and stand over a more comprehensive strategy to the client,” McAleese says.

While working for Ulster Bank, both women completed the Graduate Diploma in Financial Planning. This is where they met Stan Pyke and subsequently joined forces to establish Wealth Alliance, with Stan bringing more than 27 years of experience in the financial services industry to the table.

John Lyons, now the managing director and co-founder of Wealth Alliance was introduced to both Brenda and Jane as a long standing business acquaintance of Stan’s. John, owner of a general insurance and life and pension brokerage, brings more than 33 years of experience to the new business, many of those at senior management level within the Insurance industry culminating in his appointment as Assistant General Manager of Standard Life in 1995. The team has a combined experience of more than 100 years in financial planning and advice.

According to Rogan, the key factors which differentiate Wealth Alliance from the rest of the market is “how we engage with our clients, the technology we employ and very importantly the quality of the financial strategies we develop using an in-depth level of research and analysis.“ McAleese adds that Wealth Alliance’s offering is “specialised” and although we would view financial institutions as our nearest competitors, she also points out that their firm can “offer a lot more flexibility in terms of its ability to provide comprehensive bespoke financial advice to its clients.”

The service provided by banks tends to be “far more templated and generic by nature, whereas Wealth Alliance’s service is specific to each individual client. Also there can be misalignments of interest between the banks objectives to that of the client, e.g. banks are focused on rebuilding their balance sheets which can be reflected in the advice client receive, she says.

So what is Financial Planning?

Financial Planning in itself is individual to each person, and may include all or any of; retirement planning, tax management, estate planning, wealth management or risk management.

Client decisions need to be taken with due consideration to all aspects of their personal situation and reviewed regularly to enable them to adapt easily and feel secure that their goals remain on track.

One of the principle objectives of financial planning is to help clients achieve and thereafter maintain their desired

lifestyle. “It is roadmap that focuses on each client’s individual goals and objectives and incorporates all elements of financial strategies including retirement, investment, tax planning and cash flow management,” McAleese says. “We believe a financial plan is one of the most important documents a client will own and we encourage client to meet with us regularly to review their plans, certainly on an annual basis.”

“Financial planning involves working with clients, helping them to achieve their desired lifestyle now and into the future,” she adds.

Acknowledging that clients’ circumstances can change, Rogan and McAleese concede that the firm is focused on building customised solutions around clients by listening to them; researching and developing plans for them; presenting, explaining and agreeing on actions; implementing plans; and finally, reviewing and adjusting solutions.

They further add that on-going reviews are an integral component of their process, ensuring that appropriate amendments are recommended to reflect changes in personal circumstances. As per the old adage what’s right for you today may not be right for you tomorrow. “A financial plan is a continuous work in progress,” McAleese comments.

A lot of people are unsure where to even start when asked to track their expenses. For that reason, Wealth Alliance facilitate the initial process by encouraging clients to complete a detailed expenditure summary which albeit time consuming, is very worthwhile. “We gather details relating to current situations, concerns, personal and financial objectives now and in future,” says Rogan. “Where information is missing, clients can provide us with letters of authority to facilitate us going directly to the third party companies for it. This takes a lot of pressure off the client and is one of the services we offer which our clients find invaluable. On completion of our research, we can perform a “Gap Analysis” which effectively illustrates the current position versus the preferred position thus enabling us to provide appropriate strategies to achieve this goal.

“Most people would actually get value from Wealth Alliance’s service, and if the firm cannot add value to a client, we tell them so. The client needs to fully engage with us committing to a level of work in order to facilitate the process and maximise the quality of the outputs.

“The service we offer is very much driven by what we’re being asked to do by the client whether that relates to a single or multiple issues. However as a matter of course, we will always recommend a full financial review, otherwise it can prove quite difficult to advise on a single aspect without taking the overall position into account.

“We try to act as the devil’s advocate with our clients and challenge their behaviors. Our investment philosophy is to try and achieve risk adjusted returns, i.e. achieve a target return with the least amount of volatility through diversification.” Rogan says, adding that they also ensure each client is made fully aware of the inherent risks and features relating to investment in specific asset classes.

“We help empower people to make informed decisions. To do so entails the client providing us with details relating to their personal and financial position. Initially, this includes an overview of income, expenses as well as their assets and liabilities. That takes trust and it takes hard work,” Rogan comments.


FinancePensions, Investments & Advisory Services

IFG Private Clients provides its services through IFG Quigley Limited, t/a IFG Private Clients, regulated by the Central Bank of Ireland. An IFG Group plc company.

We now offer a full review of your current financial circumstances and future needs free of charge, through a simple process. Our clients are at the very centre of our thinking and our objective is to assist them in achieving their financial goals.

Call IFG Private Clients to arrange your free review on (0)1 275 2800, or e-mail us at [email protected]. Visit www.ifg.ie for more details.

At IFG Private Clients, we now provide expert financial advice to public sector retirees on specific steps to consider in relation to alternative private pension arrangements and additional savings options for a comfortable retirement.

Today, we are planning for tomorrow

How will changes to the public sector pensions affect your retirement?


Finance

Pension ProvisionsMichael Harty, IFG reviews the impact of recent changes to public service pensions

Recent changes to the Public Service Pensions (Single Scheme and Other Provisions) Act 2012 became law on 28th July 2012. Some provisions came into effect immediately; others will only come into effect when the Minister for Public Expenditure and Reform signs a relevant commencement order. Changes introduced to public sector pension legislation may nevertheless result in significant deterioration of funds now available to public sector retirees.

Some of the recent changes include:n The introduction of a 40-year limit on pensionable service

which can be counted towards pension where a person has been a member of more than one existing public service pension scheme.

n Single Public Service Pension Schemen The extension of pension abatement so that a retiree’s public

service pension is liable to abatement on re-entering public service employment, even where the new employment is in a different area of the public service

n The aggregation of pensions for the purposes of imposition of the Public Service Pension Reduction (PSPR), which


Finance

reduces certain public service pensions by reference to a set of money bands and rates. It is currently imposed separately on each public service pension, but the Act provides for it to be imposed on the aggregated value of all public service pensions held by a person who has more than one such pension.

As a result of the above changes, the value of public service pensions will be calculated on an annual basis over the course of your whole career. Where someone is promoted late in their career, such promotion will have a much minimised impact on the value of their overall pension, as it will be based on actual pensionable career earnings.

The Act has a potential effect on the pensions of current serving or retired public servants as it contains an enabling provision which would allow the Minister to alter the method of applying increases in their Pensions post-retirement to one based on the CPI.

There are a number of options immediately available to public servants affected by these changes to preserve the value of their pensions, and IFG Private Clients are now offering expert financial advice to public sector retirees to guide them along the way.

Alternative Savings Plans

One option is to divert pension contributions to suitable alternative savings plans with risk appropriate funds. Personal Pensions are intended to enable individuals to save for retirement. As with most other pensions, contributions are

IFG FINANCIAL REVIEWReviewing your benefits and pension arrangements has never been more crucial, but we also know your time is important. That’s why at IFG Private Clients we now offer a full review of all your financial planning needs, free of charge, through a simple process to facilitate an accurate professional evaluation of your financial needs.

Our aim is to build, enhance and protect the financial well-being of our clients and their families. Our team of advisors have the in-depth experience and expertise to provide independent, unbiased financial advice to clients, taking into account their life stage, financial goals, priorities and attitude to risk.

IFG Private Clients is led by a dynamic team of committed and professional independent financial advisors and a highly skilled support team. Our private clients include company directors, senior executives, PAYE individuals and self-employed individuals, who all benefit from our professional, independent services

eligible for a certain amount of tax relief, which makes this an attractive means of saving for retirement and reducing tax liability. There are a number of funds available within personal pensions, including high, medium and low risk options. Depending on your age and appetite for risk, IFG can recommend the most optimal solution for you.

To some extent, Personal Pensions have been made obsolete by PRSAs (Personal Retirement Savings Accounts), which are more flexible and have a more transparent charging structure but otherwise have most of the same advantages. There may be some limitations when switching assets between schemes but the option to transfer contributions to an alternative form of saving plan such as a PRSA is available.

You may also divert any previous personal pension contributions to a spouse’s pension. There are certain limitations on this option but IFG Private Clients would be happy to discuss your options and assist you if you decide to go down this route.

We certainly recommend an overall review of your existing Death in Service and other Life Assurance needs as well as your Disability Cover.

Your Death in Service benefit ensures that your family or other specified beneficiary receive your pension in the event of your untimely death. The maximum spouse or dependant’s pension is equal to your own maximum approvable pension, inclusive of any retained benefits. Additional dependants’ pensions can be provided alongside the spouse’s benefit, but the total cannot exceed your own maximum pension. Children’s pensions cease when the child is no longer a dependent.

Disability benefits are payable to you if you are unable to work for medical reasons. This may be paid from a pension scheme as an ill-health early retirement benefit or it may be payable by your employer either directly or under the terms of an insurance policy or income continuance plan (which are not part of the pension scheme). As a civil servant you may qualify for ill health early retirement benefits arising from permanent disability, provided you have at least five years’ pensionable service.

To contact the branch in Booterstown, County Dublin, Tel: 01 277 1800 & to call the branch in Blackpool, Cork, Tel: 021 464 1474. Alternatively log onto www.ifg.ie

Michael Harty, IFG

A NEW STANDARD IN FINANCIAL PLANNING

Wealth Alliance is one of Ireland’s leading firms of independent CERTIFIED FINANCIAL PLANNER™ professionals and qualified financial advisors.

DO YOU HAVE A FINANCIAL PLAN?...

Our mission is simple; recognising your individuality, we design sensible innovative solutions that will enable you to meet your lifestyle goals now and in the future.

• Financial Management

• Tax Planning

• Asset Management

• Retirement Planning

• Risk Management

• Estate Planning

Tel: + 353 (0)1 849 3000Fax: +353 (0)1-849 5500Email: [email protected]: www.wealthalliance.ie

Sterner Holdings Limited t/a Alliance Insurance Brokers, Alliance Mortgage & Finance, The Wealth Shop Alliance and Wealth Alliance is regulated by the Central Bank of Ireland C2234


Finance

TRUST IS KEY

A survey carried out by Millward Brown Lansdowne has found that trust was the reason that four out of ten adults had chosen a particular bank or building society and it was a more important factor than the rate of interest earned.

A further survey from IrishDeposits.ie which gives consumers advice about savsings products found that a third of adults over the age of 25 believe the euro currency will not survive over the next five to 10 years. However, even though a large percentage of people believe the euro is doomed, most would not consider changing their savings into other currencies.

The survey also reveals there is strong resistance to putting money into anything more exotic than deposit accounts in banks, building societies or credit unions.

Seven out of 10 people would not consider putting any money into a tracker bond, a guaranteed investment bond, equity fund or property fund, the IrishDeposits.ie survey shows.

MONEY WORRIES

Years of worrying about money and mounting debt is exerting a growing toll on families in Ireland, according to a new survey for the Samaritans.

It shows people are far more worried about money than they were a year ago with 70pc of respondents putting money and debt in their top worries – a 6pc rise from last year.

The poll carried out by YouGov for the charity shows that concerns over money were higher among women (73pc) than men (67pc).

“It’s clear that a large majority of Irish people are very worried about money,” said Pio Fenton, chairperson of the Samaritans.

HOPES HIGH FOR RATE CUT

Homeowners have high hopes of a new year cut in eurozone interest rates. A further reduction would represent a great start to 2013 for tracker-mortgage holders, who benefit every time rates decrease.

At the most recent ECB meeting it was decided to keep its key rate at a record low of 0.75pc but the governing council also discussed the issue of bringing the rate down for the first time in months.

There are around 400,000 mortgage holders with trackers and every reduction of 0.25pc in interest rates translates into a €15 reduction in monthly repayments on every €100,000 borrowed for those with trackers.

Economist with KBC Bank Austin Hughes said a rate cut was not imminent but was a strong possibility in the first three months of next year. “The ECB governing council is alive to the possibility that interest rates may need to be lowered. The outlook is weak on the economic front and inflation is subdued, which leaves open the possibility of a rate cut,” Mr Hughes said.

Economist with Merrion Stockbrokers Alan McQuaid said the market was expecting a new ECB rate reduction in the first quarter of next year.

200,000 QUIT HEALTH COVER

UP to 200,000 people have dropped health insurance cover since the downturn began in 2008. The past four years have also seen premiums doubled, putting huge pressure on families to maintain payments for private health insurance.

In the last year alone some 64,000 have stopped paying for health insurance with VHI, Laya, Aviva and Glohealth..

There are now 2.1 million people who have private health insurance, according to recent figures released by the Health Insurance Authority. This represents around 46pc of the population.

The cost of health cover has been spiralling, with insurers now announcing multiple increases each year. This has seen the cost of VHI’s Plan B, which is now called Healthcare Plus, jump from €665 for an adult in 2008 to €1,364 while almost half a million customers of private health insurer Laya will also be facing price hikes of as much as €400 extra for health insurance this year.

CREDIT UNION MERGERS

The EU Commission has approved Government plans to encourage mass mergers among credit unions. The move is likely to see as many as 250 credit unions to merge in the next three years. The republic’s 400-plus credit unions are operated and run separately, as they are owned by the members in their area.

But a government-appointed commission that reported in April recommended that credit unions should come together to benefit from economies of scale and so weather the financial storm.

The Government has put aside €250m and the same again next year to bail out troubled credit unions. The EU Commission has now examined the State’s plans to bailout distressed credit unions and found it is in line with EU state aid rules.

President of the ECB Mario Draghi.

http://searchtopics.independent.ie/topic/Samaritans

http://searchtopics.independent.ie/topic/European_Union

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Public Sector News

Distinguished Service Awards Honoring outstanding achievements by the Diaspora

The Presidential Distinguished Service Awards for the Irish Abroad saw outstanding service by members of the diaspora honoured by President Michael D. Higgins at a ceremony in Aras an Uachtarain which was attended by Taoiseach Enda Kenny and Tanaiste Eamon Gilmore.

Speaking to guests which comprised largely of family and friends of the award recipients, President Michael D. Higgins said the new award system allowed the state to formally recognise and honour “the sacrifice, support and commitment to Ireland of the wider Irish diaspora in all its diversity.”

The awards were divided into five separate categories with the work of Pat Kelly, Ottawa based publican and leading member of the city’s Irish community, French writer and academic Pierre Joannon and Dublin Born Australian rules footballer, the late Jim Stynes honoured in the Arts, culture and sport category.

British based community worker Sally Mulready who works tirelessly for vulnerable members of the Irish community in the UK and Sr Lena Deevy, executive director of the Boston Irish Immigration Center were awarded in the community

support category while awards for Peace Reconciliation and Development were given to campaigner on HIV and Aids Fr Michael Kelly and chairwoman of the American Ireland fund, Loretta Brennan Glucksman.

Donald Keough, chairman emeritus of the board of trustees and a life trustee of the University of Notre Dame who received honorary citizenship in 2007 together with businessman and chairman of the European Marketing Group Andy Rogers were recognised under the Business and Education heading while Irish American businessman and philanthropist Chuck Feeney who has donated around €1bn to education causes in Ireland was honoured under the charitable works heading. The Tánaiste pledged to strengthen further the Government’s engagement and support for Irish emigrant organisations and paid tribute to the 2012 recipients. “In their own separate ways, each of these individuals have made a remarkable contribution to Ireland and our international reputation. I am deeply grateful for their service and commitment to this country. This annual conferring by the President will be a fitting acknowledgement of that vital contribution,” he said.

Recipients of the Presidential Distinguished Service Award for the Irish Abroad (from Left) Andy Rogers, Mrs Stynes, Pierre Joannon, Pat Kelly, Loretta Brennan Glucksman, Sr Lena Deevy, Sally Mullready and Fr Michael Kelly together with President Michael D. Higgins, his wife Sabina, Taoiseach Enda Kenny and Tanaiste Eamon Gilmore.


Public Sector News

“Nominees for the award must be residing outside of Ireland and have rendered distinguished service to the nation and/or its reputation abroad. The scheme is managed by the Department of Foreign Affairs and Trade and nominations were made by Irish communities abroad through Ireland’s network of diplomatic missions.”

Sam Stynes, widow of Dublin born Australian rules player who received a distinguished service award which was posthumously awarded to her husband.

Honorary Irish citizen Donald Keough receives a distinguished service award from President Michael D. Higgins.

Sally Mulready, a member of the Irish Council of State who has worked tirelessly on behalf of the Irish community in Britain receives a distinguished service award from President Michael D. Higgins.

Fr Michael Kelly receives a distinguished service award from President Michael D. Higgins for his work in helping victims of HIV and Aids.

Loretta Brennan Glucksman, chair of the American Ireland Fund , the US Chapter of the Worldwide Ireland funds who has spearheaded a major initiative to raise €100 million over five years receives a distinguished services award.

Sr Lena Deevy, the Laois born executive director of the Boston Irish immigration centre and chair of the advisory council on refugees and Immigrants receives a distinguished service award from President Michael D. Higgins

Westmanstown Sport & Conference Centre, Westmanstown, Clonsilla, Dublin 15

132 Willow Park Avenue, Glasnevin, Dublin 11

web: www.bewellphysio.ie email: [email protected] contact: 087 6199 176

CALL NOW0876199 176


Public Sector News

National Safety AwardsThe 21st Annual National Irish Safety Organisation / Northern Ireland Safety Group (NISO/NISG) Safety Awards were held at a special ceremony in Sligo recently. MSD Brinny was announced as the Supreme Award winner for 2012.

The Supreme Safety Award is presented to the organisation which showed a number of years of consistently good or continuously improving health and safety performance or an outstanding contribution to occupational safety, health and welfare during the previous year. The Awards are highly valued and regarded among health and safety professionals throughout the island of Ireland.

Other awards presented on the night included the safety representative and construction innovation awards. The Safety Representative of the Year Award 2012, in association with Nifast, was awarded to Ray Walker of Bristol-Myers Squibb, Cruiserath. The Small / Sub Contractor, Safety Innovation Award 2012, in association with the Construction Safety Partnership (CSP), was awarded to King and Moffatt Group.

The awards, which demonstrate the positive and proactive culture of safety management in an organisation, were in association with the Construction Industry Federation (CIF) and

Construction Safety Partnership (CSP), while Abbott Ireland Sligo, Anderco, Bord Gais Networks, Cold Chon (Galway) Sligo, Kilcawley Construction, Phillips 66 Ireland Ltd., Randox Testing Services, Roadbridge and Shell E & P Ireland Ltd. also sponsored the events this year.

Pauric Corrigan, NISO president, along with Priscilla Woods, NISG chair, and John Perry, T.D., presented awards to over 100 organisations. With a number of small to medium sized companies entering the safety awards, Minister of State for Small Business, John Perry, T.D., thanked NISO for the good work they do for small to medium sized enterprises in Ireland.

Over the years, the awards scheme has seen many innovations and this year was no exception with the introduction of the consistent high achiever award. This award was presented to organisations that consistently achieved a high standard safety award between 2008-2012, representing a continuous commitment to health and safety in their

Pictured (from left) Priscilla Woods, NISG Chair; Neil O’Carroll, Phillips 66 Whitegate Refinery Ltd., Lead Executive; Donal Kelleher, MSD Brinny, Engineering EHS Lead; John Perry, T.D., Minister of State for Small Business; Pauric Corrigan, NISO President.


Public Sector News

HALL OF FAME - 21 YEARS OF WINNERS OF THE SUPREME AWARD2012 MSD, Brinny2011 Diamond Innovations Irish Operations2010 Masonite Ireland2009 PSE Kinsale Energy Ltd.2008 Swords Laboratories2007 Baxter Healthcare Irish Manufacturing Operations2006 Helsinn Birex Pharmaceuticals Ltd.2005Roadbridge Ltd.2004 Helsinn Chemicals Ireland Ltd.2003 Bausch & Lomb Ireland2002 GE Superabrasives Ireland2001 Merck Sharp & Dohme (Ireland) Ltd.2000 Aughinish Alumina1999 Janssen Pharmaceutical Ltd.1998 Bausch & Lomb Ireland Sunglass Operation1997Olin Chemicals BV1996 Intel Ireland Ltd.1995 Janssen Pharmaceutical Limited1994 Merck Sharp & Dohme Ireland1993 Irish Refining plc1992 Arthur Guinness & Son (Dublin) Ltd.

Pictured (Back Row):Alan Hall CO, Sergeant Maurice Cunningham, Inspector Anthony Twomey. Middle Row: Sergeant Louise Mulligan, Assistant Commissioner Fintan Fanning, Deputy Commissioner Nacie Rice, Irene Collins Managing Director EIQA, Chief Superintendent Pat Clavin, Sergeant Irene Campbell, Clare O’Sullivan, Inspector Margaret Howard. Front Row: Garda Barry Mills, Gráinne Shortall HEO, Deirdre Hughes EO, Garda Martin Hopkins.

THE NATIONAL Q MARK AWARDS 2012

Picture From Left: Assistant Commissioner Fintan Fanning, Deputy Commissioner Nacie Rice, Irene Collins Managing Director of EIQA and Chief Superintendent Pat Clavin, Garda Professional Standards Unit.

The Garda Professional Standards Unit was accredited the 2012 EIQA National Q Mark for Quality Management Systems Level 1. The Unit achieved this award ahead of a number of other selected organisations in the public and private sector.

Deputy Commissioner Rice accepted the award on behalf of the Garda Professional Standards Unit from Managing Director of EIQA, Irene Collins.

According to Deputy Commissioner Rice, the Garda Professional Standards Unit is the driver of the Organisation’s Continuous Improvement Programme and the champion of ‘An Garda Síochána’s Vision: Excellent People delivering Policing Excellence, Deputy Commissioner Rice also acknowledged that, as the Organisation’s ‘Examiners’ of operational, administrative and management performance, the Garda Professional Standards Unit also requires that their method of operation is subjected to similar validation. The rigorous assessment by EIQA and the achievement of the Q Mark is confirmation that the processes and procedures adopted by the Garda Professional Standards Unit meet the highest standards. External accreditation by EIQA is hugely important as it validates An Garda Síochána’s commitment to quality management and also provides a benchmark with other organisations in the public and private sector.

organisation. Recipients of this new award include Abbott Diagnostics Division, Longford; Abbott Ireland Diagnostic Division (Sligo); Allergan Pharmaceutical; Cold Chon Galway Ltd. (Chemoran); Designer Group Engineering Contractors; Diamond Innovations Irish Operations; GE Healthcare Cork; Helsinn Birex Pharmaceuticals; Masonite Ireland; PSE Kinsale Energy Limited; SIAC Butlers Steel Ltd.; Sierra Support Services Group and Xerox Technology;

Expressions of interest for the 2013 safety awards can be emailed to [email protected]. Register so NISO / NISG can send out details of the 2013 Awards when available. The 2013 Awards will coincide with NISO’s 50th Anniversary.


Public Sector News

Full Honours Roadbridge, one of Ireland’s leading Civil Engineering companies have recently been celebrating winning two major awards in the space of a week, at the National Irish Safety Organisation (NISO) Safety Awards and at the National Q-Mark Awards.

The company was awarded the President’s Award for 2012 at the NISO Safety Awards. This award is in recognition of significant contributions to workplace Health and Safety demonstrated through strong management leadership and influencing of stakeholders, suppliers and contractors.

Roadbridge has a proud tradition with these awards stretching back to 2003, and have been successful in attaining an award each year. The company became the first non-pharmaceutical company to win the Supreme Award in 2005.

Roadbridge were also honoured at the 2012 National Q-Mark Awards at a ceremony in Dublin, where the company was presented with the Quality Management Systems Level 2 80%+ award. This is the first time that a construction company has achieved this accolade and demonstrates the commitment of the company to a high level of quality throughout its organisation.

Excellence Ireland Quality Assurance (EIQA) which is responsible for the Q-Mark Quality Management Standard,

carries out almost 2,200 audits and assessments each year. The top 10% performing companies are then selected for nomination for an award.

These prestigious awards reflect the on-going commitment of Roadbridge at all levels throughout the organisation to perform to the highest standards and to strive to exceed its customers requirements.

The Roadbridge team being awarded the President´s Award for 2012 by Minister John Perry, Minister of State for Small Business and Priscilla Woods, NISG Chair.

NISO Presidents Award 2012

Roadbridge at the National Q Mark

Awards, Cathal O’Neill, Peter Byrne,

Martin Roper

Q-Mark trophy 2012


Public Sector News

The Government is targeting the €80billion global supply chain of multinational companies in Ireland in an effort to help Irish companies win new business, grow exports and ultimately create new jobs.

It is just one of a series of initiatives driven by a new Enterprise Ireland/IDA senior management team which was established by the Minister for Jobs, Enterprise and Innovation Richard Bruton under the Action Plan for Jobs 2012. According to Minister Bruton a 5% increase in global sourcing by multinationals from Irish business would lead to a €500million annual boost to the Irish economy.

Multinational companies based in Ireland currently source approximately €80billion in goods and services globally, of which over €11billion currently comes from Irish businesses. The joint team is targeting an increase in this figure in 2013 through a variety of measures including the development of a joint strategy by Enterprise Ireland and IDA to target 65 multinational companies which have been identified as offering particular potential for Irish companies.

The joint team will seek greater engagement with key procurement decision makers among the 65 companies identified and there will also be greater focus on creating programmes to support the capability of Irish firms in meeting the needs of global corporations. Other areas targeted include attracting international start-ups and mentoring local firms.

Minister Bruton believes there is substantial benefit to be derived from enhanced cooperation between Enterprise Ireland’s activities in seeking to attract mobile international entrepreneurs to locate their businesses in Ireland, and IDA’s activities in targeting high-growth emerging businesses which have already established operations overseas but are looking to internationalise.

“A key part of the government’s plan for jobs and growth is ensuring that we derive more benefit, as an economy, from the amazing group of world-leading multinational companies that have located operations in Ireland,” the Minister said. “Targeting increased links between these multinationals and our innovative Irish exporting companies can achieve two important goals: firstly, it will open major opportunities for Irish companies to secure more business and exports as part of an €80billion global supply chain; and, secondly, it will help us attract more investment from multinationals, by making the capabilities of Irish companies into a key selling point.

“In the short time that this joint team has been in existence, it has made significant progress. Necessary research has been done, plans have been concluded and initial actions have been developed, with major benefits to both Irish companies and multinationals. The next step now is to build on this progress with a comprehensive strategy to target growth and I am determined to ensure that in 2013 and subsequent years we will see increasing benefits for the Irish economy and in particular, the jobs and growth we need,” Bruton said.

At a briefing at IDA client company Accenture’s Dublin city offices, Bruton revealed that Accenture has engaged with more than 17 Irish companies and a number have won new contracts from this engagement, including biometric identity management software company Daon.

Accenture worked with Daon and its unique technology in biometrics to win deals in India, the US, the EU and Ireland in the border management and public safety space.

Other local firms that fit into the Accenture supply chain ecosystem include Brite:Bill, which is focused on the global post office marketplace, and DataHug, which leverages analytics to help firms manage relationships better.

IDA CEO Barry O’Leary said IDA Ireland is committed to acting as an intermediary to create even more of these sourcing partnerships in the future. “IDA client companies work with a range of Irish suppliers and sub-suppliers across a variety of sectors and we are confident that as Foreign Direct Investment grows in Ireland, there will be significant opportunities to increase sourcing relationships between foreign multinationals and indigenous supply companies.’’

The IDA and Enterprise Ireland are currently finalising a joint strategy paper on Global Sourcing. This joint strategy paper will identify the core actions to be progressed during 2013.

Opportunity Knocks Government targets global supply chain of multinational companies in Ireland

“A 5% increase in global sourcing by multinationals from

Irish business would lead to a €500million annual boost to the

Irish economy.”

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Health

Shaping HealthcareDespite the daunting challenge of rescuing a dysfunctional health system and spearheading unprecedented reform in the sector, Minister for Health James Reilly remains confident that he can help deliver a vast improvement in Irish health services.

Public Sector Magazine: What would you regard as you most significant achievements to date as Minister for Health? Minister James Reilly: I prefer to speak of progress rather than of achievements and considerable progress has been made on a range of fronts. A key area of progress is the increasing realisation within the health services that we can do more with less. In 2012, despite the departure of thousands of staff from the HSE and a major reduction in funds, we made significant improvements in key areas. By way of example, we reduced the numbers on the waiting lists, reduced the waiting times and we cut the number of people on trolleys. Almost 25% fewer people on trolleys. That’s 19 thousand persons. This was made possible by the following combination; the setting up of the Special Delivery Unit, cooperation with the expanding Clinical Programmes and crucially the response of the health professionals on the front line. Everyone knows that we have a major challenge in improving the health services against a backdrop of reduced funding, but I believe there is now a widespread recognition of the fact that by reforming how we work, we can maintain and even improve services even with less resource.

The list of important developments over the last year is long, but I would cite the following: - the decision to locate the Children’s Hospital in St James’ Hospital Dublin - which brings

this vital hospital one step closer - progress on the establishment of the Directorate Structure in the HSE, the agreement by hospital consultants to the LRC deal and the nationwide consultation on ‘Future Health’ - the blueprint for the next steps on the road to Universal Health Insurance.

PSM: Given the budget overruns which occurred in your Department in 2012, how can you reassure people that budgets can be adhered to in 2013 and front line services can be maintained despite the fact over ¾ billion euro in further savings are required? Minister James Reilly: The budgetary challenges faced by health are enormous and demographic pressures play a major role in the figures involved. For example in 2012 the number of medical cards that were provided to citizens far outstripped predictions and the number of admissions to hospitals from Emergency Departments rose considerably. 42% of the population (c1.8m people) have medical cards. The health system is obliged to provide medical cards when people are within the relevant criteria and we may not refuse admission to Emergency Departments. So where there are demand led schemes you cannot simply refuse the service. But it’s important to note that financial control is being strengthened considerably in the

Minister For Health, James Reilly


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HSE and in the Department of Health on foot of the reports by international expert Mark Ogden and PA Consulting. Among the many difficult tasks ahead we need to find ways of reducing the costs of services rather than the services themselves.

PSM: Can you elaborate on how you intend to “cut the cost of services rather than the services themselves” and are you in a position to reassure people that frontline services will be unaffected? Minister James Reilly: A key experience of 2012 has been the fact that we have managed to maintain services with less money and less staff. A variety of initiatives have helped that to occur, many of which provide for greater effectiveness in the delivery of services. For example the Clinical Programmes have been to the fore in reducing the average length of stay in hospitals. By reducing the number of days a patient spends in hospital, we reduce the cost of treatment to that patient. Another example is the ‘Productive Theatre Programme’ which has saved significant sums by utilizing our hospital theatres more effectively. There are countless examples of how we can find ways to deliver services more effectively and more economically thus allow for a reduction of the cost of the services rather than resulting in a reduced level of service. We must protect frontline services to the greatest degree possible and that will require flexibility and cooperation.

PSM: What are most significant and fundamental problems which have been allowed to take root in the health services over the years and which have resulted in many of the problems which have afflicted the services in recent times? Minister James Reilly: Ireland has allowed a two tier, unfair health system to develop and grow and this Government is determined to dismantle that system. We intend to establish a single tier system which caters for people on the basis of need rather than on the basis of their financial means. To achieve that end we will bring in Universal Health Insurance. Not only will the new system mean greater equity in terms of access to treatments but we believe it will also empower the system to work more effectively and efficiently producing better outcomes for patients. This level of change is a big ask on the system but I believe that people are ready for change. Even if we didn’t have our current economic problems we would have to make major changes anyway in our health system to take account of factors such as the rise in chronic illness. So the time is right for reform on a major scale.

PSM: Can you provide a brief summation/overview of the central tenants of the healthcare model which you are seeking to deliver and can you explain the rationale underpinning your conviction that this model represents the most desirable model/outcome for Ireland’s health services? Minister James Reilly: Currently, as I have already said, we have a two tier health service that is fundamentally unfair. It allows people with greater financial means, have a greater ease of access to services. I want a fairer system that also works more effectively. Universal Health Insurance is the method by which we will create that fairness and effectiveness. In the current system, the HSEis

the main provider of health services and yet is also the main purchaser of those services as well. That alone gets in the way of having the most effective health services. But so does the current method of funding. Block funding for hospitals can actually work as a disincentive from being fully efficient and effective.

