Dáil Éireann Debate, Tuesday - 8 November 2005
348 Mr. O’Connor asked the Minister for Finance the extent to which his Department is responsible for the promotion and application of value for money policy across Departments; the actions being taken; and if he will make a statement on the matter. [32666/05]
Amharc ar fhreagraThe Department of Finance by virtue of having overall responsibility for the management of the public finances, has responsibility for managing the allocation of resources as approved by Government at a global level and putting in place a policy framework for securing value for money by line Departments and their implementing agencies in the delivery of public services. Primary responsibility for managing programmes, projects and services and securing value for money from them within that budgetary and policy framework rests with line Departments and their implementing agencies.
On foot of its value for money policy framework role, the Department of Finance has set out general guidance and rules across a range of areas to assist Departments and implementing agencies. These include rules and guidance in public procurement, public private partnerships, and appraisal and management of capital programmes. The Department of Finance has also overseen a number of reforms designed to assist the better management of programmes and projects. These include three-year administrative budget agreements and a five-year capital investment framework, extended to ten years in the case of the recently launched Transport 21 programme.
Building on initiatives already in place, the Government recently announced an initiative on management of ICT projects and consultancies. On 20 October 2005 I also announced the introduction of additional measures to secure better value for money.
The management of ICT projects and consultancy initiative provides, among other things, for: the immediate introduction of a peer review process for major ICT projects; Ministers reviewing in the context of the 2006 Estimates the financial provisions for consultancy and their Departments confirming that the expenditure is necessary and the Department of Finance's guidelines in this regard are being applied; and a review by the Department of Finance of existing guidelines for the engagement of consultants.
The additional measures for better value for money which I announced on 20 October provide for: full acceptance of the need to improve value for money and to ensure that every euro is well spent; fixed price lump-sum contracts becoming the norm for public contracts; ex ante evaluations, including economic cost-benefit appraisal, for all projects above €30 million; for large projects over €30 million, there will be formalised contracts review by the Departments concerned with reports to their Ministers and with provision for audit by the Department of Finance; there should be no extension of large service contracts without tendering if the extension is more than 50% of the original contract or exceeds €250,000, whichever is the lower; more vigorous competition for public sector contracts; additional specialised training for the Civil Service and State agencies; open recruitment of a number of full-time specialists to the public sector on IT procurement and capital project evaluation and management; secondment of IT procurement specialists between the public and private sectors; allocation of single individual responsibility for all major IT and capital projects; better use of compulsory purchase orders; and performance table for Departments and State agencies regarding the extent of project outcomes versus budgets on contracts.
I am determined that these initiatives will be fully implemented in Departments and implementing agencies and I have instructed the Department of Finance to engage with other Departments accordingly.
