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NIPSA Response to Draft Budget for DSD
17/02/2011
NIPSA response on the Draft Departmental Budget.
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NORTHERN IRELAND PUBLIC SERVICE ALLIANCE
RESPONSE TO THE DEPARTMENT OF SOCIAL DEVELOPMENT
DRAFT BUDGET 2010
INTRODUCTION
1. NIPSA as the largest public sector trade union in Northern Ireland with over 46,000 members welcomes the opportunity to respond to the Department of Social Development’s Draft Budget. In addition NIPSA represents the majority of staff employed by the Northern Ireland Housing Executive (NIHE) and Housing Associations. In responding to the Draft Departmental Budget NIPSA would state that the consultation period is wholly inadequate given the potential impact on public services given the proposed cuts to the Departmental budget.
2. This submission deals solely with the housing element of the draft Departmental budget. A separate submission is submitted in respect of NIPSA members employed directly by the Department of Social Development.
3. This submission from NIPSA to the Departmental Draft Budget should be considered in the context of the NIPSA response to the draft NI Budget which has been sent to DFP. The content of this submission is also without prejudice to any comments from NIPSA in respect of public bodies which are sponsored by your Department.
4. At the outset it is important to emphasise NIPSA’s view that the public consultation should have focused on what the Executive should do collectively to ensure that adequate funding is provided for all public services. The Executive should stand firmly together and support the call on the Coalition Government to tackle tax avoidance and tax evasion, which would provide additional revenue of approximately £123bn to the Treasury and by extensions, using the Barnett formula, some £3.5bn additional revenue to the Executive. Public Services and ordinary workers should not be expected to pay for the disgraceful behaviour of bankers and speculators. The public deserve better and expect more from their locally elected politicians.
HOUSING
5. It is difficult to provide any meaningful response in the absence of much detail in relation to the likely impacts on the budget. This is reflected in the NIHE element of the budget attracting only one paragraph of the budget statement. Overall the budget allocation is grossly inadequate to meet the required need for new build housing and improvements and as a consequence communities will suffer. The Department are aware that the demand and needs for social housing are increasing with NIHE waiting lists standing at 38,120 for the 2009/10 year. The amount allocated in the draft budget will be wholly inadequate and will not permit an improvement to meet the level of increasing housing need by way of new build provision or improvement.
6. NIPSA believes the NIHE has a major part to play in the provision of social housing. It is a fact that the construction industry in Northern Ireland is in a severely depressed state and NIPSA believes the Housing Executive and the Department of Social Development should be a major contributor to the local construction industry both for new build and ongoing improvements to the current 90,000 housing stock. It is therefore imperative that the Department re-examine the significant reduction in the capital allocations over the 4 year CSR period.
7. Over the last Comprehensive Spending Review (CSR) period the NIHE has reduced staffing levels through various methods including a Voluntary Early Retirement Scheme (VER); Flexible Early Retirement and 85-year rule.
8. NIPSA notes Para 6.1 of the draft budget states:-
“The major impacts of the cuts in the admin/policy areas will be staff reductions...”.
NIPSA would contend no further staffing reductions which can be justified. Staff are currently working at optimal levels with significant pressures on staff to deliver more with less. NIPSA would therefore strongly argue that if the DSD wish to have more “efficiencies” then they need to consider what work will not be done. We cannot countenance any further reduction in staffing levels across the organisation which would place unacceptable workloads on the remaining staff.
9. NIPSA also notes the draft budget states “...... and a curtailment of expenditure on travel and subsistence, conference fees and external training”. Travel and Subsistence is covered by existing agreements and contractual arrangements of staff. Thereby NIPSA will resist any attempts to attack members existing contractual conditions of service. In doing so NIPSA would draw the Department’s attention to a review of National Joint Council (NJC) travel rates. Therefore NIPSA would suggest that it would be inappropriate to seek to make any changes in light of possible changes at national level.
10. Furthermore while it is always important to ensure value for money it is vital that staff development and training is adequately supported to ensure they can deliver and will continue to deliver a high quality public service. NIPSA therefore is concerned that it appears external training is to be targeted in the CSR period without any real assessment of need or value for money.
11. NIPSA also understands that the funding increase expected by the 2011/12 rent increase is not £12m each year, but £9m. Therefore it is essential that the NIHE programmes or staffing do not suffer as a shortfall of £3m because of an over-estimation of expected rent increases.
12. NIPSA also has concerns over the continued reduction in Private Sector Grants which is being reduced year on year over the CSR period. In year 4 it is expected that the budget will be £20m. This is set against a previous budget 3 years ago when £40m was being spent on private sector grants. NIPSA believes that this funding level is appropriate and ensures the private sector element of the housing market is maintained to an adequate standard.
15th February 2011
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