Dáil Éireann Debate, Thursday - 1 April 2010
74 Deputy Richard Bruton asked the Minister for Finance the number and subject of and value of programmes considered for value for money reviews completed in each of the past three years; the number that were completed on time; the value of savings identified in these reports; and the extent to which the savings have been implemented. [14468/10]
View answer75 Deputy Richard Bruton asked the Minister for Finance the value for money reviews planned for 2010; the subject matter and the value of the programmes involved and the planned completion date of each. [14469/10]
View answerI propose to take Questions Nos. 74 and 75 together.
The Value for Money and Policy Review process was launched in 2006, replacing the old Expenditure Review Initiative (ERI). In total 65 Reviews were completed during the 2006-2008 Round of Reviews. 32 reviews were not completed under the round and were carried forward into the new round of VFM reviews for 2009-2011. 19 of these ‘carryover' reviews have been completed or are near completion (to February 2010). 2009-2011 Round of Reviews
In October 2008 the Government agreed to undertake a new round of Value for Money and Policy Reviews covering the three year period 2009-2011. Building on the experience from the 2006-2008 round of reviews and also taking account of the OECD's recommendations in their report on the Irish Public Service, a number of improvements were made to the process. The key changes are as follows:
there is a particular focus on four big spending sectors — Health, Education, Social Welfare and Justice;
the process is more independent, including the appointment of independent Chairpersons to oversee each review and greater Department of Finance involvement in individual reviews;
topics for review are linked to the high-level objectives in the Annual Output Statement for individual Departments;
review topics are selected annually to give Government more flexibility to target reviews each year at areas where it is believed they can add most value; and
completed reviews are to continue to be made available to the relevant Select Oireachtas Committee and laid before the Houses of the Oireachtas.
In December 2008 the Government agreed a list of 12 topics to be reviewed by 12 individual Departments in 2009 under the new arrangements for the Value for Money and Policy Review initiative. The latest position on these 2009 reviews is included at Appendix 1. With regard to reviews planned for 2010, the Department of Finance is currently finalising, with individual Departments/Offices, a list of specific topics for review in 2010 under the Value for Money and Policy Review Initiative. Once this list of topics is finalised, the Minister for Finance will bring forward the list to Government for their agreement.
The latest analysis by the Central Expenditure Evaluation Unit on the impact of the Value for Money Reviews and the savings involved was carried out in December 2009 on the 41 Value for Money Reviews that have been completed since 1 August 2007. All of these reviews were part of the 2006-2008 round of VFM reviews. A full list of these reviews and a summary of their impacts are set out at Appendix 2.
|
Department/Office |
Review topic |
Progress to date |
|
Education & Science |
School Transport |
The report is close to finalisation pending some minor re-drafting. |
|
Health & Children* |
Disability Services |
Review is at data collection and fieldwork stage. |
|
Justice, Equality & Law Reform |
Asylum Seekers Accommodation |
Review is completed and awaiting sign-off. |
|
Social & Family Affairs |
Child Support |
At drafting stage |
|
Agriculture, Fisheries & Food |
Afforestation programme |
Review postponed following announcement of three forestry policy reviews on foot of commitment in revised Programme for Government. |
|
Arts, Sport & Tourism |
Tourism Product Development |
Review is at data collection and analysis stage. |
|
Communication, Energy & Natural Resources |
Greener Homes |
Steering Committee has met on 8 occasions and review is close to sign-off. |
|
Community, Rural & Gaeltacht Affairs |
Rural Social Scheme |
Terms of Reference agreed and proceeding to data collection stage. |
|
Defence# |
Reserve Defence Force |
At Terms of Reference Stage |
|
Enterprise, Trade & Employment |
Inspection activity by the National Employment Rights Authority and the Health and Safety Authority |
Not commenced |
|
Environment, Heritage & Local Government |
Water Services Investment Programme |
At drafting stage |
|
Transport |
Review of Regional Airport Expenditure |
At drafting stage |
*Department of Health and Children is also carrying out a VFM review in 2009 of the Economic Cost and Charges associated with Private and Semi-Private Treatment Services in Public Hospitals.