So we intend to change all that. First of all we are going to put in place what we call a purchaser/provider split. That means that the architecture for paying for services will be placed together on one side while on the other side we will place the entities that provide the services. We will institute the principle of ‘Money Follows the Patient’ which effectively means that the more productive a health provider is in giving treatments the more money will flow to that entity. This new separation will be a dynamic for greater effectiveness and efficiency in the health services. We are providing for a significant enhancement of Primary Care in Ireland where the vast majority of people’s medical complaints can be taken care of. We are rolling out free GP care as of next year. We will also establish Independent Hospitals Trusts which will see hospitals working cooperatively in groups. And by introducing Universal Health Insurance, with the state assisting those persons who can’t afford it, we will provide a level playing field for access to services.

PSM: What criteria do you think will be fair and reasonable for people to apply when judging the success (or otherwise) of you tenure as Minister for Health?Minister James Reilly: I am a reforming minister. I have promised far reaching change as we move to bring in Universal Health Insurance. A significant body of work has already been done preparing the foundation for that change. We have published “Future Health”. We have the new Directorate structure in the health services being established. We have the Universal Health Insurance Implementation Group at work on how best to apply UHI in Ireland. When my tenure is up people will be able see how advanced we are on that journey. However I have repeatedly said that what truly matters is the experience of patients in our health system. I am proud of the fact that even despite the reducing budgets and lowering staffing levels that we have made the advances I earlier talked about. Ultimately therefore I believe I will be judged on whether the changes I bring about will benefit the outcomes for patients.

This is the only measure that really counts - outcomes for patients; how many were seen, how quickly, how long did they have to wait? For too long the focus has been on inputs: how many doctors, how many nurses, how much money? If increased inputs had been the cure for the problems of the Irish health service it would have happened a long time ago.

I am more determined than ever, more committed than ever and more convinced than ever that we will be able to implement our reform process and create real improvement in the Irish Health Service and I say that particularly in the light of the new leadership we have in the HSE, the Department of Health, the VHI and most of all on the front line with the establishment the Clinical Programmes.

“Among the many difficult tasks ahead we need to

find ways of reducing the costs of services rather

than the services themselves.”


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Health

Procuring savings John Swords, HSE Head of Procurement, discusses how the organisation has welcomed Accenture’s Review of Central Procurement Function and its plans to improve efficiency and quality in the delivery of healthcare services.

Procurement is responsible for the strategic sourcing, purchasing, storage and distribution of HSE goods and services to optimise efficiencies and achieve best value for money in the delivery of patient care, explains John Swords, HSE Head of Procurement.

An organisation of more than 100,000 people, who run all of the public health services in Ireland, the HSE manages services through a structure designed to put patients and clients at the centre of the organisation.

His vision for HSE Procurement and its 580-strong team across the country involves everyone having “easy access to high quality procurement services that they have confidence in and that procurement staff are proud to provide.”

HSE Procurement, which advertises all high value requirements on Etenders website at www.etenders.gov.ie, implemented its first online auction within the organisation in 2012, which proved to be an effective procurement tool for the buyer and the supplier, reducing costs and providing suppliers with open and transparent competition where the supplier can bid against the other companies.

According to Swords, the HSE recognises “the role of innovation, and particularly indigenous SMEs, in promoting sustainable growth and improving efficiency and quality in the delivery of healthcare services.”

A man who loves the adrenaline rush of achieving results in his role, Swords praises his “energised team” and the way they have driven savings, identifying its centralised approach and focus on the greater aggregation of purchasing as being among the considerable achievements accomplished by his organisation

National Procurement Awards

The HSE’s Procurement Team clinched the Innovation in Public Procurement and the Best Use of Technology awards at the National Procurement Awards 2012.

The HSE received the Innovation in Public Procurement Award for using an electronic auction to hold a mini-competition for the supply of disposable continence products, a process that resulted in a saving of more than €6 million.

HSE suppliers were invited to tender to provide and supply disposable containment continence products and ancillary services. Northcore Technologies was the e-auction service provider for the venture.

The organisation received the Best Use of Technology Award for introducing voice-directed technology to generate significant productivity and accuracy gains in its warehousing operations.

A newly-developed voice-picking solution has been implemented in the HSE Procurement National Distribution Centre in Tullamore, eliminating paper and improving pick accuracy and efficiency. Other benefits include improved operational control, maximisation of limited resources, reduction in manual entry and paperwork, reduction in restocking costs and errors, improved customer service and improved management reporting.

“Our team has realised significant savings and brought about improvements which will benefit the health service and patient care,” Swords comments.

The Procurement division has only been in place for two years, and “we were told ‘you have to build your culture, train


Health

your team and you have to get them up to speed’, and we did so at a time when the pressure was on.”

“We’ve lost 8% of our staff in the last two years, so we’re working from less to achieve more,” he adds.

The new model for Logistics and Inventory Management within the HSE features an

increased level of management of stock at point of use (POU), consolidation of fragmented stores infrastructure into a National Distribution Centre distributing to nine hubs, and the implementation of appropriate supply channels, he explains

The HSE commits to fair competition, prompt payment and social responsibility, he stresses. “The HSE expects suppliers to maintain security of supply, consistent and favourable pricing, sales and marketing activity; comply with all legal requirements; provide management information; and act ethically.”

Central Procurement

The HSE has welcomed Accenture’s Review of Central Procurement Function, which identifies the actions required to realise substantial savings in public procurement in the short and medium term, with key proposals submitted to Government including the establishment of a National Procurement Office, to be headed by a Chief Procurement Officer. The new approach will also involve much greater aggregation of purchasing across public bodies to achieve better value for money.

HSE Procurement have made adjustments to assist the Current Supply Base and New Entrants in conducting business, Swords explains, with changes including the Review of Tender Documentation, Qualitative Selection Criteria, HSE Standard Insurance Requirements and Economic and Financial Standing.

The National Procurement model consists of three work streams: Portfolio & Category Management (Contracting), Logistics and Inventory Management, and the Business Management Unit.

Portfolio & Category Management (Contracting) determines the level at which the HSE should manage each category enter the market, describes how specific categories will be contracted, and determines opportunities in the supply market.

HSE Procurement’s Logistics and Inventory Management (L&IM) function is responsible for purchasing, storage and distribution of HSE goods and services. L&IM supports the needs of internal customers in the delivery of patient care by providing services to patients in hospitals, community care and home care settings through numerous offices and warehouses located across the country. L&IM work closely with Portfolio & Category Management to ensure a coherent approach to

procurement activity across the organisation.The Business Management Unit deals with procurement-

related communications, training and up-skilling requirements to support staff; the development and implementation of a customer relationship management model; and providing business support in respect of procurement.

Price Harmonisation

In 2010 and 2011, HSE Procurement concentrated its efforts on maximising price harmonisation across the HSE. The purpose of this exercise was to optimise efficiencies that could be achieved through a single procurement organisation, for example the same price for the same product from suppliers in all areas.

“This provided a baseline for the achievement for best value for money in advance of rolling out national contracts. This process reaped immediate price reductions for the organisation which was critical due to the challenging financial environment,” Swords comments.

As supporters of InterTrade Ireland and Enterprise Ireland, HSE Procurement recently gave talks to just under 400 companies in Athlone, 350 companies in Cookstown and more than 500 companies in Kilkenny. The events were designed with the small to medium-sized enterprises (SMEs) in mind, to raise awareness and understanding of the public procurement market.

With 163 stocked locations across Ireland, HSE Procurement is now “moving to a central national distribution centre in Tullamore, with nine satellites working off it,” he says.

To encourage savings, “we create the competition within the market. The second way is that we actually tell the market what we’re going to buy, and that hasn’t always been clear. The third part of it is that we start working elsewhere and start looking for a better price.”

“We’ve put a bit of oil into the system now and you’re going to see the best has yet to come, because you’re going to see a lot of transparency in what we’re doing, you are going to see visibility of what we’re buying in a more timely manner, and that will allow us to even draw down better ways of doing the procurement,” he comments.

The procurement team’s “wonderful working relationship with the clinicians” has resulted in mutual benefits and “the real winner is the patient. People are leaving private healthcare and that all puts pressure on our system, therefore our demand goes up and we will have to run the service on the money we got in 2010 and less.”

With 98,000 SKUs, HSE Procurement is “trying to standardise the standards and services that are coming in through our supply chain. We’re mapping all the systems together so we can generate our own reports and get accurate information on like-for-like equipment that’s being used around the service.”

HSE Procurement has also reduced the infantry, “so we actually get control. We take the stock away from them and we feed it back into them, so that gives you a buffer of a number of orders you didn’t have to write, so that gives you a saving. The obsolete stock doesn’t become an issue because it’s turned very regularly.”

“The real win for this is that clinicians aren’t involved in doing stocktaking and ordering; we do it and that saves them six hours a week per ward. That’s amazing; a shift per week on a ward,” he enthuses.

John Swords, HSE Head of Procurement


Health

Healthy ProcurementBetter State procurement of medical devices could improve patients’ lives and reduce healthcare spending.

Deficiencies in the current health procurement system for medical devices have been highlighted in a new report commissioned by the med-tech supply association, IMSA in partnership with Enterprise Ireland. The report which reviewed current procurement practices for medical supplies technologies said that focusing on price reductions only led to poorer health outcomes for patients. It also stifled knowledge and development of new technologies in the market, and sacrificed long-term gains for patients, health professionals and healthcare facilities in return for short-term reductions in price.

The author of the report Dr. Paul Davis of Dublin City University said that the research had revealed that procurement within the public sector is seen more as a traditional tendering role rather than a set of activities that can contribute more than the tender itself. “In many cases, engagement with suppliers either through pre-market engagement or through on-going contract evaluation does not take place,” he said and added that centralised state procurement of medical technology can lead to a stifling of innovation and a reduction in competition and does not allow for local needs in relation to specific patients.”

The report was launched by John Perry, TD, Minister for Small Business who said that the Government is committed to helping businesses in Ireland to grow by removing unnecessary bureaucracy and making procurement systems more efficient

and effective, so that the Irish taxpayer gets the best value for money, and in the case of healthcare patients, the best outcomes for their quality of life. “This review is timely in that we are seeking ways for the public sector to better engage with companies offering innovative solutions to problems rather than being prescriptive about how to solve those problems ourselves,” he said.

Alan Markey, chief executive of Baxter Healthcare, and the newly-appointed chairman of IMSTA, said that there are

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Health

It recommended that where the procurement takes a lead on the purchase of medical technology, it is just as critical that clinical and biomedical engineering input be obtained for evaluation and subsequent procurement.

There is a growing use of standards across Europe and procurement professionals need to understand and have access to these. It is critical that a national access point be set up for the sharing of these standards with procurement.

Consultation with industry can drive a better understanding of the market, which leads to increased access/utilization of innovation and more cost effective solutions to key healthcare issues. Consultation with industry also will ensure that procurement professionals are up to date with current standards and practices in this fast developing field.

To avoid over-concentration on price-led procurement, the review recommends that the public sector work more closely with industry to develop total cost of ownership models. Public procurement should enable market access for local indigenous companies and SMEs, both manufacturers/developers and suppliers.

KEY RECOMMENDATIONS OF THE REVIEW:The use of most economically advantageous tender as a criteria should promote technical expertise or technology improvements in assessments, not just pricen Specialist procurement skills or advisers such as clinicians or

biomedical engineers are required for specialist productsn Training should be provided to current procurement personneln Value for money mechanisms should be modified to take into

account other evaluation criterian Tendering process should be simplified to encourage greater

participation of domestic, indigenous companiesn Create a central database for suppliers to enter information and

reduce paperworkn Greater engagement between industry and health procurers

should be encouragedn Current Group Purchasing Organisations arrangements should be

reviewed to see if best value for money is being achieved around medical device purchasing.

n A national database of standards should be made available to all procurement agencies

n Global standards should be adopted so that different operators within the healthcare system from public and private sectors operate to a common recognised standard.

n Total Cost of Ownership should be developed in conjunction with industry to be used as an award criterion. This would allow longer-term considerations to be part of the assessment and decision-making.

n Collaborative procurement should be encouraged involving both public and private sectors, and across jurisdictions where value for money is a priority.

n Decentralised or strategic procurement should be developed around patient outcomes

n Procurement should be involved in the early stages of health technology assessments (HTAs)

n HIQA health technology assessment guidelines should be updated to include a direct role for procurement

substantial opportunities for Government to engage with the med-tech sector to generate real cost-savings, and make better use of medical technology for improved patient healthcare.

“IMSTA has indicated previously to Government that working with our sector, over €200m a year in real savings could be achieved within healthcare expenditure. And that could happen over the next four years with a potential €800m-€900m positive impact for the national budget. Equally, the consequent health benefits for patients who can avail of this kind of technology are incalculable, but easy to see and experience in people’s day-to-day lives. This report is timely and I hope that it can be used as a stimulus for a wider and deeper engagement between the policy makers, the procurement professionals and the medical device industry in Ireland.”

The DCU review highlighted that national procurement in Ireland was moving towards framework agreements (a system of pre-selecting bidders) and focusing primarily on price. International research findings showed that this approach can result in a failure to reduce total healthcare costs.

The approach to deal primarily with the tactical issues of price and delivery meant any investment in strategic activities to focus on total healthcare costs was being ignored.

Ireland is still struggling to move procurement to a strategic activity that encompasses new methodologies such as commissioning. In countries such as the UK this model has been widely adopted, whilst in Ireland it is still in its infancy.

The review found that Health Technology Assessments have little or no involvement of the procurement function. Currently there is not even a formal review process of existing HTAs on medical devices to realise the cost benefits available.

John Perry, TD, Minister for Small Business who said that the Government is committed to helping businesses in Ireland to grow by removing unnecessary bureaucracy and making procurement systems more efficient.


Health Insurance

Check your Health Cover


Health Insurance

Dermot Goode from Cornmarket discusses ways of controlling your health insurance costs.

The Irish health insurance market is constantly changing. Prices are increasing almost every month, forcing more people to reduce their cover. Fierce competition has led to even more health plans being launched, with over 200 now available, with product complexity making it very difficult for consumers to make like-for-like comparisons.

One of the key myths is that public hospital treatment is free. Unless you hold a medical card, going public will cost you a daily rate of €75 to a maximum of €750 a year regardless of whether you’re an adult or child. This charge will more than likely increase with future budgets.

Consumers often think that they’ll be able to bear the cost of routine hospital treatment themselves should they fall ill. But many do not realise that private treatment in a public hospital costs approximately €1,000 per night. A routine admission could easily cost €7,500 to €10,000 and this assumes no follow up treatment will be required. Basic health insurance, which covers these public hospital costs, can be purchased from as little as €485 for one adult.

If you’ve been insured on the same plan for some time you will have been affected by the multitude of price increases since you first joined. There is a strong probability that you could generate savings for you and your family by considering one of the latest plans to come on the market. In many cases, you don’t even have to change insurer to realise these savings. For example, an individual could save between €720 and €895 by switching from VHI Health Plus Extra to either an AVIVA or GloHealth mid range plan*.

Consider the following before you renew your cover:

n When was the last time you reviewed your cover with an expert?

n Do you understand exactly what your plan covers and are you certain that it still meets your exact requirements?

n Are you aware of ‘restricted illnesses’ in private hospitals and how this could affect your cover?

n Are you claiming refunds or tax relief on your routine medical expenses?

n For a family policy, have you ever considered splitting your cover to reduce your overall costs, ie, adults on a higher plan compared to dependents?

n Are you claiming a student rate for eligible dependents in full-time education?

n Have you considered taking on a small excess for private hospitals in return for a reduced health insurance premium?

n Do you know that you can join any plan on the market (including corporate plans, credit union plans, nurses and teacher’s plans) regardless of what it’s called?

n Have you checked special offers like free cover for children or discounted adult pricing?

There are numerous options that could generate savings on your healthcare costs. All the health insurers now operate annual contracts, which mean changes to your cover are only

Cornmarket’s FREE Health

Insurance Comparison

Service takes the stress out

of finding the best plan

to suit your needs. In one

short phone call we will

review your requirements

and present you with your

cover options from all four

insurers; VHI Healthcare,

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and GloHealth.

permitted at your renewal date. Failure to review your cover in time could see you stuck on a plan for a further 12 months that doesn’t meet your requirements or your pocket! Also, if you try and cancel your cover mid-term, you may be liable for financial penalties depending on your healthcare provider.

The cost of medical insurance is increasing and will continue to do so in the near future. As such consumers need to ensure that they properly review their health insurance options well in advance of their renewal date. With four health insurers and over 200 plans to choose from, it could be well worth your while.

Public Sector employees can avail of Cornmarket’s FREE health insurance comparison service by calling Cornmarket on 1890 252 140.*Annual savings based on price comparisons from the Health Insurance Authority effective from 1/12/12.This information is intended only as a general guide and has no legal standing. Cornmarket Group Financial Services Ltd. is regulated by the Central Bank of Ireland. A member of the Irish Life Group Ltd. Telephone calls may be recorded for quality control and training purposes.


Health

Future HealthA Strategic Framework for Reform of the Health Service 2012-2015

Future Health: A Strategic Framework for Reform of the Health Service 2012-2015 was published recently by the Minister for Health Dr. James Reilly TD and Ministers of State Kathleen Lynch TD & Alex White. It sets out the main healthcare reforms that will be introduced in the coming years, as key building blocks for the introduction of Universal Health Insurance in 2016. Future Health is about prioritising the needs of the patient even as difficult decisions on health financing are made.

There will be a new focus on the need to move away from simply treating ill people to a new concentration on keeping people healthy. Future Health recognises the need for a whole-of-government approach to addressing health issues and commits to the development of a comprehensive Health and Wellbeing Policy Framework and the establishment of a Health and Wellbeing Agency.

Service Reform

Future Health commits to service reform that will move us away from the current hospital centric model of care towards a new model of integrated care which treats people at the lowest level of complexity that is safe, timely, efficient and as close to home as possible. This will help to reduce costs, improve access, and move away from the existing emphasis on episodic reactive care towards preventative, planned and well-co-ordinated care.

Minister Reilly recognises that structural reform of the health service will be key to addressing the problems within our current health system and will also be critical in the journey to UHI. Getting the structure right will be a complex task and as such, each phase of the transition will be evaluated carefully as we progress towards UHI. The Minister’s key concerns in terms


Health

of structural reform are to promote good governance, avoid duplication and ensure a strong regional focus in managing performance and delivering value for money.

The first phase of reform will deliver a greater degree of accountability for the HSE. It includes abolition of the HSE Board, establishment of a Directorate and a new management structure in the HSE. Hospital groups will be established on an administrative basis, with Group CEOs having budgetary responsibility for both the HSE and voluntary hospitals in their group. There will be a review of Integrated Service Areas which will ensure maximum alignment between all service providers at the local level, review executive management and governance arrangements and inform new structures for the delivery of primary care. This phase will also see the establishment of the new Child and Family Support Agency. The legal status of the HSE will not change during phase one. The second and third phases, which are key to the implementation of UHI will involve: firstly, the development of a formal purchaser/provider split and effectively, the dissolution of the HSE and; secondly, a move from a tax-funded system to a combination of UHI and tax funding. The essential public nature of the health system will not be changed.

Primary Care

The vision for primary care is one where: no one must pay fees for GP care; GPs work in teams with other primary care professionals; the focus is on the prevention of illness and structured care for people with chronic conditions; primary care teams work from dedicated facilities; and staffing and resourcing of primary care is allocated in a planned manner to meet regularly assessed needs. Future Health commits us to retaining the community ethos of primary care, in which the patient’s needs are the first concern.

Hospitals

Future Health identifies three main areas of reform for the hospital system: (i) delivering more responsive and equitable access to scheduled and unscheduled care for all patients through continued implementation of the Special Delivery Unit’s initiatives in this area; (ii) reorganising public hospitals into more efficient and accountable hospital groups that harness the benefits of increased independence and a greater control at local level; and (iii) publishing a Framework for the Development of Smaller Hospitals, in which they will play a vital role in service delivery.

Social and Continuing Care

Future Health commits to the development of a social and continuing care system that maximises independence and achieves value for the resources invested. The measures include a reform of the Fair Deal scheme to allow many more people to continue living at home as they would wish. Disability services will be reformed in line with the findings of the recent Value for Money and Policy Review of Disability Services. Future Health also reaffirms support for the move from the traditional institutional based model of mental health care,

towards a patient-centred, flexible community based service. Other important measures identified include the introduction of: a standardised framework to commission services from both public and non-public providers; individualised budgeting to bring about a closer alignment between funding and the outcomes of individuals; and a robust regulatory regime to ensure quality and safety. Social and Community Care will continue to be tax funded separately from UHI.

Reshaping the Health System

Future Health contains a set of specific actions, with timelines, that will prepare the way for Universal Health Insurance. Speaking at the launch of the document Minister Reilly said the core of the Government’s health reform programme is a single-tier health system, supported by Universal Health Insurance in 2016. “Future Health sets out the steps to bring us improved health and wellbeing; faster, fairer access to hospital care; free access to GP care by 2015; better management of chronic illness; more people cared for in their own homes and improved quality and safety,” he said. “The goal is to put the needs of the patient at the centre of the health system. The essential public nature of the health system will not be changed.”

Future Health will deliver a major reshaping of the health system by restructuring our service delivery, and improving our organisational, financial, governance and accountability systems across the board – in the primary, community and hospital sectors.

Minister Reilly said he is determined to press ahead with the key reforms of the health system which were promised in the Programme for Government. “Future Health sets out the main building blocks to achieve these reforms,” he said. “The changes are right for the system, right for staff and, most importantly, right for patients and all users of our health service. The financial pressures on the health system make it even more important that we introduce comprehensive health reform. Only in this way can we deliver the services our people need, even as the available financial resources diminish.”

“The core of the Government’s health reform programme is a single tier health system, supported by Universal Health Insurance in 2016.”


Health

Homecare with SensormindDuring a harsh recession there can be a tendency to postpone debate on issues which are not of immediate economic consequence. One such problem which is continually overlooked and which has the potential for serious repercussions in the coming years is Ireland’s rapidly advancing age demographic

According to Siobhan King Hughes, CEO of technology based healthcare company Sensormind there is an urgent need to develop a policy response which addresses the social consequences and inevitable strain on resources caused by our ageing population. “We have a significant problem with an ageing demographic and a lot of families struggling to cope with business or work pressures while raising young children and also trying to look after their parents,” she says.

“Unfortunately I believe that a lot of older people are being unnecessarily institutionalised as result. The problem is not being addressed and Ireland is lagging behind other countries which recognise the scale of the problem and are far more progressive in terms of providing support for home based assisted living solutions and other initiatives which help alleviate the pressure on families and ease the demand on state provided care.”

Siobhan has had a lifelong fascination with technology and a particular interest in its potential to make a positive and meaningful contribution to our lives. She was driven to create Sensormind after taking part in research on automatic data processing technology in the home which was a feature of the upper end of the property market during the boom period.

However, Siobhan felt the technology could be put to better use and having had experience of worrying about elderly relative living alone she was confident that it could be adapted to provide highly effective home care solutions.

“I am primarily interested in technology that makes life easier and having researched the latest developments which were taking place in relation to home automation I was confident that similar technology could also be applied to the home care market,” she says. “I formulated a business plan and set about constructing a prototype and then I approached Enterprise Ireland which recognised the potential of the system and provided some support and assistance through the research and development phase. I spent about two years in product development which was considerably longer than I expected. It was more challenging than I had anticipated and it was only as I got immersed in the project that the extent of the complexities involved began to emerge.

Launched last year Sensormind Independent Living employs a network of discreet sensors placed in the home and connected to a web-based central monitoring service which is supervised by a central emergency response centre and can be accessed to family members and selected relatives. The system


Health

works by monitoring daily activities and raising an alert if any unusual or unexpected behaviour occurs. According to Siobhan the challenge during research and development arose from the difficulty in distinguishing between the different behavioural patterns and working out what constitutes abnormal behaviours in different groups which all maintain different habits. “So there was a considerable amount of behavioural analysis required which is all built into the algorithms which are the unique feature aspect of our system, how it distinguishes between different patterns of behaviour and is able to isolate and identify when abnormal behaviour occurs and raise the alarm accordingly.”

With life expectancy increasing significantly and an advancing age demographic in Europe and the US there is growing demand for independent living technologies. The market for social alarms in Europe alone was estimated to be in the region of 250 million in 2012. Siobhan believes that the market will continue to grow in tandem with a growing appreciation of the manner in which this technology can transform the lives of the elderly and vulnerable. “It is a vast improvement on the kind of systems used previously which were either too simplistic, or depended largely on cameras and were highly intrusive and extremely expensive. Our system doesn’t require any interaction from the person, it works around them and it is discreet and non obtrusive. Our product allows people to live independently at home and gives them dignity and their families peace of mind. It also has the potential to achieve significant savings in public health expenditure.”

Siobhan believes that the key to the future of Sensormind lies in its ability to continue to innovate and adopt a creative approach to the development of products which improve the quality of life of elderly and vulnerable citizens. In addition to the automated and remote monitoring and alert system, Sensormind has also produced a product which helps home care providers and organisations to manage home visits and staff rotas more effectively.

Staff management and logistics is a key issue facing the

home care sector which has to provide thousands of hours of care on a weekly basis and they need to ensure that their staff arrive on time and spend the allocated number of hours at each home. “Our system provides a perfect live record of all these details and is extremely useful for organisations which place staff in people’s homes or in multiple locations, so it is ideal for home care and it has a range of other potential applications which we are continuing to explore and develop.”

Siobhan’s identification of a technological solution for a pressing social problem was borne from a technological aptitude and creative vision fostered by years of experience in engineering and management roles for a number of prominent American corporations. She began her career in programming and development at Microsoft and progressed to senior technical management positions at Adobe Systems, IBM and Oracle. She also worked as head of international products at AOL.

For Siobhan, the experience of establishing and developing a technology business in Ireland has affirmed her conviction that the Government should provide every support possible for our emerging entrepreneurs. Funding is a major challenge for start-ups and particular for those technology orientated companies which are required to undertake a significant level of research and development in developing their product. It is vital that these products meet the relevant quality criteria and it generally demands a lengthy R&D cycle with all the expense that will entail. There is a lot of work required to get products in this space to market and it is vital that small indigenous start-ups receive the support they need to bring them to a level where they can begin to grow and create jobs. We now have an experienced and highly capable workforce and significant capability in the technology field so we should begin to focus on supporting innovative start-up companies and developing them to the stage where they compete on a global level. We can’t put our entire focus on inward investment and we need a dual strategy to restore growth in the country.”

“Siobhan believes that

the key to the future

of Sensormind lies in

its ability to continue

to innovate and adopt

a creative approach

to the development

of products which

improve the quality

of life of elderly and

vulnerable citizens.”


Health

The need for speedGlobal Diagnostics CEO David Sheehan discusses how the radiology services provider has built up an impressive track record of improving access for patients and reducing costs for hospitals.

By being very focused on efficient work processes and managing the flow of patients and, particularly, having a cohort of Irish specialist register radiologists that report for its sites, Global Diagnostics has enhanced access for patients while cutting costs for hospitals.

“Our clients range from large tertiary hospitals to small standalone medical facilities. The knowledge is around the efficiency of processes, the smart use of technology, and the expertise and focus in managing workflow,” comments David Sheehan, CEO, Global Diagnostics.

Founded in Australia in 1995, and providing local, ultrasound services, the now Irish-owned radiology services provider Global Diagnostics won a number of contracts over its first few years to deliver services on behalf of the public health service in Southwest Australia.

In 2001, the company’s founder moved to the UK and set up Global Diagnostics, providing mainly radiology services to private healthcare environments.

In 2007, the company clinched its first engagement in Ireland: the provision of services to the VHI SwiftCare Clinics.

David Sheehan joined Global Diagnostics the following year, “moving the strategy towards the delivery of services more

focused on the public sector in Ireland and the UK, replicating the success the company had enjoyed with Western Australian Country Health Service. Since then, we have been focused, certainly in Ireland and the UK, on expanding the number of public hospital and public healthcare requirements, both to the HSE and the NHS.”

Global Diagnostics, which now employs 60 people in Ireland and over 200 internationally, provides managed service solutions for diagnostic imaging, which is the management of the radiology or X-Ray departments at hospitals.

Over the last 18 months Global Diagnostics has provided services for 11 hospitals in Ireland.

“We provide managed services around the requirements of those units, either on a specific need basis, so it might be an initiative around an ultrasound waiting list or a particular cohort of patients, right up to a full managed service solution, where we manage the radiology department on behalf of the hospital,” Sheehan explains.

Global Diagnostics provides all of the equipment and IT, right from the front of the house scheduling team through to radiographers, sonographers, imaging staff and consultant radiologists, who would be providing the interpretations and diagnoses.

“You can genuinely improve the outcomeswhilst reducing the costs by engaging

with managed services,”


Health

“It’s a full managed solution, so in many hospitals we operate long-term contracts where we’re managing the entire radiology department on behalf of the hospital, and typically that’s done against a set service level agreement where we deliver to the specific targets of the hospital, whether that be in terms of the waiting time for the report; the access to particular diagnostics at different times of the day; an around the clock X-Ray or CT service, typically in the acute hospital environment or the A&E type environment where we provide 24-7 services,” he says.

Within the past year, Global Diagnostics has increased its turnover by 18%, expected to reach close to €30 million this year internationally. “We have probably increased our headcount by about 12% over the past year,” he says.

This year alone, the award-winning company has signed up three new hospitals to its services in Ireland, including Ennis General Hospital in Clare, where it began delivering services in April 2011.

“We now provide all of the reporting services in Ennis on a daily basis. We were able to bring the average waiting time for an X-ray from nine days to 10 hours. Previously doctors were waiting up to nine days for an X-ray result to be returned and we’ve brought that down to 10 hours. In the case of urgent examinations, the time has fallen to 15 minutes,” Sheehan reveals.

“We’ve actually taken 29% off the cost of the delivery of services in the radiology department in Ennis,” he says.

However, whilst efficiency and timeliness are crucial for any hospital service, the perception of the service begins and ends with the quality of the service delivered. “We are bringing best international quality assurance practice into all of our engagements using standards from the Irish Faculty of Radiologists, The Royal College in the UK and the American College of Radiology. We have taken internal and external peer review processes into all of our contracts so that the hospital can be assured it is not just a Global Diagnostics opinion, but an opinion which is backed by accreditation (CHKS) and a QA programme which ensures a percentage of cases are independently reviewed and verified.”

Radiology can be a blockage for the rest of the hospital, because a lot of the hospital requires radiology reports for diagnoses of patients, Sheehan explains. The significant cost savings extend beyond the radiology department as people get diagnosed quicker, resulting in improved prognosis for the patient and a lower cost treatment plan.

“To be able to release patients home for care, they need to know what stage their disease is at, so that requires a radiologist to return a report to the physician. There’s a pressure on radiology, as the rest of the hospital is continually looking to radiology to be able to manage the rest of the patient flow,” he says.

Understanding Workflow

By encouraging booking clerks to engage with patients ahead of their appointments, asking them a series of questions, such as ensuring they understand how to reach the hospital and the required preparation for their examination, Global Diagnostics has driven its attendance rate up to 95%.

“That delivers a 25% improvement in the attendance rate, which has massive knock-on effects, both for reducing the waiting list and for improving the productivity of the highly

skilled clinical team member. We try to re-engineer and improve the entire workflow,” he says.

Managed service can act seamlessly with the team in the hospital, he stresses, “because we’ve changed the processes in Ennis, we’ve changed the workflow in Ennis, we’ve completely digitised the department, and brought people through that training, and all those things require a change in mindset.”

According to Sheehan, there is a need for the Irish healthcare system to look at other practices internationally, as it aims to make improvements.

