Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I welcome the report which provides a thorough overview of the escalation of costs in the national children's hospital project. I want, in particular, to focus on recommendations Nos. 10 and 11 which apply to capital projects in general. Recommendation No. 10 states that the rules that govern public sector spending on major capital projects should be strengthened. The standards to which these cases should adhere should be more clearly and robustly defined. This recommendation concerns the strengthening of the rules on spending on major capital projects with clearly defined and enforced standards for business cases. Project Ireland 2040 was launched just over a year ago.

It sets out a €116 billion approach over a decade to bring our investment up to 4% of our national income. Part and parcel of all of this is how we deliver projects. We have a construction sector group, a Project Ireland 2040 board, an investment projects and programmes office and a capital projects tracker to which I referred when replying to Deputy Connolly.

Key to the recommendation in the report is how we can continue to reform our capital management system. Within all of this, we are updating the work we do regarding the earlier scrutiny of projects, early clarity on project roles and responsibilities, the early identification of risks and the early engagement on costs. My Department is conducting a review of how cost estimation and management for capital projects could be reviewed. This is all done with a view to looking at how we can better select, design and deliver major capital projects.

Recommendation 11 refers to a central assurance and challenge function to provide consistent challenge to and review of major projects throughout their life cycle. The update of the public spending code will strengthen the review and approval framework for capital projects by setting standards for the level of information required for sanctioning authorities at each review and approval gateway. In addition, the investment projects and programmes office was established in my Department in July 2018. The purpose of this office is to co-ordinate reporting on Project Ireland 2040. As part of doing this, we now provide a technical quality review of business cases for major projects. This work has begun with regard to roads, rail, communications, energy, tourism and housing projects. Work is also under way to prepare for the implementation of modern processes of building information modelling, BIM. This will establish the appropriate levels of detail for each stage of a project's development from a high level of focus at inception stages through to detailed design information requirements at the pre-tender stage.

I conclude by noting that over recent years, Ireland has made much progress in delivering projects on time and within budget. The recommendations laid out in the report, which I will implement, will strengthen our ability to do that in future. Risks and complexities exist. This was shown in the case of the national children's hospital. We are aware of them and are looking to take better measures in the future to ensure important capital projects are delivered in our country.

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