#Following on from discussions at a meeting of the Special Group on Public Service Numbers and Expenditure Programmes in early 2009, the Department of Defence proposed a change to their 2009 review topic. It was agreed to reschedule a review of the Reserve Defence Forces as the Defence 2009 review topic on the basis that such a review was more likely to generate savings than the original agreed review of Training of General Service Recruits following the suspension of recruitment to the Defence Forces since late 2008.
|
Department |
Title |
Date Completed |
Summary of Review Impacts |
|
Agriculture, Fisheries & Food |
Farm Waste Management |
1/11/2007 |
This scheme is currently suspended having been closed to new applicants in December 2006. The existing budget for 2010-11 period is based on outstanding commitments under the scheme. Budget for 2010 is €245m and for 2011 is €123m. No administrative savings have been possible to date due to ongoing processing of payments made under the Scheme. |
|
FIRM (Food Research & Development Grants) |
5/3/2008 |
Funding for FIRM in 2007 was €8.38m, in 2008 was €5.0m and for 2009 is projected to be €6.7m. 2009 funding covers existing approvals only and there will be no new calls for eligible projects to be considered for aid. The review found that FIRM is managed in an efficient manner, with total management costs at 4.3% of total expenditure. The review made some recommendations to improve the effectiveness of the programme — capturing impact of funded research, benchmarking against similar international programmes and more emphasis on disseminating research outputs. |
|
|
Dairy Hygiene Scheme |
8/4/2008 |
The scheme was part of the 2000-2006 NDP operational programme which terminated at end 2006. Funding in 2009 is for outstanding grant claims. The review acknowledged general effectiveness of the 2000-06 scheme, but identified a number of factors to be considered in the context of any revised scheme, which have been taken into account when adopting the Farm Improvement Scheme in the context of the 2007-2013 Rural Development Programme. |
|
|
Marketing and Processing Scheme |
28/10/2008 |
Apart from current budgetary considerations, State aid approval for this scheme has expired in terms of considering new projects to grant aid. Resources freed up in the absence of new calls for proposals have been redirected to assist with two other research measures. Funding provided in 2009 (and up to 2012) relates to maturing projects in the beef, sheep and dairy processing sectors totalling €150m |
|
Department |
Title |
Date Completed |
Summary of Review Impacts |
|
Bovine TB Scheme |
1/12/2008 |
The expenditure for this scheme has been reduced in line with reductions in the incidences of disease occurrence. By highlighting the high cost of administration arising from the large number of local offices, the review facilitated a review of these offices and a decision on the rationalisation process is currently underway. The recommendation to rationalise field visits/reactor collection service has led to savings of approx 20% (€350k) in T&S since March 2009 (not including 25% reduction in rates). Transferring responsibility for collection of disease levies from ERAD resulted in small saving on staff costs. |
|
|
Bovine Animal Identification and Traceability System |
3/6/2009 |
Recommendations in respect of Bovine Passports and Bovine Database Compliance Certificates are well progressed and financial benefits will accrue in 2010, with the latter expected to generate €300k in full year savings. The other recommendations are being progressed and in the meantime the Division has reduced its staff complement by 3 CO’s. |
|
|
Installation Aid Scheme |
19/6/2009 |
Scheme currently suspended as part of decisions in context of 2009 Budget. The preliminary findings of the review did form part of this decision making process. Due to reduced administrative requirements of the Scheme in 2009, admin staff have been reduced by 1 EO and 1 CO. |
|
|
Arts, Sport & Tourism |
Local Authority Swimming Pool Programme |
29/9/2008 |
Due to budgetary constraints no new round of this programme has been launched, but the report recommendations will be used to assist in formulating future policy in the area and will be incorporated in any new programme. A database was established in mid-2007 to collect data from Local Authorities on pool usage and numbers of primary school children receiving water safety and swim tuition. This allows DAST to aggregate and analyse data to provide details on the impact of grant aid in the area. |
|
Irish Film Board |
13/10/2008 |
The review recommendations relate to agreeing targets, including timeframes for their delivery and performance indicators, with DAST and do not have any impact on the operation of the Irish Film Board or its activities. The IFB have drawn up a strategy and consequent business plans. |
|
Department |
Title |
Date Completed |
Summary of Review Impacts |
|
Irish Sports Council 2000-2006 |
25/2/2009 |
The ISC now submit a detailed quarterly report in advance of liaison meetings with DAST arising from a recommendation in the review. ISC are now monitoring best practice internationally. Specific and measurable performance indicators are being developed and agreed with DAST. |
|
|
