?Ell-I. FICICII MCGURK Lorraine I From: Sent: 08 February-2018 10:08 To: 'Pearse White'; Moyagh Murdock Helen Subject: RE: DT Surge Planning Update Hi Pearse, Moyagh Myself and. Helen have read the document, and in order to expedite this matter with DEPR we would suggest including a little more information to clarify a number of issues as follows: In relation to the large number of learner drivers in the country, there is a very useful'table in the document ?Driver'Test-ing 2018 ?2022" - it may be helpful to include that table in the Surge Planning paper. It would be useful to show the significant increase anticipated because of the proposed legislation e.g. give the lessons frOm the past contained on page 6 of the document ?Managing Demand in Driver Testing?. This should underpin the forecasted figure. You mention the service is already experiencing long waiting-times it would be. useful to give some examples You mention that a significant increase in the level of resources will be required to deal with test demands in a timely manner - explain a timely manner in the paragraph on ?Consultation with trade Unions?, is there a reason for Forsa considering only one option e.g. Haddington Road? It?s important to mention that the surge is eXpeCted to be time bound and what that means in relation to the recruitment of testers/outsourcing Has the RSA a view on which option is the preferred option and why? For consistency and clarity refer to ?Option as Option throughout the paper the same for ?Option Hope this helps. Regards Lorraine Potential Surge in Driving Test Demand Scenario Planning February 2018 Introduction The Road Safety Authority (RSA), is the agency responsible for reducing death and injuries on Irish roads. The RSA is responsible for the Driver Testing Service in ireland. The proposed new Road Traffic (Amendment) Bill 2017 contains sanctions for Learner Drivers driving unaccompanied. The RSA welcomes this as it is considered likely to serve as a significant deterrent to learner permit holders who may be tempted to drive unaccompanied by a qualified driver. The proposal has the potential to have ?a significant positive impact on driver behaviour. Given the large number of learner drivers in the country as outlined in Table 1 below, many of whom are on their second or subsequent learner permit, the RSA envisages that the legislation will bring about a significant increase in driving test applications within the first 12 18 months of its introduction and have been assessing-that impact on the Service. The Service is already experiencing long waiting times for Customers to obtain an appointment for their driving test, due to current capacity levels and an increase of applications over the past few years. This has impacted on the aim to meet a waiting time of ten weeks or less. Current waiting times for driving tests are included at Appendix attached, which shows that some customers across 15 Test Centres have been waiting between 20 26 weeks for a driving test. The additional demand for tests, over a relatively short period of time, will require a significant increase 'in the levei of resources required to deal with that demand in a timely manner in order to avoid waiting times increasing further to the times outlined in Table 2 on the next page. :Nmr of LP holders Increase year I i on year 31/12/2016 249,657 .Up 4% 31/12/2015 240,442 Up 2% 31/01/2015 236,354 i Table 1 - Number of Learner Permit holders 2015 - 2017 The RSA has conducted an impact analysis and are currently examining the viable options available to address this issue with two Options being assessed direct recruitment of Driver Testers to the RSA and the delivery of driving tests by an external provider for a specified period. The recent Value for Money and Policy review published by the Department of Transport, Tourism and Sport late in December 2017 recommends that the RSA examine a potential alteration to the delivery method of the Driver Testing Service including an appraisal of whether the Service could be delivered by- an external provider. This is one of' the reasons that thisoption is currently under consideration by the RSA. The report issued previously to the Department of Transport, Tourism and Sport by the RSA outlined the impact assessment which the proposed legislation may elicit to the Driver Testing Service. It identified that the demand is likely to be more active within the first 12 18 months of the legislation being implemented and anticipated the following levels of increased activity across low, medium and high bands: .Likelv?su?rsenumbers . .. .. . . . .. iRepeattestsferfailures . i 29,737 66,092 ., . . 1.07.1383 1.481584. . 3 Waiting time without 3 30 weeks 55 weeks i 68 weeks AdditionalTeStersrequired 41 5 67 .. Table 2 estimated was ih 'aenaa?nafa?amg i?sts The anticipated demand outlined in Table 2 draws from experience in the past as to the impact of legislatiVe change to demand forthe driving test. In 2007, the law affecting- learner permit holders was changed, resulting in a m-aj'Or increase in demand for driving tests 460,000 applications in the 14 month period after the legislative change. Significant to note is that the law in 2007 only affected a subset of learner permit holders, while the current proposals potentially impacts every single learner permit holder. Consultation with Trade Union The RSA has formally commenced consultation with Forsa, the Trade Union representing Driver Testers and Driver TeSter Supervisory grades, to inform them ofthe potential surge in demand, in order to supply them with the facts to date and to engage on the options under consideration. Forsa have indicated strongly that the only option they wish to have under consideration is ?the direct recruitment of Driver Testers to the RSA to address the surge. Both parties are committed to "engagement on the matter. Market Sounding The RSA has conducted a market sounding in early February in order to- explore further the likely market interest in providing the service, and to validate some ofthe assumptions made in respect of the option of external delivery. The outputs from this exercise are currently being examined but largely do not upset any assumptions made to date. Evaluation of options In order to reach a decision between the options under consideration, the RSA is currently evaluating the key aspect of meeting the surge demand in terms of timelines, resourcing needs, and financials with a successful outcome being what is best for the public interest. Timelines Preparedness to meet the surge in demand is a critical element ofthe delivery option selected. Once a legislative change is in place, the demand is very likely to arrive en masse and not in a phased manner and any delay in addressing the surge activity will lead to increasing waiting times for driving test customers who will be aggrieved that the RSA is unable to deliver them a test appointment to become compliant with the legislation. This would have an impact on the public?s confidence in the RSA. Therefore in the assessment of options, the ability to have all aspects of staffing, training, processes, systems, and governance ready and in place before the demand comes is a crucial factor. Resourcing needs Additional volumes of testing require, in addition to Driver'Tester staffing requirements, resources in a support capacity in administrative and Driver Tester Technical supervisory grades in the RSA across both options in a different capacity to ensure efficient administration, customer service, and monitoring the quality assurance of driving tests. Financial The cost of delivering both options is also a critical factor in determining a decision, particularly the impact 0n the revenue reserves which are already committed to investment in the RSA Corporate Plan 2016 2020. The net position of cost versus revenue is set out under each option based on the finance forecast to date, however this is subject to change due to market soundings and the need to firm up some of the potential costs of each Option. I . . Timelines PrOgress to date 0n estimating the time it would take to put in place the required levels of Driver Testers and support staffing, including the roll out of training of new Driver Testers, indicates that the first batch of new Driver Testers would become operational in mid?June 2018, with full implementation by mid-November 2018. This is aided by the fact that there is already a Driver Tester recruitment drive in place which aims to have 100 Driver Testers on a panel. Direct Employment Option Estimate Timeline was! are: (3min Vmiahuh rant: . Emmet we and ham :71 mm: Wm that? Mm [nuns Imam: magmas. Mail ?Help: :0 I ?luzcn (New mirag- ?fl-I Edd! Dru" Yul-n s. II: 10137:" swaths-Ml j'BnuklaM-iaiims ?mama 1 mm Mlduu \?el - 10 Your" EM Sam! New girnml "n i NH: WI 6! ?atnl?t 91d rum $195,419th 2018 2?18 Him Ilmdwuin WM: .1 all?? pm ?on! Mn}! 