Catherine Connolly (Galway West, Independent)
Link to this: Individually | In context | Oireachtas source

99. To ask the Minister for Public Expenditure and Reform the details of all projects costing more than €100 million approved under the public spending code in Galway in the past five years; and if he will make a statement on the matter. [30717/22]

Catherine Connolly (Galway West, Independent)
Link to this: Individually | In context | Oireachtas source

This is a specific request for the details of all projects with a cost of more than €100 million that have been approved under the public spending code, PSC, in Galway.

Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

My Department is responsible for maintaining the national frameworks within which Departments operate to ensure appropriate accounting for and value for money in public expenditure, for example, the PSC. This code sets the value for money requirements and guidance for evaluating, planning and managing capital projects. The management and delivery of investment projects and public services within allocation and the national frameworks is a key responsibility of every Department and Minister.

The PSC sets out the oversight and approval process for public expenditure proposals, which are incremental in nature, progressing through decision gates 0 to 3 in terms of a project life cycle. Decision gate 0 requires a strategic assessment report, decision gate 1 requires a preliminary business case, decision gate 2 requires a detailed project brief and procurement strategy, and decision gate 3 requires a final business case. Government approval is required for proposals with an estimated cost of over €100 million. Government approval is required for a preliminary business case, that is, the Government must approve decision gate 1. Government approval is required for design, planning and procurement at decision gate 2 to proceed to tender. Government approval for the final business case must be secured at decision gate 3 to award a contract.

My Department, while responsible for maintaining the PSC, is not the approver for projects under the code. Therefore, we do not hold data related to details of projects approved under it. However, an extensive list of projects that are planned as part of Project Ireland 2040 is provided for in the investment projects and programme tracker, which was updated in May. The tracker provides a composite update on the progress of all major investments with an estimated cost of more than €20 million. In addition, the MyProjectIreland interactive map includes details of 1,100 projects around the country. There are also regional reports, including the one published for the northern and western region, which set out project details for each year up to 2021.

Catherine Connolly (Galway West, Independent)
Link to this: Individually | In context | Oireachtas source

I thank the Minister for his reply. I appreciate that he cannot give me the details, given the role played by his Department. I have in mind the status of the outer bypass in Galway - I have a view on that - and the hospital’s accident and emergency unit.

The Minister has set out the four decision gates. Decision gate 0 requires a strategic assessment report and decision gate 1 requires a preliminary business case. However, I am utterly confused by the answers that I have received from the Saolta University Health Care Group. The Minister might help me. On 13 June, I was told that a preliminary business case report had been completed and submitted to the HSE for approval. Following that, it was to go to the Department of Health and then the Department of Public Expenditure and Reform. Six months beforehand, though, I was told that a preliminary business case report was required, a draft of it was ready and it had gone to the HSE. As such, six months passed and nothing happened. The preliminary business case is for an accident and emergency unit in Galway, given that the current one is not fit for purpose. Those are not my words, but the then Taoiseach’s. In a letter dated 26 May, however, the Minister for Health wrote that the accident and emergency department project was in the early stages and a strategic assessment report was needed.

Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I do not have the full details of that project in front of me, but if the Deputy provides them to me, I will have them looked into and try to give her a proper assessment and summary of where the project stands. In essence, the line Department is responsible for ensuring compliance with the PSC. My Department has a role in overseeing the process. Formal approval for major projects has to be given by the Government at a number of decision gates. Where a preliminary business case is referred to my Department for assessment, I have ensured in all cases that it is dealt with expeditiously. The line Department is responsible for ensuring compliance with the PSC and taking a project through the various stages, and if my Department can assist in any way, we will do so.

I am happy to revert to the Deputy with a specific update on the timeline and what role my Department has played to date, if any. I would be happy to check that out for her.

Catherine Connolly (Galway West, Independent)
Link to this: Individually | In context | Oireachtas source

I thank the Minister, but will he confirm whether the first gate requires a strategic assessment report?

Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

Yes.

Catherine Connolly (Galway West, Independent)
Link to this: Individually | In context | Oireachtas source

A project cannot move on from that gate to the preliminary business case stage. Given that the Minister for Health has stated in a letter that the strategic assessment report is still due, the HSE is presumably confused in what information it is giving Ministers. I do not know where the fault lies, but this is confusing. We received the Minister, Deputy Michael McGrath’s response, for which I thank him. We have worked through all of the information we have, but trying to make sense of it has been difficult.

The Minister has outlined the practices that are in place to protect public money, which I welcome. A new accident and emergency unit will be built in Galway at some point for more than €500 million. In the meantime, we are building a temporary accident and emergency unit for €15 million or €16 million. Somewhere in cyberspace are the results of the options appraisal that was completed a few years ago regarding a brand new hospital in Merlin Park. At what stage does the Minister’s Department examine what is happening with this higgledy-piggledy development of a serious piece of infrastructure? The focus should be on a brand new hospital, particularly given that the new accident and emergency unit will cost more than €500 million.

Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

The Department of Public Expenditure and Reform does not interfere in the policy decisions made by line Departments, in this case the Department of Health and the HSE. When it comes to improving facilities and delivering new infrastructure, such decisions are made by them. What we insist on is that the PSC and the approval process be conducted properly and fully complied with. The strategic assessment report that the Deputy referred to is the first step. It involves an examination of the various options. A project then proceeds to the next step, namely, the preliminary business case. The line Department brings the project through the various stages. It comes to the Government if it is a large-scale project costing more than €100 million.

I will examine the issues that the Deputy has raised, particularly the application of the PSC and the approval process. If she wishes to furnish me with the two conflicting items of correspondence, we will try to get a coherent response for her that sets out the factual position.