Communications, Energy & Natural Resources |
Group Broadband Scheme |
30/11/2007 |
The recommendations of this review were addressed in the planning and implementation of the National Broadband Scheme (NBS). The NBS project was designed and managed in accordance with Guidelines for Appraisal and Management of Capital Expenditure and with EU and National Public Procurement Policy. The NBS contract contains a number of controls to ensure compliance with contractual commitments, including — phased payments on reaching defined milestones, penalties for failing to meet contractually binding service or customer obligations, and clawback and exit clauses. |
|
Broadband Infrastructure (MANs) |
23/9/2008 |
Implementation of the review recommendations led to a reduction in the scope of Phase II of the MAN’s programme and a reduction in expenditure on that part of the programme. In December 2007 the Minister for CENR suspended the construction of 28 of Phase II MAN’s which had been expected to cost approximately €20m to complete. The review recommended that a more targeted approach to MAN’s investment would be appropriate. An evaluation of 81 towns with population suitable for a MAN was carried out and Govt approval given to proceed with an appraisal under the Capital Appraisal Guidelines of the 11 highest scoring towns with a view to deciding whether or not to proceed with a MAN in each of these towns. |
|
|
Community, Rural & Gaeltacht Affairs |
Caiteachas Caipitil ar na hOileáin |
7/1/2008 |
Staffing resources of Islands Division have been enhanced through restructuring resulting in enhanced streamlining of work practices. An additional Engineer with appropriate marine and project management experience appointed to assist Chief Engineer, bringing additional experience in Sustainable Energy and Project Management sectors. Further training in Project Management and related matters arranged for staff. Joint study between DCRGA and SEI to develop a model for islands energy needs through renewable energy commenced. INTERREG project to examine more efficient ways of providing ferry service underway. Project management teams in place for all major capital projects. Joint committee monitor smaller projects. |
|
Department |
Title |
Date Completed |
Summary of Review Impacts |
|
Ciste na Gaelige |
25/9/2008 |
This review covered the period 2000-2005 and most of the findings and recommendations of the review have been overtaken by subsequent developments. These developments necessitated a significant change of emphasis by DCRGA to meet new and demanding challenges. It is difficult to isolate a specific impact of the review as the thrust of policy had already changed substantially. |
|
|
Local Development Social Inclusion Programme |
30/1/2009 |
Many of the review recommendations will be implemented through the redesigned programme — including redefined goals and objectives, adopting lifecycle approach, clearer performance indicators, improved monitoring and independent evaluation. The merger process should result in savings in the medium-long term but these can not be quantified at this time. |
|
|
Defence |
Clothing Procurement in the Defence Forces |
18/8/2007 |
The review identified the potential for increased efficiency and effectiveness in the clothing storage and distribution system. Following recommendations from the group established to address the findings, 3 clothing stores were closed and the personnel redeployed to other duties. The recommendations regarding stock holding levels and enhanced efficiency of the distribution system will be addressed in a new tender competition currently being prepared. |
|
Naval Service Vessel Maintenance |
15/4/2009 |
The review found there was a low incidence of unscheduled maintenance resulting in lost patrol days and the maintenance programme was appropriately focussed on supporting operational targets of the Naval Service, underpinned by an ongoing programme of planned preventative maintenance. The primary recommendations centred on improving coordination of resource management within the maintenance function including improved systems of performance measurement. The review recommended revised maintenance management structures and these were quickly implemented by the Naval Service. Work is progressing on improving systems of performance management. |
|
Department |
Title |
Date Completed |
Summary of Review Impacts |
|
Education & Science |
Youthreach and Senior Traveller Training Centres |
7/4/2008 |
While the achievement of savings was an element of this review, in general it focussed on the efficiency and effectiveness with which the programmes used their resources to achieve their stated objectives. VECs were notified in August 2008 that no under 18s could be enrolled in STTCs from 1/1/09 and no allowance should be paid to learners under 16 in Youthreach from 1/1/09. Budget 2008 announced a reduction of 100 STTC places to 984 w.e.f. 1/9/09, as part of the phasing out of STTCs over 10-15 years as recommended in the review. This resulted in a saving of €270k from Sept-Dec 2009. The McCarthy report recommended phasing out STTCs over a 2-3 year period and this is under consideration by DES. |
|
Information and Communication Technologies (ICT) Undergraduate Skills Programme |
7/4/2008 |
