Dáil Éireann Debate, Thursday - 14 October 2004
54 Mr. Broughan asked the Minister for Finance if he intends to undertake any review of the public private partnership scheme in view of the recent findings of the Comptroller and Auditor General in a value for money report that five schools built under the scheme could end up costing up to 13% more than if built by the State; and if he will make a statement on the matter. [24644/04]
Amharc ar fhreagraMy Department had already taken account of many of the findings of the Comptroller and Auditor General's report in guidelines published last year and is currently engaged in producing more detailed guidelines on specific aspects of the PPPs procurement process. Two significant developments include the setting of an 'affordability cap', which is the maximum allowable budget for a project, and the appointment of a process auditor in large projects to ensure that all of the required regulatory and administrative steps have been taken in the procurement process, prior to contract signing.
In tandem with the development of these guidelines the Government brought forward legislation for the establishment of the National Development Finance Agency which provides advice on the optimal means of financing public investment projects in order to achieve value for money and on all aspects of the financing, refinancing and insurance of public investment projects.
We are still learning with regard to PPPs in Ireland and the processes and procedures will be kept under review. The grouped schools project was just one of a programme of pilot projects which also includes, for example, PPPs procured by local authorities and the toll roads being delivered by the National Roads Authority. Overall, I believe that PPPs have the potential to make an important contribution, on a value for money basis, in helping to meet the public infrastructure needs of the country.