0! with Imam-dun, t?im Walk-rt)! Mi! Math? Mash} rag-mm wt - 213 team mm. an! Mm mm mt- in 1mm ?wtm? 1m MI #15111 glared BT ur- Madam new; ?41 ?i nectar 4M Warming {Mantra in?rmity [at .nadnunqi allkm (4-1 Resourcing The following is the current resourcing estimate, based on volumes of activity across the medium and high volume application projections. Hire-Driver'Testers' Hire rations Su ervisor Hire Ma er Hire Qual Standards Auditor Hire Clerical ?Office'rs Hire Executive Officers Hire HEO Financial The following is the work in progress on the net position between costs and revenue of the option of direct recruitment, which may be subject to change: A detailed breakdown of finance forecast is available in Appendix A. OptIon DeIIvery of clrIVIng tests by an external promder for a SpEleled period Timelines Progress to date on estimating the time it would take to conduct a procurement process to contract an external provider to deliver the required Driving Test services to address the surge activity indicates that the first batch of Driver Testers would become operational at end October 2018, with full implementation by mid?March 2019. This is based on an assumption that following award of contract, it would take an external provider a minimum of three months to establish itself to deliver the service, followed by training of Driver Testers. This assumption may be amended following the market sounding exercise in early February. External Provision Option Timeline bk.? can hand? lint ?Maxim! Inning nth": Ma- 6?1 Pwudk? l?lht?a'm: Ewe-low! 1. be?, ?fun? HM hunk oi (Ham ?l'uiln ("Mr taut?) magnum] lam-?ts (re?t-?1m? I momma?mim nuns 2: mm: ?at! ml .. 3634!? um a no 5 (with! In luv i 2018 '5 -Pnu lam! 19mm in- ?scum-mm Stun! hm!- HI mm ?with high 0104?! ?um-mu Inter; ton-aims! HMRman-?x?tnlm L'Ikdun'h?olt?vi?io? ful?l!? Itamid, we min. taint (also at 11m" n1 haw! Chuk- I'll. Lulu-u I ?If Resourcing Hire river esters .. 0 0 Hire Operations Supervisor 3 4 ?Hire Region Manager 1 1. Hire Quality Standards 1 2 Auditor Hire Clerical Officers 8' I 10 Hire Executive Officers 2 2 Hire HEO 2 . . . - 2' Financial The following is the work in progress on the net position between costs and revenue of the option of external delivery, which may be subject to change. It displays 6 scenarios based on the fee per t'Est which an external provider may charge: Medium Volume High Volume LNetPOSition.. 300423 577567 .. Medium Volume High Volume Net Positien .. (612.1375) . . .. 4 (686,247) High Volume Medium Volume #3 Net Position Medium Volume High Volume (2437971) Medium Volume High Volume . . . (47477589) Medium. Volume High Volume . 4? .i49763567i Current position: The RSA has not arrived at a preferred option to date and wishes to fully review and examine the feedback from the recent market sounding exercise and engagements with .Forsa. Appendix A Financial Forecast Work in Progress Medium Hire Driver Testers Hire Driver Tester Hire . Qua Auditor Hire Clerical'Officers Hire Hire . Executive Officers Driver Overtime '67 Driver Tester Overtime 5 RSA DT Tra Of?cers 3 ra Aliowance refer to int! trai for refer to intl trai Bonus- irect Costs. refer to Extract from VFM Estate costs refer to Extract from VFM Hire Driver Testers Hire Driver Hire 36,111 47 060 62,711 7 707 10 416 500 tabs for each tahsfor each 27% of DTS Total costs 9% of DTS Total 3,536,770 250 540 94 285 82, 208. 36 108 47 59 187 699 1,417,999 47 666.30 250- 44 94,284.740 500 80,500 253 5 334 053.92 94 284.83 and Standards Auditor 8 .46 2 94,119.25 Hire Higher Executive Of?cers 2 125 422.26 5 3 Hire Clerical Officers Hire Executive Of?cers Driver'Tester Overtime 5 .91 OT 0? Allowance refer to intl t'raini tabs for each for Train refer to intl tabs for each PotentialBonus Scheme- lndirect Costs Extract from VFM 27% of DTS Total costs 324 49.47 Provision for Additional costs 'to build link between two Estate costs assumed that the contractor locations as of Contractor Costs Scenarios Scenario 1: If External Costs are set at ?68 80% of the DT fee ?85 Scenario 2: if External Costs are set at ?76.External Costs areset at ?85 100% of the DT fee ?85 Scenario 4: If External Costs are set at ?93.50 (110% of the DT fee ?85 164 416.43 108.08 94 119.000 217,567 414 79.93 10 JNetfhb'sitidFt? .. (2437371)- (3,213.8751; Scenario 5: If External Costs are set at ?102 (120% of the DT fee ?85) Nip. '5 f. Scenario 6: If External Costs are set at ?110.50 (130% of the DT fee Netposmon Appendix Driving Test Waiting Times. (cars) 3 February 2018 Waiting Wait (Weeks) Time (Weeks) Athlon'e 13.9 15 Ballina 10.7 17 11 Birr 8.6 16 Buncrana 17.6" 25 Carlow 14.0 17 Carrick-On-Shannon 14.5 18 Castlebar 12.3 18 Cavan 18.8 23 Churchtown 11.3 17 Clifden 17.1 18 Cionmel 16.0 19 Cork' 15.8 23 Donegal 18.6 21 Dundalk 13.5 17 Dungarvan 13.5 14 Ennis 15.1 22 Finglas 11.6 18 Gaiway 14.1 17 Gorey 13.1 24 Kilkenny 17.1 18 'Killarney 13.4 22 Kilrush 12.0 23 Letterkenny 15.7 16 Limerick 15.3 18 Longford 13.4 18 Loughrea 13.1 19 Mallow 17.0 23 Monaghan 17.7 22 Mullingar 15.0 18 Naas 13.7 20 Navan 15.2 18 Nenagh 16.5 18 Newcastle West 14.3 19 Portl'aoise 16.8 18 Raheny 12.7 18 Roscommon 13.0 14 Shannon 10.9 .19- Skibbereen 14.5 19 Sligo 10.3 12 Tallaght 10.4 16 Thurles 18.4 20 12 Tipperary 17.0 19 Tralee 13.7 26 Tuam 15.8 .18 'Tu'llamore 14.5 16 Waterford 16.1 20 Wexford 16.2 18 Wicklow 14.7 21 13 Helen From: Helen Sent: 19 February 2018 17:21 To: 'Niall Quinn? Cc: Ciara deBurca Putt Subject: RE: Driver test waiting times Hi Niall, The Road Safety Division of the Department of Transport, Tourism and Sport is aware of the issues raised in recent Forsa article, and we are working closely with the RSA to prepare for the expected increase in demand. We are also in contact with the relevant Vote section of DPER on this matter. The "wholly inadequate? '5 additional testers to be recruited, as mentioned in the F?rsa article, relate to a previous sanction granted to the RSA in September 2017 to cover upcoming retirements. The Department is examining the demand surge options presented by the RSA, along with new staffing requests to meet the current demand. Please let me know if you require any further information. Regards, Helen Helen 0 Reilly Road Safety Division Department of Transport, Tourism and Sport Leeson Lane, Dublin 2, 002 TR60, Ireland Twammt were .. is? ?mm? - imam- and fame Tel: +353 (0) 1 604 1406 Email: helenoreilly@dttas.ie From: Niall Quinn Sent: 19 February 2018 15:56 To: Helen Cc: Ciara deBurca Putt Subject: Driver test waiting times Hi Heien, Thanks for returning my call earlier. The following link will bring you 'to the Forsa article I mentioned: I?d welcome your take on the points raised by FORSA in their article. Regards, Niall Niall Quinn Public Service Sectoral Pay and IR Department of Public Expenditure. and Reform 5th Floor 7?9' Merrion Row Dublin D02 V223 Phone: 076 100 7260 Email: niall.quinn@per.gov.ie Fin Return Caiteachais Pheihli - ages Department of Whiic Exeen?iture anti Reform The information contained in this email (and in any attachments) is con?dential and is designated solely for the attention and use of the intended recipient(s). if you are not an intended recipient of this email, you must not use, disclose, copy, distribute or retain this message or-any part of it. if you have received this email in error, please notify me immediately and delete all copies of this emaii'from your computer system(s). Please note that this email and any reply thereto may be subject to a request for release pursuant to the Freedom of Information Act. Ta an fhaisneis eta sa riomhphost see (agus- in aon cheangalt?in) faoi ri'm agus is don inaignteoir/do na faighteoiri beanaithe agus e/iad sin amhaini Mura tusa an faighteoir beartaithe, nior cheart duit an teachtaireaoht seo na aon ehuid di 3 us?id, a nochtadh, a choipeailg a dha?ileadh ne a Choinneail. 