Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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73. To ask the Minister for Public Expenditure and Reform the steps he will take to ensure that planned expenditure on projects in the national development plan are properly costed and have realistic start and completion dates; and if he will make a statement on the matter. [5044/25]

Mairéad Farrell (Galway West, Sinn Fein)
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I would like it if the Minister detailed the steps that are going to be taken to ensure that planned expenditure on projects under the national development plan are properly costed and that the projects have realistic start and completion dates. Many have been frustrated in that we have seen far too many cost overruns and a lack of completion dates.

Jack Chambers (Dublin West, Fianna Fail)
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The previous Government committed to €165 billion in capital investment through the national development plan, published in 2021. As a percentage of national income, annual capital investment is now among the largest in the EU. In 2025, €15 billion will fund vital infrastructure in areas such as housing, transport, education, enterprise, sport and climate action. An additional €2.25 billion of windfall corporate tax receipts has been allocated from 2024 to 2026 to provide funding for critical infrastructure projects that are at an advanced stage, as well as to the existing climate action fund. Ensuring that projects are properly costed with realistic start and completion dates is vital in achieving value for money from this investment.

My Department is responsible for the infrastructure guidelines, which replaced the public spending code for capital appraisal since the end of 2023. These set the value-for-money requirements and guidance for evaluating, planning and managing Exchequer-funded capital projects. Management and delivery of investment projects and public services within allocation and the national frameworks is a key responsibility of every Department, Accounting Officer and Minister.

The 2019 update to the public spending code, the introduction of the external assurance process and the major projects advisory group, and the most recent updates were informed by a number of different factors. These included recommendations arising from several reports, including the 2017 IMF report Technical Assistance Report – Public Investment Management Assessment and the PWC independent review of the escalation in costs at the new children’s hospital, a consultation process involving key stakeholders, as well as international evidence.

The introduction of the infrastructure guidelines in 2023 focused on reducing the administrative burden in delivering major capital projects which came as part of the Government’s priority action to maximise the delivery of projects. This was implemented through reducing the number of approval stages and streamlining the requirements for major projects, while retaining the international best practice governance and oversight arrangements already in place. This will ensure that vital infrastructure projects will be delivered on time.

I will continue in my next contribution.

Mairéad Farrell (Galway West, Sinn Fein)
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It is very hard for people to have faith in the Government, definitely on the back of what the previous Government oversaw regarding the national children’s hospital, cost overruns, there being no idea of a completion date, and a change in completion dates. The current Government needs to take this seriously, just as it needs to take seriously the need to stop the wastage of public money.

It is incredible that there is a wall – I looked at it – that cost the guts of half a million euro. It is also incredible that we have a bike shelter here that cost an arm and a leg and a security hut just up the road from here that cost €1.4 million. Regarding all such matters, it is extremely important that the Government take value for money seriously and tackle the issues of cost overruns and completion dates. I hope this will be an absolute priority for the Minister.

Jack Chambers (Dublin West, Fianna Fail)
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It is an absolute priority. On the specific items or examples the Deputy has raised, I have met with the chair of the OPW, along with the Minister of State, Deputy Moran, as regards the specific concerns relating to particular projects. In certain instances, members of the public have been extremely concerned, as indeed I think anyone in the political system is, about particular cost overruns. The OPW has been held to account in the Oireachtas. It is important that we have central guidance and oversight to ensure value for money and ensure that there is proper standardisation, that the design protocols are in place and that projects can be delivered at a lower cost and in an effective timeframe. That is why, as part of the appraisal for projects under the infrastructure guidelines, sponsoring agents are asked to critically consider the potential schedule and cost implications of a project, which is further developed as a project progresses through the approval gates and more information becomes available as it moves from a preliminary to a final business case, before the awarding of a contract. It includes both detailed financial and economic appraisal and accounting for all appropriate levels of contingency. That is all set out in the overall infrastructure guidance.

Mairéad Farrell (Galway West, Sinn Fein)
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It is very difficult for people to believe that this will be taken seriously by the Government because we have been seeing more crazy sums of public money being wasted. I will have a Bill forthcoming in this Dáil which will clearly help to identify cost overruns, deficient contractors and wasteful public procurement spending of public moneys. I know this is the first time the Minister and I have worked together like this, but when I point out issues and things I do not agree with, I like to come with legislation that I believe can tackle them. I hope we can work constructively together on these issues and try to bring in legislation that will stop this kind of wasteful spend. Obviously, I do not expect the Minister to agree to my Bill when he has not seen it, but I do hope we can work constructively together. I have not congratulated the Minister and the Minister of State on their new positions so I do that now and I hope we can all work together constructively.

Jack Chambers (Dublin West, Fianna Fail)
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I thank the Deputy and I welcome that. The Minister of State, Deputy Moran, and I are happy to work with everyone on a constructive basis on the common objective across our respective responsibilities in the Department. I take very seriously the concerns that have been articulated relating to value for money on particular projects, well-documented ones, many of which were unacceptable in terms of their cost overruns. It is important that there is that anchor of discipline on overall spending when it comes to capital projects in our economy and that there is a focus on delivery at the lowest cost. A lot of that comes down to the design process and, in terms of bigger capital projects, where standardisation is possible and where design protocols are there, ensuring that the appropriate governance is in place to manage particular cost overruns and that there is intervention at a management level if things are escalating from a cost perspective. We have an overall capital envelope that is ambitious to drive better infrastructure delivery in our economy, but value for money has to be at the centre of that. That will be a real focus for me as we establish an infrastructure division in my Department while also ensuring we have better discipline on overall spending and value for money.

Ruairí Ó Murchú (Louth, Sinn Fein)
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Anois, an Teachta Nash agus Ceist Uimh. 75. I thank you for your patience.