“In the UK, Australia and the US, the complimentary use of independent imaging companies is very prominent within the public system, and I would strongly suggest that. This isn’t necessarily a case of replacing one system with another but looking at where efficiencies can be delivered using a balance of both and designing solutions accordingly. Almost all of our engagements require an element of bespoke design to integrate with the local hospital processes. Particularly with the work we’ve done in Ireland, you can genuinely improve the outcomes whilst reducing the costs by engaging with managed services,” Sheehan comments.

In Ireland, the company is focused on expanding the depth of services it provides, as “we’re still focused on areas where we’re delivering waiting list initiatives, or delivering improvements in short-term problems.

“In the case of Ennis and St John’s Hospice in Limerick, where we’re now delivering longer-term reporting contracts, we would see the logical next step being to deliver a wider scope of the managed service, where the hospital no longer has to plan for capital replacement; where we would be the one who is installing the equipment and managing contracts over time,” he says.

“I believe at a national level, the indications are there now that the HSE and future bodies managing care will increasingly move in this direction”.

The company’s longest-running engagement is 13 years at a hospital in Australia, at which it has installed all the equipment, hired all the staff and managed all aspects of service delivery from the portering staff to the Consultant Radiologists.

“The hospital has a very specific service level agreement that they demand we follow and we suffer the penalties if we don’t. And that where’s the patient outcomes can come out. The hospital can define, ‘I need an X-ray report in X number of minutes’ and it’s up to the provider to be able to deliver that for an A&E patient for an urgent trauma case from a car accident, or whatever it may be,” Sheehan explains.

“In Ireland, we’re looking at expanding the depth of the services we offer, and into larger contracts in hospitals, not just the reporting work we’re doing for them now,” he adds.

“Global Diagnostics has

taken 29% off the cost of

the delivery of services in

the radiology department at

Ennis General Hospital.”


Health

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eHealth2012_A4advert3mmBleed.pdf 1 11/29/2012 2:52:56 PM


Health

Maintaining good health is the objective of quality-assured population-based screening programmes. Such programmes identify a target population, who are well and have no symptoms, but are at a higher risk from the disease or condition than the general population. The identified population is invited to attend for a test at regular intervals.

It is the repeat nature of the test that is of particular value rather than the test itself and participants often are part of the programme for many years. In most cases the person receives a normal result but in the small number of cases where a person is identified through screening as having the condition, the programme ensures that further tests, surgery or treatment are available in a timely manner. Early detection of a disease or condition means it is easier to treat resulting in improved outcomes.

Ireland has a number of quality-assured, free, government-funded screening programmes in place. The National Cancer Screening Service (NCSS) has responsibility for three established programmes and one which will start in the near future. All

programmes are free to those eligible and have been designed to make them as accessible and user-friendly as possible.

Quality is an important aspect of all screening programmes. Quality assurance means defining a set of standards for each programme. Adherence to the standards is continuously monitored and evaluated and changes are implemented where required. BreastCheck – The National Breast Screening Programme offers women aged 50 to 64 (over 430,000 women) a free mammogram every two years and screening began in February 2000. As of 30 November 2011, 5,071 cancers from the 826,210 mammograms provided to 368,851 women were identified. www.breastcheck.ie or Freephone 1800 45 45 55CervicalCheck – The National Cervical Screening Programme offers free smear tests to women aged 25 to 60 (over 1.3 million women). Regular smear tests at recommended intervals can prevent cervical cancer. Since CervicalCheck launched in September 2008, almost 1.3 million smear tests were processed. During 2011 alone pre-cancerous abnormalities were detected in 8,091 women and cervical cancer was identified in 104 women. Women over 50 tend to attend in lower numbers but as they are within the eligible population it is advisable that they ensure that they are up to date with their smear tests. www.cervicalcheck.ie or Freephone 1800 45 45 55

BowelScreen – The National Bowel Screening Programme is a recently commenced programme for the early detection of bowel cancer in men and women aged 55-74 (over 1 million people). The programme is initially aimed at people aged 60 to 69 years and may take up to three years for the first round, after which each round should be completed in two years. Bowel screening is a simple home test that looks for tiny amounts of blood in the bowel motion (also called a stool) which are not visible to the eye. The home test does not tell if there is bowel cancer but it might tell that more tests are needed. www.bowelscreen.ie or Freephone 1800 45 45 55

Diabetes - Work is at an advanced stage for the introduction of a national diabetic retinopathy screening programme in the New Year. All people with both Type 1 and Type 2 diabetes are at risk of developing diabetic retinopathy. Eye screening can find diabetic retinopathy at an early stage when it is easier to treat and treatment is more successful. It is aimed at people with diabetes age 12 and over (190,000 people), signalling the expansion of population-based screening into non-cancer related conditions. More information at: www.ncss.ie

Population based screening is most effective when the maximum number invited participate. However sometimes people experience barriers that hinder their access, including a lack of available time to attend, having other ‘caring’ priorities, fear, anxiety, intellectual or physical disabilities or indeed literacy difficulties or language barriers.

NCSS informs and educates the eligible community of the

A healthy outlook Majella Byrne, Acting Director, National Cancer Screen Service discusses population-based screen programmes in Ireland.


Health

benefits, limits and availability of the screening programmes in order that they can make an informed decision whether to participate. NCSS achieves this by promoting the programmes to individuals and those they come in contact with and has a programme of information and educational events for health professionals and community groups.

The future for population based screening programmes in Ireland

Where conditions are identified earlier they are often easier to treat and in an ideal world health screening would cover many elements of our health. However screening is complex: there must be an appropriate screening test available for a population who have no signs or symptoms of the condition, and the benefits of screening must outweigh the risks.

Population-based screening is a dynamic field. Advances in testing methods, diagnostic elements and treatments through to external factors such as government policy, impact the future direction and development of the programmes.

Screening programmes aim to increase the prospect of better health for longer. The goal is to reduce the incidence and impact of the conditions in question. One of the most crucial elements in the effectiveness of the programmes is participation. To date the high levels of participation are encouraging, and we encourage you to avail of your invitation to be screened, if you fall within these eligible populations, and to encourage family and friends once invited to attend.

The National Cancer Screening Service

The National Cancer Screening Service (NCSS), established in January 2007, is part of the Health Service Executive National Cancer Control Programme and has responsibility for four population- based screening programmes in Ireland.

Tony O’Brien, the Director General of the HSE has said that hospital beds and theatres will be closed in the Republic of Ireland as a result of significant staff cuts. The HSE recently announced that it would make cuts totalling €130m to health services in order to remain to within its budget.

The move will include a 50% cut in agency health care staff and O’Brien has acknowledged that the cuts could not be implemented without some impact on patient beds.

The HSE’s director general said the planned level of cuts represented significant challenges but that his organisation had to take action to provide assurances to the ‘troika’ (the European Union, European Central Bank and International Monetary Fund).

He added that every cost reduction would be subject to a risk assessment.

Speaking separately at the Annual Conference of the HMI, the recently appointed head of the HSE that his aim is to devolve as much power as possible within the health system.

He said there was a widespread feeling that the command and control architecture that was a creation of the HSE, by design had disempowered frontline staff, removed accountability and reduced transparency. “Over time it seemed as if health managers were infantilised to the point where they were trying to self censor themselves in case their decisions were reversed,” he said.

“Our aim is to devolve as much power as possible within the health system, and to shift the focus from inputs to

outcomes, from the centre to the local and from the system to the patients.”

He said that at an appropriate time they intended to move all the country’s hospitals into similar groupings as the West and Mid West.

“We want all our managers to have the same type of freedoms as are envisaged here. We want to de-layer many of the processes that have been developed within the HSE, so that by the time it is replaced we will have simple straightforward processes.

Mr. O‘Brien told the Conference that he had been living in Ireland for 21 years and had worked in the public service for ten of those years. “During that time, I spent time trying to prevent my organisation being subsumed into the HSE. I was never a fan of the HSE, not because of its staff, but because of its structures. When I have finished my tenure of office, the HSE as we know it will not exist. That is the brief which I have been given. We will make the best of what is in it, repackage it and refloat it. But I will not spend time defending its reputation because I never believed in it.

“I believe I am the least important person in the health service. The more important people are those who deliver the services every day.

“I believe we can build a health service of which the people in Ireland will be equally proud and that is why I took this job.”

DEVOLVING POWER

Majelly Byrne, Acting Director, National Cancer Screen Service

http://www.breastcheck.ie

http://www.cervicalcheck.ie

http://www.bowelscreen.ie

http://www.ncss.ie


Waste Management

Professional Waste DisposalWaste is a huge issue writes Shane Cassells, a representative of Meath County Council and the cost of dealing with it remains a massive headache for companies as well as the government.

As a member of Meath County Council I was shocked to learn that in our County Hall HQ alone we use in excess of 62,000 paper cups each year. If you lined these cups up side by side they would stretch for a staggering 5km.

The cost of supplying those cups increased by 23% this year and to make matters worse many of the cups end up incorrectly disposed of in the residential bin instead of being recycled

It is but one very small example of how waste management is a growing concern both environmentally and economically. So it is no surprise that at national level the present government identified the issue of dealing with the waste market as a priority for them.

In the Programme for Government they stated that they would “introduce competitive tendering for local waste collection services where the private sector and local authorities can bid to provide services in an entire local authority area for a set time frame.”

They went on to state that “tender bids will be judged and awarded by the new utilities regulator and contracts would be required to stipulate a guaranteed service level to be offered.

With a large debate raging in Dublin about the withdrawal of the Local Authority from refuse collection and the introduction of private firms the pressure on politicians to act was mounting. It was their belief and understanding that they


Waste Management

could achieve better value for customers.However, the reality is that people living outside of Dublin

have had private companies operating their waste services for over 30 years as County Councils across Ireland made decisions that it was more cost efficient to allow private operators conduct the service and they withdrew from the business.

Since then a very competitive and professional waste disposal industry has been built up in this country and they are represented at national level by the Irish Waste Management Association.

Waste Management Association

The Irish Waste Management Association (IWMA) is the voice of the private waste management industry in Ireland. Affiliated to IBEC since 1999, they answer the industry’s need for professional and coherent representation. Through their membership of the European Federation of Waste Management and Environmental Services (FEAD), IWMA influences and monitors EU activities that impact on the day-to-day activities of our members.

However, it is matters much closer to home and the attempts by government to move to competitive tendering that have focused the attentions of the IWMA recently.

Their initial reaction to the proposals were very forthright to say the least. They made a submission on behalf of their members which stressed how the private operators in Ireland were in fact offering a highly competitive and professional service which reached all parts of the country.

Most counties have an average of three private operators operating within the Local Authority area while in some cases there were as many as nine providers in a county.

Following on from this the IWMA commissioned a report by DKM Economic Consultants earlier this year to analyze further the contents of the government’s proposals. This independent report was an extremely detailed piece of work which broke down the operational reality that exists on the ground at present.

Its statistical findings were stark and backed up the position taken by the IWMA. The summary finding of the report stated that the economic case which underlined the commitment in the Programme for Government to move to

competitive tendering on the basis that the “that the current system is not efficient and is costing consumers too much, is far from proved.”

“On the contrary, all the evidence is that the system is working well, providing choice and service and passing cost reductions on to consumers, as one would expect in a properly working market.”

The DKM report went on to explain that having analyzed the services on offer at present to the consumer in each county that the proposed alternative entails a number of significant risks which could see costs rise rather than fall.

“It will also eliminate choice for the consumer, and will undermine the business model of many if not most of the companies currently in the market. These companies have invested in infrastructure and are providing significant employment throughout the country, in the legitimate expectation that they were acting in accordance with public policy,” stated the report.

So all of the evidence points to the fact that the private waste operators in Ireland are in fact creating a very competitive market for the customer both in terms of price and the service offered.

Rather than a pressing need for a competitive tendering process there is no evidence that household waste

collection in Ireland represents a natural monopoly. Indeed, all the evidence is to the contrary.

In virtually all local authority areas there are several

firms offering services. The DKM survey found no cases of

monopoly provision in the market. There is a large number of firms who

have been operating successfully for a decade or more, under competitive conditions, with strong dynamism in the market. These are not the characteristics of a natural monopoly.

The Irish Waste Management Association put forward a strong case for their members and it is a piece of research that actually protects the wider public interest. At a time when so many costs are continuing to spiral the market place has acted in favour of the customer on this occasion and also seen highly improved standards in the treatment of

waste disposal.It begs the question why would one

tamper with something which is obviously not broken?

“Rather than a pressing need for a competitive tendering

process there is no evidence that household waste

collection in Ireland represents a natural monopoly.

Indeed, all the evidence is to the contrary.”

http://www.ibec.ie/


Waste Management

No More Time to WasteThe goal of eliminating landfill will not be achieved until we strengthen and enforce the implementation of our waste laws says PJ Rudden, Group Environment Director, RPS Group

The latest EU Commission Benchmarking Report on Waste Management puts Ireland in the 2nd division on diversion of waste from landfill. We are still landfilling over 1.4 million tonnes of waste every year.

The new national waste policy published by the Minister in July “A Resource Opportunity” focuses on waste as a resource, but it will take years to recover our previous position, which was based on huge strides made in recycling (up from 10% to over 38%) in the last decade. The dramatic reductions in landfilling required under the Regional Waste Management Plans have not been achieved.

The new Government policy is to eliminate landfill and I welcome that, but it will never happen until we become serious about strengthening and enforcing the implementation of our waste laws and regulations. Strong regulations for the collection of municipal (household and office) waste will be needed to ensure the current ‘free for all’ in the market does not compromise meeting our EU diversion from landfill targets.

Industry sources already confirm that we are exporting a growing amount of our residual waste (post recycling) to incineration plants in Sweden and the Netherlands and we are becoming increasingly dependent on other countries to manage our waste. The new waste policy calls for self-sufficiency to handle our own waste. We are wasting valuable resources that should be creating electricity, heat and new green jobs here at home. This trend will continue until we have the necessary

capacity to properly treat our residual waste at home. We need to achieve maximum recycling and minimum

landfill and to move more quickly up the EU Waste Hierarchy. Good progress has been made on waste prevention by the

National Waste Prevention Team led by the EPA. The Department of the Environment, Community and Local Government is spearheading the ‘rx3’ ‘Rethink Recycle Remake’ initiative to create new products and services from waste currently landfilled or exported; e.g. organic waste, paper and plastics in particular. This project with its focus on ‘rethink’ and ‘remake’ provides new strategic front and back ends to our national aspiration for Ireland to become a recycling society. The FreeTrade Ireland service and other reuse initiatives are creating re-use opportunities and all are positioned at the top of the EU Waste Hierarchy.

The reduction in the number of Regional Waste Management Plans to three is welcome. Regardless of who collects the waste, it must be treated to the highest environmental standards, akin to the best in Europe. This means maximum clean recycling through proper source separation at household and commercial level into green, brown and black bins which will deliver maximum diversion from landfill. This is required by the current Regional Waste Management Plans, which have been partially ignored by many waste operators over the past 10 years or so. The Minister is therefore wise to propose new regulations to enforce these plans, which are sub-sets of the City and County Development Plans.

PJ Rudden

“Regardless of who

collects the waste, it must

be treated to the highest

environmental standards,

akin to the best in Europe.


Construction Industry Council

Rebuilding Construction The Construction Industry Council (CIC) has launched a new report ‘Building Our Future Together’ which sets out a series of recommendations for Government to restore the construction sector to sustainable levels of output as well as creating employment. CIC Chairman Derek Scully provides an overview of the main recommendations featured in the report.

The Irish construction industry has endured much criticism in the context of its role in our economic difficulties; the over-supply of certain types of buildings in some areas is often highlighted as the consequence of a sector that outgrew the economy in which it was based.

However, we are now at a point whereby the value of the construction activity will fall to 6% of GNP this year and fall further to 5.6% of GNP next year – less than half the ‘normal’ level for an economy the size of Ireland. Furthermore, the output of the industry is expected to be €7.5 billion in 2012, down from €8.7 billion in 2011 and from €39 billion at the peak of the boom.

The CIC represents all the leading organisations involved in the construction sector in Ireland, including; the Society of Chartered Surveyors Ireland, Engineers Ireland, the Royal Institute of the Architects of Ireland, the Construction Industry Federation, the Association of Consulting Engineers and the Building Materials Federation, which represent a combined total of approximately 50,000 members nationwide.

These professional bodies have come together with the following recommendations to restore the sector to sustainable levels.

Recommendation 1:

Address the public infrastructure deficit through full allocation of the Public Capital Programme funds The CIC would like to see Government commit to the full allocation of the Public Capital Programme (PCP). Infrastructure expenditure is current 14 percent behind projected spend and the full allocation would help to address the current public infrastructure deficit in terms of education, health, enterprise and environment.

Recommendation 2:

Source alternative funding for infrastructure from pension funds In addition, the CIC is calling on the Government to urgently implement alternative funding solutions, especially the participation of pension funds in large-scale infrastructural investment. This was first recommended in the CIC report in 2009.These measures would provide the necessary finance to invest in important long-term infrastructure for the benefit of the public and together with the full allocation of the PCP, has the potential to create approximately 70,000 jobs in the construction

l-r): Dermot Bannon, Architect from RTE’s Room to Improve, John Power, Director General Engineers Ireland, Michelle Fagan, President RIAI, John Graby, Director General RIAI, Derry Scully, Chairman Construction Industry Council, Ciara Murphy Director General Society of Chartered Surveyors Ireland


Construction Industry Council

sector. We note the recent Society of Chartered Surveyors Ireland / DKM report which suggested that employment in construction and allied industries is now at 150,000 which is a dramatic fall from the 380,000 employed at the peak. The CIC wants to ensure that employment levels in the sector are brought back to sustainable levels.

The CIC recommends that the Government’s Expert Group, which has been researching alternative funding solutions, urgently completes its task and that the Government implements a funding solution for Irish infrastructure without delay.

Recommendation 3:

Appointment of a Construction Adviser to GovernmentThe CIC is also recommending the appointment of a Chief Construction Adviser who would report directly to a Government Minister. This person would take on overall responsibility for the strategic direction for the construction sector and to lead it back to stability.

The Construction Sector needs a joined-up vision to help restore it to stability. A similar situation occurred in the agri-food sector many years ago. However, the agri-food sector has overcome many similar challenges under the stewardship of a Government Minister and support organisations like An Bord Bia and Teagasc.

In the UK, the Chief Construction Adviser to Government oversees procurement and capital investment to ensure value and efficiencies for the tax-payer. The CIC would like to see a similar position created in Ireland.

Recommendation 4:

Identification of export opportunities for the Construction SectorThe CIC also recommends that the professional skills within the Irish construction sector are marketed abroad as part of Ireland’s economic renewal. The CIC believes that opportunities exist to develop a global construction services centre of excellence in Ireland for the design, finance, construction and management of projects. This could create a hub of the construction sector akin to what the IFSC achieved for the financial services sector.

In many European countries up to 50% of total construction

turnover is accounted for by exports and we have key competitive advantages in the design, financing, management and construction of complex projects in Ireland.

Conclusion

The unsustainable construction boom has left Ireland with an oversupply of the wrong type of buildings in the wrong locations, but its sudden collapse creates a potential undersupply of the right type of buildings and infrastructure in growth areas.

Without good governance and a clear path to recovery, the construction industry may be unable to meet the challenges of providing buildings and infrastructure in those areas.

The construction sector believes that with clear policy direction from the Government, and a set of performance indicators to properly measure activity levels, the construction sector can return to sustainable activity, and provide a dynamic, diverse and directional industry, which can deliver economic growth, jobs and improved quality of life for the people of Ireland.

Derry Scully is the Chairman of the Construction Industry Council. The full report is available from www.constructionindustry.ie

l-r): John Graby, Director General RIAI, Michael Moriarty President Association of Consulting Engineers of Ireland, Derry Scully, Chairman Construction Industry Council Front: Ciara Murphy Director General Society of Chartered Surveyors Ireland, Dermot Bannon, Architect from RTE’s Room to Improve, Michael Moriarty President Association of Consulting Engineers of Ireland,

(l-r): John Power, Director General Engineers Ireland, Derry Scully, Chairman Construction Industry Council, Dermot Bannon, Architect from RTE’s Room to Improve

OPTIMUM AND ACTUAL CONSTRUCTION OUTPUT (€BN).


McGahon Surveyors

A Construction PlanMcGahon Surveyors Urge for a Strategic Plan to Boost the Construction Industry

However, despite accepting the prospects of a relatively lifeless construction industry for the foreseeable future, McGahon Surveyors see a positive in that they feel the country has come to terms with the current economic climate and that sustainable strategies are being put in place by individuals, companies and cooperates to prepare and plan for the best possible future we can afford.

Joe Beggs, a Director of McGahon Surveyors stated that he felt the Irish people are now accepting the climate, albeit with not much choice, and we are becoming more satisfied living within our means with less talk about the “recession” - which is good as we need spirit and enthusiasm if we want to move forward. Obviously there are still far too many people on the breadline, which is simply unacceptable and although unemployment is not wholly avoidable it could be significantly helped by any type of boost in the construction industry.

An appropriate strategy still needs to be developed to ensure that the construction industry returns to a satisfactory and sustainable level. Economists and Politicians alike realise that a healthy and prosperous society requires a construction industry that is making an appropriate contribution to economic growth and the quality of life of the people.

Unfortunately at present, employment in the construction industry has shrunk from the heights of 2006/2007 of over 370,000 directly or indirectly employed in the sector to the current position of less than 150,000 people in the sector. It seems to be generally accepted that the optimum size of the Irish Construction sector is about 15% of Irish GNP - In 2006 the output of the sector was approx. €38.6bn, which was clearly unsustainable as its optimum size was a little over half that amount, however as a country we did have a lot of necessary spend and catching up to do in terms of infrastructure so that we could function and compete with our Euro counterparts.

Construction Contribution

The problem now is that based on the latest estimates of the GNP for 2012, the optimum size of the industry is approx. €18.7bn, however the actual output will not exceed half that amount this year - so the construction sector has moved from being twice our optimum size in 2006 to less than half our optimum size at present, which is a key factor in diminishing any possibility of developing a sustainable and healthy economy. An increased contribution from the Irish Construction Industry is a crucial factor in creating a healthy and sustainable economy and the Government need to focus on this. The government need to prioritise capital spend and ensure that each government department delivers the required construction projects each and every year that will create and retain jobs within the industry.

I would urge all government Departments, collectively and individually, to look outside the box and examine all possible funding solutions, set capital spend targets and then implement whatever methodology necessary to ensure that the targeted

capital spend is actually spent each and every year. A great example of innovation, cooperation and a desire to

deliver construction projects on time, whilst maximising value for the exchequer is the Minister for Education and Skills, Ruairi Quinn TD, decision to devolve authority and responsibility for school building projects to Vocational Education Committees, Local Authorities and the National Development Finance Agency (NDFA) in order to maximise the number of projects that can be delivered each year.

McGahon Surveyors have been fortunate to be involved in numerous devolved school projects for several VEC’s throughout Ireland, including Co. Cavan VEC, Co. Dublin VEC, Co. Galway VEC, Co. Meath VEC and Co. Monaghan VEC. Joe stated that we at McGahon Surveyors were more than pleasantly surprised by the project management skills and abilities of the various CEO’s of the VECs. Given VEC’s Chief Executive Officers general background is carrying out the role of chief educators; it was surprising to see their drive and determination in delivering their building projects in such an efficient manner... It has been a breath of fresh air to work on projects that are driven by the top with a goal to deliver a top quality school as quickly as possible, whilst constantly focusing on budget constraints and achieving value.

MGS experience with the various VECs throughout Ireland has led to our recent appointment by the NDFA in delivering a Bundle of 6 school projects (see Project Profile).

The NDFA was established in 2003 with its objective being to maximise value for money for the Exchequer. In 2005 their role was expanded to include the delivery of PPP projects, which initiated their working relationship with the Department of Education. Minister Quinn TD, obviously appreciates the expertise and ability of the NDFA’s team and the NDFA are now assisting the DoES in the delivery of their 5-year Building Programme, by delivering many school projects throughout Ireland under devolved authority.


McGahon Surveyors

The Year Ahead

When asked about his thoughts on what 2013 will bring, Joe stated that although our own practice is in a fortunate position in respect to our healthy work load, I feel that unfortunately 2013 will again not be without its casualties within the industry, which is extremely disappointing. When probed further regarding McGahon Surveyors direct concerns for 2013, Joe stated that all concerns stem from funding and the availability of finance for projects, with secondary concerns being project specific issues. However, an issue that is getting greater for all Public construction projects is the Irish contractor’s ability to obtain a bond. “It wasn’t that long ago when a contractor celebrated when he became the apparent successful contractor, but now all contractors stay grounded until they get a bond!”

It is becoming increasingly difficult to get a bond, which isn’t surprising considering the amount of construction related companies that have went bust recently. We feel that this issue must be addressed as soon as possible as it is a major problem for contractors and Employers alike... Contractors obviously can’t get the work without a bond and the Employers suffer a long delay and then pay more for their project as they could end up appointing the second, third or sometimes forth most competitive tender as the initial contractors are excluded due to their inability to obtain a bond. This issue really appears to be a “catch 22” situation whereby a contractor needs a bond to obtain work in order to survive but can’t get a bond due to the risk of them not surviving!

As we have a number of projects due to go to tender in 2013 we have tried to take a pro-active approach and have met with various Insurance and Bonds Company to discuss the issues and in order to establish is there anything we, as project quantity surveyors, could do to assist the process. Although there might be more the design team can do to expedite the process, with the employers consent, the underlining issues needs rectified as soon as possible, with government intervention. The Government should consider the cost consequences of contractors not obtaining a bond, which includes paying more for the specific project, delays to the project and the consequential costs of that contractor not being able to survive without being able to get a bond. This cost and risk should be weighed up against the amount the bond actually covers and it might be an option to consider sharing some of the risk with the bonds company thus reducing the level of the bond actually required. Again, this is a catch 22 situation for all involved as in this current climate the Employer is more inclined to need a bond!... We at McGahon Surveyors will continue our discussions with the bonds companies and we intend to discuss our findings with the DoES early next year. McGahon Surveyors would like to take this opportunity to thank all our clients, particularly the DoES, for their continued trust in our company and we look forward to delivering the optimum services to all our clients in 2013.

This article is based on the views and personal opinion of Joe Beggs, Director of McGahon Surveyors, and is not endorsed by any party

For further information contact Joe Beggs, McGahon Surveyors, 15 Seatown Place, Dundalk, Co Louth. Tel:+ 353 (0) 42 933 1192 Fax:+ 353 (0) 42 933 2897 Email:[email protected] Web:www.mcgahonsurveyors.com

PROJECT PROFILE –NDFA DEVOLVED SCHOOLS DESIGN & BUILD PROGRAMME – BUNDLE 2Client / Project Manager / ER: National Development Finance Agency (Devolved Authority)Quantity Surveyor: McGahon SurveyorsArchitect: Simon J Kelly & PartnersStructural & Civil Consultant: Nicholas O’Dwyer LtdServices Consultant: Callaghan EngineeringPSDP: AtkinsProject Summary: This devolved school project includes 6 different schools, consisting of new builds, extensions and remedial works to existing buildings at both primary and post primary school level. The project includes development of the following schools:Tullow Community School, Tullow, Carlow (Extension & refurbishment of existing Post Primary school).Scoil Naisiunta Bhride, Clane, Kildare (Extension & refurbishment of existing Primary school).St. Brigid’s NS, Kilcullen, Kildare (Extension & refurbishment of existing Primary school)North Kildare Educate Together, Cellbridge, Kildare (Extension of existing Primary school)SN Muire is Gearard, Enniskerry, Wicklow (Extension of existing Primary school)Presentation College, Athenry, Galway (New build 1000 pupil Post Primary school)Overview of Current Status: Thanks to a methodical approach by the NDFA, under the leadership of their PM Team, the project has reached a stage whereby the team will be lodging for planning permission at the beginning of 2013, with the comfort and knowledge that the preferred designs achieve and ensure value for the DoES and the exchequer.Project Highlight to Date: Undoubtedly the project highlight to date has been the level of cooperation and unison between the NDFA and the DoES. The NDFA chair our bi-weekly design team meetings with a constant reference to the DoES design team procedures, technical guidance documents and budget perimeters. Furthermore the level of cooperation witnessed at the DoES / NDFA discussion and decision meetings is extremely encouraging. The DoES’ technical team are extremely proactive, helpful and as insightful as ever and are showing a true determination to work with and assist the NDFA in making these devolved projects a true success.


Traffic Management

Catering for CommutersShane Cassells speaks to Brendan O’Brien, Head of Technical Services in Dublin City Councils Roads and Traffic Department about the success of its Multiple Operator Real Time Passenger Information System system and the plans to roll it out nationwide.

Time is without doubt the most precious of all commodities in our busy lives and no matter what we do we never seem to have enough of it.

Our jam packed lives can be stressful enough without losing time cheaply and adding to our blood pressure in the course of the day.

One section of society who definitely fell into that category in the past were the users of public transport and in particular bus patrons whose grumpy expressions at bus stops told of a never ending story of double deckers that never appeared.

The advertisements, which constantly encouraged the population to use public transport and free up Dublin’s congested streets never appeared to be heeded. Naturally you wondered had the people who dreamed up these ads ever stood at a bus stop for an hour for a 41 to Swords, which never appeared.

Real Time Information

Well that was until recently when Dublin City Council in conjunction with the National Transportation Authority introduced a piece of technology which has transformed the lives of

commuters throughout our nation’s capital and looks set to do the same across the country

Real Time Passenger Information signs have been rolled out to nearly 500 bus stops across Dublin over the past three years and they offer passengers up to the minute information on when the next bus is due.

The electronic signs provide passengers with up to the minute information on when then next bus is due at that stop. The net impact is that people are never left frustrated and fuming at a stop again, wondering when exactly their bus will arrive and thus have the option to choose another form of transport if delays are too lengthy.

The new real-time information service works using advanced vehicle location systems on buses and a computerised system which tracks the buses and feeds information to the signs.

Amazingly this concept was muted as far back as 1994 but as Dublin City Council’s Head of Transportation, Brendan O’Brien, explains the technology did not exist on board the bus fleet at the time to allow for its implementation.

“Well the transportation report of 1994 set out a number of initiatives to tackle Dublin’s traffic problems with projects such as


Traffic Management

Dublin City Council has been retained as the lead authority in this respect and O’Brien is excited about what this means in terms of a more cohesive transportation network across Ireland.

“Signs have been installed in Cork and preparatory works are underway in Galway, Limerick and Waterford for the installation of signs connected to this system. A web and text based service has been developed to provide bus arrival information for all Transport stops throughout Ireland and an integrated mobile Phone app for all services is in development.

“We are also working extremely closely with the National Council for the Blind in the development of an app for the service in Dublin so that visually impaired people can access the real time data for the buses through a voice service on their phones.

“It is all part of making our city a more efficient and friendly place in which to get around. Our public bike scheme is also playing a key role in that and the fact that 70,000 regular long term subscriptions and over four million bike journeys have been made since its introduction is proof of its success.”

The service might physically be on the ground but it is clear from talking with O’Brien that he has a huge passion to refine and improve the service even further so that public transport users in this country can avail of the finest service anywhere in the world.

LUAS, the Port Tunnel, Quality Bus Corridors as well as the Real Time Passenger Service all listed,” explains O’Brien.

“The difficulty for the Real Time service was that the bus fleet at the time was not equipped with the technology necessary to interact with the signage.”

Since then all of the major projects listed above have come to fruition and in 2009 the NTA funded Dublin City Council to roll out the much needed passenger information service across Dublin.

It was a massive piece of work costing over €6m and has transformed the way people view public transport. In one sweeping action it has removed all the uncertainty traditionally associated with bus usage and the project has been so successful that Dublin City Council picked up two prestigious awards this year.

Public Service Excellence Awards

The first was the Taoiseach’s Public Service Excellence Award while later in the year they scooped the Chambers Ireland Local Government Award for Smarter Travel. It is something which O’Brien and his team are naturally very proud of.

“It is of course great to win such high profile awards for our work but the real winners have been the public and they have been extremely positive in their reaction to the scheme,” remarked O’Brien.

“Both Dublin Bus and ourselves have received thousands of positive emails and messages on the web page dedicated to the service. The fact that this piece of technology has taken the guess work out of when a bus is going to arrive means so much for those who use public transport.”