8a Chas gur tri earra?id a fuair to an riom?tiphost see, tabhair fogra dom laithreaeh faoi sin egos series gash coip den riomhphost seo 0 do Tabhair faoi deara go bhteadfaidh an riomhpl'iost seo agus eon fhreagra air bheith faoi r?ir iarraidh er a eisiuint de bhun an Achta um Shaora?ii Faisneise Safety Autharity? EH36 Test. Centre 4. wmg? a . F. Potential Surge in Driving Test Demand Scenario Planning Updated 19th February 2018 With Recommendation and Responses ries Raised by DTTAS on Introduction The. Road Safety Authority (RSA), is the agency responsible for reducing death and injuries on lrish roads. The RSA is responsible for the Driver Testing Service in lreland. The proposed new Road Traffic (Amendment) Bill 2017 contains sanctions for Learner Drivers driving unaccompanied. The RSA welcomes this as it is considered likely to serve as a significant deterrent to learner permit holders who may be tempted to drive unaccompanied by a qualified driver. The proposal has the potential to have a significant positive impact on driver behaviour. Given the large number of learner drivers in the country as outlined in Table 1 below, many of whom are on their second or subsequent learner permit, the RSA envisages that the legislation will bring about a significant increase in driving test applications within the first 12 18 months of its introduction and have been assessing that impact on the Service. The Service is already experiencing long waiting times for customers to obtain an appointment for their driving test, due to current capacity levels and an increase of applications over the past few years. This has. impacted on the aim to meet a waiting time of ten weeks or less. Current waiting times for driving tests are included at Appendix attached, which shows that some customers across 15 Test Centres have been waiting between 20 26 weeks for a driving test. The additional demand for tests, over a relatively short period of time, will require a significant increase in the level of resources required to deal with that demand in a timely manner in order to avoid waiting times increasing further to the times outlined in Table 2 on the next page. Dat?e@ Number of LP holders increase year on year {?s?b/ii/id? . 247,891 . "Down1% 31/12/2016 . 249,657 5 up 4% 31/12/2015 3 240,442 Up 2% 31/01/2015 - 235,354 Table 1 Number of Learner Permit holders 2015 201 7 Please note that the current Driver Licensing System does not hold data on the number of learner permit holders subject to EDT. Based on the date of introduction of the EDT requirement in April 2011 we estimate that some 47,500 learner permit holders are not required to undertake EDT. Of the remainder we don?t have visibility of whether they are in the process of undertaking EDT or indeed have not started to do so. The RSA has conducted an impact analysis and are currently examining. the viable options available to address this issue with two options being assessed direct recruitment of Driver Testers to the RSA and the delivery of driving tests by an external provider for a specified period. The recent Value for Money and Policy review published by the Department of Transport, Tourism and Sport late in December 2017 recommends that the RSA examine a potential alteration to the delivery method of the Driver Testing Service including an appraisal of whether the Service could be delivered by an external provider. This is another reason why this option is currently under consideration by the RSA. The report issued previously to the Department of Transport, Tourism and Sport by the RSA outlined the impact assessment which the proposed legislation may elicit to the Driver Testing Service. It'identified that the demand is likely to be more active within the first 12 18 months of the legislation being implemented and anticipated the following levels of increased activity across low, medium and high bands: .UkeWswse numbers . 52.18.74 . 85.19.19 .. 118947.. .. iBeessits-?JSforfailurss . . 99,218.. 21478 297.97 iTetelsdditionalt99t9required, i . ..66.09-2 . . . . .,1489.684 Waiting time without 30 weeks 55 weeks 68 weeks 41 67 .92 Table 2 tame surge it} ?5658 gram-mg ?tests The anticipated demand outlined in Table 2' draws from experience in the past as- to the impact of legislative change to demand for the driving test. In 2007, the law affecting learner'permit holders was changed, resulting in a major increase in demand for driving tests 460,000 applications in the 14 month period after the legislative change. Significant to note is that the. law in 2007 only affected a subset of learner permit holders, while the current proposals potentially impacts every single learner permit holder. Consultation with Trade Union The RSA has formally commenced consultation with Forsa, the Trade Union representing Driver Testers and Driver Tester Supervisory grades, to inform them ofthe potential surge in demand, in order to supply them with the facts to date and to engage on the options under consideration. Forsa have indicated strongly thatthe only option they wish to have under consideration is the direct recruitment of Driver Testers to the RSA to address the surge. Both parties are committed to engagement on the matter. Market Sounding The RSA has condUcted a market sounding in early February in order to eXplore further the likely market interest in providing the service, and to validate some of the assumptions made in respect of the option of external delivery. EvaIUation of options in order to reach a decisiOn between the options under consideration, the RSA is currently evaluating the key aspect of meeting the surge demand in terms of timelines, resourcing needs, and financials with a successful outcome being what is best for the publicinterest. Timelines Preparedness to meet the surge in demand is a critical element of the delivery Option selected. Once a legislative change is in place, the demand is very likely to arrive en masse and not in a phased manner and any delay in addressing the surge activity will lead to increasing waiting times for driving test customers who will be aggrieved that the RSA is unable to deliver them a test appointment to become compliant with the legislation. This would have an impact on the public's confidence in the RSA. Therefore in the assessment of options, the ability to have all aspects of staffing, training, processes, systems, and governance ready and in place before the demand comes is a crucial factor. Resourcing needs Additional volumes of testing require, in addition to Driver Tester staffing requirements, resources in a support and ancillary services and technical supervisory grades in the RSA across both options in a different capacity to ensure efficient administration, customer service, and monitoring-the quality assurance of driving tests. Financial The cost of delivering both options is also a critical factor in determining a decision, particularly the impact on the revenue reserves which are already committed to investment in the RSA Corporate Plan 2016 2020. The net position of cost versus revenue is set out under each option based on the financial information available in house and from the market sounding. Fail Rates Under either