Dáil Éireann Debate, Tuesday - 4 July 2006
302 Mr. Kenny asked the Minister for Finance if all semi-state companies, prior to the development of large scale infrastructure in pursuance of their statutory remit, must submit a cost benefit analysis to his Department; and if he will make a statement on the matter. [25899/06]
View answerUnder my Department's Guidelines for the Appraisal and Management of Capital Expenditure Proposals in the Public Sector, as amended by my Department's Value for Money Circular Letter of 26 January 2006, all semi-state bodies with responsibility for developing capital projects are required to carry out an appropriate cost benefit analysis of projects costing over €30 million.
If a semi state company proposes to proceed with such a project on the basis of its cost benefit analysis and if the project is to be funded from Exchequer capital under the multi-annual capital envelopes, the semi-state company concerned is required to submit the cost benefit analysis to the relevant sanctioning authority for approval to proceed with the project. The sanctioning authority would normally be the relevant Government Department with responsibility for the sector.
If the semi-state company is a commercial company funding the project from its own resources the cost benefit analysis would include an assessment of the commercial viability of the project. It would be the responsibility of the board of the company concerned to decide whether the project should proceed on the basis of the cost benefit analysis.
In the circumstances described above there is no requirement to submit the cost benefit analysis to my Department.
