Dáil Éireann debate -
Thursday, 5 Dec 2002

Vol. 558 No. 6

Written Answers. - Departmental Task Forces.

Arthur Morgan

Question:

56 Mr. Morgan asked the Tánaiste and Minister for Enterprise, Trade and Employment if she has ordered a cost benefit evaluation of the 19 task forces set up by her Department; if there has been an audit of international comparison done of the relative effectiveness, efficiency and value for money of the various development agencies funded through her Department, such as IDA Ireland, Enterprise Ireland, Shannon Development and Udarás na Gaeltachta; and if not, if she will order such evaluations. [25107/02]

Tánaiste and Minister for Enterprise, Trade and Employment (Ms Harney)

The position in relation to task forces, including their evaluation, is set out at some length in a reply which I gave to a question tabled by the Deputy on 5 November last. I do not propose to undertake further evaluation of the 19 task forces but the general conclusion, based on the operational experience with the task forces, is that, overall, they provided an effective co-ordinated response to major company closures.

Extensive monitoring and evaluation of the performance of the enterprise development agencies under my aegis – Forfás, IDA, Enterprise Ireland, Shannon Development and the county enterprise boards – is carried out through a number of channels.

The overall framework for the work of the agencies is determined by the Oireachtas and is set out in the Industrial Development Acts and the science and technology legislation. The performance of agencies is measured in relation to performance indicators such as cost per job created, as well as client company performance on matters such as employment, training, research and development, and the level of sales and exports. Performance in these regards is reported in the annual reports of the agencies which are laid before the House. The board of each agency has a crucial role in ensuring effectiveness, efficiency and value for money in relation to the agency's work. Cross-agency co-ordinating mechanisms are in place. Forfás is responsible for policy advice across the spectrum of enterprise, science and technology policy matters, and it also carries out extensive ongoing analysis and evaluation of agency policies and programmes.

Individual industrial projects receiving State support are subject to prior cost benefit analysis using an economic model developed and regularly updated, in the light of economic developments, with the help of external economic expertise. In circumstances where project targets are not achieved, State aid is subject to recoupment under the terms of the grant agreement in each case.

Budget and policy programme proposals in respect of each agency are subject to scrutiny by the Oireachtas, notably by the Committee on Enterprise and Small Business and the Public Accounts Committee. Each spending subhead involved, is, of course, subject to annual approval by the House and audit by the Comptroller and Auditor General, who also audits the annual accounts of each agency and who carries out value for money evaluations of programmes, for example a report on the provision and management of industrial property by the agencies was completed in 1998. A value for money examination of local development programmes, which included county enterprise boards in its scope, was carried out by the Office of the Comptroller and Auditor General in 1999. These reports are presented to the House.

Delivering Better Government, 1996, envisaged programme reviews as constituting a central element in financial management under the strategic management initiative. To this end, a programme of expenditure reviews is carried out and the performance of the agencies is included in this programme. Reviews were completed in respect of IDA in 1998 and Forfas in 2001. Reviews of aspects of Enterprise Ireland's and IDA's work are to be completed in 2003.

The main programmes of the agencies are included in the Structural Fund operating programmes for the period 2000 to 2006. These programmes are subject to extensive monitoring and analysis by the monitoring committee for each operating programme.