Oireachtas Joint and Select Committees

Thursday, 29 September 2016

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach

Estimates for Public Services 2016: Minister of State at the Department of Public Expenditure and Reform

9:00 am

Photo of Seán CanneySeán Canney (Galway East, Independent) | Oireachtas source

Deputy Burke raised the concerns expressed about the cost benefit analysis. It is important to state at the outset that if we spend public money we need to show that we are getting a benefit. Where there is a major scheme, one cannot say that one will spend €20 million to save a house. We must ensure that we are getting the optimum benefit for the money we spend. We must remember that it is taxpayer's money and public money that is being spent. A cost benefit analysis must be done. The cost benefit analysis must show that the project is yielding a benefit. We had a discussion earlier on the benefit arising from the conference centre for which we pay a high rent. There must be a benefit when we spend public money. The cost benefit ratio for a major scheme is 1:1, the ratio for schemes in minor works is 1:1.5. In fairness, what happens is that when the local authority is putting forward minor schemes it works closely with the Office of Public Works to find solutions which will be at a cost that will meet the benefit. I do not think anybody is using the cost benefit analysis to stop projects happening. Let me reassure people of that.

On the second issue, the relocating proposals I am bringing forward are being worked on at present. We had a meeting of the interdepartmental group on Tuesday last and we will be meeting again in about two weeks time. We will then bring recommendations to Cabinet.

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