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Capital Expenditure Programme

Dáil Éireann Debate, Thursday - 28 April 2022

Thursday, 28 April 2022

Questions (89, 93, 98, 133)

Jackie Cahill

Question:

89. Deputy Jackie Cahill asked the Minister for Public Expenditure and Reform the details of the new external assurance process for major capital investment projects; and if he will make a statement on the matter. [20568/22]

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Willie O'Dea

Question:

93. Deputy Willie O'Dea asked the Minister for Public Expenditure and Reform if he will report on the work of the major projects advisory group, MPAG; and if he will make a statement on the matter. [20338/22]

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Barry Cowen

Question:

98. Deputy Barry Cowen asked the Minister for Public Expenditure and Reform the way that he is strengthening scrutiny of major public investment proposals; and if he will make a statement on the matter. [20518/22]

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Paul McAuliffe

Question:

133. Deputy Paul McAuliffe asked the Minister for Public Expenditure and Reform the way that he is restructuring the oversight and implementation of capital projects; and if he will make a statement on the matter. [20351/22]

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Oral answers (7 contributions)

I ask the Minister to give details of the new external assurance process for major capital investment projects, and to make a statement on the matter.

I propose to take Questions Nos. 89, 93, 98 and 133 together.

The Government has committed €165 billion in capital investment through the national development plan, NDP. As a percentage of national income, annual capital investment is now among the largest in the European Union. In the current year, almost €12 billion will fund vital infrastructure in areas such as housing, transport, education, enterprise, sport and climate action. There are at least 50 proposals in the Exchequer-funded element of the NDP that are considered major public capital projects, that is, those with an estimated cost in excess of €100 million.

My Department is responsible for the public spending code, which sets the value for money requirements and guidance for evaluating, planning and managing Exchequer-funded capital projects. The management and delivery of investment projects and public services within allocation and within the national frameworks is a key responsibility of every Department and Minister. The majority of public investment projects are delivered on budget and on time and there is a high level of professionalism across the sectors. However, noting the higher risk profile of larger projects, it was recognised that new procedures were required in order to improve project outturns, avoid cost overruns and avoid delays to project delivery. Responding to this need, my Department put in place an external assurance process to provide independent scrutiny for major public capital projects, which cost in excess of €100 million. This will involve independent expert reviews at two key stages in the project life cycle under the public spending code, that is, at the approval-in-principle stage and prior to tendering. The purpose of the new process is to improve value for money and to support funding Departments and the Government with expert insight relating to project risks, delivery feasibility, and robustness of costings, governance and procurement, among other issues.

The major projects advisory group has also been established by my Department. It will support my Department in assimilating the outputs from the external reviews, and aid Departments and agencies in improving the quality of project proposals. I look forward to seeing all of these measures being implemented, which is now taking place. These new processes are up and running and I need to make sure they help us to deliver on our public capital programme in an efficient and timely manner and to do so within budget.

The Minister has the responsibility to ensure the Exchequer gets value for money. I fully appreciate and understand that he must do that.

I want to raise one major infrastructural project that is in my constituency, the Ballina to Killaloe river crossing. This project has been long in the offing. There have been a number of false dawns for this bridge, which is vital for this major tourism area. One has to go into Ballina to cross the historic bridge because it is the only crossing for miles. There could be an hour-and-a-half delay to get across from Ballina to Killaloe. It is really hindering the development of the area. We have heard that the project will be delayed because of the assurance process. Will the Minister provide a timeframe for that major infrastructural project? Is it on target for delivery? What work has started and where does it stand as regards a completion date? Is the project still on target?

I will come back to the Deputy with the specific details of the project concerned, the Ballina to Killaloe river crossing. I wish to reassure him that the strengthening of the external assurance process is not designed, in any way, to slow down or delay the delivery of projects. All the evidence, in this regard, indicates that the single most effective way to address scheduled delay, and indeed avoid cost overruns, is to carry out external, independent scrutiny of project proposals at the planning and appraisal stage. Mistakes made in the past can be traced back to weakness in that area, where the work was not done properly in advance. This will help to ensure we can deliver the programme on time and, in so far as is possible, on budget.

The new arrangements only apply to very large capital projects with a value of more than €100 million. There are, of course, public spending code requirements for all public expenditure decisions and the roll-out of public capital projects worth less than €100 million, but they are less onerous than those of a major nature, which is what one would expect.

I would appreciate if the Minister could come back to me with an update on the Ballina-Killaloe river crossing. As I said, it is an essential piece of infrastructure for that part of my county. I appreciate he does not have that information at his fingertips now, nor would I expect him to. I appreciate he will come back to me with an answer on this. As I said, I respect that the Minister has to ensure the Exchequer receives value for money, but we want those major infrastructural projects to proceed as quickly as possible, because they are essential to the welfare of our economy.

I want to ask the Minister, in the context of this vital proposed expenditure, whether the M4-N4 road west of Mullingar will be included. That road is heavily trafficked. It is a dangerous road. Many international carriers use the road regularly. This expenditure is absolutely necessary in order to spread development into that region and relieve the infrastructural congestion east of that area.

I thank both Deputies for raising these issues. On the question of delays, I want to provide reassurance again that these new strengthened procedures are not there to delay projects, nor do I believe that they are delaying projects. One of the key elements for Departments when bringing forward major projects is that they must engage with the panel of external experts that my Department has set up. That process takes approximately six weeks and can be done in parallel with other project inputs. If Departments prepare adequately, the review does not lead to a delay in project delivery. When one considers how long it can take to deliver major public-capital investment projects, that is a very short period of time. That is time well-spent to ensure the i's are dotted and the t's are crossed, that we have our homework fully done before we press the start button on major projects.

On the matter raised by Deputy Durkan, I suggest he raises it with the Minister for Transport.

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