As an initiative to get people to use the bus and leave their car at home it has made a real difference and such has been the success of the project that the NTA are now rolling the scheme out in other major Irish cities as well as provincial towns across the country.

The team at Dublin City Council’s Roads and Traffic Department Pictured at the Taoiseach’s Public Service Excellence Awards in Dublin Castle where they received an award for the success of their Multiple Operator Real Time Passenger Information System. A Real Time passenger Information website has been delivered by DCC on behalf of the NTA throughout the Country and DCC provides the expertise and staff to manage the centralised system.


Public Sector News

Parking SolutionsMarket leader in managing car park operations in Ireland.

APCOA, established in Ireland in 2007 is part of the wider APCOA Parking Group GMBH, headquartered in Stuttgart, Germany. The APCOA Group is in turn owned by the largest investment company in France, Eurazeo and hold assets to the value of approximately €6 billion and is a committed and supportive investor.

Today APCOA are the clear market leader in car park operations throughout Europe and the company is present in 13 European countries, managing some 4,500 locations with space for a total of 1.3 million vehicles, and with a workforce of around 4,550 parking professionals. The projected annual turnover for APCOA in 2012 is now €750 million. According to Business Development Manager, Marie Connollo, APCOA decided to enter the Irish market in 2007 as it was keen to expand its European operations. APCOA viewed Ireland as a market where the company could grow successfully through a combination offering of over 40 years’ experience in the Parking industry and the benefit of the International experience of the European market leader which they were confident would be attractive to Irish customers.

APCOA now has a well-established business in Ireland with a head office and Customer Support Centre in Lucan, Co. Dublin and offices in Cork, Galway, Sligo, Wicklow and throughout the greater Dublin area where its team manage clients in these areas and beyond e.g. Waterford and Kilkenny. Today the company are the market leader in managing on street parking schemes to Local Authorities in Ireland and it also has a large number of Universities and 3rd Level Institutions throughout the country among its client base.

Client Base

As a European company with a presence in 13 countries across Europe and over 40 years’ experience in the provision of Parking Management Services APCOA are in a unique position in terms of service offerings to clients. Its international experience coupled with its regional expertise allows the company to offer Parking Management Services to a broad range of client sectors in Ireland, namely Local Authority clients, Education Sector clients, Rail clients, Hospitals clients, Multi-storey and surface Car Park Management clients and what are referred to as “Park & Control” clients which would include property management clients, publicans, cinemas, commercial estates, retail centers etc.

According to Maria APCOA is the only Parking Management company in Ireland that have the knowledge and “know-how” to provide such a breath of services to such a wide range of clients. For example on their books at the moment they would have 10 Local Authority clients, 7 Education Sector clients, 3 Hospitals, the Railway Procurement Agency for whom we manage all their Luas Park & Ride car parks throughout

Dublin and in excess of 400 “Park & Control” sites nationwide.APCOA offer clients a sophisticated product portfolio with

versatile solution and services including On-street enforcement and off-street car park management; Notice and permit processing both issuing and payment collection; Road Tax and Litter Enforcement; Clamping and removing vehicles; Permit Management; Appeals Management; Parking Equipment Purchase (Capital Funding); end to end Pay & Display machine maintenance; Cashless Payment – Pay by Phone; Cash collection; Reporting etc.– “The list could go on and on, depending on the client and services required,” says Marie. “But to simplify, where there is a parking management needs or an issue that requires a solution, APCOA can provide that solution.”

Best in Class Service

“We are very aware of the fact that in order to achieve success in the long term and to deliver “best in class” service to clients, it is not enough to simply focus on “operating” contracts, therefore we aim to actively manage contracts whist providing countless additional products and services in an effort to generate measureable value -add to clients,” she says.

“Parking is a service based business and the main company asset in the delivery of services to our clients are the dedicated team of people who work for APCOA. We take great care and attention in the development of our staff and invest heavily in their induction training and on-going career development. APCOA’s mission is to be a reliable long-term management partner who can help ensure efficient operation of parking sites and schemes by offering bespoke solutions. As a result we generate tangible value for the client.”

With the downturn in the Irish economy Marie has noted an increasing focus by clients on the efficiency that APCOA can generate from their parking product. For example with the embargo on recruitment within Local Authorities throughout Ireland and the reduction in other revenue streams e.g.


Public Sector News

commercial property rates, there has been a move by Local Authorities to explore the potential to outsource their parking service to professional Parking Management companies which will ensure a consistent service delivery and maximum return on their parking asset.

In response to the downturn, APCOA has been closely monitoring its cost base and taking steps to streamline operations and further increase efficiencies. “Like all other market leaders we are negotiating with main suppliers, procuring products and services through the APCOA Group European procurement department, freezing all staff terms and conditions and investing in technology, all resulting in pricing efficiencies for our clients,” says Marie. “This is essential to remain competitive in the market and to maintain our position as a value and service orientated Parking Management company.

“We are in a period of eroding margins through aggressive competition thus we need to find innovative ways to deliver our services more efficiently and to offer our clients the most cost-effective operating model, but also protect our margins in order to sustain the business in the long term.

“As Europe’s largest full service parking service provider APCOA are able to offer clients the opportunity to place all their parking service requirements within one contract with us. Our approach is sector specialisation which means that we are able to fully understand our clients’ requirements and delivering these using innovative and increasingly, technology based solutions.”

Marie points out that the key factor in terms of the customer service approach at APCOA is that they realise that every client is different. “We understand that in order to ensure that each client receives a “best in class” service and maximum returns, it is not enough to merely offer standardised solutions, products and contracts. We deliver international competence with experts from 13 European countries, who share their global experience with the local managers who have the local expertise, know what is happening on the ground and who have a true understanding of local issues and the client requirements.”

In addition APCOA is an ISO accredited company and uniquely placed to be able to draw upon its existing operational and technical infrastructure, resources and innovative approach to meet and exceed the requirements of its clients. Underpinning the company´s service delivery ability is a market leading in-house support teams: Award winning Learning & Development team, Quality team and IT and Technology

teams who continually deliver on the company´s leading edge thinking, with recent examples being the development of our Pay by Phone technologies. Permit Management solutions and Warden Tracking systems.

“From a basic on the ground level we understand that Parking Management/Enforcement is an emotive issue and that it demands a sensitive approach,” says Marie. “This forms the basis of our teams training which we tailor to the specific needs of all our clients. To this end we manage effectively and plan efficiently, with an aim of delivering excellence in quality and value at every stage.”

Regulation

The current Programme for Government includes a commitment to regulate the Clamping Industry in Ireland. APCOA in conjunction with the Irish Parking Association submitted a proposal to the Joint Oireachtas Committee advocating the way forward for enforcing parking on private property in Ireland. According to Marie, APCOA would prefer to see a solution which would allow choice of the enforcement tool to be used to manage parking on private land. “Currently throughout our European operations we can enforce parking through the issue of a Penalty Charge Notice and pursue the motorist thereafter through a debt collection process if they fail to pay the fine. However here in Ireland we have no choice but to enforce through clamping the vehicle,” she says. “We proposed an option to the Oireachtas Committee whereby if vetted Parking Management companies could access vehicle ownership details; then we could enforce parking through penalty charge notices on private land. Essentially we are recommending a choice between parking tickets and clamping which is currently available in an on-street environment in Ireland but not on private property.”

In terms of future objectives Marie says it is largely to continue grow the company within the Irish market and to achieve this by listening to clients and understanding their needs and requirements; “by continuing to develop innovative cost-effective solutions for our clients, by continuing to develop and motivate our team to deliver above and beyond the client requirements and of course staying ahead of the competition in every aspect of service delivery”.


Car Parking Solutions

Automation SpecialistsElectro Automation Group is widely regarded as Ireland’s premier automation specialist. Formed in Dublin in 1984, Electro Automation has since provided an enviable combination of quality equipment supported by exceptional technical after sales and maintenance service.

Electro Automation supply, install and maintain a full range of car parking equipment specifically designed to meet all parking requirements including Pay and Display for on-street parking and fully computerised Car Parking Solutions for the larger purpose-built car park.

Pay and Display

Electro Automation can offer a solution to any parking problem that can pay for itself in a matter of months. The Hectronic Pay & Display machine offers you the opportunity to take back control of valuable car parking spaces, ensuring that revenues are maximised and customers can find somewhere to park.

Pay on Foot

The Zeag Orion fully computerised Car Parking Control Systems gives a choice between automatic pay stations, cashier pay stations and season ticket control systems. Configurations include “Pay on Foot” or “Pay from Vehicle” or a combination of both. Automatically

audited accounts can be provided while also ensuring the maximum return on car parking space with the minimum of overhead.

All the car parking solutions Electro Automation provide can accept payment in a myriad of ways – Cash, Chip & Pin credit/debit card and call even integrate with mobile technologies required for ticketless payments, e.g. toll tags.

Being totally committed to the success of its clients has enabled Electro Automation to its clients has enabled Electro Automation grow in today’s aggressive marketplace. Our ongoing investment in its personnel, premises, infrastructure, stock and training allows it to offer a combination of products, sales knowledge, installation and technical support that is unparalleled. The company has purpose-built premises in Dublin and Lisburn, each of which contain state of the art diagnostics and technical support equipment. Business demands 24 hour service and readily available technical support, advice and spare parts. Electro Automation provide this and more.

EA House, Damastown Industrial Park, Mulhuddart, Dublin 15 Tel: 01 824 66 66 www.electroautomation.com

Electro Automation supply, install and maintain a full range of car parking equipment specifically designed for your requirements, including Pay & Display for on-street parking and fully computerised Car Parking Solutions for the larger purpose-built car park

• Quality Equipment• Exceptional Service

Electro Automa-tion Car Parking Solutions

Pay on Foot Pay and Display Traffic Barriers

Electro Automation Limited, EA House, Damastown Industrial Park, Mulhuddart, Dublin 15Tel: 01 824 66 66 - Fax: 01 824 66 [email protected] - www.electroautomation.com


Public Sector News

Property of the StateDriving down the cost of the State’s property portfolio

Overhauling the State’s property portfolio represents a vital component of the Government’s Public Service Reform Plan and significant changes have already been introduced in the management and utilisation of public sector office space with further reforms planned for the coming year.

Junior Minister for Public Expenditure and Reform Brian Hayes is determined to reduce the State’s rental bill and has committed to bringing down the cost of leasing property from the current figure of €112m to under €100m by 2015. Any new leases taken up by the State now require approval from the Minister and his department is currently drafting new proposals aimed at transforming the manner in which the State’s property portfolio is managed. These proposals are due to be brought to cabinet shortly.

The Property Management Plan will review and recommend accommodation policies on matters such as space norms and standardisation of office accommodation fit-out. Minister Hayes has asked the OPW Chairman to lead a working group of Public Service managers with expertise and responsibility in this area to drive this initiative forward. This strategy will look at greater use of open plan workspaces, more efficient use of office accommodation and greater energy conservation. It is intended that these measures will yield further significant reductions in the cost of accommodation.

The Minister has also signaled his intention to move sections of the civil service from high priced offices in central Dublin to the outskirts of Dublin where costs are significantly

cheaper. Speaking at the recent SCS conference, Minister Hayes acknowledged that Government Departments are likely to remain in the city centre but said transactional functions or back office units will be relocated where possible. He also said there was a need for a long term policy plan to determine which departmental functions need to be based in central Dublin.

“I am referring here to Dublin 1, 2 and 4 specifically. Being blunt, there is much greater value on the outskirts of Dublin and if we are serious about saving money, not all functions need to be city centre based,” said the Minister. “The new public sector will need a new approach to office accommodation. It will have to be led by a strong central organisation, which has been given a mandate to efficiently use office space in a totally new way. Crucially we need also to have a whole of government approach to property across the entire public sector relates to the development of

A further feature of the Reform Plan relates to the development of an incentive policy to encourage Departments and Offices to make the most efficient possible use of their accommodation, including the possibility of allowing them to re-invest a portion of the proceeds from any property disposals.

Plans to rationalise state agencies will also provide opportunities for further property related savings, according to Minister Hayes. The fall in Public Service numbers from a peak of 320,000 in 2008 to 282,500 by end 2014 together with


Public Sector News

organisational rationalisations such as shared services and the abolition of agencies will inevitably result in a decline in the amount of accommodation required by the Public Service.

The Minister also pointed to the potential for maximising the potential

for the sharing of accommodation between public bodies. These changes are already having an effect with HSE staff being allocated accommodation in two OPW-owned buildings in Tullamore and Tipperary and it is expected that this interaction will grow into the future. “I am very confident that the entire property portfolio of the state can also be rationalised,” said Minister Hayes. “This government is determined to bring to an end the silo mentality that has taken hold within the public sector for far too long. Never waste the opportunity of a good crisis – that’s the advice from all change management consultants. And that is the approach we are taking in bringing much greater efficiency and savings in this area.”

After pay and pensions, the cost of office accommodation is the Government’s biggest administrative overhead. The state currently has about 2,200 buildings under its control. Of the office accommodation, about 60% of these are owned estate while the remainder are leased buildings. Minister Hayes has stressed the need for new revenue raising models due to the limits on funding and while there is an obvious cost to maintaining public buildings he points out that the state property portfolio represents a valuable asset. “We have buildings, which have real value, and I want to see how this value can be realised in terms of a public private partnership approach, which will be good for the private sector and good for us in the Public Sector,” he said.

The Government has also called time on what Minister Hayes referred to as “the madness of decentralisation” which he said was a project dreamed up in a totally different time. “It was bad for public administration, bad in inflating property prices and bad in dislocating the public sector throughout all parts of the country.”

An asset management strategy is required across the public sector with the OPW given the role of sole procurer of accommodation for the Civil Service, and given responsibility for managing the central Government property portfolio. In this context Minister Hayes believes that the OPW should be conferred with additional power and be allowed to direct Departments to vacate and/or occupy accommodation and to surrender, dispose of or re-allocate particular accommodation in order to achieve expenditure savings and efficiency gains. It should also be allocated responsibility for establishing and enforcing norms for the allocation of space and the rental and the fit-out price per square metre that may be paid for office accommodation,.

The Department of Public Expenditure and Reform is currently disposing of assets which have been deemed surplus to requirements. This disposal programme will include the transfer of assets to other State bodies in addition to sales on the open market. In some cases facilities will be transferred for community use as occurred in the recent provision of the former Finglas Garda Station for use as a Community Crèche.

The final key element in the Government’s approach to reducing costs associated with the state’s property portfolio is improving energy efficiencies. The OPW’s energy conservation programme targets larger buildings, over 1000 sq.m which currently includes some 270 buildings and to date savings of 17% have been achieved (€13.3m cumulative savings). The low cost programme is based on encouraging behavioral change and the next step is to include water usage and also smaller buildings in the campaign. The Government has targeted energy related savings of 33% energy savings by 2020.

SCS WELCOMES PROPERTY REFORMSThe Society of Chartered Surveyors Ireland has said the proposals pertaining to property contained within the Public Sector Reform could lead to substantial efficiencies and savings in the property sector.

The Society said that the Property Asset Management plan outlined in the Public Sector Reform document was a key step in identifying cost savings in the public sector property portfolio. However, it said that the establishment of a public sector asset register was the key first step.

John Curtin, President of the Society of Chartered Surveyors Ireland said that “after employee costs, property is one of the largest public sector costs. However the first step in delivering cost efficiencies from state property is to quantify the number of properties that the state actually owns by establishing a public sector property asset register. Such a register currently does not exist”.

Mr Curtin pointed to the UK, where a Public Sector Asset Register has been established and where £120m is being saved in relation to public sector property costs on an annual basis.

The Society also welcomed the recommendation to merge the Valuation Office with the Property Registration Authority and said that it could assist with the development of a publicly accessible database of details of commercial properties which would bring greater transparency to the market.

Roland O’Connell, Vice President of the Society of Chartered Surveyors Ireland said that “such a database does not currently exist and merging the two bodies should assist with the provision of details such as lease lengths and terms on commercial property units which is in the public interest”.

The Society expressed some reservations about the decision to merge the Property Services Regulation Authority (PSRA) with the Private Residential Tenancies Board (PRTB). The Society noted that the PRTB was initially plagued by tenancy registration processing delays and while this has improved in recent times, it was concerned that the merging of the bodies may delay the enactment of the Property Services Regulation Authority on a statutory basis.

“Ensuring that the property regulator is given the powers to effectively regulate the property sector including estate agents and for the first time property management agents is a priority and is in the interests of consumers. We hope that this is implemented as soon as possible,” said Mr O’Connell.

Minister for Public Expenditure and Reform, Brian Hayes


Interior fit-out

Built To Last Commercial fit-out firm, Oryx has high hopes for the future.

Starting a business, especially one that is closely linked to an ailing construction sector, takes a lot of confidence in yourself, your contacts and the all important idea. For Andrew Neill, managing director of Oryx, a commercial interiors fit-out company based in Dublin, it was a no-brainer. “I was bound for emigration from Ireland three years ago,” he remembers. “I had a good job offer overseas, however Peter Reilly (Neill’s business partner) convinced me to stay. Peter had seen recessions before and believed that it was the perfect opportunity to set up and capitalise on the shake-up in our industry. It was always on my agenda to have my own company someday and when the opportunity presented itself, I knew that chances like this don’t come around too often, so I stayed and got involved.”

Growth Agenda In the three years since the company was founded, Neill and Reilly have been focused on growing a company that stands out as best in class in its sector. The key to achieving this, says Neill, is creating a work culture within the business where the empha-sis is very much on team effort and delivering for our custom-

ers. “Our processes and procedures as a business are geared towards fast-track fit-out,” he explains. “All of our staff are directly employed, which lends itself to a work culture of build-ing efficiencies within the team because, generally, it is the same guys who work on all the projects that we deliver. Through that, we have managed to achieve a high level of quality and at the same time, we have put ourselves in a position where we can offer our clients extremely good value because of the efficiencies that we have created within the business.”

A student of interior design and interior architecture before his professional life in business, Neill points to three years of streamlining procurement processes as the company’s unique proposition. “Since the company was established, we have spent a lot of time ensuring that we are delivering a level of value that puts us ahead of our competitors,” he says. “We have looked very closely at how we source and procure our materials, we always work very closely with our preferred subcontractors and suppliers. As a result, natural efficiencies have occurred to a point where we can offer a delivered product that others find hard to match – that is what we pride ourselves on.”

We have spent a long time ensuring that we are delivering a level of value that puts us ahead of our competitors.


Interior fit-out

Required Margin

Finding cost savings for clients is always a significant boon for any company, yet despite an extremely competitive market, Neill says there are lines that his company simply won’t cross. “Right now we are working for a number of blue chip clients and naturally, they accept only the highest standard of ser-vice and finish,” he notes. “We have won this type of business despite being up against other contractors who price below cost – we simply don’t entertain that; we stick to a required margin that we need from every project so we can invest in building our team and our business. When we do this, it allows us to deliver projects on time and on budget whilst always ensuring attention to detail. This, I feel, will be of particular interest to the public sector. Not only do we manage expectations, we also ensure that expectations are met consistently and to a very high standard.”

Opportunity

Despite a difficult business environment, Oryx wasn’t built from a standing start – Neill, along with fellow founder, Peter Reilly, had built a significant network of contacts from previous roles in the industry and won contracts based on their individual reputations as reliable and honest business people. However, to grow the business required a further reach and as Neill explains, the downturn presented an opportunity for the company. “Over the years working within this industry, we had built up solid networks – we had contacts that we could approach regard-ing our business strategy and targets, and what we wanted to achieve. Through that and our previous experience, we secured some very good wins but we realised we would have to do more to build a sustainable business – the slowdown in the economy helped here because suddenly we found ourselves in front of influential people who we might not have spoken to in

the past because they were so busy handling multiple projects at once. We found that clients like this were now prepared to listen to new approaches, innovative ideas and offers. That is what we brought to the market.”

“Perhaps the biggest contract we have won to date is the fit out of the AOL offices in Heuston South Quarter in Dublin. A very aggressive programme of activity saw us deliver the 23,000 sq ft project in 12 weeks, which included furniture delivery. It was a fantastic project for us to work on and it gave us the opportunity to showcase our work. From there we have very carefully pushed our name in the various sectors where we wish to be known and it is now beginning to pay dividends for us.”

Oryx is a young company with big ambitions and one that is constantly looking to the future. “One of our plans is to put in place an apprenticeship programme so we can start to reintro-duce a level of quality into the industry which we feel is not quite there at the moment,” Neill explains. “The programme will ensure that we continuously have highly qualified and skilled craftsmen coming through for years to come, which will also ensure that the company remains consistent in the level of service that we offer our clients today.”

For Oryx and its founding partners, building the company to a position of strength within the industry has proved a worthwhile experience and with a commitment to exceptional standards at the heart of the offering, the outlook for the com-pany stands on strong foundations.

We are working for a number of blue chip clients and naturally, they accept only the highest standard of service and finish.


Public Sector News

Targetted RedundanciesNew public service redundancy scheme approved

The Government has confirmed details of a new voluntary redundancy scheme for the public service. The scheme has been put in place following the publication of a research paper which concluded that the targets for staff reductions stipulated in the Croke Park Agreement would not be achieved unless a further scheme was put in place.

The Croke Park deal prohibits the introduction of compulsory redundancies for staff in the public service but the Government is still entitled to pursue redundancies on a voluntary basis. Agreement has been reached with trade unions on the terms which will apply to the new scheme and departing staff will receive three weeks’ pay per year of service in addition to statutory entitlements of two weeks’ pay. This will be subject to the overall amount not exceeding either two years’ pay or one half of the salary payable between the time of departure and pension age, whichever is less.

This is similar to the terms which applied to the voluntary redundancy scheme which was introduced for the health service two years ago. That scheme led to the departure of around 2,000 health staff at a cost of €100 but it also resulted in a saving of €60m in the payroll bill last year. In addition, more than 9,000 staff left the public service prior to the introduction of pension changes at the beginning of March of this year .

However, in that case, staff who wanted to leave effectively selected themselves and a more targeted approach will be adopted in the new scheme. there will be no automatic right of entitlement to the terms of the scheme in order to ensure that essential skills are retained with the public service. Only surplus staff who are no longer needed will be allowed to leave in order to avoid an exodus of Gardai, teachers or nurses.

The Department of Public Expenditure and Reform remains vague on many of the specific details of the plan and has yet to confirm when it will be put in place, the numbers which it wishes to see leave under the scheme, the likely cost of the redundancy payments or the savings which it expects to achieve. It is also not known if the scheme will apply to workers in commercial semi-states such as the ESB and An Post.

According to the Department there is an ongoing excercise to identify areas of staff surplus and is says that all areas of the public service are required to robustly implement the provisions for the redeployment of staff set out in the Croke Park deal. The Department of Public Expenditure and Reform issued letters to all departments in the summer asking them to bring forward policy options which would yield staffing reductions, including options to move to less labour-intensive service delivery

The Government is under pressure to deliver savings after missing its target to reduce public sector allowances by €75m this year and after being widely derided for the decision to abolish just one of the 1,100 allowances. There are 292,000 workers in the public service and the Government had set a target of reducing numbers in the public service – including the Civil Service, health service, local authorities and education – to 282,500 by 2015. The plan now is to

move this deadline forward to 2014.Fianna Fáil spokeseperson for public expenditure Sean

Fleming criticised the plan which he said had “no costings, timeline, or impact assessment on services” and he accused Minister Howlin of having the Scheme forced on him due to his failure to secure the savings from public sector allowances. He also said that allowing crucial staff to leave would seriously affect public services and call into question the continued imposition of the recruitment moratorium.”

The Government has also come under attack due to the fact that many public servants who retired under previous schemes were subsequently rehired. The Chief Medical Officer in the Department of Social Protection who retired earlier this year has subsequently returned to his job while a former deputy secretary general at the Department of Foreign Affairs who retired seven years ago was rehired for a six months work for which he was paid 63,450. The Department of Agriculture has also rehired 59 retired vetinary members of staff to carry out meat inspections at a cost of 689,000 last year.

The extent of the rehiring has been exposed by Fianna Fail spokesperson on health, Billy Kelleher who said rehiring should only take place if all avenues have been exhausted in terms of seeking to recruit new staff and it should only be undertaken on a short term basis. “New fresh thinking coming into a department is a good thing and every effort should be made to find a new person to fill the post,” he said.

A number of departments have defended the practice on the basis that staff are only rehired along the ‘abatement guidelines and their combined pension and salary does not exceed what a full time salaries employee would earn for the job. However, this fails to take into account the fact that many staff who have been rehired have already received a generous tax free lump sum payment

The Department of Public Expenditure and Reform has said that clarification of the detail and terms of the new scheme will be revealed when the research on staffing levels has been completed.

http://searchtopics.independent.ie/topic/An_Post


Professional Services

Leading AccountantsThe accountancy sector in Ireland is a substantial and profitable sector with the combined turnover of the top four firms surpassing the €1 billion mark.

PwC

PwC provides integrated audit, tax and advisory services across all industries in Ireland and internationally. PwC employs over 1,900 people in seven locations in Ireland - Dublin, Cork, Galway, Kilkenny, Limerick, Waterford and Wexford. PwC is the largest professional services firm in Ireland and provides integrated audit, tax and advisory services across all industries in Ireland and internationally.

Markets Partner: Damian ByrneSenior Partner: Ronan MurphyIndustries: Accountancy, Consultancy/Employees: 2,674 Turnover (End Dec 2011) €300 millionContact: Address: One Spencer Dock, North Wall Quay, Dublin. Tel: 01 792 6000 Website: http://www.pwc.ie/

KPMG

KPMG is a leading provider of audit, tax and advisory services and works with organisations ranging from new and dynamic enterprises to established household names. KPMG in Ireland has 78 partners and 1,800 people in offices in Dublin, Belfast, Cork and Galway.

Head of Marketing: David DeighanHead of Tax & Legal Services: Shaun MurphyManaging Partner: Terence O´RourkeIndustries: Accountancy, Consultancy/Employees: 1850 Turnover: €246 million (End Dec 2011) Contact: Address: 1 Stokes Place, St Stephen’s Green, Dublin 2. Tel: 0 1 4101000



Taxback.com

Established in Dublin in 1996 and led by a team of entrepreneurial business executives, taxback.com has 25 offices worldwide, in Europe, Australasia, the United States and South America, and a staff of over 730. A multi-national corporation providing specialist tax return services to private and corporate clients across 100 countries, Taxback.com was the overall winner of the 2009 Ernst & Young Entrepreneur of the Year Award in Ireland and winner of a Deloitte Best Managed Companies Award.

Executive Officer: Terry CluneIndustries: Accountancy/ Employees 607 Contact: IDA Business & Technology Park, Ring Road, Kilkenny. Tel: 01 887 1999 Website: http://www.taxback.com/

Deloitte

Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. It employs over 1,200 people in Dublin, Cork and Limerick. With a globally connected network of member firms in more than 150 countries, Deloitte brings world class capabilities and deep local expertise to help clients succeed wherever they operate. Deloitte’s approximately 182,000 professionals are committed to becoming the standard of excellence.

Managing Partner: Brendan JenningsDirector of Marketing and Business Development: Irene O´GormanIndustries: Accountancy, Consultancy/Employees 1,268 Turnover (End Dec 2011) €143.9 million Contact: Deloitte & Touche House, Earlsfort Terrace, Dublin 2. Tel: 01 417 2200 Website: http://www.deloitte.ie/

Ernst & Young

Ernst & Young is a global provider of assurance, tax, transaction and advisory services. Worldwide, it employs 152,000 people and operates as the most globally integrated firm, with one methodology, across all its geographical areas. It’s a structure that enables the company to mobilise people quickly, and allocate them to projects in the right place, at the right time.

Managing Partner: Mike McKerrHead of Financial Services - Markets and Financial Services Group: Des QuigleyHead of Marketing: Karen DohertyHead of Tax Services: Kevin McLoughlinIndustries: Accountancy, Consultancy/ Employees 1,067Turnover (End Dec 2011) €123.1 million Contact: Ernst & Young Building, Harcourt Centre, Harcourt Street, Dublin 2. Tel: 01 475 055 5 Website: http://www.ey.com/IE/en/home

BDO

Part of a global network with offices in 135 countries, BDO advises entrepreneurial and growing owner-managed businesses and the people behind them. With offices in Dublin, Limerick, and Belfast, BDO Ireland has 33 partners and 320 staff. Established by entrepreneurs for entrepreneurs, BDO

are Ireland’s leading advisers to entrepreneurial and growing owner-managed businesses and the people behind them.

BDO Ireland is a member of the international BDO network* the world’s fifth largest accounting network. The company maintains an excellent partner to staff ratio, with over 54,900 people working with our clients and offering challenging, ethical and practical advice from 1,204 offices in 138 countries. Clients range from large multi-national companies, private enterprises to government owned companies.

Managing Partner: Derry GrayHead of Marketing: Kevin ReidIndustries: Accountancy, Consultancy/Employees: 420Turnover (31st Mar 11) €54.6 million Contact: Beaux Lane House, Mercer Street Lower, Dublin 2. Tel: 01 470 0000. Website: http://www.bdosx.ie/

Mazars

Mazars Ireland offers audit and assurance, consultancy, corporate finance and taxation services to its clients. Mazars Ireland is based in Dublin and Galway with a staff of over 200 people and is part of the integrated international firm, Mazars. The company has a broad client base spanning the corporate, governmental and institutional sectors along with owner-managed businesses and private wealth.

Managing Partner: Joe CarrHead of Marketing: Caitriona AllisIndustries: Accountancy, Consultancy Employees 230 Turnover (31st Aug 11) €27.5 million turnoverContact: Address: Harcourt Centre, Block 3, Harcourt Road, Dublin 2.



Global LeadersInvestment in the best talent available and a high level of integration within its extensive global network are key factors which have helped Ernst and Young stay maintain its leadership position in a variety of professional services.

Ernst & Young is a global leader in assurance, tax, transaction and advisory services with 167,000 people operating in 140 countries. The Irish firm sits alongside 93 other country practices in a single operating unit across Europe, the Middle East, India and Africa (EMEIA). This integration has allowed the Irish practice to provide a differential service to international and indigenous clients and to capitalise on continued growth in emerging markets. Ernst & Young is the only member of the ‘Big Four’ to have accomplished this level of integration.

As the world becomes increasingly connected, our clients look to us, as the most globally integrated organisation in our profession, to create advantage for them through our global reach and capabilities. Our strength lies in our ability to combine deep local knowledge with our global experience in serving multinational clients and large accounts. It also allows the Irish arm of Ernst & Young to make counter cyclical investments which enables it to emerge from recession in a strong position. Ernst & Young Ireland Managing Partner, Mike McKerr explains “We believe that our highly integrated global organisation strengthens the ability of Ernst & Young to deliver seamless, consistent, high quality service worldwide”.

To help our clients achieve their potential, we set up dedicated global sector specialist centres around the world. These centres are hubs for sharing industry-focused knowledge and experience. They enable us to anticipate market trends, find solutions to accounting or technical issues unique to a particular industry, and develop points of view, benchmarking and competitive analyses on the biggest issues facing our clients. In Ireland, we have recently launched dedicated business units covering government, healthcare, transport, cleantech and aircraft leasing.

Government Services

Colm Devine heads up one of those business units, Government Services. He tells Public Sector Magazine that the public sector, like any performance-driven organisation, needs to incentivise success and create a culture of improvement, innovation and challenge. He feels that we need to pull through the best ideas and talent and allow the public and private sectors to work together without constraint. An innovative and collaborative approach to public service delivery can reduce costs, raise productivity and improve public opinion.

One of the key themes in public service reform is funding the future. This involves investing in entrepreneurship and partnership. Ireland has built a strong foundation of support for entrepreneurs but there are many ingredients required to improve entrepreneurial growth including access to funding, education, collaboration and taxation. Ernst & Young’s flagship awards programme ‘Ernst & Young Entrepreneur of the Year’

demonstrates a commitment to entrepreneurs, in both emerging and developed economies around the world, helps drive growth and empower innovation - working with tomorrow’s global leaders, today. The Irish programme has been supporting the entrepreneurial community for over 15 years.

