Dáil debates

Tuesday, 3 April 2007

National Development Finance Agency (Amendment) Bill 2006: Report Stage (Resumed) and Final Stage

 

8:00 pm

Tom Parlon (Laois-Offaly, Progressive Democrats)

I will make two general points. This Bill is amending legislation. The basic legislative proposals for State authorities to undertake PPPs are already enacted. This is Report Stage of a small piece of amending legislation designed to improve the capability of Departments or agencies to procure PPP projects outside the areas of transport and environmental areas.

In response to Deputy Boyle, the report of the Committee of Public Accounts on parliamentary scrutiny will be responded to in the normal manner in a minute of the Minister for Finance in the first instance.

A number of issues have been raised in connection with this Bill which are more appropriately dealt with under policy guidance rather than in legislation. This amendment is yet another example in this regard. There is a comprehensive guidance framework in place with regard to the appraisal, management and evaluation of capital projects, which is revised from time to time. In general, decisions regarding the publication of information regarding individual project appraisal are time-sensitive in terms of the public negotiating position. Cost-benefit analysis, like public sector benchmarks, may contain commercially sensitive information which, if published, could prejudice the State's capacity to get best value for money in the procurement of capital projects. Any decision in this regard must be carefully considered and the circumstances may differ from project to project.

It would not be appropriate or consistent with the management arrangements in place for capital spending to give the National Development Finance Agency a function in this regard. Like other aspects of project appraisal and assessment, cost-benefit analysis is a matter for the sponsoring agency in the first instance, not the National Development Finance Agency. Capital investment takes place under a framework of delegated sanction under which primary responsibility for project selection, assessment and evaluation rests with the sponsoring agency. Projects are implemented within this framework and subject to the value for money measures. As I said earlier, the Government will not accept this amendment.

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