Implementation of review recommendations is ongoing, with specific elements having been implemented. Funding for ICT skills is continuing, with Postgraduate skills conversion courses receiving more emphasis by the HEA to address skills gaps. Ring-fenced funding the HEA for ICT Skills courses is continuing and is subject to increased reporting and monitoring of outcomes by HEA. |
|
|
Teacher Education and Development |
7/4/2008 |
The review recommendations focussed mainly on organisational efficiencies and effectiveness and less on savings per se. Since the review major restructuring and amalgamations of the support services has taken place and structures continue to be reviewed in the context of the current climate, resulting in the reduction of costs across the area of Teacher Education. At primary level the SDPS, CAPP SMPP and PCSP have been amalgamated into the Primary Professional Development Service, with a consequent rationalisation of staff and administrative support. At post primary level the SLSS, SDPI and SPHE have been similarly amalgamated. In relation to evaluation, the Inspectorate is now developing metrics which will be applied to teacher support interventions in the future. |
|
|
Youth Encounter Project (YEP) Schools |
8/9/2008 |
Of 51 recommendations in the review, 12 have been implemented while a further 11 are in the process of implementation. Most of these recommendations relate to improved governance and communications structures, while the remainder concern rebalancing the composition of staff within schools and improving information, particularly performance indicators. It is not expected that the continued implementation of recommendations will have an impact on the 2010 Estimates process. |
|
Department |
Title |
Date Completed |
Summary of Review Impacts |
|
ICT Support Services for Schools |
30/10/2008 |
ICT advisor posts were not renewed for the 08/09 academic year, in line with the review recommendation that the resources would be better employed focussing supports for ICT leadership and change within each school. ICT advisor expenditure fell from €1.44m in 2008 to just €26.5k in 2009. |
|
|
Enterprise, Trade & Employment |
Science Foundation Ireland |
30/7/2008 |
The review made 10 recommendations which maintain the focus of existing SFI operations and are designed to improve the ongoing implementation and management of SFI’s programmes and to maximise the future impact and VFM from investments. Given the nature of investment there will not be a clear and immediate “cause and effect” in terms of impact from implementation of recommendations. A key recommendation of the report is that SFI should continue its core mission of funding research excellence in areas where Ireland can compete on a global scale. The impact of the findings in this review did not result in the need for a lower level of resources, but recommended that the level of Capital spend is at the very least maintained and in certain areas increased. DETE see no scope for further reduction in the pay budget for SFI and argue that it is imperative that funding for SFI’s Programme Management line is not just sustained, but increased. |
|
Environment, Heritage & Local Government |
Rural Water Programme |
12/12/2007 |
The review has been taken into account in formulating the Rural Water Programme 2009 and as part of the revised scheme of operational subsidy payable to group schemes. The recommendations are being considered as part of a review of future policy and support arrangements for Rural Water Programme. |
|
Department |
Title |
Date Completed |
Summary of Review Impacts |
|
Finance |
Civil Service Childcare Initiative |
22/10/2008 |
The key recommendations were that no further crèches should be built under this Initiative and that the subhead for Capital expenditure (routine maintenance costs and minor capital costs) would transfer to OPW, which happened w.e.f. 1/1/09. Responsibility for building and maintenance work (with an associated full-time post at HEO level) transferred to OPW. This left responsibility for policy and audit related activities with Dept. Finance. |
|
Foreign Affairs |
Support for Irish Emigrant Groups Abroad |
3/8/2007 |
In July 2007 the Govt set a target of increasing emigrant services funding to €34m by 2012. While it had increased from €2.9m in 2003 to €15.2m in 2007, it has remained at just over €15.1m since. A more formalised monitoring and evaluation system has been developed in cooperation with DFA’s Evaluation and Audit Unit and ICT Unit. Funding for community and heritage projects has also been expanded from within the overall allocation. A service level agreement has been put in place with the Federation of Irish Societies, the key second line service in Britain. |
|
Support to Tsunami Affected Countries |
17/10/2007 |
The review found that Irish Aid made a prompt and appropriate response to the disaster and managed its programme in an efficient and effective way. The primary impact in respect of the maintenance of a corps of volunteers for responding to emergencies which has been established under the Rapid Response Initiative is that funding of around €1.3m be set aside each year to recruit, train and deploy these volunteers in response to emergencies. |
|
|
Evaluation of the Mozambique Country Programmes 2001-2006 |
14/2/2008 |
