Dáil Éireann Debate, Thursday - 2 March 2023
193. Deputy Bernard J. Durkan asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the extent to which he expects reform to continue to be a feature in dealing with the national development plan; and if he will make a statement on the matter. [10664/23]
View answer196. Deputy Bernard J. Durkan asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the extent to which he has identified particular issues in relation to the implementation of the national development plan; his plans for the resolution of same; and if he will make a statement on the matter. [10667/23]
View answer201. Deputy Bernard J. Durkan asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the degree to which his Department continues to observe and encourage best practice in terms of the delivery of such matters as the national development plan; if savings for the taxpayer will emerge as a result; and if he will make a statement on the matter. [10672/23]
View answerI propose to take Questions Nos. 193, 196 and 201 together.
The Government has committed €165 billion for capital investment through the National Development Plan (NDP) published in 2021. In 2023, almost €12 billion will fund vital infrastructure in areas such as housing, transport, education, enterprise, sport and climate action. Achieving value for money and reducing cost and schedule overruns is a vital part of delivering the NDP.
My Department is responsible for the Public Spending Code (PSC), which sets the value for money requirements and guidance for evaluating, planning and managing Exchequer-funded capital projects. With the scale of capital investment in the NDP, it is vital that proper oversight and governance procedures are in place and that capital projects are appraised in a manner that ensures value for money and that the projects are delivered on schedule and within budget.
Management and delivery of investment projects and public services within allocation and the national frameworks is a key responsibility of the Account Officer in every Department and the relevant 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, new procedures were introduced in order to improve project out-turns, avoid cost overruns and delays to project delivery.
My Department put in place an External Assurance Process (EAP) to provide independent scrutiny for major public capital projects with independent expert reviews at key stages in the project lifecycle. This is to improve value for money and support funding departments and Government with expert insight relating to project risks, delivery feasibility, and robustness of costings, governance and procurement.
The Major Projects Advisory Group (MPAG) was also established by my Department. MPAG supports my Department in assimilating the outputs from the external reviews, and aiding government departments and agencies in improving the quality of project proposals, informed by the perspective of those who have successfully delivered major public infrastructure in Ireland. Project proposals and external reviews are scrutinised by MPAG as a prerequisite to seeking Government approval in principle to proceed with a proposal and Government approval for permission to tender.
In 2022, MPAG completed four reviews of major project proposals; BusConnects, Metrolink, Clonburris URDF and the elective care centres proposed for Cork and Galway.
Experience from other countries which have introduced similar independent assurance processes shows that such arrangements reduce project schedule delay and cost overruns. This brings Ireland in line with leading international performers and meets a recommendation of the IMF’s Public Investment Management Assessment of Ireland.
While the Public Spending Code is being applied in a successful manner and Departments and agencies have developed sector-specific arrangements, all options to improve delivery and ensure that capital allocations are best utilised are currently being examined and a review of the Public Spending Code is ongoing with the objective of streamlining the capital appraisal requirements for Government departments in order to improve NDP delivery and maximise delivery of vital infrastructure such as housing, schools, hospitals, roads and public transport.