Over the past 24 months, Ernst & Young has posted a 12% increase in revenue for its Irish practice (5.7% for FY12). Growth is largely due to Investment in top talent, significant client wins with an increase in revenues achieved by all its service lines - particularly Transaction Advisory Services (TAS) growing to 29.1% and Advisory grew 14.4% in financial year 2012.

In Ireland, Ernst & Young has over 1000 people and 42 partners operating across five offices – Dublin, Cork, Waterford, Limerick and Belfast. We have significantly added to our talent pool with the arrival of new partners, Graham Reid to our Transaction Advisory Services team and Frank O’Dea to our Performance Improvement Advisory division. The firm currently has 30 new senior roles on offer across Advisory, Assurance, and Business Support Services.

The firm’s global structure and scale in the emerging markets means the Irish firm can provide advice and assistance to Irish exporters, multinationals and entrepreneurs alike, wherever they need it. Ernst & Young’s Irish firm has therefore invested heavily in working with cross-border businesses on a range of issues from post-deal integration, to assisting multinationals with moving their international operations to Ireland. However, McKerr stresses that “opportunities on home soil are also driving growth”, and says “the firm is winning and investing in all the major markets in which it operates across the Island of Ireland”.



Leading Law FirmsArthur Cox is Ireland´s largest law firm in the State in terms of turnover and is the 20th-largest in continental Europe, according to the annual league table of European law firms compiled by British publication the Lawyer.


Turnover at Arthur Cox at the end of 2011 was €109 million, according to the publication which notes the firm’s work for the National Asset Management Agency and the advisory work which it carried out for the Government on the bailout.

The data used in the annual publication, which does not include UK law firms, is based on estimates, although the Lawyer does seek financial data from each firm. US law firms with operations in Europe are also excluded.

Most Irish law firms are not obliged to publish their financial results. Mason Hayes and Curran is one of the few firms that does publish annual figures.

McCann Fitzgerald was the second largest Irish legal firm and was, ranked 23 in the overall list, with revenues of just over €101.5 million. Matheson Ormsby Prentice came in third with turnover of €98 million, while AL Goodbody had revenue of €93.4 million, leaving it in 28th place in the overall ranings. overall.

ARTHUR COX

With offices in Dublin, Belfast, London, New York and Silicon Valley, Arthur Cox is one of Ireland’s largest full service law firms. With over 350 legal staff and a total of over 500 employees, Arthur Cox provides a comprehensive service to an international client base ranging from multinational organisations, banks and financial institutions, to government agencies and emerging industry sectors. The practice encompasses all aspects of

corporate and business law and for over 90 years has been a market leader in the legal profession in Ireland.

Managing Partner: Brian O´Gorman Communications Director: Rachael HusseyIndustries: Law, Consultancy/ Employees: 550 Turnover(End Dec 2011): €109 millionContact: Address: Earlsfort Centre, Earlsfort Terrace, Dublin 2 Tel: 01 618 0000 Website: http://www.arthurcox.com/

MCCANN FITZGERALD

McCann Fitzgerald services clients in the corporate, financial and business sectors and it also advises government entities and many state bodies, pension funds, educational and charitable institutions and trusts. The firm comprises some 64 partners and 290 lawyers and professional staff, with offices in Dublin, London and Brussels. The firm is divided broadly into four main groupings of corporate, banking & financial services, dispute resolution and litigation and real estate (including construction). It also operates industry sector and specialist practice groups which comprise professionals from different groupings.

The Financial Times, in its annual FT Innovative European Lawyers report, has ranked McCann FitzGerald as Ireland’s most innovative law firm for the firm’s performance in 2012 - 8th overall in Europe as reviewed by the FT judges (excluding the UK law firms).

It recognised and commended McCann FitzGerald for its



work in the Corporate Law category – the only Irish law firm (for the second year running) to be so recognised.

In addition, it highly commended the firm for its work in the Dispute Resolution category quoting in particular its work on the ‘highly complex asset recoveries and ongoing litigation across multiple jurisdictions against the Quinn family’.

Chairman: John CroninIndustries: Law, Consultancy/Employees: 350/ Turnover (Y/E Dec. 2011): €101.5 millionContact: Address: Riverside One, Sir John Rogerson’s Quay, Dublin 2. Tel: 01 829 0000 Website: http://www.mccannfitzgerald.ie/

MATHESON

Headquartered in Dublin, and with offices in London, New York and Palo Alto, Matheson employs over 350 legal and tax professionals, and more than 600 people work across its four locations. It is engaged in more than 20 distinct practice areas, including asset management. and investment funds, aviation and asset finance, banking and financial services, commercial litigation and dispute resolution, corporate, healthcare, insolvency and corporate restructuring, insurance, intellectual property, international business, structured finance and tax.

Matheson has been named as one of the most innovative law firms in Europe in FT Innovative Lawyers Report 2012. Matheson was placed 44th in the overall rankings and was the only Irish law firm commended as one of the most innovative firms in corporate strategy “for making itself the go-to-firm for international companies doing business in Ireland”.

The firm was also commended as one of the most innovative firms in finance law in the rankings and was ranked on the most innovative non-UK European law firms list.

Managing Partner: Liam Quirk Head of Marketing: Julie WeinmannIndustries: Law, Consultancy/Employees: 600 Turnover(End Dec 2011) : €98 millionContact: Address: 70 Sir John Rogerson’s Quay, Dublin 2. Tel: 01 232 2000. Website: http://www.mop.ie/

A&L GOODBODY

With over 350 legal staff and a total headcount of approximately 540, A&L Goodbody advises on every facet of business law, for the domestic and international corporate sectors. It has offices in both Dublin and Belfast, as well as London, New York and Palo Alto. The firms has some 540 employees and recorded a turnover of 93.4 million at the end of December 2011. A&L Goodbody offers expert legal services across a wide variety of industries ranging from aircraft and asset finance to restructuring and insolvency and taxation matters.

The firm was the only Irish firm to achieve a Tier 1 ranking in all practice areas by the International Financial Law Review (IFLR)and was shortlisted for the Financial Times Innovative Lawyers Awards.

Managing Partner: Julian YarrMarketing Manager: Triona Saunders Industries: Law, Consultancy/Employees: 540

Turnover(End Dec 2011): €93.4 millionContact: Address: A&L Goobody Head Office, IFSC, North Wall Quay, Dublin 1. Tel: 01 649 2000. Website: www.algoodbody.com/

WILLIAM FRY

With a team of more than 270 lawyers and tax professionals and 110 support staff, William Fry works for global and domestic companies operating in Ireland, Irish government bodies, financial institutions and entrepreneurs.

One of the largest firms and firmly established in the top tier for many decades. William Fry is an acknowledged leader in its core departmental areas of Banking & Financial Services, Property, Projects, Corporate, Litigation & Dispute Resolution, Competition & Regulation, Tax, Insurance, Asset Management & Investment Funds and Employment & Benefits. It augments this with a wide range of specialist practice areas many of which are specific to industry sectors.

Managing Partner: Myra Garrett Head of Marketing: Sinead HennebryIndustries: Law, Consultanc/ Employees:380/ Contact: Address: Fitzwilton House, Wilton Place, Dublin 1. Tel: 01 639 5000. Website: www.williamfry.ie/

MASON HAYES & CURRAN

Mason Hayes & Curran is a full service business law firm with 66 partners and offices in Dublin, New York and London. Key areas of expertise include mergers and acquisitions, securities law, tax, financial services and litigation across a range of sectors including energy, healthcare, technology, real estate and banking.

Managing Partner: Emer Gilvarry Head of Corporate: David O´DonnellIndustries: Law, Consultancy/Employees: 294 Employees, Turnover (Year End August 2011) €42.2 million turnoverContact: Address: South Bank House, Barrow Street, Dublin 4. Tel: 01 614 5000. Website: www.mhc.ie/

Dillon Eustace

Headquartered in Dublin, Dillon Eustace has also opened offices in Tokyo (2000),New York (2009), Hong Kong (2011) and Cayman Islands (2012). In tandem with Ireland’s development as a leading international financial services centre, Dillon Eustace has developed a dynamic team of lawyers representing international and domestic asset managers, investment fund promoters, insurers, banks, corporates, TPAs and custodians, prime brokers, government and supranational bodies as well as newspapers , wind energy companies, aviation and maritime industry participants and real estate developers.

Managing Partner: Mark ThorneIndustries: Law, Consultancy/ Employees: 160Turnover: (31st Dec 11 Estimated) €33.5 millionContact: Address: 33 Sir John Rogerson’s Quay, Dublin 2. Tel: 0 1 6670022 Fax: 01 6670042. Website: www.dilloneustace.ie/

http://www.mccannfitzgerald.ie/


Public Sector News

Top Tendering Tips Among key priorities of the National Procurement Service Getting are to get value for money and improve SME access to public contracts.

may be highlighted by words like – Shall, will, must. Can you address them? If you can‘t, consider, it is worthwhile tendering.

n CONSIDER WHAT BUYERS WANT (i) evidence that the tenderer can meet the need by

demonstrating capability, capacity, relevant experience. (ii) The tender will meet the tender specification, i.e. will deliver

what’s being asked for and provide the requested information in the format specified.

(iii) The tender will agree to the contract Terms and Conditions.n TENDER SUBMISSION Follow the requested format and instructions to Tenderers,

attach all requested documentation and / or samples. Remember criteria weightings indicate the relative importance of each area. Ensure sufficient information to allow each criterion to be evaluated. Complete the pricing schedule very carefully.

n DO NOT SUBMIT GENERAL “BROCHURE” TYPE PROPOSAL Be specific to the competition. Be clear and concise and relevant

in response to all requirements. Arrange for someone to review the proposal before you submit it.

n MEET THE DEADLINE Ensure your tender is received on time and at the correct

address!n UNDERSTAND THE EVALUATION PROCESS There are three steps in the public procurement process

regardless of the procedure used Compliance, Selection, Award. Contract award is either based on Lowest Price or MEAT (Most Economically Advantageous Tender), which will consider price and other factors such as whole life cost and proposed methodology and approach.

n PREPARE FOR SUCCESS – MANAGE YOUR KEY INFORMATION Don’t wait until you see a suitable tender advertised before

you go looking for the required documentation. Maintain a Tender content library to include: Company organisation chart, Financial Accounts/Statements, Insurances, Accreditation Documents, References and Key Staff Biographies.

n POST TENDER REVIEW This should be conducted by the Tender Manager and consider

the following – (i) Inadequate planning: was sufficient effort / time put into

planning the tender and was this reflected in the quality?

(ii) Inadequate administration: incorrect or missing information?

(iii) Price: was the pricing schedule completed at the correct level?

(iv) Information: were all essential / relevant elements included? Was an incomplete/ non-compliant tender submitted because the requirements were not fully understood?

For many SME’s the idea of selling into the public sector is a daunting prospect which conjures up images of a Byzantine bureaucracy which will entangle your company in a morass of suffocating red tape. It can be very demoralising to spend months preparing a tender only to have it rejected because it has been completed incorrectly and this is the main reason why many businesses tend to steer clear of the public sector.

However the public sector can also be the source of considerable opportunities for SME’s and similar to all market sectors it has its own set of rules which must be adhered to in order to achieve success. The tendering process in the public sector tends to be more formal than in the private sector but if you prepared to do the necessary research and adapt accordingly, the complexity of the process can be minimised significantly.

The e-Tenders web portal is central to public procurement in Ireland, with over 90% of respondents using this online portal to identify available contracts. e-Tenders has increased the number of public sector contract opportunities available to suppliers and made the process of tendering for public sector contracts easier.

According to John Perry, Minister for Small Business the priority of government is to balance the need for the public sector to get best value for money while improving SME access to Government contracts and also getting innovative solutions to public sector needs. One of the actions set out in the Action Plan for Jobs in relation to procurement opportunities for SMEs refers to ensuring that pre-qualification criteria, such as turnover levels or previous experience, are not too onerous on small business and are proportionate to the contract itself.

Winning public sector contracts contributes towards business expansion and job creation. In addition when Irish companies win a public sector contract, it can be an important reference site for them seeking other public sector contracts and selling their goods and services abroad.

Tender Opportunity

The first step is to find out what opportunities are out there. Register on eTenders: www.etenders and other specialist websites and pay attention to the following guidelines provides by the National Procurement Service:n MAKE INQUIRIES Don’t be shy about asking public-sector organisations about the

contracts availablen SUITABILITY Only tender for work you can do. n READ THE TENDER DOCUMENT CAREFULLY. Make sure you understand it. Seek clarification if necessary.n UNDERSTAND THE SPECIFICATION, IDENTIFY THE MANDATORY (KEY)

REQUIREMENTS. Check that you can meet the mandatory requirements which


Public Procurement

http://www.etenders


Public Procurement

Public Contract DirectiveGetting Down to Business by Lionel McCarthy, Managing Director, Achilles Procurement

take and how they will be recorded along with the narrative reasons for the various decisions are made? Remember that the new Remedies Rules are now “open for business”. Thus, while we may wish to inform unsuccessful candidates and tenderers of the scores they achieved, this just

won’t be enough!! They will be entitled to know the “reasons” why they were rejected. Have we checked the precise rules applying to our particular case?

Returning to the remedies/review Directives, have we developed a proper understanding of how they could land us in trouble with the marketplace? It’s just a little food for thought!

Next Time: Carrying out a Competitive Dialogue.

As it is well known, the Directives on Public Contracts have established a body of rules designed to give effect to the Freedom of Establishment and Freedom to Provide Services by guaranteeing all community traders the right to participate in public tender competitions under conditions of absolute equality and total transparency.

The directives on public procurement have a specific aim which is expressly stated in the directives and repeatedly stressed in the case-law of the European Court of Justice. That aim is to guarantee equal treatment between tenderers and transparency at every stage of an award procedure, whilst imposing an obligation upon the Member States, under the remedies/review Directives, to provide appropriate remedies at national level in order to ensure effective compliance with those principles. It follows therefore that the review Directives are intended to ensure at all levels effective observance of the procedure Directives (2004/17 and 2004/18) with which we are more familiar.

In a previous note we discussed the advantages of conducting preliminary appraisals prior to launching a formal award procedure. Today let’s take a look at some of the “moments of truth” which confront us as we begin the journey leading to the award.

Firstly, have we identified the precise requirement? What will it cost? Do we have budget approval and in-house approval to go ahead?

Next, what is the nature of the procurement? Is it a supply, a work or a service? Have we worked out the principal object and is it covered in full by one of the Directives, 2004/18 (Public Sector) or 2004/17 (Utilities). If it’s a service, should it be classified as priority or non-priority? How should we advertise it, in the Irish Government website or the Official Journal, or both? Have we all of the necessary material to complete the contract notice?

Let’s take a timeout and decide the right procedure in order to achieve the best outcome. Should we choose an open or restricted procedure (available under the Public Sector directives as a routine procedure)? On the other hand are we unsure of our requirements, such that we are not in a position to write a full technical specification. If that is the case, would a technical dialogue be helpful in assisting us in drawing up our specification. Remember’ without a rigorous specification we will become a “hostage” to the supply market, as we can only insist upon that which we have already specified.

Have we chosen the best selection criteria and the best award criteria for this competition? Is there any scope for a competitive dialogue procedure? If so, this could enable us to place the ball firmly in the supplier’s court, since effectively they will have to draw up their own solution tour needs and satisfy us that they can achieve it on our behalf. Is there any possibility of conducting a negotiated procedure? This of course, is exceptional within the Public Sector rules, but is routine in the Utilities sector.

Have we considered how the many “decisions” we must

Lionel McCarthy, Managing Director, Achilles Procurement.

“That aim is to guarantee

equal treatment between

tenderers and transparency

at every stage of an award

procedure, whilst imposing an

obligation upon the Member

States, under the remedies/

review Directives, to provide

appropriate remediesat

national level in order to

ensure effective compliance

with those principles.”


Outsourcing

An Obvious Option?Kevin Feeney and John Cahir, AOL Goodbody, outline the significant contribution which outsourcing can make to Ireland’s adjustment programme.

The 2013 budget has introduced public expenditure adjustments of €2.25 billion and it seems inevitable that additional cuts will be required in the years ahead. After five harsh budgets it would seem that there are few remaining areas where cuts can easily occur.

Given this economic backdrop, it is noteworthy that the Minister for Public Expenditure and Reform announced in his Budget day speech that the Government is “taking a focused and integrated approach to external service delivery of non-core activities, where appropriate”. This somewhat oblique terminology is believed to be a reference to potential outsourcing of non-core activities in the public sector.

Economic research indicates that cost reductions of up to 20% can be achieved when public service delivery is shifted into

a competitive tendering environment. In line with this research, the Minister stated that a cost reduction of 26% and net savings of €12.5 million were achieved through the recently created HR shared services unit for the Civil Service. While the creation of such a unit within the public sector itself is not typically seen as a form of outsourcing, it does highlight the efficiency gains that can be achieved through service delivery change.

It is therefore not surprising that the Government is now looking seriously at alternative service delivery models, including outsourcing, as a possible means of reducing public expenditure. Experience abroad as well as in this country shows that successful outsourcings can cut costs while at the same time maintaining or improving standards of services – the holy grail of public sector reform.

http://www.ceridian.ie



Outsourcing

Government Policy and Outsourcing

Government policy on outsourcing is embodied within the Public Service Reform Plan which was first published in 2011, against a back drop of the significant fiscal consolidation that was taking place and the large cost of providing public services. The reform of public services is the key theme in this Plan, including the concept of embracing alternative models for service delivery. Outsourcing is clearly one such model.

On 6 September 2012, the Government published a statement on the progress of the implementation of the Plan. The progress statement referred to a number of key successes, included the “PeoplePoint” HR shared service model referred to earlier which is now in the implementation phase across the civil service and which may be a platform and precedent for other shared services across the Civil Service.

The progress statement went on to refer to a Government initiative which is taking place to identify non-core activities in certain key sectors (namely Health, Education, Justice and Local Government) with a view to external service delivery approaches or project being developed in respect of some of these activities. This is outsourcing. The statement suggests that a number of these projects have been scoped and “detailed benefits-driven external service delivery plans are being developed”. Should these projects demonstrate value for money then, logically, one would expect them to be implemented in the near future.

Government Policy also includes the principles set out in the Croke Park Agreement, a bilateral agreement between

the Government and the trade unions which was entered into by the previous government. Within that Agreement there is an acknowledgement of outsourcing as a concept, but its acceptance as a service delivery model is subject to a prescribed process with material involvement of the trade unions in the planning and evaluation aspects of the outsourcing arrangement, together with a number of core union requirements centred around protection of public sector employment rights and benefits. There is some risk that this process and associated employment related conditions could slow the pace at which outsourcing projects will happen and potentially the value for money benefits which the Government could otherwise achieve from proper and prudent outsourcing.

PUBLIC SECTOR OUTSOURCING IN THE UK

In considering the likely future direction of public sector outsourcing in Ireland, it is worth considering the evolution and composition of the outsourcing sector in the UK, which is generally regarded as a pioneer in outsourcing both at home and abroad.

Outsourcing as a business model was born out of the difficult budgetary restraints faced by UK local governments in the 1980s. They concluded that the contracting out of services provided transparency, and allocated responsibility and accountability in an objective and measurable way, and through competitive tender processes reduced costs. This

John Cahir, AOL Goodbody

Economic research

indicates that cost

reductions of up to 20%

can be achieved when public

service delivery is shifted

into a competitive tendering

environment. In line with

this research, the Minister

stated that a cost reduction

of 26% and net savings of

€12.5 million were achieved

through the recently

created HR shared services

unit for the Civil Service.


Outsourcing

success resulted in the business model being embraced by other branches of the public sector, including central government.

According to the UK industry body, the Business Services Association, the outsourcing market in the UK has grown to become a £14 billion industry employing over 340,000 people. In addition, a number of UK outsourcing companies (for example, Capita and Serco), have become leading international providers of business services. Nonetheless, only 30% of outsourcings in the UK are carried out by the public sector with the remaining 70% originating from the private sector. Outsourcing in the UK is therefore predominately a private sector phenomenon.

CHALLENGES

Embracing change and managing implementation of change processes is never easy, particularly in a public sector context. A challenge for Government will be to ensure that the team tasked with the delivery of any outsourcing project is sufficiently experienced to manage the multiple stake holder groups as well as the financial, technical, economic, legal and other aspects of any outsourcing. The outsourcing initiatives/projects, touched on in the September 2012 Public Service Reform Plan progress statement, will be seen both within public and private sector circles as path finder projects and it is therefore critical that they will be a success. Success relies on the right team being involved in and managing with their delivery.

Another potential challenge to the implementation of public

Kevin Feeney, AOL Goodbody

sector outsourcing projects is the public sector unions. Under the Croke Park Agreement, the trade unions have reserved particular influence over any public sector outsourcing. The hierarchy between traditional trade union values on one hand and the broader public interest policy of the Government being able to provide public services within a reduced budget (i.e. without borrowing) will be a key issue influencing whether outsourcing is embraced as a service delivery model in this country.

A core trade union objective is, understandably, protection of employment for workers. One would hope that this objective is already enshrined in law. Under EU law, as implemented in Ireland, legal protections exist for workers (whether in the public or private sectors). Specifically, the EU Directive on Transfer of Undertakings (Protection of Employment) (“TUPE”) provides that when a transfer of an undertaking occurs (as will be the case with most outsourcings) the affected workers have the right to transfer by operation of law to the new service provider with their terms and conditions of employment preserved. Whether by accident or design, the current quasi-outsourcings which have taken place in the public sector to date have not resulted in any material transfer of employees from the public to the private sector.

Public sector pension issues are likely to represent a challenge in outsourcings where there will be a transfer of workers from the public sector to the private sector. Pension rights do not transfer as a matter of law under the TUPE Directive. Whilst the default position is that there is no obligation to require a replication of a public sector pension scheme by a private sector outsource service provider, there are a number of structures, proven in the UK public sector outsourcing market, to deal with transferring employees and pension benefits in a way which is equitable and appropriate.

LOOKING AHEAD

The Public Service Reform Plan puts citizens and business customers at its core. Accordingly if it is accepted that the quality of services to the public must be maintained or indeed improved, and if it is accepted that during the current period of fiscal consolidation that good governance dictates that the country should not borrow to provide public services, then it seems inevitable that on-going reform will be needed. Outsourcing will not be a panacea to meet all of the current reform objectives within the public sector. However, it may form part of the overall solution. It is an essential service delivery methodology with the potential for providing the same or better services to the public at a lower cost to the exchequer. For this reason it is suggested that it must be explored and at least tested on a pilot project basis.

The success of any such pilot project is likely to be the catalyst for whether outsourcing projects have a future in the Irish public sector. A key dynamic in this regard will be the need for Government to pick the right pilot project, of a type that is proven in other jurisdictions and which can clearly demonstrate value for money. The other obvious dynamic will be whether the trade unions will seek to compromise the potential success of outsourcing projects through their powers under the Croke Park Agreement, or any replacement. Time will tell.


Outsourcing

The right candidate As Ireland’s largest provider of fully-managed payroll and HR solutions, Ceridian strives to maintain complete accuracy and a local feel in its service, as services director Morgan Danaher explains.

The country’s biggest provider of fully-managed payroll and HR Solutions, Ceridian Ireland is also the technology leader in the provision of the most comprehensive Human Resources Management products on the market.

Operating in Ireland since 1984, Ceridian is part of a global organisation, boasting more than 9000 employees worldwide and operations in more than 120 countries across the world.

Although part of such a vast global entity, Ceridian Ireland’s ethos is very much to maintain a local feel to its service, where it becomes part of your team.

“Although we have the best products out there on the market, it is our personal approach to service provision that sets us apart,” comments Morgan Danaher, Services Director, Ceridian Ireland.

Apart from this cornerstone of its success, Danaher believes the reality of Ceridian’s growth story is that by choosing Ceridian all of its customers save thousands of euros every year by either outsourcing key functions to Ceridian, or by maximising efficiencies through the use of its software.

“We invest heavily every year to ensure that our professionals are at the top of their game, so when a company chooses to outsource to Ceridian, they invoke service from a bank of expertise, recognised as number one in the marketplace,” he says.

“Ceridian can provide its customers with Human Resource Management Software platforms that integrates with payroll, thus providing a completely automated and risk-free solution. This eliminates the need for complex and expensive interfaces and increases efficiency across the end to end HR and payroll process,” Danaher comments.

The company recently launched a new version of its award winning software HRevolution, which is a state-of-the-art, human resources platform, comprised of a number of modules which customers can choose from.

“In these times of austerity, customers can choose their own solution at an affordable price, selecting from modules including HR Administration, Payroll, Performance Management, Recruitment, Workforce Management, Learning

We invest heavily every year to ensure that our professionals are at the top of their game, so when a company chooses to outsource to Ceridian, they invoke service from a bank of expertise, recognised as number one in the marketplace.


Outsourcing

and Development, Expenses, HR Analytics, Flexible Benefits, and Online Payslips,” he says.

Ceridian also provides off the shelf HR packages for smaller clients, featuring excellent reporting and intelligence functionality.

Ceridian is a service company first and foremost, but it has a long track record of supporting the public sector, Danaher says.

“Many companies in our industry don’t do business with the public but we are different in that we have the people and technologies to seamlessly accommodate this market,” he comments.

Ceridian also provides a complete Human Resources Consultancy solution, which includes HR Strategic Planning, Recruitment and Resourcing, Career Guidance, Training and Development, Employee Engagement, Change Management, Restructuring and Organisational Design, Employee Relations and Employee Law.

In addition to this, Ceridian takes care of all legislative and Revenue requirements pertaining to payroll including payments of P30s, P35s to Revenue, and the distribution of Revenue documentation such as P60s and income levy certificates.

The company continues to grow considerably year-on-year due to its service ethos and technological capabilities. It has seen a particular growth in outsourcing as Danaher explains.

“Our outsourcing business is thriving due to the ability of Ceridian in fact, to save companies a very significant amount of money year-on-year,” he comments.

Discussing the potential for outsourcing in Ireland’s public services, Danaher says he believes “the public sector could benefit hugely from outsourcing services where they can provide greatly enhanced service offerings at a fraction of the cost.”

“As a commercial entity, our business success globally since the 1930’s and in Ireland since 1984, rests on our ability to be innovative and continuously ahead of the game. We have therefore created the processes and technology to drive lean delivery and automated solutions, which would in turn greatly enhance the cost saving potentials within the public sector,” he comments.

Public services are essential to the functioning of our economy and society and Ceridian welcomes the initiatives set-up by this current government dating back to 2011, Danaher says.

“The aim of the Government is to maximise new and innovative service delivery channels while radically reducing costs to drive better value for money,” he comments.

Ceridian recognises that public sector reform by its very nature can be quite arduous and slow, with many stakeholders to satisfy before change can be initiated, he says, however “we believe that momentum for same has not yet taken hold and this is evidenced by a lack of public announcement specifically relating to savings and efficiencies gained through outsourcing.”

“We are ready and capable of moving quickly to migrate even the most complex of Government processes, and therefore can greatly enable those said desired savings and efficiency gains, but need to be engaged by Government to do so,” he says.

It is a very big decision for any organisation to invest in a large piece of software, a fully managed outsourced relationship or a consultancy relationship, Danaher says.

“When a company outsources its payroll to Ceridian, there is no room for error because bottom line, when Ceridian goes live, all employees of that organisation must be paid on time and their pay must be 100% accurate,” he stresses.

Over the last two years in Ireland, Ceridian has set up more than 300 clients with a flawless track record of on-time and within budget delivery.

“Our internal controls are modelled on air traffic control where the impact of any error is seen as potentially catastrophic. We have multiple variables to contend with, and therefore planning is everything,” comments Suzanne McCauley, PayCentre Manager, Ceridian Ireland.

Ceridian is a Six Sigma organisation with a culture of continuous business process improvement at the core of its day-to-day activity, Danaher says.

Danaher points out that Ceridian’s business is its people. The company manages people’s records, facilitates their development within organisations, assists with the strategic planning of their clients and those clients’ employee activity, calculates employees’ pay and benefits, and therefore everything it does has a significant impact on people all over Ireland.

When selecting people to work for the company, Ceridian places a huge emphasis on cultural fit, where the dominant culture is support, respect, integrity, and honesty.

“We work as a team internally, but we take this approach with every stakeholder we interact with,” comments Edwina Flannery, Finance Manager, Ceridian Ireland.

The company has achieved a string of accolades, and was recognised as the Outsourced Payroll Provider of the Year in Ireland (IPASS) at the Prestigious Payroll World Awards in November this year. Ceridian clinched the top three awards: Payroll Provider of the Year, Technology Development of the Year, and Payroll Software Product of the Year.

Any public sector organisations considering their payroll or HR needs can contact Morgan Danaherdirectly for a chat on 087-9161779 or by e-mail: [email protected].

Morgan Danaher Services Director, Ceridian,


Transforming HR

Getting the timing rightRoddie Aherne, NorthgateArinso’s Business Director for Ireland explains the importance of timing when undertaking process and technological transformation.

The need to improve HR and Payroll service delivery is a high priority for many organisations. The Human Resources and Payroll functions are under a great deal of pressure to perform - internally, there is pressure from management to add value to the organisation and do ‘more with less’. Poor HR-related service delivery generates much pain; apart from the high costs of inefficient processes, poor service quality will give the organisation a bad reputation both externally with potential recruits and internally with the existing workforce. Exclusion from strategic processes is the most likely outcome for an under-performing HR function.

In the HR space, executives wanting to take on new technologies to drive more effective and efficient processes often encounter difficulty in persuading boards to plough money into such areas. HR managers should remember the availability of many different options available to them – from SaaS to full outsourcing to the evolving Hybrid HR solutions that combine

all or some of these service types and may also encompass transfers of existing staff under TUPE, particularly where a provider can combine a technology solution with a variety of HR & Payroll related services run through a dedicated (or sometimes non-dedicated) Shared Service Centre.

For many organisations, improving the cost, quality and flexibility of services demands that a transformation in the Payroll and HR functions takes place. Transformation can take many forms:n Process - at its simplest, a basic Business Process Redesign

(BPR) will remove bottlenecks, simplify the paperwork and share best practice around the organisation. While this usually has some impact on efficiency, at best it usually makes only a small dent.

n Structural - changes in the delivery mechanism such as the introduction of shared services can provide new economies of scale and improve delivery across the organization. Likewise, outsourcing some or all of the HR or Payroll


Transforming HR

Getting the timing rightRoddie Aherne, NorthgateArinso’s Business Director for Ireland explains the importance of timing when undertaking process and technological transformation.

The need to improve HR and Payroll service delivery is a high priority for many organisations. The Human Resources and Payroll functions are under a great deal of pressure to perform - internally, there is pressure from management to add value to the organisation and do ‘more with less’. Poor HR-related service delivery generates much pain; apart from the high costs of inefficient processes, poor service quality will give the organisation a bad reputation both externally with potential recruits and internally with the existing workforce. Exclusion from strategic processes is the most likely outcome for an under-performing HR function.

In the HR space, executives wanting to take on new technologies to drive more effective and efficient processes often encounter difficulty in persuading boards to plough money into such areas. HR managers should remember the availability of many different options available to them – from SaaS to full outsourcing to the evolving Hybrid HR solutions that combine

all or some of these service types and may also encompass transfers of existing staff under TUPE, particularly where a provider can combine a technology solution with a variety of HR & Payroll related services run through a dedicated (or sometimes non-dedicated) Shared Service Centre.

For many organisations, improving the cost, quality and flexibility of services demands that a transformation in the Payroll and HR functions takes place. Transformation can take many forms:n Process - at its simplest, a basic Business Process Redesign

(BPR) will remove bottlenecks, simplify the paperwork and share best practice around the organisation. While this usually has some impact on efficiency, at best it usually makes only a small dent.

n Structural - changes in the delivery mechanism such as the introduction of shared services can provide new economies of scale and improve delivery across the organization. Likewise, outsourcing some or all of the HR or Payroll


Transforming HR

organisations are better able to understand the complexities and costs of business processes and then implement those processes through the technology or delivery organisation. However, this approach often disconnects transformation and solution – in practice, the transformation activity may never be seen as complete and there will always be a reason for holding back on the solution phase. The full benefit of transformation is unlikely to be achieved for several years, during which time the requirements of the organisation may well change. It is a very good approach if you have no burning platform for change AND you can be assured of continued support for the transition. In reality, when the technology phase starts, you will almost certainly have to adjust your business processes to create them in the system.