option, it is anticipated that the fail rate may rise, as many ofthe cohort who have been driving on. a learner permit haven?t taken lessons at all or in a long time. Timelines Progress to date on estimating the time it would take to put in place the required levels of Driver Testers and support staffing, including the roll out of training :of new Driver Testers, indicates that the first batch of new Driver Testers would become operational in. mid-June 2018, with full implementation by mid-November 2018. This is aided by the fact that there is already a Driver Tester recruitment drive in place which aims to have 100 Driver Testers on a panel by mid to late march 2018. Direct Employment Option Estimate Timeline m? m. aw: (billh'tt?hc ransom-lulu ??reman Inuit use? much Mae! ?esh-mu: Nuthatch alarm tram mm 1' a renamed. mam-w! )0 ream (He?s my. lam-h ?brin: run-u Pith we - 35 gyro-H: burrs-us ?uidly"! i Mull?gh?fni - swarm -- mm and [null-um ma tum felv'Mmh 2018 20:8 ?wrist? in Oiu?m um. Hawaiian, mum Ml Imus-m Mam ?mm was to team mt: {my #341 High Vol - In rats-4's (mums mu Asa-1 signed 01 ten ?Rf he minim-?kc 5? amt-u an: data mute as is: (?mm 5mm}; in! ml Mimi Mm): In! Resourcing The following is the current resourcing estimate, based on volumes of activity across the medium and high volume application projections. Hire Driver r5" Hire 0 tions Su or Hire on Man er Hire Quali Standards Auditor Hire Cle'r'icaliOfficers Hire EXEcutive Officers Hire HEO It must be remembered that there would be a phased approach to the deployment of the proposed 67 testers under this option on account of in?house training capacity. The 67 testers needed would have to undertake a 7 week training programme and this training is facilitated by our internal cohort of Training Officers with training to be delivered on a phased basis. It is anticipated that by the end of September .2018, the Authority would have these resources in place. The Authority would periodically review the requirement to take on such a number of testers at regular intervals in 2018, and take account of employments contracts, specified purpose in nature would be reflective ofthe. need for the employments. What happens with the Human Resources if the Demand Surge does not materialise? As such, it is proposed that the deployment of 27 extra driver testers could clear the current backlog. However, it would likely be into 2019 before waiting times generally returned to the target-of 10 weeks or less. if 67 new driver testers were deployed in a phased manner, and the surge doesn?t materialise, a much quicker return to the 10 weeks wait would be expected and the target of ten weeks could be surpassed. In the event that the surge doesn?t materialise the RSA would proactively target-on a phased basis those learner drivers who have held multiple learner permits so that they undertake a driving test- in fact this is an action set out in the Road Safety Strategy that we haven?t been able to move on because of the existing backlog. Currently there are almost 66,000 drivers on a third "or subsequent learner permit. it is likely that-some legislative change. would be required in .order to strengthen and ensure the effectiveness of such an approach. Does this impact Current Plans to Address Existing Demand Levels? In respect of current demand levels, the Authority?s plan is to formalise the existing 23 testers currently on short term contracts and then seek sanction for a further 25 testersto meet existing demand as it'fall-s due? followed by a further 20 testers to meet the surge as it materialises. Financial The following is the work in progress on the net position between costs and revenue of the option of direct recruitment, which may be subject to change: g/Net Poet-.00.. -A detailed breakdown of finance forecast is available in Appendix A. Administration Matters Under the Direct Employment Option, the Authority will meet ali the costs of this option from its own resources. in respect of direct recruitment, all staff recruited under this option will be members of the Single Public Service Scheme despite the term of employment being for a period of 12-18 months. On account of this being less than 2 years, when these testers leave, they will be refunded their pension contributions. At present, the Authority?s position with regard to the employees that are under the. Single Public Service Scheme is that the pension obligations that fall due are the liability of central exchequer. The Authority is currently clarifying. this position with DPER at present. in order to be. prudent and to include full costs in this evaluation, the financials of this option {are outlined in Appendix A and includes a 6% element relatingto employer contribution pension costs. In' respect of all staff in the Authority, regardless of whatwhat pension scheme they are a member of, the Authority pays over the employee superannuation contributions to the Department of Transport Tourism and Sport. The unit cost per grade as outlined in Appendix A does include all costs including the employer P-RSI cost of 10.75%, travel and subsistence, cost of hardware provision and related recruitment costs. The in?house option of direct recruitment has included an allocation of 9% of total costs of the Driver Testing Service. This is based upon the recent DTS Value for Money and Policy Review (Page 6-2). These. costs are included to ensure-that the complete population of cost is included in each option to ensure an objective evaluation takes place between the options. The potential profit of? 1.985m being made by the Authority under the medium volume scenario, at present, the current Driver Testing Service is returning a profit to the Authority This profit is redistributed across the Authority to meet the costs of other elements of our road safety mandate including meeting the costs of the road safety promotion, education and awareness programmes. The current profit is also being used to fund the current Authority?s Capital Investment Plan as outlined in its Corporate Plan 2016 to 2020. ifthis profit of 1.985m materialises under this option, the Authority will look at its overall financial position including its reserves and engage with the Department of Transport Tourism and Sport to View its impact on our Corporate Plan. The Authority has revised its financial projections in its Corporate Plan 2016 to 2020 for the years 2018, 2019 and 2020. This is on account of a revision of the implementation roadmap of the Corporate Plan and these revised Revenue Reserve figures for these years are as follows; 2018 - 7.1m 2019 7.4m .2020 - 8m As such, the reserves are planned to materially reduce in 2018 on account of material investment in the capital infrastructure in the Authority this year where a planned deficit of 1-8.2m is projected. The financials included in this paper are not yet taken into account in these revised financial projected. Timelines Progress to date on estimating the time it would take to conduct a proturem?ent process to contract an external provider to deliver the required Driving Test services to address the surge activity indicates that the first batch of Driver Testers would become Operational at and October 2018, with full implementation by mid-March 2019. This is based on an assumption that following award of contract, it would take an external provider a minimum of three months to establish itself to deliver the service, followed by training of Driver Testers. This assumption may be amended following the market sounding exercise in early February. External Provision Option Timeline pink I: In? Hulk ?n ?Baum! midi-e af?rm ?rst Pawn-15m aims. lmfm?mtmeumra teams: NW1 lee-zine lull-k6 It) rim and. a! Draw: Inn-n a; "mm! I {l??lmm Wall wi- 20 Inim Vii - (W semi 3 tarantula" m?uw a mama - ??11054 - Whilst: 1M2- mm a! (trim Tram Hub Vol a :5 harm In: Inn 2018 him ?um i WW in Fawn-mam Mm?k his"! Mane! bum try-Jun unusual] #:536de hum minim". b. mam-at so new ??ame. amt-d. ?mm; ?1 sun, serum (about 91mm mm is alien Miriam intern-mm that it?! Resourcing Hire Driver Testers '0 Hire Operations Supervisor 3 4 Hire Region Manager 1 1 Hire Quality Standards 1 2 Auditor Hire CleriCaI 'Of?CErs 8i 1'0 Hire Executive Officers 2 2 Hire rim 2 2. Financial The following is the work in progress on the net position between costs and revenue of the option of external. delivery, which may be subject to change. It displays 6 scenarios based on the fee per test which an external provider may charge: ,r Medium Volume High Volume. 