Dáil Éireann Debate, Wednesday - 2 November 2016
259. Deputy Róisín Shortall asked the Minister for Public Expenditure and Reform the monitoring and reporting arrangements in his Department to track tender price inflation for publicly funded projects; if his Department routinely collects and publishes such information; and if he will provide any statistics available to his Department on tender price inflation. [33020/16]
Amharc ar fhreagraCapital investment allocations are typically made on a multi-annual basis by the Government, so that Government Departments can undertake proper medium-term planning for the cost-effective delivery of investment projects. Public Procurement is governed by EU and National rules as set out in the Public Spending Code. The aim of these rules is to promote an open, competitive and non-discriminatory public procurement regime which delivers best value for money.
The recovery in the economy has meant that real increases to public spending can continue to be made on a sustainable basis to deliver both on economic priorities and also on the social goals for a fairer and more inclusive society. However, there is also an obligation to ensure that funding invested in new services will not only be affordable now but also for the foreseeable future.
In terms of tender price inflation, some of the factors that have been holding back inflation are expected to subside; however, in common with elsewhere, inflation is projected to remain modest in the short term. Core HICP inflation is projected to average 1.2 per cent next year, however, construction price inflation is running ahead of the baseline inflation rates in certain parts of the country.
All publicly funded projects and programmes are subject to the appraisal framework set out in the Public Spending Code. Responsibility for compliance with the Public Spending Code and the recording of tender price data lies with the Sponsoring Agency and Sanctioning Authority for a particular project.