Simultaneous transformation and technology implementation: The main strength of this approach is that it clearly links the enabling solution and transformation projects under a single agenda and is the most efficient in terms of resources and time. Activities such as BPR, technology implementation, staff training, change management etc need only to be managed once and much duplication can be avoided. Efficiencies will be achieved if processes are designed specifically with the technology or delivery mechanism in mind. In turn, the solution will inspire transformation ideas – for example, the embedded business models in technology will present automation opportunities. Change management programmes can be developed which take the full transformation impact into account and benefits will be delivered more quickly.

As we have stressed, there is no right or wrong answer – the important point is that whether implementing technology, redesigning processes or restructuring HR and Payroll functions, the transition sequence needs to be thought through and each activity must be managed as part of the bigger project.

Roddie Aherne, NorthgateArinso’s Business Director

function to an external supplier will give access to new services or economies of scale previously unavailable.

n Technology - In many cases, an investment in new technology is necessary to automate complex processes and bring about efficiencies through self-service. Technology is an enabler which underpins process and structural changes.

Inevitably, the most successful solutions are a combination of BPR, technology and structural change rather than a single strategy. The right combination of these tools is the one which works best for your business, your culture and your particular requirements.

One of the debates often encountered is the transition process and the sequence by which process, structural or technological transformation is conducted. For example, organisations may prefer to implement technology or introduce shared services and then change business processes at a later time. When outsourcing a complex HR or Payroll function, it is often tempting to throw the whole lot over the fence of the supplier and let them sort out process problems – this simply outsources a problem and usually will not solve it. In the scenarios below, we look at three possible sequences for managing the transformation:

Implement then transform: In this approach, the technology or structural change is implemented quickly and minimal changes are made to existing business processes. At a later stage, processes are reviewed and improvements made. However, while this approach enables rapid implementation, it may not be the best long-term approach. For example, if you automate a bad process all you get is a high-tech bad process; if you outsource bad processes, they are still bad processes for which someone else gets paid a premium to deliver. Inevitably, this approach leads to duplication of both resource and cost: training, change management, process design etc. Worse still, it may mean that the HR service is in a continual state of ‘re-launch’, creating an environment that could make it difficult to retain key staff and assure customers of consistent service. In many cases, the transformation stage never happens – post-implementation as it is often hard to get the team together or persuade management that it is worth the investment.

Transform first, then implement: This is a long-term strategy and is the most cautious approach. By undertaking transformation first,

“When outsourcing a

complex HR or Payroll

function, it is often tempting

to throw the whole lot over

the fence of the supplier

and let them sort out

process problems – this simply

outsources a problem and

usually will not solve it.”

Ireland’s Ready for Paperless

Billing!

Celtrino is the leader in the provision of paperless billing solutions in Ireland.

John Behan Patrick Redfern Director Business Development Manager e: [email protected] e: [email protected] t: 01 873 9907 t: 01 873 9904

Or visit our website for more information: www.celtrino.com/publicsector

Celtrino, Unit 5 Parnell Business Centre, Dublin 1, Ireland | Tel: +353-1-873-9900 | Fax: +353-1-878-1824

To schedule a meeting please contact:


IT

eInvoicingCeltrino:- Making Ireland work smarter

Never has it been more important to achieve real cost effective business solutions and if you happen to work in the public sector then that mantra is probably etched on your desk.

Mention of the dreaded Croke Park agreement can send people into a panic and hitting speed dial to their unions as fears of new negotiations on pay cuts spring to mind.

However, one Irish company is spearheading a revolution among the public sector which could see costs slashed by a quarter of a billion without one job lost or one cent in pay cuts.

Celtrino, which is the market leader in Ireland in the supply of e-invoicing software, has been working with the Health Service Executive on a pilot project to clearly illustrate the benefits of e-invoicing.

When one considers that over four million invoices are processed by government departments and agencies on an annual basis then the cost effectives from both a staff and monetary point of view are clearly evident.

And for Celtrino their focus is very much on bringing our government and all our statutory agencies into the modern era with a professional and smooth transition that could establish Ireland as a driving force in this technology among EU nations.

Streamlining Operations

Managing Director of Celtrino, Ken Halpin, has seen much change over his 30 years involved in this business. However, it is that very concept of change which is perhaps hindering our public service from taking that final step into the modern age which would allow them streamline so much paper work and reduce cost.

Halpin and many others in this business though are breaking down these fears and have found a firm

“Over four million invoices are

processed by government departments

and agencies on an annual basis.”


IT

friend in the form of Minister of State for Public Service Reform Brian Hayes.

“When you start to change how systems work there is naturally going to be a hesitancy,” remarked Halpin.

“In our business there is a fear that by introducing new software, which would allow for e-invoicing to take place, that whole rafts of IT systems across government departments would become redundant and have to be modernised.

“There is a small degree of fear among people in the Department of Finance as they are naturally concerned about cost. As a result people have pulled back from pressing the go button on the roll out of the services that we and others provide.

“However, we are actively demonstrating to government and their agencies that by reusing work done previously for the private sector, we can in fact modernise the existing systems without impacting significantly on what is already in place.”

It is this kind of imaginative thinking outside of the box which is making the transition to e-invoicing a more tangible reality for suppliers all over Ireland.

Halpin and Celtrino’s work with the HSE is just but a fraction of what needs to be done among the public service sector. In the pilot projects in which they are involved they processed 50,000 e-invoices for the HSE. It is just but a drop in the ocean but they are important first steps.

Gaining Ground in the EU

The change towards e-invoicing is becoming unstoppable though with EU countries such as Austria aiming to have 100% of their business conducted in this method by next year and the Netherlands aiming for 80% by 2014. Such statistics make you realise this is something which Ireland needs to embrace.

In that regard we have a long way to go considering a mere 2% of invoices are processed using e-invoicing methods at the end of 2012. However, by the time the country marks 100 years since the 1916 rising it is the aim of the government to be 100% compliant.

Halpin feels it would be advantageous for the government to be a trend setter rather than trying to catch up with the rest of Europe when the inevitable happens and the EU Commission mandates change in this regard. On top of that the figures quoted for how much these systems could save the exchequer makes this a no brainer.

“We are confident that the application of e-invoicing across government agencies could save the exchequer in the region of quarter of a billion a year,” remarked Halpin.

“We are the longest established and largest of all the providers in this country and we have developed an arsenal of tools to assist any department. We know professional people need precision and our track record is proven in this regard.”

Keenly aware of the benefits which e-invoicing and tendering could bring Minister Hayes was anxious that the public sector become more competitive and responsive to its suppliers both at home and abroad.

Public Procurement

At the beginning of 2012, the Minister prioritised resources for the National Procurement Service to conduct a Pilot Project on e-invoicing and one that would investigate the use of PEPPOL

(Pan-European Public Procurement Online), a European Commission initiative to provide an infrastructure to facilitate cross border commerce including e-invoicing.Minister Hayes stated that “transparent public procurement is critical to achieving more efficient allocation of resources through increased competition, and helping the government and taxpayers to realise budgetary savings” and in this regard, reform of public sector procurement “is central to the Government’s reform agenda”.

The Government, he added, wants to make eProcurement “the rule rather than the exception”.

E-invoicing, the Minister said, is a flagship initiative for this Government and Ireland is one of the lead countries piloting electronic invoicing across the European Union.“ The Government“shares the Commission’s desire to see e-invoicing become the predominant method of invoicing by 2020 in Europe. Realising this vision requires careful planning, and not just a technological solution, but also organizational and legal solutions that advantage and not disadvantage the private sector.”

This project, according to Minister Hayes, “has proven that suppliers can send invoices electronically to Government agencies irrespective of the formats used by the Government Agency or the supplier.”

Such ringing endorsements from the top is something which is music to Halpin’s ears and with a company like Celtrino ready to take up the challenge Ireland is well positioned to embrace e-invoicing and become a leading light in this technology across Europe.

Managing Director of Celtrino, Ken Halpin


IT

C

B R I N G I N G YO U R B U S I N E SS TO T H E C LO U D

Private Cloud Solution Specialists

Through a partnership approach we help our clients adopt the benefits of the cloud

CLOUD & HOSTING SOLUTIONSDedicated solutions designed from the ground up to address your governance, risk and compliance requirements.

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DISASTER RECOVERY & SECURITYSolution for business continuity, risk and data protection obligations. We help ensure your solutions evolve with your environment.

www.cinfinity.ie or contact us on 01 443 4666

C-Infinity A4.indd 1 02/01/2013 19:59


IT

Rolling out e-Invoicing It is surprising that e-invoicing has been slow to happen in the Public Sector when it has operated successfully for more than twenty years in other sectors such as Retail Grocery. The time is now right to roll out e-invoicing in Ireland, as Brendan Kernan, Manager of Technical Standards at GS1 Ireland explains.

The slow adoption of e-invoicing by the Public Sector in Ireland is an impediment to driving costs out of the economy, impacting in particular SMEs and the Public Sector itself. This impediment is recognised in the member states across Europe. Whereas previously it was the private sector driving efficiencies, it is now the member states and the EU bodies that are behind the momentum for e-invoicing, using Europe 2020 the EU›s growth strategy for the coming decade, as the catalyst. In fact, as part of the ongoing creation of Single Euro Payment Area (SEPA) it is an ideal time to initiate e-invoicing with savings estimated at around €64.5 billion per year for businesses across the EU.

Legal, tax compliance, cost and technical obstacles all acted as excuses not to do something in the past. These issues have not all disappeared, but the impetus and critically, the underlying economic need is now there to overcome them. The traditional paper based, labour intensive way of doing business is now simply too costly and inefficient to sustain any longer.

The Government and Minister Brian Hayes TD have been leading the cause for change in Ireland. The Minister has established a Multi User Stakeholder Forum to drive the e-invoicing agenda in Ireland. The forum is leveraging the work done in other EU member states and is creating the environment for it to happen here. Many other necessary factors are also in place namely: the service provider organisations that have the capability to provide the technical infrastructure are lined up and ready to go,

PEPPOL or Pan European Public Procurement On-Line, the secure interoperable communications architecture, is ready,

the legal status of the electronic invoice has been addressed with the EU Council Directive 2010/45/EU giving the same legal status to the electronic invoice as the paper version.

The greater emphasis on standards, with the engagement of CEN and GS1 at both European and National levels should be highlighted. The adoption of standards brings a greater synergy; lowers cost; and opens up the possibilities for further enhancements such as National Product Catalogues and a greater use of readily available supply chain technologies and solutions. A number of best practice projects are already underway in this area in Ireland and across the EU and efforts to date have been underpinned by a commitment to build on the e-commerce infrastructure already in place.

e-Invoicing is an major initiative. The excuses for delay have all but vanished. Those reasons for delay, if any, that may still remain are dwarfed by the benefits. Other sectors have been reaping the benefits of electronic trading for years; now it is time for the Public Sector in Ireland to do likewise.Brendan Kernan, GS1 Ireland

Footnote: GS1 is a not-for-profit global body that maintains standards for product, entity and location identification, in addition to standards for data capture, ecommerce messaging and data catalogues. GS1 standards deliver efficiency and visibility and enable interoperability between organisations. www.gs1ie.org

Council Directive 2010/45/EU of 13 July 2010 amends the VAT Directive as regards the rules on invoicing. It aims to simplify invoicing rules by removing existing burdens and barriers and it establishes equal treatment between paper and electronic invoices without increasing the administrative burden in relation to paper invoices. It aims to promote the use of e-invoicing by creating freedom of choice for business in ensuring the authenticity, integrity and legibility of invoices. The provisions of Council Directive 2010/45/EU will apply from 1 January 2013.

“Other sectors have been

reaping the benefits of

electronic trading for years;

now it is time for the Public

Sector in Ireland to do

likewise.”

C

B R I N G I N G YO U R B U S I N E SS TO T H E C LO U D

Private Cloud Solution Specialists

Through a partnership approach we help our clients adopt the benefits of the cloud

CLOUD & HOSTING SOLUTIONSDedicated solutions designed from the ground up to address your governance, risk and compliance requirements.

CLOUD APPLICATIONSAccess and manage your critical database and software applications through a private cloud. No more IT headaches.

DISASTER RECOVERY & SECURITYSolution for business continuity, risk and data protection obligations. We help ensure your solutions evolve with your environment.

www.cinfinity.ie or contact us on 01 443 4666

C-Infinity A4.indd 1 02/01/2013 19:59

http://ec.europa.eu/internal_market/payments/sepa/index_en.htm


IT

Office SecuritySimplifying branch office security by Dermot Hayden, Managing Director, Sophos.

Securing your business network is more important than ever. Malware, botnets and other malicious programs threaten your network—at your central offices and your branch offices alike. Yet enforcing consistent network security throughout your organisation can be challenging—especially at branch offices with few users and limited or no IT expertise.

Sophos introduces a new standard—an innovative, unified, cost-effective solution for managing branch office security, with centralised reporting and a clear process for determining return on investment (ROI).

What are the real problems?

Today’s increased mobility and 24/7 always on capabilities may offer your business a competitive edge. But the transmission of sensitive data across business networks and the Internet must be secure as threats from hackers and malware can target any vulnerability in your business.

Your branch office needs firewall protection, secure VPN connections to corporate resources, an intrusion prevention system, web and email security—just like at headquarters.

Three crucial points when managing branch office security:

1. Deploying security devices

In small offices you may not have IT expertise available onsite but many organisations simply can’t afford to send their IT teams on the road to set up or manage new offices in different locations. Some organisations pre-configure each device at the central office but often need to make final adjustments onsite. A dedicated central management solution that’s easy to set up and configure offers the most efficient approach. But it can be as costly as sending IT out on the road.

2. Providing support

When your branch office or remote worker has a technical problem, business and productivity can be severely impacted. Describing issues over the phone is complex, time consuming, expensive and frustrating for both your IT staff and your offsite employees. Shipping the device back and forth is a non-starter as you can’t afford the downtime. Your workers need virtual onsite support that helps them get back to vital business quickly.


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3. Implementing security policies

You need to determine how to set up rules and policies for your workers on the network at the individual branch offices. These rules may be the same set of rules you use at the central office or they may be different. Some branch workers and remote employees may have unlimited access to company assets and others may be highly restricted. You may want to implement policies that restrict access to Internet software or social media

How can you manage this cost-effectively and efficiently? Sometimes corporate policies can be extrapolated into the branch office environment. If not, managing separate rules on different security devices is time consuming, costly and inefficient.

Traditional security measures for remote offices

Investigating the right solution for branch office security is a challenge especially when remote workers have little IT expertise. Many smaller offices start with consumer broadband routers which may be inexpensive and simpler for your remote workers, but they provide little reporting, visibility and only the most basic security. Others deploy entry-level business firewalls to inspect traffic and enforce policies, which offer greater security, visibility, control but also hugely increase total cost of ownership.

Here are a few of the traditional solutions is use today:Low-end unified threat management (UTM) appliances

may offer you the required security protection. However they are time-consuming to set up and you may find that the “hidden” total cost of ownership (TCO)—ongoing maintenance, subscription fees and management—are too high. Especially if you need to secure large numbers of small offices.

Consumer grade routers may seem like an inexpensive alternative to UTM appliances as they are easier to set up and manage. While they offer you basic security functionality (e.g., firewall or VPN), they often lack important commercial security safeguards like intrusion prevention, web and email filtering.

Managed VPN or MPLS services offer the most comprehensive solution that is centrally managed. However VPN or MPLS services are not available for all locations, may lock you into long-term service contracts or might not comply with your corporate policies and are typically very expensive.

The bottom line is these traditional solutions seldom meet your specific needs. Managing multiple point solutions already increases complexity in your network and it just multiplies exponentially when adding numerous point solutions at branch offices.

But a new approach is now available. It offers a superior total cost of ownership (TCO) for even the smallest office of one while still offering all the benefits of fully automated central management.

A new approach for branch office security: central management made easy

Sophos’s innovative approach provides a truly unified threat management solution integrating security measures at the branch offices into the corporate structure. This solution sets up a virtual Ethernet cable for connecting your central and branch offices. Instead of running firewall, VPN, intrusion prevention, web and email security functions on an expensive branch office

device, they are centrally provisioned by a powerful security gateway. It can be located at your central office or in the cloud (e.g. at a service provider).

A small Sophos Remote Ethernet Device (RED) forwards encrypted traffic from the remote office to a central device that scans and filters the data before it is sent to the Internet. It connects your central office to your branch office with secure VPN technology.

Sophos RED appliances and award-winning Sophos UTM products provide cost-effective centrally managed unified threat management (UTM):

Set up of a new RED appliance takes only a few minutes.Recurring maintenance tasks or subscription costs for the

branch are eliminated.

All reporting tools are included.

Two-minute deploymentThis innovative approach offers plug and play deployment.

Here’s how it works: RED devices are shipped to the branch offices. The remote worker reads the serial number on the shipping box to central office IT. They activate the device within the central Sophos Security Gateway. The local employee plugs the device into the Internet router, connects the router to the computer and plugs it into the wall. The RED device automatically retrieves its setup information, configures itself and establishes an encrypted layer 2 vpn tunnel to the central office. You can deploy up to 100 appliances per day with this automated, flexible solution.

Central supportRED delivers greater network control and visibility. Your IT staff now have an integrated solution at hand that supports clear centralized reporting tools offering 360-degree visibility into each branch office. RED eliminates onsite travel, and enables your IT team at the central office to virtually support your branch office staff with just a few clicks of the mouse.

Simple policy managementWith RED, you can create and maintain one global policy that protects and tracks all remote sites in your central security gateway. You can set different user rights for individual branches or employees—just like you can do at headquarters. Therefore the branch office obtains the same level of security as the central office – it’s as if the branch office is connected to HQ via a very long Ethernet cable!

Saving up to 80% on your TCOCompare the total cost of ownership (TCO) for maintaining your branch office network— particularly one with tens or even hundreds of sites—with traditional UTM solutions. Initial cost is dwarfed by ongoing expenses, from remote administration to security subscriptions. This largely stems from treating each branch as a standalone that must be configured, secured, and monitored. This traditional UTM approach results in uniform security but is extremely complex and far more costly to deploy and manage than Sophos RED.

Learn how you can benefit from RED, the new standard for innovative, cost-effective branch office security management.

For more information please visit our website at www.sophos.com.


IT

Keeping Date Secure Could Data Loss Prevention have averted Paula Broadwell’s accumulation of classified US government documents?

The investigation of the General Petraeus affair with his biographer Paula Broadwell revealed the loss of many US government documents. Many confidential documents including information about children in the state care were accidentally made available by the Ministry of Social Development in New Zealand. HSBC Bank USA notified customers after discovering a former employee took customer data as a parting gift to himself. 02 has recently announced that it has suffered a potential data breach through the loss of a data back-up tape. Could this have been prevented with the use of Data Loss Prevention software?

It certainly would have reduced the chance of lost data and simplify the tracking. Depending on the specific DLP features available, any activity with regards to sensitive data, such as copying, emailing, transferring, should have triggered advance warnings to supervisors and give investigators a clear data trail to follow afterwards. A 2010 Verizon study revealed that 48% of all data breaches were caused by insiders. And furthermore, that 93% of these insider breaches were deliberate, 75% of them involved embezzlement, skimming or related fraud and 49% involved system access or privilege abuse.

So, if the insider threat is responsible for one in two data-loss incidents, why are most security efforts focused on keeping the bad things out, instead of keeping the good things in? The answer is made up of many parts. A part is legislation, where certain rules regarding privacy are usually imposed on

the employer regarding his employees, so much must rely on trust, while none of that governs the fight against a malicious anonymous outsider. And then there is the problem of practicality. It is in principle much easier to lock down computers from outside threats through the use of quality firewalls and antimalware software, than it is to govern all internal processes

within an organisation, where data may get compromised. But probably the most overlooked part is psychology. Simply put, for most it is easier to see an anonymous outsider as a threat, rather than your trusted co-worker.

In a nutshell, DLP works like a librarian; overseeing who is allowed in various library departments, monitoring individual activity, and controlling what data goes out of the building. Even if a person has top clearance, it is still important to know what they are doing. Data Loss Prevention (DLP) solutions like Safetica Endpoint Security DLP are designed to keep the good data inside an organisation. Additional features in Safetica DLP enable controls on printers, the use of portable memory devices, and the monitoring of individual computer activities. Not only can it limit employees’ access rights, it can also monitor and block unauthorised access attempts, copying, emailing, bluetooth access or other data removal methods. It can also maintain a secure password policy for all users, offers web access monitoring, email and network traffic control, alerting supervisors of all anomalies before they become a serious problem, making sure employees stay focused on the job and minimising the risk of any data disclosure. Should a laptop or USB stick with delicate data be lost or stolen, Safetica software also has the ability to automatically destroy or lock the data so it is unusable for unauthorised access.

Safetica is simple to install and maintain, and offers all around safety and monitoring of all key processes within an organisation, offering real protection against the potential failings of the staff. At the same time, Safetica protects the interests of the institution, while staying in compliance with all legislation governing employee and customer privacy rights.

www.safetica.ie

The affair between US General Petraeus and his biographer Paula Broadwell may have been kept under wraps with Data Loss Prevention Software!

www.safetica.ie

CreationNew data immediately

secured.

Keep informationsafe on the go.

UsagePrevent illegitimate

data usage.

StorageAll data encrypted

securely.

DeletingErase redundant

data reliably.

Transport

Comprehensive data management and protection software for your organisation

Safetica Endpoint SecurityThe most comprehensive protection against

all major internal security threats


DATA Protection

“ON-SITE” DOCUMENT DESTRUCTIONAfter attaining their “On-site” Document and Hard-drive Destruction International Standard, M1 Document Solutions addresses the “Where” and “How” to ensure data protection compliance.

The Office of the Data Protection Commissioner requires the secure disposal of electronic and paper records. However, the manner and type of destruction used by organisations rests squarely on the shoulders of Data Controllers within organisations. Deciding on “Where” and “How” sensitive data is destroyed within the Public Sector is a critical decision.

The “Where” question basically boils down to: “Should we witness the destruction of this organisations sensitive material?” or “Do we send the material ‘off-site’ and hope for the best?” This might seem simplistic – but is it? The last twelve months have seen a number of instances of documentation from Public organisations ending up on sides of roads or dumps. The solution is simple - have your sensitive material shredded “At Your Premises”, where a representative of your organisation can witness its physical destruction.

The “How” material should be destroyed is a little more complex, but starts with the equipment used. To have your material securely shredded on-site requires a lorry with a mounted shredder, providing equivalent to a DIN 3 destruction capacity.

The Data Commissioner also proposes that Certification can be a useful means of demonstrating compliance with the security

Secure document Shredding

John Nealon M1 Document Solutions/Breege Quinn,

Monaghan Enterprise Board/Brian Murray, Murray Consultants

Contact our team: 042 9743040

www.m1shred.comState this code when enquiring (Jan-PSM and receive 10% discount)

All material shredded on-site, “At your Premises”All Sensitive Materials securely

destroyed including Hard-DrivesEnsures full Data Protection

ComplianceNational Waste PermitsRegisteredwithOfficeofData

Protection Commissioner

requirements of the Data Protection Acts. Your destruction supplier should provide you with a clear Certificate of Destruction detailing: the acceptance of fiduciary responsibility; date, time, location and method of destruction; and a witness signature.

The standards achieved by your service provider is clear evidence of their commitment to quality and security of services. M1 Document Solutions is Irelands only internationally recognised NAID “AAA” Certified information destruction company. NAID (National Association for Information Destruction) is the recognised governing body for document destruction, and sets the industry’s benchmark standard for the destruction process, focusing on equipment and maintenance, destruction procedures, employee hiring and screening, and disposal practices.

A growing Irish document destruction firm, M1 Document Solutions provides customers across the country with the convenience of on-site shredding services, while ensuring full security and confidentiality at all times. In complying with NAID’s high standards, M1 Documents recognizes customers’ growing need for secure and confidential destruction services that can handle even the most sensitive paper and electronic materials.


IT

Embracing Electronic InvoicingeInvoicing has the potential to help public sector organisations and Government Departments achieve savings of up to €240 million

IT Sligo played a leading role in an EU-approved pilot electronic invoicing project which has the potential to save both Government and business up to €240 million a year. It is expected that the project will lead to widespread adoption of electronic invoices by public bodies and businesses throughout the country for the first time.

A report on the pilot project is currently under consideration by Government and a comprehensive einvoicing strategy is due to be launched shortly. Minister of State in the Department of Finance Brian Hayes was instrumental in establishing the pilot project which involved seven Government organisations and seven IT service providers.

IT Sligo computing lecturer Padraig Harte and Edmund Gray, a researcher at the Institute who is and member of the Multi-Stakeholder Forum for e-Invoicing (MSF) played a key role in the pilot project and provided research support and coordination for the IT Service Providers involved. They previously developed a model for e-Invoicing in Ireland, based on an EU system called PEPPOL.

IT Sligo is providing prototypes to both Service Providers and suppliers under the Enterprise Ireland Innovation Voucher scheme.

Commenting on the initiative, Mr Harte said: “This project has the potential to significantly change the way business is done in Ireland – for the better. Processing invoices electronically will result in significant savings for Government and for the Irish business community.”

The European Commission hopes that electronic invoicing will become the predominant method of invoicing across Europe by 2020, given the potential savings, environmental benefits and predicted efficiency of replacing paper.

President of IT Sligo, Professor Terri Scott, said that the role of IT Sligo in the project demonstrates the reach and capability of applied research in the Institute of Technology sector; “This project demonstrates the benefits that are regularly accrued through the application of applied research. Working in tandem with industry to provide practical innovations is at the core of what we do. This invoicing pilot stands to greatly enhance the competitiveness of business and efficiency in the delivery of public services.”

Hosting Partner

C-Infinity came on board at an initial phase of the pilot project when a suitable hosting company was being sought. The requirements of the project were carefully listened to, and the system delivered exceeded the project leader’s expectations. - Edmund Gray said that he was delighted as it enabled him host both PEPPOL and e-Prior Access Points, and with the configuration deployed, a mix of Java and .Net code running on the same system was no problem.

The system specialist from DG DIGIT at the EC was able

to perform a remote install to the server from Brussels over a secure VPN, and at all stages of the project whenever a new requirement came up (for example, a port needed to be opened for the addition of an FTP server), the changes were immediately implemented on a phone-call.

C Infinity has focused on hosting mission-critical applications in the cloud for seven years (before that we were a traditional hosting company). This emphasis on ‘mission-critical’ means that many of the operational considerations that Access Point Providers must encompass have been covered by C Infinity in depth.

For example, access points must be capable of sending or receiving messages at any time. This is termed ‘availability’.

To enable high availability, C Infinity’s infrastructure runs on a completely redundant end-to-end Cisco powered network, comprising multiple top-end servers, multiple fibre channel SAN’s, and multiple 100Mbps uplinks. The redundant servers, switches and network cards means that even if one server, switch or firewall fails, the client networks will remain connected and online. All cloud servers are deployed in a ‘clustered’ architecture. That’s not to mention the data-centre which has dual-power, back-up generators, ‘mesh’ bandwidth, and more.

Security and message secrecy and integrity is another crucial requirement that Access Point Providers must demonstrate due diligence has been undertaken in.

In this regard, C Infinity has experience ensuring the security and compliance requirements of multiple sectors with very high requirements in this area. Since service providers will need to ensure compliance with local regulations and customer requirements (eg. archiving), the bespoke partnership type approach and clear frameworks that C Infinity works with becomes key solution components.

The standardisation of e-invoicing and other protocols provides a platform for business strategy. To be able to adapt as needed and take advantage of opportunities as they arise clearly requires a partnership approach with the infrastructure provider. This partnership approach is the most important component of C Infinity’s service.


Cloud Computing

Confidence in the Cloud Cloud computing has some trust issues to be worked through before it can be adopted more widely but it offers considerable potential to both business and the public sector, according to Ronan Keane, Senior Technical Business Development Manager at C Infinity.

The benefits of cloud computing have lately become more widely known and supported by empirical evidence. (Eg. Recent research by Lero researchers at the Cairnes school of business at NUIG). These benefits include cost effectiveness, high availability, operational simplicity and financial scalability.

Why the cloud has revolutionary potential

There is another benefit that comprises a major part of the cloud proposition for both public and private organisations that are focused on servicing fast evolving client needs in fast changing regulatory environments.

This is that it opens up the potential of rapid development and deployment of software applications that can be easily scaled as required.

The implication of this for public sector organisations is that new or complementary service provision can be conceived, prototyped, tested and adapted within minimal timeframes. Whether the area of focus is service directed at the business

sector, health and safety, building regulations, health or social needs etc, the increase of the pace of change within these environments demands a corresponding capacity to adapt quickly to these changes.

So, application development moves to the fore, and the operation and management of the IT infrastructure is outsourced so that IT resources can be focused entirely on the core business of the department. We are not only talking about the traditional in-house database applications of the departments, but also applications enabled by new smart phones and other portable devices.

The cloud model brings about a paradigm where for example, the Gardai can rapidly develop and deploy a mobile application to gather certain needed intelligence information from members of the public. Or, social services can channel employment and other information directly to clients’ handsets, based on their personal profiles. The cost and speed of application development and deployment enabled by the cloud model opens up whole new worlds of potential.

“There is often a fair amount of complexity in the governance frameworks that are needed for cloud computing, particularly when you are talking about government services.”


Cloud Computing

Issues in cloud adoption

It’s also fairly clear that cloud computing has some issues to iron out before it can be widely adopted. The recent CMOD Cloud Computing Strategy 2012 sets out well the challenges to be considered, and some road-maps and strategies to enable progress towards adoption of the cloud model.

In addition there is often a fair amount of complexity in the governance frameworks that are needed for cloud computing, particularly when you are talking about government services. A number of worthwhile standards have evolved to provide support to the frameworks needed for handling this complexity (eg. ISO27001 and ISO 38500), and indeed, there are new standards in development. World-wide, there are around 400 standards related to the cloud.

For executives or principal officers, this complexity might be abstracted to two key issues – Business Continuity and Security. These issues are in turn handled through a framework of Risk Assessment & Management, and Compliance Auditing within a Governance Framework derived from the aforementioned.

Business Continuity.

Business continuity is about ensuring that critical business functions are available to employees, clients, suppliers, regulators, and other entities that must have access to those functions. It ensures that service can be provided without stoppage, irrespective of the adverse circumstances or events.

While business continuity as a whole encompasses a number of business functions, we are interested here in a select number of key considerations as they pertain to adoption of the cloud model.

Availability and resilience of IT systems

Availability simply means that your application is available when it is needed.

Towards this, cloud providers ensure that the IT infrastructure they are providing is highly resilient, both in terms of computing and connectivity.

A cloud provider normally approaches this from two angles. First, they look to the data-centres they partner with, and

the sub-systems within the data-centres like power and cooling systems, security systems, and fibre links to the internet. What is being sought is ‘redundancy’.

For example, with respect to power, they would expect dual power systems with back-up generator systems (with strategy for fuel supplies in emergencies). Then, fibre links to the internet should be ‘mesh’ supplied by a range of providers, so that if one goes down, there are ten more providers still providing the needed connectivity.

All data-centres are not the same in this regard. Far from it. But even if one data-centre should go down, an advanced availability strategy might dictate that another data-centre should be able to seamlessly pick up. Often, this second data-centre would be located in a different geographic region.

The second angle of approach is the IT hardware and systems deployed by the cloud provider.

For example, the C Infinity Cloud utilises hardware from the world’s leading companies like IBM, HP, Cisco and EMC. Further, the hardware is upgraded frequently so that the very latest technology is being used and risk of hardware failure is minimised. Redundancy is built in through multiple top-end servers, multiple fibre channel SAN’s (storage), and multiple 100Mbps uplinks (connectivity). The redundant switches and network cards means that even if one switch or one firewall fails, all client networks remain connected and online.