5 Net Position _7 300,423 577,567 Medium Volume 3 High Volume 2.,NetP05iti9" (6123.75) .. .l585247l Medium Volume High Volume iNetPOSition . (1,525,173) . (12950961) Medium Volume High Volume fNetPOSitiOm, 7,791,437,971) . (312131.875) . Medium Volume High Volume . .. ,l?-r4772689l I Medium Volume High Volume .?WNie't; Pesi??h. Administration Matters Indirect costs under this option is less than the direct employment option on account of there being less direct staff being employed and the reduced need for support and ancillary services in the Authority for this option. Please note that indirect costs are calculated using the same basis of 2.7% of direct costs under each option to ensure objective analysis. (VFM Report Page 62). The Authority is satisfied that it has the requisite powers and vires under Section 28 (5) of the RSA Act 2006 to outsource an element ofthe Driver TestingService. Once the Authority" obtains policy direction from the Department of Transport Tourism and Sport and Department of Public Expenditure, if the outsource option is preferred, then the Authority will seek the consent of the Minister and the agreement of the Minister for Finance (now PER), to outsource a function of the Authority by agreement. Current Position: The RSA has examined the feedback from the recent market soundings relating to the external delivery of driving tests under the criteria of potential timelines to have an external provider in place" and operational, and the cost of external delivery. We have analysed this against the timelines and cost of delivering the capacity via direct recruitment which is summarised as follows: Option A Direct recruitment Option External delivery Timelines Given there is currently a Driver Tester recruitment drive in process which will be in place mid-March 2018, this option will deliver Driver Testers more speedily to ?the RSA in order to train them. Additional Test Centre infrastructure would be required and as a contingency the RSA would seek to set up temporary locations at hotels. The RSA will engage with the OPW on options. Existing ICT infrastructure would require only minimal intervention. internal upskilling of Training Officers required to facilitate the additional numbers of testers. Administrative and support functions will face capacity challenges in managing the increased staffing levels. A procurement process would last three to four months. We had estimated a 3 month lead in time following procurement, which the market soundings confirmed as a minimum. Speed to become operational was quite varied among the Suppliers depending on their existing infrastructure. infrastructure being in place was also varied amongst Suppliers. The RSA would require infrastructure being put in place for file handling and transfer. Cost The net position between costs and revenue ofthis option: 6 scenarios of the net position between costs and revenue ofthis Option were set out in the original RSA paper. From the market 10 Medium Volume soundings, Scenario 3 where external costs are sat at ?85 (100% of test fee) would appear the closest High Volume estimate including a contingency, Surplus - ?1,985,467 Surplus - ?2,598,494 Medium Volume Deficit - ?1,525,173 thvmume Deficit - ?1,950,061 Learnings from Last Time Driving Test Application Surge took place in 2007/2008 As part of the scenario analysis in respect of this projected demand surge, it is important to review the last time this happened in 2007/2008 and to see if there are any lessons that inform decision making at this time. in 2007 there were existing driving test backlogs and in October of that year legislation was enacted removing a rule that allowed learners to drive unaccompanied on their second Learner Permit. While there was an expectation of additional driving test applications on foot ofthis, an avalanche of applications was received. To give it a context in the year 2007 an average of 4,000 applications was being received weekly up to the October announcement; in the rest of 2007 after? the announcement the average was 11,000 per week. The weekly average in 2008 was almost 7,000 applications, and 'it wasn?t until the last two months of 2008 that we began to see the average fall back to 4,000 and under per week. When the problem arose in 2007' we had an existing contract with an outsourced provider to deliver driving we extended to allow us to meet much ofthe additional demand within a six to nine month period. This helped to lessen the RSA reputational issues around public dissatisfaction with the huge numbers waiting. Incidentally, the legislation providing for the change to the unaccompanied rule was amended in October 2007 [a few days after its enactment] and the date for the abolition of the unaccompanied rule was pushed out to 30 June 2008. The significant lesson learned is that a phased introduction of a change to rules impacting on drivers is important. it is important to note that the current proposed change impacts all learner drivers [who choose to drive unaccompanied] while the 2007/08 change impacted only on a particular cohort (second Learner Permit holders). The key learnings are; 0 A phased introduction of a change to rules impacting on drivers is important - Adequate time and resources must be given to perform an impact assessment of legislation or a rule change 11 Adequate planning with all relevant stakeholders must take place prior to the rule implementation to assess options and to put ?in place a demonstrable roadmap and plan to cater for" high levels of demand and unintended consequences 0 Another lesson from 2007/208' is that the outsource option did cost the Authority 20.2m and from a value for money perspective, it informs that the in-house solution is more cost effective 0 If the outsource option is pursued, there must be- strong governance and oversight arrangements in place in respect of technical and training and test'supervision to ensure technical and quality standards are maintained across the solution and in all locations. Recommendation: Option A - Direct Recruitment is emerging as the most preferred option to address the potential surge in demand for driving tests from a timeline and cost perspective. This- option brings with it the risk of employing 67/92 Driver Testers in order to be prepared for the potential surge, and the surge then not materialising. This would be mitigated somewhat by having Specific purpose contracts in place which would allow us to release them from employment once the specified purpose for their employment no longer exists or indeed does not transpire. The resourcing of this option therefore would be also within our control. It would be proposed that we could assign the resources-to locations where the need is presenting as greatest and this could be done on a 12 or 18 month contract dependent on factors such as waiting times, number of learner permits in certain areas etc. Our learning from the recent past and thesimilar situation which arose circa 2008, has also led us to place significant value and importance on the area of quality assurance and with Option A, this is entirely'within our control and will maintain the integrity of the Test. This is intangible and cannot be measured but is a significant consideration for the RSA in 'rEaching a preferred option. The public?s interests are best served by the need being met with as quickly as possible in a manner and this is deliverable via Option A. We would urgently request a meeting with DPER to progress this option and secure. sanction in advance of the passing ofthe legislation and. ultimately commencement of the order. 