Brian O'Shea (Waterford, Labour)
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Question 6: To ask the Minister for Finance the progress made to date with regard to the implementation of the 12 point programme to improve value for money in public spending, announced on 20 October 2005; and if he will make a statement on the matter. [12386/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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As I indicated in my reply to Question No. 76 on 28 February, I wrote to my ministerial colleagues on 20 October last enclosing a copy of my address of the same date to the Dublin Chamber of Commerce and requesting them to ensure their Departments take all the necessary steps to implement the measures set out in my address. My Department issued a circular letter to all Departments on 25 January last outlining in detail the requirements to give effect to the measures in my announcement of 20 October 2005 as well as earlier decisions made by Government on ICT and consultancy procurement. Copies of the circular letter were also placed in the library of the House.

The circular included changes to existing guidelines on public procurement, consultancy and capital appraisal and outlined the necessary additional steps being taken to give effect to the various value for money measures announced. It is primarily a matter for individual Departments and their agencies to make the necessary arrangements and implement the changes arising in their area. Follow up on a number of measures outlined in the circular of 25 January last fall within the direct responsibility of my Department.

With regard to fixed price contracts I am pleased that the consultation with the industry on the introduction of these contracts for public works is almost complete. Following essential training of relevant public sector staff, the contracts will be available for use as soon as possible in 2006.

My Department has also set up an inter-departmental review group on the guidelines on commissioning consultants. This group will report by mid-year and any necessary action on foot of the review will be implemented as a matter of urgency. The peer review process for major ICT projects is now operational and four reviews have already started. My Department is co-ordinating work on setting up these reviews. While the peer review process is a worthwhile initiative and an additional safeguard in the development and implementation of IT projects, it does not override the accountability arrangements in place within organisations.

As regards recruitment and training of specialist staff in ICT projects and consultancies, my Department is conducting a survey of all Departments seeking details of areas where skills shortages currently exist. In addition, the Civil Service training and development centre in my Department has modified the content of its policy analysis and capital appraisal guidelines training programmes to better reflect the new value for money requirements and is putting in place a new project management course aimed at those in the public service who procure and manage capital projects.

Joan Burton (Dublin West, Labour)
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What are the practical implication of the steps outlined by the Minister for some of the disasters over which this Government has presided? Last week, the Committee of Public Accounts was told that a commitment has been made to rent premises for the machines at a cost of €700,000 per annum or another €14 million. How does the Minister's new system accord with that?

Todays newspapers reported on the court case between the National Aquatic Centre and Campus Stadium Ireland Development, of which the Minister is one of three shareholders, concerning a sublease used by a businessman to attract tax breaks of €2.8 million per year, with a cap of €34 million, on a State funded public infrastructure project costing €62 million. I visited the complex on several occasions and found major structural faults with it, including leaks and unacceptable use of treated water. I ask the Minister to go from the general to the specific by explaining how we will avoid similar fiascoes in future.

He apologised today for the €56 million in misplaced health services money which has apparently been rediscovered. Does anybody know how to keep the accounts of the Department of Health and Children?

Many of the measures referred to by the Minister in his 12 point plan are welcome but how are they being implemented and is he taking any personal responsibility for them? For example, along with the Taoiseach and the Minister for Arts, Sport and Tourism, he is a shareholder in Campus Stadium Ireland Development. This valuable project located in my constituency appears to be in jeopardy because of gross incompetence and mismanagement.

Brian Cowen (Laois-Offaly, Fianna Fail)
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The additional matters I referred to with regard to value for money and dealing with ICT contracts arise from the PPARS problems which came to my attention over the course of last summer. I set out general procedures to be put in place by Departments which provide for more vigorous competition for public sector contracts, fixed price lump sum contracts as the norm for construction projects valued at above €30 million, the allocation of individual responsibility for capital projects, ex-ante evaluation, including economic cost benefit appraisal for projects costing more than €30 million, a formalised review by Departments and agencies of contracts for projects costing more than €30 million with reports to the Minister and provision for audit by the Department of Finance, a performance table for Departments and State agencies regarding the extent of project outcomes versus budgets on contracts and a range of other matters. As Minister for Finance, I asked my colleagues to ensure that, as the political heads of their respective Departments, they managed contracts and expenditure in the manner I suggested and that process is now in place. I augmented rather than replaced existing procedures to ensure sufficient controls exist to ensure proper public expenditure. These procedures will assist and reinforce our efforts in that area.

As regards specific projects which have proved problematic in terms of management and design or construction and completion, questions put directly to the Ministers concerned will elicit full and up-to-date information.

Richard Bruton (Dublin North Central, Fine Gael)
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I welcome the Minister's reply but, given that he has provided for the ex-ante evaluation of projects costing more than €30 million, does he agree that PPARS as it was originally envisaged would not have been evaluated under that rule? Punchestown would not have been evaluated, even though it was a notorious project and cost a great deal of State money. E-voting as it was initially brought forward would not have been subject to ex-ante evaluation. The Minister is closing the door on some horses but a lot of the little money wasting ponies will escape these provisions.

Has the Minister assigned individuals to specific capital projects and can he provide us with a published list of who has been assigned to which project, so that everyone can know where responsibility lies?

The Minister announced this new programme almost six months ago. Can he now provide the performance table for Departments which he promised, if only for the first quarter of this scheme? The scheme will only make an impact if it is clear that the Minister is serious about it and if we are sure that performance is acceptable.

Brian Cowen (Laois-Offaly, Fianna Fail)
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I have suggested that the performance table should be incorporated in the annual reports to the Department of Finance on the capital envelope investment programme under the statement of strategy and in the format outlined in the circular.

It is a matter for sponsoring Departments to assign responsibility. I do not intend to appoint people to every single project and Department but have set out the rules which should apply to each Department in respect of projects. I delegate the function of appointing responsible people to Ministers because the process would otherwise become cumbersome and ineffective.

Richard Bruton (Dublin North Central, Fine Gael)
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A lot of white elephants start as baby elephants.

Brian Cowen (Laois-Offaly, Fianna Fail)
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Regardless of the size of a capital project, the allocation of individual responsibility allows such a situation to be monitored. Rather than everyone knowing a bit about everything and nobody being responsible for making decisions consequent to a project becoming more expensive, the allocation of individual responsibility ensures problems similar to those alleged by Deputy Bruton do not arise.

Richard Bruton (Dublin North Central, Fine Gael)
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Have the responsible individuals been appointed?

Brian Cowen (Laois-Offaly, Fianna Fail)
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That is for Ministers to decide in each case.

Joan Burton (Dublin West, Labour)
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The Minister is a shareholder in the National Aquatic Centre and, as such, retains the power to transfer shares and responsibility for the company. I ask him to comment on the court case.

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am also a shareholder in the ESB but I do not have a remit with regard to that company.

Joan Burton (Dublin West, Labour)
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That relationship was established by law but such is not the case with regard to CSID.

Brian Cowen (Laois-Offaly, Fianna Fail)
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My point is that the matter is dealt with by the line Minister with delegated responsibility. Questions arising with regard to CSID are best directed to the Minister of Arts, Sport and Tourism, who can make the full information available. I am answering questions on the general guidelines which I set out in October 2005 rather than on any specific issue.