Dáil Éireann Debate, Tuesday - 14 May 2019
137. Deputy Barry Cowen asked the Minister for Public Expenditure and Reform if the cost-benefit analysis for the national broadband plan in February 2019 did not comply with the public spending code; if it is currently compliant with the code; the specific changes made between February 2019 to date that made the analysis compliant with the code; and if he will make a statement on the matter. [20795/19]
View answerThe Public Spending Code requires that Sponsoring Agencies (i.e. those bodies that are responsible for delivering projects) prepare an economic appraisal such as a cost benefit analysis (CBA) or a cost effectiveness analysis for projects with an estimated cost in excess of €20 million before the relevant Sanctioning Authority (usually the body providing the funding) makes a decision on whether to approve the project. The Public Spending Code also requires that the economic appraisal is submitted to the Department of Public Expenditure and Reform for technical review. The purpose of the technical review is to support consistency in the application of the Public Spending Code guidance. My Department does not verify input data or the calculations in the analysis.
The Public Spending Code further requires that the project appraisal is continually updated as the procurement process evolves and as actual tender costs (as opposed to cost estimates) become available. The Department of Public Expenditure and Reform may be consulted to technically review the updated economic appraisal, if necessary. Responsibility for complying with all of the requirements of the Public Spending Code is a matter for each Sponsoring Agency and Sanctioning Authority.
In the case of the National Broadband Plan, the Department of Public Expenditure & Reform conducted a number of technical reviews of the cost benefit analysis as the analysis was updated reflecting the changing nature of the project. In February 2019 the cost benefit analysis was updated to incorporate the feedback from the Department. The version received in March 2019 included a number of changes including a lower level of benefits relating to enterprise and employment impacts. The updated CBA also reflected information from the tender process including the rate of take-up and the bid costs. Finally there were reductions in the overall costs in order to correct an earlier error which had overstated costs.