The review recommendations are designed to further enhance the effectiveness of the Irish Aid programme in Mozambique. It is not anticipated that the implementation of the recommendations will have implications for the Estimates process, as it is intended to further enhance the effectiveness of the programme. |
|
|
Automated Passport Project |
24/10/2008 |
The review made a number of recommendations designed to enhance the efficiency and effectiveness of the service. |
|
Department |
Title |
Date Completed |
Summary of Review Impacts |
|
Justice, Equality & Law Reform |
Probation & Welfare Service Assistance to Voluntary Bodies |
16/7/2008 |
Many of the review recommendations coincided with the new business model being implemented by the Service. A Regional Manager was assigned to oversee the implementation of many of the review recommendations. Performance indicators are established and included in Funding Agreements. Payment of grants is contingent on completion of Funding Agreement and timely submission of accounts. The shortcomings identified in the review led to remedial action being taken by the P&WS and in certain cases some projects were closed down. These improvements and closures allowed for a saving of approximately €1.25m in the funding allocation in the 2009 Estimates. |
|
Courts Service — Staff Training and Development |
13/2/2009 |
Following the review, the Court’s Service report that they constantly seek to contribute to offices’ efficiency and effectiveness through the training provided. They will move away from the idea of training and development being a matter of choice. They are working with relevant groups and offices in training related initiatives such as managing new staff and instruction manuals. |
|
|
Courts Service ICT Programme 2001-2007 |
9/7/2009 |
The review findings are positive and conclude that value for money has been obtained in ICT expenditure from 2001-2007. In line with the review recommendation, the Courts Service ICT strategy document 2006-2010 was reviewed in June 2009 and a revised ICT strategy document 2009-2011 produced to align it with the Courts Service strategic plan. The Courts Service ICT unit is at present examining implementation of the remaining recommendations. |
|
|
Office of Public Works |
Provision of Flood Relief Schemes |
12/11/2008 |
In line with the review recommendations, OPW initiated and completed a project planning and implementation manual which incorporates measures to improve the interface between the Design Team, the Administration Unit and the Engineers involved in managing/monitoring flood relief works. A Flood Risk Indicators, Methods and Datasets Scoping Study has been completed to provide indicators of flood risk to inform option selection and project appraisal and prioritisation. |
|
Department |
Title |
Date Completed |
Summary of Review Impacts |
|
Revenue Commissioners |
Information Technology External Resources Expenditure in 2006 |
7/3/2008 |
The review concluded that expenditure on external resources is well managed and delivers value for money. The review identified areas with scope for enhanced effectiveness and efficiency and proposed a range of measures to enhance the value obtained from expenditure. Savings realised from implementation of recommendations were reflected in funding requirements for Estimates process and allowed Revenue live within overall cuts imposed for 2008 and 2009. Procurement management strategy resulted in reductions ranging from 8% to 35% across a number of external resource contracts. |
|
Social & Family Affairs |
Medical Review and Assessment Services |
27/8/2007 |
The review of payments to carers was subsumed in to the work being carried out in the development of a National Carers Strategy in 2008. |
|
Review of Carers Allowance and Carers Benefit Schemes |
9/7/2008 |
The majority of the review recommendations are being implemented under the Medical Referral and Case Management project, with a total cost of €4.3m, of which €2.1m will be spent in 2009. MRAS admin staff will be freed up to carry out more value adding roles. Medical Assessor capacity will be maximised. Payments based only on certificates received by the Department |
|
|
Transport |
CIE Subvention |
30/11/2007 |
The findings of the review are assisting the drafting of enforceable contracts between D/Transport and CIE companies governing the provision of service for the subvention paid to the operating company, in terms of the requirements and expectation of services regarding frequency, quality of service etc. |
|
Capital Spend by Dublin Transport Office |
15/5/2008 |
The review focused heavily on the QBC element of Traffic Management Grants, which is the main cost element. The review made important recommendations on both project appraisal at stages of development and after their introduction, and implementation of these recommendations could add to the efficiency and effectiveness of the TMG scheme. Where new QBC’s are being devised they will be subject to full Cost Benefit Analysis. For extensions or enhancements to existing QBC’s a partial benefit cost ratio is applied. Individual construction projects to construct the QBC network will be specified and appraised. The need for ex-post reviews of QBC’s is agreed in principle but due to resource constraints progress will be slow in the short term. |