All client servers are deployed in ‘clustered’ architectures so even if one server goes down, another seamlessly takes over. Every part of the system is continually monitored, and any unusual activity or resource constraint immediately flagged and automatic processes put in train to resolve the issue.

Disaster recovery

Disaster recovery is a critical component of ‘Business Continuity’. - How does an organisation get back up and running if the worst should happen and its critical systems are affected? Or even if their place of business is affected by flood or fire or other disaster?

Note that disaster recovery is not only induced by natural disasters, but quite often by human error and related failure of processes. Organisations have developed an incredible reliance on their computer systems, and thus disaster recovery has become a hot topic.

Questions to be asked in preparation for development of

“Ronan Keane, Senior Business Development Manager, and Caitriona Lynch, Managing Director, manning the C-Infinity stand at the recent Dublin Web Summit.”


Cloud Computing

disaster recovery strategy include ‘recovery point objective’ (how far back in time do we need to recover our systems at) and ‘recovery time objective’ (how quickly do we need to be back up and running). The answers to these questions will depend on the business process being targeted, and on cost benefit analysis.

The focus of cloud providers on ‘availability’ as discussed in the previous section, means that these providers are now capable of offering a range of disaster recovery solutions to meet a wide range of needs. These disaster recovery solutions enable systems to be recovered in seconds rather than hours. The ‘recovery point’ can be five minutes ago, or even less if required.

In this regard the cloud has enabled advanced disaster recovery strategies at significant cost efficiencies for organisations today.

Security

There are multiple conversations taking place around the issue of security today.

Let us differentiate between the security issues that are involved in a public cloud, and a private cloud. A public cloud is one such as that provided by the likes of Amazon (EC2) or Microsoft (Azure). Its characteristic is a huge amount of IT resources world-wide that can be drawn at to run the client’s applications at the scale required. These resources are ‘public’ and may be located in a number of jurisdictions. This paradigm no doubt gives rise to a unique set of security and compliance issues, dependent on the data being stored and utilised.

However, here, we will focus on security issues around a ‘private cloud’. This is the type of cloud that is normally utilised when data integrity, compliance and security issues are to the fore. Much of the effort of private cloud providers is directed at facilitating the bespoke security and compliance needs of individual sectors and clients.

A private cloud provides a client with the control they need to develop a bespoke approach to security. And since resources are concentrated in the data-centre, economies of scale mean world class security measures can be utilised and adopted across the board. This means that security measures are generally much enhanced on the cloud.

So, why the concerns about security on the cloud?The reason is that the stakes are much higher. Instead of data

being stored on individual devices where a security breach only compromises the data stored on that one device, all the data of the entire organisation is stored proximately rather than on the devices. This has many implications. For example, a hacker who is targeting the organisation, while he may find it infinitely more difficult to penetrate cloud security, if he succeeds, has potential to access the data of the organisation in its entirety.

The higher stakes means that IT security has had to evolve significantly. Companies like RSA talk now about ‘adaptive security’, reflecting the understanding that the threat environment is continually evolving and context driven, and thus any security system must continually adapt to meet the challenges of its environment. Security can no longer be ‘set and forget’.

One thing to note is that organisations which maintain their systems in-house are not at any great advantage anymore. They face much the same security challenges as data-centre driven IT management strategies. It is also true that the physical security

and systems of a world-class data-centre are always going to be of a higher order than a typical in-house data-centre.

Cloud partnership

It is becoming clear that security and data protection requirements at the current phase of the IT revolution are increasingly context-dependent and therefore dynamic. The same goes for availability and disaster recovery requirements.

To be able to react to changing contexts, and understand properly the issues that pertain to the sector being operated in, means that cloud vendors and customers will need to work closely together. Thus, partnership becomes crucial in the cloud.

How can one begin to foster these partnerships before an adequate governance framework has been rigorously and officially set out?

Well, adopting the cloud need not always be an “all or nothing” strategic development. There are often opportunities at operational and tactical level, where the data parameters are well defined and controlled, such as deploying a mobile application, or a disaster recovery solution. These are generally low risk, high reward projects in terms of cloud adoption.

At the same time, Ireland has announced through its programme of government that it intends to promote greater use of cloud computing in the public sector, with the proviso that the move to cloud computing is underpinned by solid business cases that provide compelling value for money for the State and the taxpayer.

In this regard, there are multiplex business processes in the public sector that might benefit from cloud computing components. It is true that strong governance frameworks are required for the broad move to cloud computing, in particular for the public cloud. However, ‘private cloud’ components are often very suitable for meeting the specific requirements that arise from specific projects. The business case for it use in these types of projects might be easily made.

The cloud model brings

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mobile application to gather

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IT

Transforming ITShane Cassells talks to Tadhg Cashman, Infrastructure Services Director at Morse Solutions, a company which is leading the way in the transformation of IT services in the public sector

As we face into 2013, pressure on the public sector ratchets up further. Another savage budget in December 2012 and the hunt for further savings under the Croke Park Agreement has meant that 2013 won’t be a year to look forward to for the majority of public servants.

Many public sector organisations providing services are being squeezed in the pincer between dropping staff numbers on the one hand, and the requirement to deliver more and more initiatives and projects on the other hand. As a result we have seen many of our public service customers struggle to deliver new projects while having to continue to manage the day-to-day operations of public service delivery.

The expectation now is that public servants will work longer hours, without compensated overtime, to get the job done.

Strategic initiatives under CrokePark have been delayed due to fire fighting current operational issues, and it is these strategic initiatives which longer term will provide the public sector with the ability to deliver efficiencies, and savings to the Exchequer. If these initiatives do not get resources and funding, organisations’ ability to execute on the change agenda is reduced.

The majority of these initiatives are underpinned by significant IT transformation projects, and in many cases, these are nationally-driven IT projects.

One company which is leading the way in the transformation of IT services in the public sector is Morse Solutions, a company that specialise in IT infrastructure services and focus on IT solutions and managed services for medium and large private and public sector organisations, delivered on premises, in the cloud or as a hybrid of the two.

For over thirty years Morse has played a key role in ensuring major commercial enterprises and State bodies achieve continued business results by engineering end-to-end technical solutions. They have a long track record of designing, supplying, implementing and supporting high-end data centres, servers, storage, virtualisation and enterprise application solutions and have worked on many IT initiatives across the public sector, including a number of Government Departments, the HSE, universities, a number of hospitals, not-for-profit public sector organisations as well as a number of semi-state companies.

Public Sector Challenges

According to Tadhg Cashman, Infrastructure Services Director at Morse, the company has seen at first hand the problems facing the public service.

“In the majority of our engagements we have shared the pain of reduced budgets by year-after-year demonstrating tangible savings in the form of directly-reduced costs of our services to those customers,” explains Cashman.

“So, on the one hand we are seeing less public money allocated for IT projects and IT support contracts, while on the other hand, we are being pushed to deliver more and more value, for less revenue. How can we square that difficult circle, while remaining profitable in our dealings with our public service customers?”

“As an organisation, we work in partnership with our public service customers towards achieving their goals through a combination of deep level business and technical expertise, an extensive knowledge of today’s technologies and market


IT

drivers including innovations around web and cloud computing, coupled with a mature and highly capable delivery and services infrastructure.

“We have seen at first hand the power of modern, converged infrastructure solutions to deliver significant cost savings in short spaces of time, while at the same time providing for more flexibility to accommodate new initiatives, projects and applications.”

It is a fascinating insight from an IT specialist into the challenges they are facing to provide top quality services to their customers in the public sector who are themselves facing shrinking budgets. However, service providers are adapting to the constraints their customers find themselves in.

In 2013 IT infrastructure will continue to undergo a tremendous transformation. The next wave of converged infrastructure, virtualisation and cloud will fundamentally change how IT services are architected and consumed.

Traditionally, IT Sections in the public sector purchased servers, storage and software in an incremental, piecemeal fashion to support specific projects, but it will no longer suffice to regard an IT landscape as a collection of disparate infrastructure components, applications and services.

Principal Officers in charge of IT now need to build an IT fabric for the entire organisation, and in so doing, can lock in the ability to focus on innovation and business change, while helping to improve efficiency and reduce the cost of core infrastructure, in summary, more flexible infrastructure is required.

Flexible Infrastructure

So what exactly is a flexible infrastructure? According to Cashman it can be defined as “tightly integrated set of server, storage and network hardware, coupled with virtualisation, management and orchestration software, which provides for the ability to dynamically scale up and down infrastructure services as organisational demand for IT services changes,”

“Because it is too hard to apportion costs of servers, storage, networking, security and staff to a single particular service such as email; it can be difficult to build the business case for spend on flexible infrastructure, “ explains Cashman. At Morse, we have implemented flexible infrastructure solutions across the public sector and have seen the tangible benefits yielded, which include:1. Reduced Costs: Significantly reduce the cost to buy, deploy

and manage the infrastructure in data centres, and reduce the ongoing costs of software and hardware maintenance on legacy infrastructure.

2. Improved Agility: Dramatically improve the speed with which departments can respond to change initiatives, and accelerating application delivery and increasing the speed of change, by providing the ability to spin up new environments and applications quickly.

3. Simplification: Changing the often fragmented and sprawling infrastructure into a more flexible, simple-to-manage operation, and reduce requirements for out-of-hours overtime for maintenance.

4. Increase Control: Provide improved management visibility of the state of your infrastructure to make more informed decisions, and reduce reliance of public sector staff on external, third party support organisations.“The Irish Public Sector is being asked to do more with less.

To deliver cost effective IT services whilst keeping pace with the emerging complexity of the infrastructure and applications markets. At the same time, public service IT professionals must adapt, and integrate a deep level knowledge of traditional core technologies with a wider converged skill set around infrastructure concepts such as virtualisation, big data, storage-on-demand and cloud Infrastructure-As-A-Service.”

So for Cashman and Morse Solutions architecting flexible infrastructure has become a specialisation in itself. The careful planning, deploying and administering of flexible infrastructure services are vital steps to minimising ensuring a quick, tangible return on public money spent.

“The Government continues to invest capital in jobs, schools and health but they should also recognise the importance in investing in the management of the State’s data assets,” remarks Cashman.

Croke Park is mandating that the public sector deliver existing and new services to the public at increasing rates, and at reduced cost. IT provides the ability to transform citizen service and it also provides the means by which significant cost reduction can be achieved.

“A key platform for the enablement of quicker and more long-lasting change is improving IT infrastructure, and at Morse we have the skills and experience to advise and assist our public sector customers at all stage along the journey to develop flexible infrastructure. 2013 has the potential to be the year when public sector change can accelerate significantly and we see Government investment in modern, flexible IT infrastructure as a key building block which should realise benefits in months rather than years,” concludes Cashman.

Tadgh Cashman infrastructure Services Director, Morse Solutions

“For over thirty years

Morse has played a key role in

ensuring major commercial

enterprises and State bodies

achieve continued business

results by engineering end-

to-end technical solutions.”


Cloud Computing

Jumping the GunThere remains a considerable degree of uncertainty in relation to cloud computing which requires a circumspect approach to its adoption, according to Dr Bob Strunz, Technical Advisor to the University of Limerick.

We live in interesting times. To paraphrase Henry Ford “In the near future, you’ll be able to have any ICT delivery-mode you like ... as long as it’s cloud.” There is a temptation to move to the cloud quickly, but this might not be wise. This article offers an opinion on two of the factors impinging upon an early-adoption cloud strategy in the Irish Public Service.

The report by the Department of Public Expenditure and Reform (CMOD) sets out a strategic approach to Cloud Computing in the Public Service in Ireland. The report advocates a 10-year strategy where Cloud Computing will become “the default and primary delivery mode” of ICT. The report identifies issues threatening this future vision and advocates a measured approach. This caution arises from multiple risk-factors which are not yet fully understood but it has understandably led to a degree of frustration amongst some potential early-adopters.

The business case for the cloud is not as simple as it might seem. The business need is to deliver ICT to stakeholders; ICT remains the mission-critical issue, not cost reduction or the transition to the cloud itself. In the real-world, if a server crashes, an organisation will always find money. Cost-cutting alone is not a basis for a business case because cost-reduction itself comes at a cost.

It is difficult to make what the CMOD report terms a “solid business case” for the cloud because there is so much uncertainty. This article discusses two key aspects of this uncertainty, procurement and jurisdiction.

Procurement - Razor and Blades

The Cloud Computing market is not in a stable, realistic state at present because market-share, not profits is its primary driver. In the 1890’s, King Gillette devised a new strategy for selling razors and he proverbially articulated it as: “Give ‘em the razor; sell ‘em the blades.” If this is reframed as “Give ‘em the email address; sell ‘em the CPU cycles.” a picture begins to emerge and it’s not unfamiliar.

Think IBM and vendor hardware lock-in, think Sony and PlayStation, think Microsoft and the Windows API and you have the picture. Cloud Providers are fighting for market-share, for some, the struggle is actually an existential one. These companies can afford to hand out their razors (platforms) with one or two free blades (e.g. a “free” email address). Part 2 of the strategy (the bite) is to make large future profits from platform-locked customers by pushing users into adding services.

The fact that one can reasonably expect the value of Cloud Computing provision for Public Service organisations to rise significantly puts an onus on Public Service organisations to consider the procurement issue from an ethical as well as a “letter of the law” standpoint. It is straightforward to go to a provider, sign a contract, pay a small fee and get a “free” email address for everyone, but is it ethical when it is fairly certain that the value of the contract will rise dramatically in future years when you need to add services?

The purpose of Cloud Computing in the Public Service is not short-term gain but sustained value for money and this must


Cloud Computing

be balanced with the business of the provider which is to make profit, not to provide a public service, what is the balance point?

Without a well-defined set of procurement guidelines which account for the somewhat unrealistic state of the market, an organisation risks future litigation. It is difficult to assess the “whole-life cost” of the service.

Within a year, the Public Service procurement framework for Cloud Computing is promised, pending this, buyers should beware.

The procurement advice in the CMOD report is explicit; “once the appropriate guidance for evaluation and assessment is in place [organisations should] seek cloud-based provision as an option”. This is an imperative not to seek any such provision until the guidance is in-place and prudent organisations will take heed.

Jurisdiction and Ethics

It’s not just about procurement ethics; the question of legal jurisdiction is recognised but not elaborated upon in the CMOD report.

Cloud Provider contracts frequently contain a clause like “The courts of the State of California, Santa Clara County and the US District Court For the Central District of California, Santa Anna Division, shall be the exclusive jurisdiction and venue for all legal proceedings that are not arbitrated under this Agreement.” This is a statement of jurisdiction and venue which can be legally enforced.

In many cases, a clause like this is of no real concern. Organisations regularly enter into such contracts and they can do so quite safely because there are no reasonable circumstances where a matter would ever get to court, the nature of the service determines this, no organisation is going to litigate over a spilled ink-cartridge.

What happens if there is real and significant damage? For example, a data security flaw caused by alleged negligence on the part of the Cloud Provider results in the global public release of personal data; the data is incorrect, but it destroys the reputation and the business of an Irish citizen. The citizen is suing the organisation responsible for protecting the data. The citizen’s case is clear-cut and in the Irish courts, the organisation’s case is neither clear-cut, nor is it in Ireland.

To get redress, the organisation would have to file suit in Santa Anna, California; legally and politically it would be “on the back-foot” and the cost of the action would be enormous with a slim chance of success. In this situation the organisation

might be well advised to cut its losses and exit from its contract with the Cloud Provider. This exit in-turn, could give rise to a day or two in court in California for breach of contract and subsequent recovery of data from the provider.

The problem is highly complex, because cloud data is stored in data centres all over the world. There are differing legal and ethical standards in different countries for the handling and protection of data. It is certain that Irish data will be stored in locations that are outside Irish jurisdiction. Some of these locations may have standards that are not compatible with the standards expected by Irish and European data protection law, some of them may be politically unstable or institutionally corrupt.

As it currently stands, an organisation would need to be very comfortable with this situation and all that it entails to make a decision to go ahead. In many cases guidance is necessary and it is not clear that Irish (or EU) legal or ethical opinion on this matter is currently sufficiently well-developed to be an authoritative guide, particularly where an organisation may have specialised needs.

Conclusions

In conclusion, some comfort may be derived from the fact that no organisation is forced to act in advance or independently of the wider Irish Public Service. There is no rush and haste makes little sense because there is strength in numbers and currently available cost-savings are relatively small and possibly artificial.

Organisations with stable and mature IT infrastructures should perhaps concentrate on leveraging these to derive as much benefit as they can now. The move to the cloud will destabilise the underlying IT infrastructure in many organisations to some degree and late-adoption may be more prudent. It is unclear what the effect of a pay-per-use model of service will have. Many organisations, particularly those with large amounts of licensed software, do not have sufficient usage data to model the effect of this change.

The imperative now is not preparation of tender documents but rather the development of a coherent organisational strategy to meet the challenge of implementing Cloud Computing in an organisation. The consideration of any specialised legal and ethical issues that may be particular to an organisation will pay dividends when it finally does move into the cloud. Organisations should engage with Government in order to both monitor and influence the development of the public debate that is now happening.

“Jumping the Gun” could have negative consequences for a Public Sector organisation. It is hard to justify because the government has committed to provide organisations with the timely guidance and support that they need to make a safe transition to the cloud.

When the transition happens, the public must have total confidence in it; Ireland cannot afford a repeat of the eVoting fiasco.

Bob Strunz is Technology Advisor to the University of Limerick. He holds a PhD in Education from The University of Hull and also has Bachelors and Masters Degrees in Electronics and Computing from the University of Limerick. Bob’s role is to research the potential of new technologies in the University of Limerick and to contribute to the development of a vision for technology usage in the institution and also across the National and International Higher Educational Sector.

Bob Strunz , Technology Advisor, University of Limerick.


IT

Opportunity KnocksMicrosoft Highlights Career Opportunities in the IT sector, by Dr. Kevin Marshall, Head of Education, Microsoft Ireland

While addressing the unemployment problem remains one of the Government’s priorities it is important that we also focus on raising awareness about the range of opportunities that exist within the IT sector in Ireland. In fact, the industry is currently experiencing a skills shortage with an estimated 2,500 positions currently open and available across both the indigenous and multinational sectors.

What the country needs here is a dual track approach to this problem. We need a medium term plan which will create a stronger pipeline of young people to come through the second and third level system with skills that give them the opportunity to work in an exciting IT role and we need a short term response which will help get people back to work and help to fuel the continued growth of the ICT sector in Ireland.

Microsoft is heavily invested in helping to play its part in developing and delivering both medium term and short term solutions to this challenge.

Currently our education system is still only beginning to look at how technology can play an enhanced role in

the classroom. We also have not yet looked at the inclusion of coding, development and conceptual learning into the curriculum. Regardless of whether or not a child will end up in the IT sector, it is clear that they will need to have strong IT

“Microsoft’s commitment

to cultivating the skills

required by the new economy

has seen us reach out

directly to young people

via a range of targeted

initiatives..”

Microsoft Roadshow for Students


IT

literacy skills. Today, an aspiring artist can make their work visible to the public by putting it online, retail workers need to know how to use web-based stock control and management systems, and healthcare professionals are increasingly IT-dependent. The focus in Irish classrooms remains on traditional skills of reading, writing and arithmetic. While we fully acknowledge the challenge presented by this period of austerity, in order to keep Ireland competitive for the medium term we need to look at how this can be addressed.

Technology Focussed Classroom

The recent announcement by the Department of Education that it plans to reform the Junior Cycle syllabus presents a real opportunity to introduce technology focused classes as core subjects to students. The technology sector in Ireland is by far the most dynamic right now with the potential to create thousands of jobs in this country over the coming years. Every week there is an announcement about an investment or job vacancies in the sector. What’s not highlighted is the reality that many of these jobs end up beng filled by oversees candidates because there are insufficient numbers of graduates available to do the job. By introducing technology related subjects to the curriculum at an early age we’ll be bucking this trend and ensuring that our students have the skills required to work in today’s - and tomorrow’s economy.

Microsoft’s commitment to cultivating the skills required by the new economy has seen us reach out directly to young people via a range of targeted initiatives. During Science Week 2012 in November, our employees visited secondary schools in five counties across the country to advise over 1,500 students about a career in the technology sector. There is no better way to be inspired about a career in technology then to hear from someone who is working in the sector. Our aim in organising this series of talks was both to inspire and to inform young people, simply by outlining the overwhelming level of opportunity that exists in the Irish technology industry. We also used the sessions as an opportunity to engage directly with teachers to ensure they

understood the potential of the sector for their students.We also wanted to spend time in November helping

and speaking to current third-level students who are on the threshold of joining the developer community. WOWZAPP, a Worldwide hackathon for Windows 8, afforded students all the resources they could possibly need to create an app and upload it to our Windows Store. Trainers and experienced developers were on hand in our Sandyford Campus, as well as in colleges across Ireland, for the occasion. We encouraged the students to leave their imaginations run free, which together with the know-how we were able to supplement, resulted in some truly interesting projects. We hope that for many attendees, WOWZAPP will prove to be only the beginning or one step in their development process. Indeed, developers were continually on our mind when we set about creating Windows 8. Our new Start screen gives people one-click access to the apps and content they care most about.

2013 Imagine Cup

In the new year we will launch the 2013 Imagine Cup where Irish students are invited to develop an application to help solve the world’s toughest problems. Irish students have traditionally done very well in the competition and we’re looking forward to uncovering the next big idea during the upcoming round of the competition.

We also just relaunched are Partners in Learning Network for teachers. The online Partners in Learning Network is one of the world’s largest global professional networks for educators, connecting millions of teachers and school leaders around the world in a community of professional development. It provides teachers with a wide range of teaching materials focused on all areas of curriculum.

All of these programmes are designed to generate excitement about the IT industry and the feedback is very positive. There is more that can be done but the feedback that we are getting from students, teachers and parents is that we are making strides – one person at a time. We will continue to invest in these areas as not only do we believe that this is critical for a strong economic future for Ireland but it is also critical for Microsoft’s success – in Ireland and beyond.

In addition to focusing on the young people still in school, we have also developed a range of programmes to support the government’s IT Conversion initiative. This is helping to address the shortage of skills that exists right now and is also helping to equip people with the skills they need to get a job. This has been very successful and we are currently looking at how we can do more in this area

All interested parties need to work together to develop a range of solutions to the challenges that we face – increasing the levels of employment in our economy and nurturing and developing talent with skills that are relevant to today’s jobs market. Progress is being made but there is more that we can do. We look forward to playing our part in integrating technology and IT skills into Ireland’s education system and to look at how we might teach children code at the same time that we teach them Irish. We know that many of our industry colleagues are as committed as we are and with the continued support from government we can achieve success.

“Currently our education

system is still only beginning

to look at how technology

can play an enhanced

role in the classroom.

We also have not yet

looked at the inclusion of

coding, development and

conceptual learning into the

curriculum.”


IT

22 January, 2013, City Hall, Cork

OVERVIEWThe ITLG Global Technology Leaders Summit is a two day gathering of top executives, entrepreneurs, and venture capital investors. The ITLG investor team will meet and engage with selected top innovative technology companies. The conference will include thought leadership, panel debates and technology showcases that will provide delegates with an inside look at the latest cutting-edge technology opportunities.

To register go to www.itlg.org

Presents

Barry O’Sullivan SVP Cisco

Craig BarrettChairman ITLG

Una FoxVP Disney

Eamon Gilmore T.D.Tánaiste

Richard MoranCEO Accretive Solutions

MODERATOR

Sean O’Donoghue CTO Madison Square Garden

Pádraig Ó CéidighChairman, Aer Arann

Sean Cunningham Director Strategic Investments Intel Capital

ANNOUNCING THE INVESTOR PANEL

Liam Casey CEO PCH International

Sean O’Sullivan MD, Avego & SOS Ventures International

ADMISSIONWinter Special Price: €395 Standard Admission Price: €495 (Includes 1 year executive membership)

MEDIA PARTNERSSPONSORS EVENT PARTNERS

SUPPORTED BY

www.itlg.org#GTLSummit

CODER DOJO EVENT SPONSORED BY

Register now at http://svcti.eventbrite.com/ Register now at http://svcti.eventbrite.com/

SPECIAL GUESTS

Leaders in global technology

ITLG DPS ad.indd All Pages 21/12/2012 15:33


IT

22 January, 2013, City Hall, Cork

OVERVIEWThe ITLG Global Technology Leaders Summit is a two day gathering of top executives, entrepreneurs, and venture capital investors. The ITLG investor team will meet and engage with selected top innovative technology companies. The conference will include thought leadership, panel debates and technology showcases that will provide delegates with an inside look at the latest cutting-edge technology opportunities.

To register go to www.itlg.org

Presents

Barry O’Sullivan SVP Cisco

Craig BarrettChairman ITLG

Una FoxVP Disney

Eamon Gilmore T.D.Tánaiste

Richard MoranCEO Accretive Solutions

MODERATOR

Sean O’Donoghue CTO Madison Square Garden

Pádraig Ó CéidighChairman, Aer Arann

Sean Cunningham Director Strategic Investments Intel Capital

ANNOUNCING THE INVESTOR PANEL

Liam Casey CEO PCH International

Sean O’Sullivan MD, Avego & SOS Ventures International

ADMISSIONWinter Special Price: €395 Standard Admission Price: €495 (Includes 1 year executive membership)

MEDIA PARTNERSSPONSORS EVENT PARTNERS

SUPPORTED BY

www.itlg.org#GTLSummit

CODER DOJO EVENT SPONSORED BY

Register now at http://svcti.eventbrite.com/ Register now at http://svcti.eventbrite.com/

SPECIAL GUESTS

Leaders in global technology

ITLG DPS ad.indd All Pages 21/12/2012 15:33


Payment Technology

Making Progress PayPublic Sector Magazine talks to Payzone Managing Director Jim Deignan about empowering consumers, and how convenient payments benefit organisations and customers alike.

Jim Deignan doesn’t see his children ever writing a cheque. He’s not sure that they’ll visit a bank on the high street either. Technology, and the drive from consumers to pay for goods and services in a convenient way, is on course to make such things feel archaic. “Consumers today are so used to managing technology through social media channels and interacting online, and that’s bound to have an impact on how future generations transact in years to come. They won’t want to go into a bank,” he says.

Deignan’s insight on changing consumer behaviour is worth noting. As Managing Director of Payzone since 2002, it’s his job to keep in tune with how consumers want to pay for goods and services. “Consumer appetite to transact on their terms is a

fundamental driver of our business,” he explains. The demand for fast-moving payment technology is coming

from organisations as well, he says. “There is a huge focus on efficiency, innovation and cost effectiveness, as well as a substantial effort to lower the costs of transacting in the market coming from corporate Ireland – at the same time, it is widely understood that the consumer has to be at the centre of any solution. There’s no point in having all of those things in place and then disenfranchising customers,” he observes. “Consumers themselves are demanding convenience; they’re demanding easier access to solutions.”

AT THE CUTTING EDGE

Payzone itself has experienced impressive growth in its 13 year history, all against a backdrop of rapid technological development. The company has a foothold in six European countries – Ireland, the UK, Germany, Sweden, Greece and Romania – and a network of 66,000 retailer point of sale units. Today, it processes 380 million transactions a year worldwide, and a million transactions a week in Ireland alone. That number is growing as Payzone adds new services and gains more traction with consumers.

Deignan is able to shed light on the early history of the company. “We originated as a telecoms business and were involved in maintenance and support for credit card terminal infrastructure in the market,” he explains. “We were involved in maintaining credit card terminals on behalf of the banks and we identified an opportunity at that stage: that the same infrastructure could be used to provide other services. Obviously, we were restrained from doing that as it was the banks’ own infrastructure we were maintaining. So at that stage, we basically started building our own platforms. We put in our own terminals and we built technology so we could switch these transactions between various companies.”

A SUITE OF SOLUTIONS

The core business in the early days, of course, was facilitating mobile phone top up payments. “We provided a more cost effective and secure solution for mobile operators to access and reach their consumers predominately across our retail network at the time,” Deignan recalls. “If anything, we drove the mobile phone payment market across Europe with our electronic solution – we were very much to the fore of that. The last number of years, though, has seen us focus on more of the branded payment networks, where we’re not just depending on the mobile phone top-up market. Today, we have a suite of services so, over the last three to five years, we’ve really become a service company. Our focus has been on deepening the level of service we offer through market range and variety,” he continues.


Payment Technology

“I have a team of people focused on the telecoms industry, on the transport industry, on the utility space and on the financial services sector – they’re all dealing with multiple clients who are seeking opportunities to add value to their payment solutions.”

One of the first steps after cracking the pre-pay mobile market, of course, was facilitating easy payment of bills at retail stores. “We saw an opportunity to use the same footprint, the same relationship between retail and customers to provide other services, so we incorporated utility bills into our systems. Now, consumers can scan and pay for their utility bills at the point of sale,” says Deignan. “We take care of the scanning technology so, when a bill is scanned, the technology behind knows what to do. It routes payment to the final point destination, so it comes into our post here and we forward that to the utility provider.”

More recently, the company has been involved in other innovative ways to make life easier for consumers and organisations. One of the most exciting areas of growth, Deignan believes, is parking payment by phone. “The parking of today is based on mobile phone payment. It pre-registers your credit or debit card so when you park your car in any of the 35,000 on-street spaces in Dublin, you can pay for it using your mobile phone,” he explains. “Dublin City Council has a lot of parking metres on the street and by using this technology they’re able to reduce the cost associated with planting, maintaining and securing them, while at the same time provide a better customer experience. It’s a marriage between the availability of technology and the capacity that consumers have to operate under new terms, because consumers find it much more convenient and much more accessible. We can text to let them know that their parking is about to run out so they don’t have to run to a meter: they can top up remotely and, from the City Council’s perspective, the cost is markedly lower. It’s a win-win situation.”

Another solution to removing cash from the equation is the long-awaited Leap Card, which finally gives Dublin commuters the opportunity to manage their travel costs more efficiently. “We’re reducing the amount of cash used on buses with the Leap Card, so there’s no cash required,” Deignan says. “There are fantastic security implications: the reconciliation process, the management of all that cash, that’s going to disappear over the next few years. One can expect that, as technology moves on, buses won’t need to accept cash at all – it can all be moved electronically,” he believes. In essence, Payzone’s growth has

come from satisfying a hunger for more convenient payment methods – and the willingness of organisations to facilitate this. Interestingly, both the private sector and public bodies have been participants in this process.

SURVIVING TOUGH TIMES

Happily, this enthusiasm to create a win-win for consumers and organisations alike has not been stymied by the difficult economic climate. “We have a very robust business,” Deignan explains. “I’m not saying that all our services are recession proof, because they’re not – mobile top-ups, for example, have declined. But with the addition of further services, we have replaced that. An ability to pay comes more into focus for utility companies, so demand for our services has increased. Also, pre-payment becomes more available as a solution. Many utility companies have had situations where customers have had their electricity or gas switched off because they haven’t been able to pay their bill at the end of the month. But what’s happening now is a transition where many consumers become pre-pay customers, coming in each week and paying through the Payzone network,” he reveals.

“I wouldn’t say the recession is good for our business because it’s not good for anybody in the market. But in many ways, recession crystallises and makes more relevant the consumer’s ability to pay. It brings into focus the alternative channels that are there, and it goes back to convenience. If somebody runs out of electricity or gas on a Friday evening for example, they need to have a network available. Convenience and the ability to transact comes back into focus then,” notes Deignan.

NEW OPPORTUNITIES

Even with an air of caution, it’s no wonder that Payzone sees growth and expansion opportunities and is keen to take them. Working in the smaller Irish market is also a benefit for trialling new services, Deignan explains. “Ireland is almost like the sandbox of Europe: you can build things up and if they don’t work, you can break them down again relatively inexpensively.” The company’s key challenge, he notes, is to continue innovating and reacting to technological advancements appropriately and promptly.

In the short term, Payzone has targeted scaling up and extending its parking solution. “There’s no reason why that product couldn’t reach fuller communities in Ireland – it generates significant revenue for local authorities too,” Deignan notes. “We see it as a significant opportunity.”