12 Appendix A - Financial Forecast Work in Progress Medium Hire Driver Testers 460 Hire Driver Tester 417 Hire 94 94 188- 70 and Standards Auditor 82,208 82,208 164 416. Hire Officers 1 111 103 505 51 Hire Executive Of?cers 47,060 47,060 47,060 Hire Executive Of?cers 62 7'11 711 62 711 DriverT Overtime 7 707 51 709 1 Driver Tester Su Overtime 10 416' 5 93 740 RSA DT Train Office rs 500 1 2 Aliowance refer to intl traini tabs for each 59 80 for Traini refer to intl tabs for each 187 699 253,945 indirect Costs refer to Extract from VFM 27% of DTS 1,993,165 Estate costs to Extract from VFM 9% of DTS Total Costs 472,666.30 New RSA Hire Driver Testers Hire Driver Tester 334 .92 Hire . 94 284.83 Hire Qua and Standards Auditor 164,416.43 13 Hire Clerical Officers 8 10 36,111 288,886.46 361,108.08 Hire Executive Of?cers 2 2 47,060 94,119.25 94,119.25 Hire Higher Executive Officers 2 2 62,711 125,422.26 125,422.26 Driver Tester Supervisor Overtime 5 7 10,416 52,077.91 72,909.07 Upscaling RSA DT Training Of?cers 3 5 500 1,500.00 2,500.00 Training Allowance (refer to intl training tabs. for each forecast) 51,000 69,000 . fer Training ((refer-to intl training tabs for each forecast) 160,885 217,667 indirect Costs (See Extract from VFM report 27% of DTS Total costs) 324,249.47 414,579.93 Provisionzfor Additional-ICT costs-required to build link between two systems Contractor Costs Scenarios Scenario If External Costs are set at ?68 80% of the DT fee ?85) Scenario 2: If External Costs are set at ?76.50 90% of the DT-fee ?85) 3' If External Costs are set at ?85 (1009? of the DT fee' ?85) Scenario 4: If External Costs are set at ?93.50 (110% of the DT fee ?85) 1 Scenario 5: If External Costs are set at ?102 (120% of the DT fee ?85) 'f'Netbo'Siticr'i' - . 3 - 1 (4377.539) Scenario 6: If External Costs are set at ?110.50 (130% of the DT fee w?rp?suib? - . i (4,263,567) 3757414503)? 15 Road Safety Authority Driving Test Demand Decision Required Road Safety Division is requesting approval from the Minister to appoint a'dditionai staff to the Road Safety Authority (RSA) to manage the possible surge in driving test applications following the introduction of additional sanctions for learner drivers driving unaccompanied. Backgrou nd. The Road Safety Authority (RSA) is a noncommercial agency under the aegis of the Department of Transport Tourism and Sport. The RSA is responsible for the driver testing service in Ireland. Driving tests are delivered across 52 test centres nationally. The service has seen an increase of almost 20% This has meant that waiting times national average of 13.4 weeks (as to meet existing levels in the levels of driving test applications over the last four yejz? for tests have increased from the RSA objective of 10 weeks at beginning March 2018) The driver testing capacity is currently of demand and the RSA Is undertaking initiatives in: order to increase capaCIty to deliver extra driving tests. The Road Traffic (Amendment) Bill 2017, current tht'hugh the Dal?liontains additional sanctions for learner drivers driving . currently nearly 250, 000 learner permit holders In Ireland, many of whom fire on their secon (or subsequent learner permit. The RSA envisages that the legislation will brInglabout an"'ncrease of bet? een 53,000 to 119, 000 driving test applications within the first 12 18 months of Its Introduction-H increasing to an estimat?d ?eks. The InItIatIves th SA 5 takin to meet existing test demands will not be sufficient to andle the. Xpected surge] pplIcatIonsgithat Is likely to materialise. result in waiting times Initial Review of Options Option 2: Surge forty. tic-Is met externally, and the RSA administer internally. Option 3: Both the surge and the administration are met externally. In reviewing the options, the RSA has drawn from experience in the past in anticipating demand. In 2007 the law affecting learner permit holders was changed, resulting in a major increase in demand for tests. 460,000 applications were received in the 14 months period after the legislative change that affected only a subset of learner permit holders. The current proposals potentially impact all learner drivers. Based on a test demand forecast model, the RSA estimates that 2018 could see a demand of up to 150,000 applications in addition to the normal expected annual volumes of 160,000 (Table 1). 'Low Volume Medium Volume High Volume Likely surge numbers 52,874 85,910 118,947 Repeat tests for failures 13,218 21,478 29,737 Total additional tests required 66,092 107,388 148,684 Waiting time without 30 weeks 55 weeks 68 weeks intervention Additional testers required 41 67 92 Table 1: Low, medium and high volume estimates for surge volumes Following the assessment criteria evaluation, option 2- for the surge test to be delivered externally with RSA administration - Was ranked first. Options 3,1 3, 0 then folIOWed The RSA then proceeded to further asses the options, carrying out more ed analysis, planning and testing of assumptions and restricted market soundings to gauge foutsourceOptions. RSA Recommendation Sent with the updated-5:, tential Surge in Driving Appendix 2), Eollowing f'eejjmback from market soundings, the viable options availa? e, to address th ave been narrowed down to two options: In_ February 2018, the RSA presented the Dep'a, Test Demand Scenario Planning submission 'r'ge demand" Was made under the criteria of and operational, and the cost of external Option Option Direct recruitment External Provider Timelines Driver TesterirecruItment drive A procurement process would last 3 If}, rocess? therefore will to 4 months. 3 month minimum "deliver test" more speedily to RSA to lead in time following procurement. Speed to become operational varied among suppliers depending on existing infrastructure. Resourcing Needs Additional test centre infrastructure RSA require ICT infrastructure in required RSA to set up temporary place for file handling and transfer locations at hotels, and engage with this varied amongst suppliers. OPW on options. Existing ICT infrastructure would require only minimal intervention. Internal up-skilling of Training Officers required to facilitate additional no. of testers. Administrative and support functions will face capacity challenges in managing increased staffing levels. Finance. Net position between costs and External costs set at ?85 (100% of revenue: test fee): Medium Volume Medium Volume Surplus ?1,985,467 Deficit ?1,525,173 High Volume High Volume Surplus - ?2,598, 494 zp'?ficit - ?1,950,061 Table 2: Option EvoluotIon The RSA recommends the direct recruitment e. Option (a as the?most preferred option to address the potential surge in demand for driving tests fro- .. the surge at the medium volume of applicants this would entail the appomtment of 67 additional driving testers and 17 support staff. There wou a phased approach toithe deployment of the proposed 67 testers on account of in- h?ouse trainingcapaCIty- A recent drIVer tester recruitment a-,timeline anwncost perspective. Planning for The RSA propose to employ the additional driver testers on specific purpose contracts which would allow the RSA to release them from employment once the specified purpose for their employment no longer exists or indeed does not transpire. It would be proposed that the RSA could assign the resources to locations where the need is presenting as greatest and this could be done on a 12 or 18 month contract dependent on factors such as waiting times and the number of learner permits in certain areas. In the event that the surge doesn?t materialise the RSA would proactively target on a phased basis those learner drivers who have held multiple learner permits so that they undertake a driving test? in fact this is an action set out in the Road Safety Strategy that the RSA haven?t been able to move on because of the existing backlog. Currently there are almost 66,000 drivers on a third or subsequent learner permit. Financial implications The financial forecast prepared by the RSA for option shows a net gain ofjust under ?2 million (see Appendix B). The RSA maintains that it will meet all the costs of this option from its own resources. In respect of direct recruitment, all staff recruited under this option will be members of the Single Public Service Pension Scheme despite the term of employment being for a period of-12?18 months. On account of this being less than 2 years, when these testersnleave, they Will be refunded their pension contributions. The forecast includes a 6% element rela. ifo employer contribution pension (205125. The unit cost per grade outlined in the forecast inclu ding the employer PRSI cost of 10.75%, travel and subsistence, cost of hardware" . vision and related recruitment costs. The forecast includes an allocation of 9% of total ca: 'f the Driver Testing-'Sff'rvice. This is based upon the recent DTS Value for Money and Policy Revie 7? 