Brian Cowen (Laois-Offaly, Fianna Fail)

On 11 June, I announced a revamping of the expenditure review initiative, ERI, which has been retitled value for money and policy reviews and has a broader coverage. For the period 2006 to 2008, the revamped framework will encompass formal reviews already agreed to be carried out under the ERI as well as all other policy reviews conducted and commissioned by the Departments which impact on value for money.

Under the new arrangements, the Government has, on my recommendation, approved some 90 formal value for money reviews to be carried out by Departments and offices for the period 2006 to 2008. The programme of reviews in each Department and office will focus on significant areas of expenditure and major policy issues and, as a general rule, will have a minimum indicative coverage of 10% to 15% of their respective budgets.

Departments have been directed to give priority to the timely completion of the new round of reviews. All the reviews will be published and submitted to the relevant select committees for consideration and I have written to the chair of each committee setting out the reviews to take place relevant to that committee's remit. Other policy reviews which impact on value for money will be published and submitted to the relevant select committee in general. Departments will also report on their progress on value for money issues in their annual reports and identify separately in their Estimates their expenditure on value for money and policy reviews.

This new initiative builds on value for money reforms already instituted such as the introduction of multi-annual capital envelopes, revised capital appraisal guidelines, public procurement reforms and measures in regard to information and communications technology and the major consultancies announced last October. They will also complement my budget 2006 initiative on the production of published annual output statements by Ministers to accompany consideration of the estimates of expenditure from 2007.

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