Looking to the future, Payzone continues to invest and develop new products and payment methods which will support its network in meeting customer needs. The Payzone technology is ideally placed to cost effectively rollout a broader range of payment collection solutions for both existing and new charges/taxes in the public sector, including Motor Tax, TV Licences, Fines, Household Charges and Water Charges when they come in as expected. Payzone claims its three-way services using a combination of retail outlets, online and mobile, can halve the cost of collecting payments for local authorities and government bodies. As a company dedicated to embracing opportunities, it’s clear that Payzone will have plenty to do for the foreseeable future.

Payzone Managing Director, Jim Deignan


Education

NUJ MaynoothNUI Maynooth has been offering programmes in mediation since 2009, through its recently established Edward M Kennedy Institute for Mediation and Conflict Intervention, part of the School of Business at the prestigious university.

Its flagship programme is the two year MA in Mediation and Conflict Intervention, though it also offers a number of postgraduate Certificates in the field.

According to Ms Delma Sweeney, Programme Director of the Kennedy Institute, “Conflict Resolution in education is important because we are seeing more and more difficulties and disputes emerging in schools, sometimes between teachers and teachers, sometimes between teachers and students, sometimes between students and students, and sometimes between parents

and the schools”The Kennedy Institute Post Graduate Certificate in Conflict

Resolution in Education is designed to meet the learning needs of mediators who want to deepen their knowledge and skills for practice in the education sector. It prepares mediators for the demanding work of facilitating the resolution of interest based conflict as it arises in education settings.

A highly interactive and integrated programme explores how theory applies to practice and skills development through exercises and role-play which enables the mediator to integrate their career experience and abilities with mediation and conflict intervention practice.

Participants choose two modules from the four offered, depending on their circumstances. The modules are conflict resolution in education, restorative practice in schools, mediation theory and conflict analysis, and values and relationship in conflict intervention.

The programme runs from February, 2013. For further information on dates, details or admission requirements, visit www.kennedyinstitute.nuim.ie

Post Graduate Certificate in Conflict Resolution in Education

Starting February 2013

Edward M Kennedy Institute for Conflict Intervention

Visit [email protected]

Phone: 01 7086635

Maynooth 1/2.indd 1 02/01/2013 14:14


CEO Survey

Growth on the Horizon

Ireland’s reliance on domestic demand should be a thing of the past. This was signalled by the results of a new survey by Enterprise Ireland and Deloitte which found that almost three quarters (72%) of Irish CEOs see overseas markets as far more significant to Ireland’s economic recovery than the local economy and believe that greater participation in these markets will speed up the process.

The survey was carried out on 365 CEOs registered to attend the recent CeoForum in the Convention Centre Dublin which was hosted by Enterprise Ireland and Deloitte. The survey investigated a number of areas relevant to the theme of this year’s forum - “Growth is on the Horizon”.

The survey also identified that only 21% of business leaders believe that Ireland will return to consistent strong GDP growth in 2013, while two thirds (67%) envisage that scenario during 2014.

According to Brendan Jennings, Managing Partner, Deloitte there is a growing realisation within Irish businesses that even relatively small firms need to be more focused on the opportunities abroad and less on the traditional home market.

Frank Ryan, CEO of Enterprise Ireland also noted that the record export sales achieved by Irish companies in recent years clearly show that investing in internationalisation delivers for Irish companies. “We continue to support existing Irish exporters in securing overseas business but, knowing the opportunity that’s out there, we are also ramping up our efforts with more potential exporters to help them realise the opportunities that exist for them beyond the domestic market,” he said.

All registering CEOs were asked to partake in the survey before the event to gauge their perception of various business climate issues and key supports provided by government. When asked about the maths and technology education in this country and moves by the government to improve and support it, the vast majority of respondents (92%) highlighted that they support the government’s stance on trying to promote greater participation in honours Leaving Cert maths. When participants were subsequently asked whether the government’s endeavours should be extended to science subjects, 4 out of 5 business leaders (84%) said that they were in favour of extending the bonus points concept to boost participation in these subjects.

The project maths module was first rolled out by the Government in September 2010 and since then, this initiative together with the additional bonus CAO points, have had a positive effect on the numbers sitting higher level maths. Project maths has shown promising results with more students opting to take the higher level maths exam and increased student engagement with the subject. The CEO Forum survey has revealed that business leaders in this country agree on a greater focus on what they see as job creating subjects – maths and the sciences.

The survey also signalled some dissatisfaction amongst this group in relation to Ireland’s investment in science, technology and innovation with 77% of respondents saying there is not enough investment in this area, indicating that there was more

Overseas markets are far more important than local economy according to a survey of CEO’s.

that could be done.The theme of this year’s event was “Growth is on the

Horizon” and it featured an impressive line-up of speakers; Louise Phelan, Vice President, Global Operations EMEA, PayPal, Fidelma McGuirk, Managing Director,Taxback.com, Chris Martin, Chief Executive, Musgraves and Colm McCarthy, Lecturer in Economics at UCD.

The primary focus of the CEO Forum is to create an opportunity for chief executives to discuss what they perceive to be the major issues facing their companies and Irish businesses. The forum provides a unique opportunity for CEOs to share information, air their views and hear, first-hand, the experiences of some of Ireland’s leading CEOs, who talk about their businesses and the challenges they face both nationally and internationally.

Fidelma McGuirk, Managing Director, Taxback.com

Colm McCarthy, lecturer in economics at UCD.


Energy

62 Heather Road, Sandyford Industrial Estate, Dublin 18.T: + 353 (1) 2958966 E: [email protected]

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Energy

Green FundGreen Fund launched to help develop new energy projects

The Minister for Communications, Energy and Natural Resources, Pat Rabbitte, has announced his plans for a Green Fund to kick-start investment into energy efficient projects in both public and commercial sectors of the economy.

“While the details are still being worked out, the idea is that we would put in place a mechanism to allow competitive proposals for energy-efficient projects to be financed,” the Minister told a recent conference on Sustainable Energy and Jobs organised by SIPTU and the Sustainable Energy Authority of Ireland.

The conference in Croke Park brought together union and management representatives from the semi-state energy companies including the ESB, Bord Gáis, Bord Na Móna and Coillte and from private companies such as Glen Dimplex, Kingspan and Glanbia.

Addressing the 200 participants, Pat Rabbitte said that it was hoped to launch the Green Fund with 20 pilot projects this year with the objective of creating “the environment and structures that will allow us to attract investors to create a far bigger fund, one that will be big enough to realise the multi-billion euro worth of economic activity that we know is out there.”

“I believe that the Green Fund can be established in such a manner that it does not just attract private equity investment but can also leverage funds from, for example, the Pensions Funds industry.”

In a provocative contribution, Glen Dimplex chief executive, Sean O’Driscoll, called for a visionary energy-efficient future creating significant economic value and solving the fuel poverty crisis. “The single biggest transfer of our national wealth each year is the €6 billion fossil fuel bill. 36% of all primary energy consumed in Ireland is to provide space and water heating to buildings – a significant portion of which is wasted.

“Ireland needs a bold and visionary National Energy Efficient Policy” he said. O’Driscoll claimed that such a policy would create tens of thousands of jobs across the economy in upgrading the existing building stock and take hundreds of thousands of homes out of fuel poverty. He said that the efficient energy system of the future will merge different technologies into one coherent intelligent energy system enabling such possibilities as on-site generation and consumption in schools, hospitals and other large workplaces.

“The technologies to deliver significant energy efficiencies and balance fluctuating electricity production(wind, solar etc.) with consumption, exist today,” he added.

Barry O’Flynn, the Director of Corporate Finance, Energy and Environment at Ernst & Young pointed out that with the depletion of fossil fuels, the only means of securing long-term energy supplies was through alternative and renewable technologies. He argued that coal reserves could last 112 years, gas 63 years and oil 54 years at current production rates with demand outstripping supply, despite the discovery of new reserves. Shale gas was, he said, a localised benefit with limited

transportation infrastructure and noted that the interest in nuclear generation was waning.

“There is an increasing gap appearing between fossil-supply and global demand while the only alternatives to coal are increased renewable energy and energy efficiency,” he added. ESB deputy chief executive, John Shine, claimed that the energy landscape was being transformed and that investment and technology innovation were both vital to the future.

“Ireland has unique opportunities with the right scale, resources, companies, industry models, R&D collaboration and the necessary experience and innovators,” Shine argued. However he said that “policy certainty and clarity are critical.” In a detailed presentation of Ireland’s potential, Gabriel D’Arcy, chief executive officer at Bord Na Móna, outlined viable alternative energy generation, including wind and wave resources and biomass production.

Bord Gáis CEO John Mullins outlined the real opportunity of exporting renewables direct to the UK while recognising also that planning support for key infrastructure was needed. He said that Irish Water – for which Bord Gáis has responsibility –would reduce energy usage through a cut in leakage while also making a significant contribution to creating new jobs.

In response, SIPTU General President, Jack O’Connor, said it was important that the jobs created by the new water company would be of a decent standard and that workers would enjoy the terms and conditions of those already providing this vital national service which must remain in public ownership.

Other speakers included the business development director of Kingspan, Gary Treanor, the Sustainability Manager at Glanbia, Audrey O’Shea, Element Power Chief Executive Tim Cowhig and the CEO of SOS Ventures and Avego, Sean O’Sullivan.


Energy

Renewable assets

In October this year, Bord Gáis and its Irish tidal energy partner OpenHydro were awarded the exclusive rights to develop a 100MW tidal energy farm off Torr Head on the north coast of Antrim, potentially the first project of its kind in Ireland.

The award was made by the Crown Estate to Tidal Ventures Ltd, a joint venture between the two energy companies, as part of Northern Ireland’s Offshore Renewable Energy Strategic Action Plan.

Expected to commence full commercial operation by 2020, the size of the project could be as big as 100MW, sufficient to produce power for about 75,000 homes, according to Dave Kirwan, managing director, Bord Gáis Energy.

“This project is very consistent with our overall strategy of investing in the next generation of energy technologies that can provide competitive electricity to Irish customers. It’s a key component of our strategy and has been for the last number of years,” Kirwan says.

Bord Gáis Energy and its tidal energy partner, OpenHydro, have won the exclusive rights to develop a tidal energy farm at what could be the best site in the country, as Lynne Nolan discovers.

In charge of defining and implementing the overall business strategy and delivering commercial growth for Bord Gáis Energy, Kirwan has worked for Bord Gáis for over 12 years and was responsible for the launch of Firmus Energy, Bord Gáis’ subsidiary in Northern Ireland.

“We’ve been looking at developing opportunities in tidal energy for about two years now,” Kirwan reveals, and winning the rights to develop the project was “a major milestone for the development of tidal resources in Ireland and marks our ongoing commitment to renewable assets.”

“Over the last four to five years, Bord Gáis has been investing hugely in energy business generally, so that we could offer competitive energy electricity into the Irish market. In advance even of us creating residential competition with the Big Switch, we were investing in assets so that we could have access to competitive energy,” Kirwan reveals.

Whitegate Power Plant in Cork, Bord Gáis’ 445MW gas-fired


Energy

power plant which opened in December 2010, is considered one of the most efficient electricity generation facilities in the world and the company’s “focus has been on renewable energy” since it opened.

Having proved its ability to manage large-scale infrastructure projects, with Whitegate and its wind farm portfolio, Bord Gáis joined forces with OpenHydro, the Louth-based tidal energy technology company that designs and manufactures marine turbines to generate renewable energy from tidal streams.

After Bord Gáis announced its interest in investing in cutting edge, renewable technology and supporting its development in Ireland about two and a half years ago, Kirwan met with key partners from OpenHydro, who were on an equity financing round at the time, and established a contract which would see Bord Gáis “put equity into OpenHydro, in return for which we wanted to develop a joint venture exclusively with OpenHydro, to develop a tidal energy project in Ireland.”

“We really liked the company and its technology. OpenHydro is a brilliant example of an indigenous manufacturer and designer of the next wave of renewable technologies. We decided to support them with equity financing by taking shares, not a huge amount, but it did help them at the time. In return, we wanted to establish a joint venture, so together we could work together on a project like this,” Kirwan comments.

Bord Gáis has already established contact with key local community representatives and stakeholder groups in Antrim to talk about their needs for supporting a successful project in the location.

“We’ll commit to that kind of a process for the next two to three years, incorporating planning, design and testing of the tidal resources in the area. Basically, we’ll be developing an overall packaged approach to developing commercial tidal energy. That will take three years, and at the end of those three years we will know if we have a viable project,” he explains.

The company will also have to examine the “capital cost of deploying the tidal turbines in the location, on the seabed” and have the “established support for the project from the environmental and planning authorities”, as well as support from local communities.

In terms of access to the grid, “we will have to engage with Northern Ireland Electricity and SONI to establish how we will connect from offshore, undersea, onto the national grid, and determine the associated costs,” he says.

“They are the key components of the first stage of the project, which will bring it to 2016. Thereafter, in the event that we’ve crossed all those hurdles and achieved our own internal approvals it would move to the construction stage, and 2020 would involve full deployment of 100MW of tidal turbines,” he adds.

The location of the tidal turbines on the sea bed is advantageous, he says, as they have no visual impact or noise emissions, while the electricity produced is predictable and completely renewable, since it relies on tides that are created by the gravitational effect of the sun and moon. “Subject to us testing this particular location, the tidal turbines are very unobtrusive to the sea bed and sea life, and very environmentally-friendly,” he says.

Looking to the future, Kirwan reveals that “by the end of 2014 to the middle of 2015, we (Bord Gáis Energy) will have committed in excess of €1 billion in investment in renewable energy in Ireland.”

Kirwan recently attended a press conference with the European Investment Bank, at which Bord Gáis announced it had been “successful in securing €155 million funding from AIB and that will help build out six of those wind farms in the next 15 months,” Kirwan reveals.

Bord Gáis currently boasts 234MW of operational wind farms, representing about 15% of the installed wind capacity in Ireland and “over the next two years we’re going to double that.”

“We have near-term projects now that will double the capacity to over 500MW. Near-term means we’ll be building them out over the next 24 months,” he comments.

Although the project is located in Northern Ireland and will contribute to renewable targets there, tidal could potentially have a significant contribution to Ireland’s renewable targets, Kirwan believes.

“This project could contribute significantly toward the achievement of the overall renewable targets for the island. The site that we have exclusive rights to develop on is the best in the country, and we now have a period of time to establish whether we can develop a commercial tidal project there, so that’s a huge priority for us,” Kirwan comments.

With this technology and working with OpenHydro, there are other areas around the coastline of Ireland where tidal energy farms could potentially be deployed, he reveals.

“We will be watching very closely to see if other licensing opportunities come up in and around the South Coast and if they do, certainly we will express interest in them,” Kirwan adds.

Dave Kirwan, Managing Director, Bord Gais Energy.

We have 234MW of

operational wind farms,

representing about 15% of

the installed wind capacity

in Ireland, and over the next

two years we’re going to

double that.

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For more details see our website at www.energymcs.ie or contact Darragh Flanagan, Green Save DF Energy Ltd.: 085 198 7336

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Greensave A4.indd 1 04/01/2013 12:02


Green Save

Energy ManagementEI Portal system allows users to measure analyse and document energy usage.

In an environment of ever increasing energy costs and requirements to analyse, document and reduce carbon emissions, Energy MCS Ltd. and our partner company Green Save DF Energy Ltd. Provide a range of energy management products and services that can address both of these issues.

Our EI Portal system allows users to measure analyse and document energy usage. EI portal uses IPMVP techniques to allow before and after validation when energy reduction projects are undertaken. It is currently used by a number of Government agencies and large Irish Corporate customers.

In Ireland and the UK, consumers often receive an oversupply of voltage, meaning inefficiency, increased cost and increased carbon emissions. Our “Voltis” products are designed to optimise the supply of voltage to any premises to ensure that voltage is not over supplied and electricity consumption is optimal. Suitable sites can reduce their Electrical consumption by up to 14%.

The systems that our companies install are installed at the point of supply of electricity and complement other consumption reduction measures.

Extra voltage produces no useful work but is converted to heat and vibration, shortening the life expectancy of equipment and wasting energy. Voltage optimisation systems remove the heat and vibration and help to extend the life of equipment.

The voltage supplied by Networks varies, depending on

geographical location and proximity to the transformer. A key part of determining the likely effectiveness of our systems is an initial analysis of supply and usage in the premises.

In conclusion: tools such as EI Portal and equipment such as Voltis Optimisation will help achieve the National Energy Efficiency Action Plan target of a 20% reduction in energy consumption and achieve a ‘reduction in energy consumption in the public sector of 33%.

Further information can be got from Michael Mc nerney 0868219096 Darragh Flanagan 085 1987336 or see our website at www.energymcs.ie

SEPTIC TANK GRANT

The Minister for the Environment, Community and Local Government, Mr. Phil Hogan has announced a grant scheme to provide financial assistance to households whose septic tanks and other domestic waste water treatment systems, require remediation or upgrading following inspection under the Water Services (Amendment) Act 2012. Inspections are expected to commence this year and will be based on a national inspection plan currently being finalised by the Environmental Protection Agency. All domestic septic tanks and other waste water systems should be registered not later than 1st February 2013 on www.ProtectOurWater.ie or by post or in local authority offices. Waste water systems that that have not been registered by 1st February will also be subject to inspection.

Minister Hogan said he was very conscious of the concerns of householders’ regarding some costs in repairing or upgrading their systems if they fail an inspection. “Even though most of the deficiencies with septic tanks are likely to be remedied by routine maintenance including regular desludging, I am making this announcement today to reassure people that they will be assisted in meeting the costs of any remedial works that may be necessary arising from the implementation of the 2012 legislation,” he said. “This is in keeping with the commitment I gave when the legislation was being debated in the Oireachtas this time last year. The scheme will provide a higher level of support to those on lower incomes.”

“While the majority of septic tanks may be working well, and in those cases the householders should have nothing to worry about, those tanks that are not working properly may be polluting groundwater and contaminating our drinking water supplies and must be remediated. No one better understands the risks associated with malfunctioning on-site waste water treatment systems than the people who live in close proximity to them and source their drinking water from their own wells or from their local group water scheme. The key objective of this legislation is to enhance and protect public health and the environment which will, in turn, benefit rural dwellers in terms of a better quality of life and better quality water. Protecting our environment will also have positive economic benefits for the tourism, recreation, agricultural and food-producing sectors, all of which rely on clean water. Clean water is vital for attracting inward investment and to support water hungry sectors such as pharmaceuticals and ICT.”

The Minister said a strict condition of eligibility for grant aid will be that the householder has registered their system by the prescribed date of 1 February 2013. The Minister stated: “It will be a condition for eligibility for financial assistance under the scheme that householders comply with the legal requirement to register their system by 1 February 2013 on www.ProtectOurWater.ie.” To date 290,000 people (58%) have registered their systems. Census 2011 indicates that there are about 497,000 septic tanks and similar systems in Ireland.

http://www.protectourwater.ie/

http://www.protectourwater.ie/


Energy

Taking charge of savings As the launch of its remote heating control system Climote looks set to leave rivals in the dust, delivering innovation and sustainable products is top of the agenda for Electric Ireland.

To steer the future success of its energy-efficient products and services, Electric Ireland appointed Tom Bean as its head of strategic marketing and sales for Home Services.

While working for Vodafone, Bean was responsible for the launch of 3G, Blackberry, picture messaging, mobile data and its content service. A mechanical engineer, Bean has an MSc in Energy Management.

Leading the team behind Climote, Electric Ireland’s “best in class” remote heating control system, Bean is confident this product, that is simple to use and provides customers with remote control of their heating systems, will convey Electric Ireland and its parent company ESB’s focus on delivering sustainable energy, products and solutions.

“We have a history of innovation that goes back to the founding of the state. Everything we do is about delivering innovation and delivering the best value to our customers in a sustainable way,” Bean comments.

Climote clinched the Best Product of Show, Best Innovative Product and the Best Controls Product awards at the Energy Show this year, organised by the Sustainable Energy Authority of Ireland (SEAI).

For people who are out of the home, the product allows

them to turn on their hot water or heating with just a simple text message or the tap of an App, in just enough time that their houses are cosy and warm when they return home, without wasting energy heating an empty house.

Although the product has been recognised as technologically-innovative, the product can be used effortlessly by customers who would not consider themselves as tech-savvy. “Climote is a product that provides you with remote control of your heating system. You don’t need Wi-Fi, a computer or any other technology in your home to make this work. As part of the product, we provide a Mobile SIM card, which means you can install it without wires or cost wherever suits your needs,” Bean explains.

In its research, Electric Ireland found that many people were unable to programme their heating timers, as they were too difficult to change or programme, thus people often had the heating on when they were not in the house of did not need it.

More than 60% of people said that during winter, they often had their heating on when they were not in the house. In spring and autumn, this number drops to over 40%, but this is still a huge waste, Bean explains. When the clock changes, people often forget to change the time on their clock. However, with Climote, the clock is automatically reset to the correct time.


Energy

Depending on the home and the winter weather, Irish people spend about €1,000 on gas and about €2,000 on oil every year. Colder winters coupled with ever-increasing energy prices have positioned cost-cutting at the forefront of people’s minds.

“In our customer trials of Climote, most of our customers saved up to 20%, with some saving an amazing 40% in savings on their home heating bills. At 20% that is yearly savings of €200 on gas and €400 on oil. The product works on oil, gas and bottled gas. It also works with storage heaters, but this requires us to do a little more installation work,” Bean says.

There are a number of key functions of the product that people use on a regular basis, which can all be done simply with a text message or with the tap of an App from anywhere in the world. Customers can turn off the heat if they are not going to be at home, boost the heat wherever they are so they can come home to a warm house, or even turn the heat on from the comfort of their bed or sofa if they are feeling lazy.

With Climote, customers can check the temperatures of their homes and turn the heating on. This has proved to be a major draw for people with holiday homes, to reduce the risk of burst pipes and eliminate the need to travel up and down the country to turn the heating on and off. Finally, the heating can be simply turned off for a certain number of days when a customer is on holiday, and it will automatically come back on after that time has elapsed.

“Many of our customers are now replacing their old, and even new, time clocks with Climote because it is much easier to use and the savings and convenience can be noticed from the moment you put it in. Climote is also a great tool for small businesses that want to provide a safe and warm place for their staff to work, while ensuring that they are in control of their costs,” Bean comments.

Schools, churches and parish halls are also installing the product, as part of their efforts to use energy more efficiently by taking more control of their heating systems and being able to access their heating remotely.

The product has been launched into the market at an RRP of €399 with a special launch price of €299 for all customers. Electric Ireland customers can pay for the product over two years if they wish. This includes fitting of the product and a year’s free service charge. For Electric Ireland customers, there are different payment options available, with information available on the website.

“Many of our customers are buying these in pairs, one for their family home and one for their holiday home down the country,” Bean comments.

Electric Ireland is committed to working with the government on delivering the European Better Energy targets and ensuring that Ireland meets it targets while delivering real and sustainable energy and cost savings to its customers, Bean says.

“When our customers save energy, they save money and are happy. When they use their energy more efficiently, we become more sustainable. It’s a win-win solution for everyone,” he says.

Electric Ireland provides all the services needed to make homes cosy and energy-efficient, Bean enthuses.

“We insulate walls, service and replace your boiler and heating controls, as well as solar heating systems. Our customers are nervous about who they get to do the work and like using Electric Ireland as a company and brand they can trust. This makes us stands out in the market from other suppliers,” he says.

Boilers can often be a huge waste of energy in people’s homes, with old boilers often running at 60% efficiency, Bean says.

“That means that if you put €1,000 of oil or gas into your boiler €400 goes up the flue, without every getting into your home. New boilers can be over 90% efficient, saving €300 on every €1,000 spent on oil or gas. This is one of the first places that people must look to address in their home. Once your money goes up the flue, it’s never coming back,” Bean comments.

Electric Ireland provides boiler and control upgrades, with grants of up €560 available, which the company can help with.

“Once you have your boiler and controls fixed, then you need to fix your attic and walls. If you have these three things done; boiler, attic and walls, you are in pretty good shape and your home will be nice and cosy, as well as being much cheaper to heat,” he advises.

Electric Ireland has partnered with a number of local authorities around the country to deliver area-based energy efficiency projects in 2012, Bean reveals.

“In the region of 800 homes have been retrofitted to date as a result of this partnership. Electric Ireland is interested in talking to any local authorities wishing to pursue energy efficiency retrofit projects in 2013,” he adds.

Contact Electric Ireland: www.electricireland.ie/climote, Phone: 1850 372 333, E-mail: [email protected] how Climote works: http://youtu.be/c7Mrz-2sgCg


Energy

Energy SecurityIreland should increases and diversity the variety of natural materials it used to create energy argues Maynooth based company, Imperative Energy

Security of energy supply is a critically important economic issue for an island nation such as Ireland. Fossil fuel reserves are rapidly depleting and the era of easy oil is coming to its end. Daily global news headlines feature concerns about accelerating global warming and the myriad environmental and social impacts that brings.

Biomass as an energy source offers the opportunity to address our nation’s energy import dependency and also to protect the business community against volatile oil and gas prices. Biomass systems do this while also providing a low cost carbon neutral alternative that is available 24/7 and is not dependent on prevailing weather conditions as wind and solar systems are.

It is imperative that Ireland should increase and diversify

the variety of natural materials it uses to produce energy and heat. Biomass offers a clear example of the type of secure, sustainable, environmentally-friendly energy that could be harnessed in Ireland given our natural resources. Not only have bio-energy projects the potential to address environmental and sustainability issues, they could create much-needed jobs throughout the country.

Bio-Energy Report

In February 2012 a report, “The Economic Benefits from the Development of Bio-Energy in Ireland to meet 2020 Targets” was published. It was commissioned by the Irish Bio-Energy Association (IrBEA) and the Sustainable Energy Authority of


Energy

Ireland (SEAI), focusing on the potential economic benefits of developing the bioenergy sector in terms of employment creation, investment, trade and competitiveness.

The study confirmed the substantial economic benefits that can accrue by Ireland meeting the 2020 bioenergy targets, including:n Over 3,600 new permanent jobs in the Bioenergy sectorn 1.5 billion euro direct investment in the sectorn 8,300 work years during construction and installationn Sustain family farm incomes in Irish agriculturen Reduce Irelands energy import bill by 7.5%n Provide a secure and competitive energy source for Irish

homes and business

Many challenges are currently restricting the opportunity for Bio-energy to contribute more effectively to the Irish economy. Currently public buildings typically purchase fuel for their particular boiler. All public buildings should change their procurement process so that they buy ‘renewable heat’ instead of a particular fuel. The Government could set a target that all new public buildings, or buildings converting their boilers, purchase heat (instead of fuel) from the start of 2014. All public buildings could then be required to purchase heat by the start of 2016. Denmark for example has recently stated that it is phasing out all oil boilers in public buildings. It has acknowledged that alternative energy systems are cheaper and cleaner. There is every reason why Ireland should follow suit. SEAI are currently in the process of developing heat purchase contracts for public bodies and this leadership should be welcomed.

District Heating Schemes are still relatively uncommon in Ireland. The State should not only encourage the development of small district heating schemes but should use the development of the Irish Water Board and the existence of Bord Gais networks to get actively involved in building such networks. Both of these State owned bodies are charged with building pipe networks for the distribution of water and gas respectively. District heating is merely another form of such a distribution network and there are huge synergies in installing District Heating pipes at the same time as replacing water mains.

Instead of continuing to develop the Natural Gas network around the country district heating networks should be developed instead. District heating not only supports the use of biomass, it also acts as a heat network for capturing waste heat from industry, capturing the heat output for CHP plants and can also be used to distribute heat from fossil fuel resources when the price for such fuels may be low. In short, tax payer investment in

gas networks is good only for the gas companies! Investment in district heating is good for all energy generators and users.

A mature development to bring security to the renewable energy investment market would be the setting of a gas and oil floor price by the State. At present, many companies are willing to invest in renewable energy developments in Ireland. However many investors arerunning scared that their investment in renewable energy projects will be seriously undermined by a State support scale gas extraction programme and the continuation of State funding for the development of the natural gas network.

The State could allay all such fears by setting a gas and oil floor price, whereby the taxes and excises charged would move with the market to ensure that no oil and gas was supplied below the floor price. In the short term this would increase tax yields and would give the country a very stable environment in which foreign investors (as well as NPRF and NTMA) could invest.

Imperative Energy Limited is a company based in Maynooth and currently operates in the Irish, UK and North American markets. It is a leading supplier of bioenergy solutions (heat, steam and power) to clients in the commercial, public and industrial sectors through purpose built biomass plant at the client’s site.

Imperative Energy offer an ESCO model where the client enters into a long-term energy supply contract whereby Imperative Energy covers the design, fuel supply, equipment supply, finance, installation, operation and maintenance. The client is subsequently invoiced for metered energy use on a monthly basis at a pre-agreed, index-linked price.

Imperative Energy recently completed the supply, installation and commissioning of a 2MW, Medium Temperature Hot Water Biomass Boiler with fuel handling system at Government Buildings in Dublin. The system actually heats the largest biomass fired district heating scheme in Ireland heating all State owned buildings between Kildare Street and Merrion Street in the centre of Dublin City. Buildings heated include the Dail and the Senate, the Department of Agriculture and Food, the Department of Finance, the Department of An Taoiseach, the National Gallery, the National History Museum, The National Gallery and a number of other buildings. This ambitious project was undertaken by the OPW and is testament to their leadership in retrofitting the public sector built environment to improve energy efficiency and lower the carbon impact.

A mature development

to bring security to the

renewable energy investment

market would be the setting

of a gas and oil floor price

by the State.”


Energy

Reduce Your Energy Spend There are a number of ways households can keep their energy bills down as the winter takes an icy grip.

n If your themostat is set over 20 degrees centigrade lowering it by 1% will knock 10% off your heating bill.

n Lots of heat is lost through windows, so keep your curtains closed at night, even in empty rooms. And make sure curtains don´t hang over radiators or all that heat will go out the window.

n Turn off lights and heat in empty rooms. Close doors to separate heated from unheated areas.

n Watch that water heater. It´s also not likely to be noticeable if you turn down the thermostat on your water heater by just a few degrees.

n Don´t leave appliances on standby. Switch them off altogether and save up to 20% of the energy they use.

n Consider a programmable thermostat. They cost between 30 and 100, but that´s money you´re sure to recover over the course of a year because your heating bills will drop. A programmable thermostat allows you to adjust the heat on a predetermined schedule so you can lower the heat when you´re not at home or when you´re asleep.

n Call for a check up. Proper maintenance will help your heating unit run more efficiently. Electric and oil heaters should get professional attention at least once a year and gas heaters once every other year.

n Most importantly, make sure your home is well insulated.

n Check any potential areas where heat loss is occurring, fireplace, letterbox, windows and make sure they are adequately protected against heat loss.

Expensive Goals

Meeting renewable energy targets is likely to require investment of as much as 5 billion between now and 2020,

according to a report from Davy Stockbrokers. The government has

a target of generating 40% of electricity from renewable

sources by 2020. The Davy report

calculates that this will require the construction

of wind farms capable of generating up to 3,500 magawatts of electricity, in addition to the existing renewable generators.

The report entitled Íreland´s electricity

Future: Policy and Players Shaping Investment´states

this is likely to favour the country´s existing utilities and

established large scale industry players.

Energy Use Slips

Energy consumption has fallen to levels last seen in 2000 in 2011 and

has continued to slide in the transport sector, according to the Sustainable

Energy Authority of Ireland. Energy consumption by the average household has slumped 16% since the economic crisis and we are now using the same amount of energy as we did at the turn of the century despite the fact that the population has expanded by almost one million people.

The plunge in energy consumption is as a result of a number of factors including the recession and improving standards of energy efficiency in homes, cars and factories.

More than 150,000 homes have availed of government grants to upgrade their energy

efficiency although this still falls short of the target of one million homes by 2020.

Ireland imports 88% of its energy requirements at a cost of 6 billion per year. While renewable sources such as wind and hydro power are generating a greater proportion of our energy requirements, the volume is still considerably below target. We currently derive 6.4% of our energy from renewable sources compared to a 2020 target of 16%.

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www.ipb.ie

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