62). .. Grade . Unit Cost Year 1 Costs DriverTester . 52,788 3 536,796 Driver T'ester Su rvisor . 83,513 250,539 "Re Mana er - 94,285 94,285 Qual Standards Auditor 82,208 82,208 Higher Executive Officer 62,711 62,711 Executive Officer 47,060 47,060 Clerical Officer 10 36,111 361,110 84 458,676 4,434,709 Table 3: Grade and Pay Breakdown RSA Staff The RSA pay all their own staff, including the driver testing staff, from their own funds. The new driver testers and new ancillary administration staff would be paid from the RSA funds also. The pensions of existing RSA staff are paid by the Exchequer, with the RSA making a pension levy return for the superannuation contributions from all employees to this Department each month. This levy is then forwarded to the Exchequer. The new staff wiil go into the Single Public Service Pension Scheme. Section 18(3) of the Road Safety Authority 2016 allows the RSA to appoint staff as it may determine with the consent of the Minister for Transport, Tourism and Sport, with the agreement. of the Minister for Finance. Current DT Staff Surge Plan Total Driver Tester 103 67 170 Chief Driver Tester 1 - 1 Region Manager 3 1 4 Operations Supervisor 6 9 Training Standards Manager 1 1 Quality Standards Auditors 2 3 Higher Executive Officer 1 2 Executive Officer 4 5 Clerical Officer 23 33 144 228 Table 4: Staff [Numbers DTTAS View The legislation will affect all learner drillers-Who drive unaccompanied regardless of whether they are on their first, second or subsequent ,permIt The RSA actIvely manage the regional spread of driver testers across the 52test centres natIonally, an": "will continue to do this with the additional testers employed to meetiihe demand surge .. rge dId not materIalIse or Was less than expected. The appointment of 20 addItIonal driver testers 'tially would help address the existing demand levels Having trained driver teste fen hand would also facrlitate permanent appointments following retirements. There will be 7 possibl:', retIrements occurring during 2018- 9. The financial forecasts prowdef'i?by the RSA shew a profit of just under ?2m for the direct recruitment option agaInst? t: of just over 5m for the external delivery option. From market sounding, a lead in time a ver 6 months minimum would be required speed to become operational was quite varied among possible suppliers. Option is deemed to be the best solution to prepare for the possible demand surge. A ?do nothing? scenario is not a viable option as waiting times are already exceeding the 10 week objective. Road Safety Authority Driving Test Demand Approval sought The Road Safety Authority (RSA) is seeking Department of Transport, Tourism and Sport approval to appoint, on temporary contracts, '67 additional driver testers and 17 support staff on a phased basis for a period of 12 18 months. The additional staff are required to manage the possible surge in driving test applications following the proposed introduction of sanctions for owners of mechanically propelled vehicles who allow learner drivers to drive the vehicle unaccompanied. Background The RSA is a non?commercial agency under the aegis of and is responsible for the driver testing service in ireland. Driving tests are delivered across 52 test centres nationally. The service has seen an increase of almost 20% in the levels of driving test applications over the last f0ur years. This has meant that waiting times for tests have increased from the RSA objective of 10 weeks to a national average of 13.4. weeks (as at beginning March 2018). The driver testing capacity is currently insufficient to meet existing levels of demand and the RSA is undertaking initiatives in order' to increase capacity to deliver extra driving tests (see Document 1 initiatives to increase capacity to deliver extra driving-tests). Road Traffic (Amendment) Bill 2017 The Road Traffic (Amendment) Bill 2017, currently progressing through the Houses of the Oireachtas, will introduce amendments regarding sanctions for owners of mechanically propelled vehicles who allow learner drivers to drive the vehicle unaccompanied. There are currently nearly 250,000 learner permit holders in Ireland, many of whom are on their second or subsequent learner permit. The RSA envisages that the legislation will bring about an increase of between 53,000 .to 119,000 driving test applications within the first 12 18 months of its introduction. This would result in waiting times increasing to an estimated 55 weeks. The initiatives the RSA is taking to meet existing test demands will not be sufficient to handle the expected surge in applications that is likely to materialise. Initial Review of Options The RSA undertook an initial review of options available to respond to the increase in driver testing demand (see Document 2 Managing Demand in Driver Testing (options review report)). This review considered 3 options, aiong with the ?as?is? option for comparison. These options were as follows: Option 0: As-is (no change). Option 1: RSA to internally meet and administer the surge. Option Surge for tests is met externally, and the RSA administer internally. Option Both the surge and the administration are met externally. In reviewing the options, the RSA has drawn from experience in the past in anticipating demand. In 2007 the law affecting learner permit holders was changed, resulting in a major increase in demand for tests. 460,000 applications were received in the 14 month period after the legislative change that affected only a subset of learner permit holders. The current proposals potentially impact all learner drivers. Based on a test demand forecast model, the RSA estimates that 2018 could see a demand of up to 150,000 (high volume which includes repeat tests) applications in addition to the normal expected annual volumes of'160,000 (see Table 1 below). Table 1: Low, medium and high volume estimates for surge volumes Low Volume Medium Volume High Volume Likely surgenumbers 52,874 85,910 118,947 Repeat tests for failures 13,218 21,478 29,737 Total additional tests required 66,092 107,388 148,684 Waiting time withoUt 30 weeks 55' weeks 68 weeks intervention Additional testers required 41 67' 92 Following an assessment criteria evaluation, option 2 the surge test to be delivered externally with RSA administration was ranked first. Options 3, 1 and 0 then followed. The RSA then proceeded to further assess the options, carrying out more detailed analysis, planning and testing of assumptions and restricted market soundings to gauge the feasibility of the? outsource options. RSA Recommendation in February 2018, the RSA presented the Department with the updated Potential Surge in Driving Test Demand Scenario Planning submission (See Document 3 Potential Surge in Drilling Test Demand Scenario Planning (Updated)). Following feedback from market soundings, the viable options available to address this issue have been narrowed down to two options: Option (3): Direct recruitment of driver testers to the RSA Option Delivery of driving tests by an external provider for a specified period. The evaluation of the external delivery of driving. tests under the criteria of potential timelines to have an external provider in place and operational, and the cost of external deliVery was analysed against the timelines and cost of delivering the capacity via direct recruitment (see table 2 below). Table 2: Option Evaluation Option (3) Option Direct recruitment External Provider Timelines Driver Tester recruitment drive A procurement process would last 3 currently in process - therefOre will to 4 months. 3 month minimum deliver testers more speedily to RSA to lead in time following procurement. train. Speed to become operational varied among suppliers depending on existing infrastructure. Resourcing Needs Additional test centre infrastructure RSA require ICT infrastructure in required - RSA toset up temporary place for file handling and transfer-? locations. at hotels, and engage with this varied amongst suppliers. I OPW on options. Existing ICT infrastructure'would require only minimal intervention. - internal up?skilling of Training Officers. required to facilitate additional no. of testers. Administrative and support functions will face capacity challenges in managing increased staffing levels. Finance Net position between costs and External costs set at ?85 (100% of revenue: test fee): Medium Volume Medium Volume Surplus - ?1,985,467 Deficit High Volume High Volume Surplus - ?2,598,494 Deficit ?1,950,061 The RSA envisage that once a legislative change is in place, the demand is very likely to arrive en~ masse. The RSA recommends direct recruitment Option as the most preferred option to address the potential surge in demand for driving tests from a timeline and cost perspective. Planning for the surge at the medium volume of applicants would entail the appointment of 67 additional driving testers and 17 support staff. There would be a phased approach to the employment of the proposed 67 testers owing to in-house training capacity. A recent driver tester recruitment drive by the RSA has established a panel of 100 driver testers. If training commenced in May?, the first batch of 20 testers would be operational by mid-June. Future phased intake would see the subsequent batches of testers coming on?line in August, September and November 2018. Lessons learned from similar situations have led the RSA to place significant value and importance on the area of quality assurance. With Option this would be entirely within the control of the RSA and will maintain the integrity of the driving test. This is a significant consideration for the RSA in reaching their preferred option. Demand Surge Does Not Materialise The RSA propose to employ the additional driver testers on specific purpose contracts which would allow the RSA to release them from employment once the specified purpose for their employment no longer exists or indeed does not transpire. As mentioned previously, the current driver testing capacity is insufficient to meet the existing levels of demand. To manage this, the RSA plan to seek sanction to formalise the existing 23 driver testers currently on short term contracts. However, it would likely be into 2019 before waiting times generally returned to the target of 10 weeks or less. If 67 new driver testers were employed in a phased manner, and the surge doesn?t materialise, a much quicker return to the 10- weeks wait would be expected and possibly surpassed. The RSA could also proactively target learner drivers who have held multiple learner permits and. encourage them to undertake a driving test - in? fact this is an action set out in the Road Safety Strategy that the RSA have not been able to move on because of the existing backlog. Currently there are almost 66,000 drivers on a third or subsequent learner permit. Financial Implications The financial forecast prepared by the RSA for option shows a net gain ofjust under ?2 million see Appendix A Page 13 of Document 3). The payroll costs for the additional staff are set out in? A table 3 below. The RSA maintains that it will meet all costs of option from its own resources. Table 3: Payroll Costs Year I Payroll effect 2018 ?1,454,793 2019- l?4,227,036 2020 660,225 in respect of direct recruitment, all staff'recruited under this option will be members of the Single Public Service Pension Scheme. All pension contributions are refunded to staff at the end of their contract if the term. of employment is for a period of 12?18 months. The forecast includes a 6% element relating to employer contribution pension costs. RSA Staff The RSA pay all their own staff, including the driver testing staff, from their own funds. The proposed new driver testers and new ancillary administration staff will also be paid from the RSA funds. The pensions of existing RSA staff are paid by the Exchequer, with the RSA making a pension levy return for the superannuation contributions from all employees to this Department each month. This levy is then forwarded to the Exchequer. The proposed new staff will go into the Single Public Service Pension Scheme. Section 18(3) of the Road Safety Authority Act 2006 allows the RSA to appoint staff as it may determine with the consent of'the Minister for Transport, Tourism and Sport, with the agreement of the Minister for Finance. (now Public Expenditure and Reform). Table Driver Tester and Support Staff Numbers Current DT Staff Surge Plan Total Driver Tester 103 6.7 .170 Chief Driver Tester 1 - '1 Region Manager 3 1 4 Operations Supervisor 6 3 9 Training Standards Manager 1 1 Quality Standards Auditors 2 1 3 Higher Executive Officer 1 1 2 Executive Officer 4 1 5 Clerical Officer 23 10 33 144 84 "228 Road Safety Division?s View The legislation currently going through the Houses of the Oireachta's wiil affect all learner drivers who drive unaccompanied regardless of whether they are on their first, second or subsequent permit. The RSA actively manage the regional spread of driver testers across the 52 test centres nationally, and will continue to do this with the additional testers deployed to meet the demand surge. The estimated increase in driving test applications is based on previous experience of the- demand sUrge in 2007 - .2008. While the proposed additional staff numbers required to handle the current expected surge is high, the appointment of staff in a phased manner on less than 2-year fixed contracts would enable the management of the extra staff if the surge did not materialise or was less than expected. The appointment of 20' additional driver testers initially would help address the existing increasing demand levels. Having additional driver testers already trained and in place would also. facilitate the filling of permanent appointments following retirements._ Based on RSA reports, there are 7' possible retirements occurring during 2018-2019. The financial forecasts provided by the RSA show a profit of just under ?2m for the direct recruitment option (3) against a ofjust over ?1.5m for the external delivery option From market soundings, a lead in time of over 6 months minimum would be required for the external delivery option as compared toa mid-June commencement date for the direct recruitment option. Option direct recruitment is deemed the best solution to prepare for the possible demand surge. A ?do nothing? scenario is not a viable option as waiting times are already exceeding the 10 week objective. Road Safety Division is considering providing for the sanction of re?sitting a driving test following conviction fer a number of serious road traffic offences. This provision is being examined in the context of the General Scheme of a new Road Traffic Bill. The provision if enacted would also require additional driver testers to maintain the efficient driver testing regime and attain the 10 week waiting time objective. Road Safety Division 17 April 2018