Mairéad Farrell (Galway West, Sinn Fein)
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81. To ask the Minister for Public Expenditure and Reform his plans to reform the OPW following the latest report from an organisation (details supplied); and if he will make a statement on the matter. [27881/25]

Mairéad Farrell (Galway West, Sinn Fein)
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This relates to the latest Deloitte report into the OPW. Will the Minister of State outline how he plans to reform the organisation and what his future steps will be in that regard? There was huge outcry when people saw the bike shelter and the cost of it at €336,000. You would get an ambulance for that price on Inisheer, which does not have an ambulance.

Kevin Moran (Longford-Westmeath, Independent)
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The publication of the internal audit report by the OPW, following the review of projects costing €500,000 and under is welcome. It follows a commitment to learn from the bike shelter project and presents the internal audit findings, control recommendations and management response. The OPW has accepted and is actively implementing all the recommendations within the report. The internal audit report enables us to focus on continuing to strengthen ways of working across the OPW. The OPW takes a structured approach to delivering value for money across both the capital and current expenditure programmes, with the capital expenditure programme grounded in principles and requirements of infrastructure guidelines and adherence with the capital works management framework. The capital works management framework aims to deliver cost certainty, better value for money, and more efficient project delivery. This is achieved through standardised contracts, guidance notes and a structured approach to project management. The OPW follows this policy instrument to deliver a compliant tender process and construction projects, ensuring that projects achieve value for money, are delivered in an efficient manner and meet the needs of the Government and our clients across the system. In addition, guidance on capital works projects with an estimated value of less than €500,000 has been developed. This new guidance covers approval and oversight for smaller capital works projects and will further strengthen our project oversight, regardless of project size.

Mairéad Farrell (Galway West, Sinn Fein)
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There are a number of reasons it is important to raise this. We have been talking about reports that were not acted upon, and I hope it will not be the same in this case. Although Deloitte's report is the latest one, it is not the first report on the OPW. We had damning report in 2014. That was an external London-based firm. Following that, there was a "Prime Time" special, PAC hearings and other examples of failure to get value for money. In 2022 we had another review; this time it was an internal Government study into how much money was spent on the portfolio. It looked at five buildings to compare rental costs with either purchasing or constructing an equivalent building. In all cases looked at, it was found to be much cheaper to build or to buy. In other words, they keep making wrong decisions when it comes to getting value for money. We are obviously talking here about the bike shelter. I see what the Minister of State says about guidance for projects under €500,000. Does he have full confidence this will be acted upon and that exactly how the OPW spends money will be looked at?

Kevin Moran (Longford-Westmeath, Independent)
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Following the OPW chairman's report on the bike shelter and his appearance before the Oireachtas committee, he was frank in acknowledging the overall cost of delivering the covered bike shelter at Leinster House was unacceptable in the wider context of value for money and value for the taxpayer. Following his commitment to learn from the bike shelter project, the chairman wanted independent assurance on the practice relating to capital projects under €500,000. In addition, he widened the scope of external review to include the wider internal audit process within the OPW with a view to making improvements. I welcome the published report, which presents internal audit findings, control recommendations and management response. The audit report makes a number of recommendations about control measures that will enhance capital expenditure practice for these projects. The OPW has internally accepted the implementation of the recommendations in the report. The new guidance approval and oversight of smaller capital projects is now being implemented across the OPW. The management board will review and drive the implementation of the internal audit recommendation to ensure we continue to improve our approach. The commitment to robust governance of the internal audit function within the OPW has been further strengthened by the appointment of an additional member of its team and a head of internal audit principal officer.

Mairéad Farrell (Galway West, Sinn Fein)
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My question is on what actual reform we will see taking place in the OPW. I am sure the Minister of State is against these overspends and I take it he was not in office at the time but it has continued over a number of years and there have been reports over a number of years. What reform will take place in the OPW? Does the Minister of State have confidence it can properly manage its property? Is its property management function working? Does the Minister of State have confidence in it? What exactly will change organisationally? We hear about the bike shelter and it causes huge public anger, understandably, but often we only get this information because somebody like Ken Foxe puts in an FOI request and successfully gets the FOI request returned. We need to look at it in its entirety. How could we change what is happening in the OPW?

Kevin Moran (Longford-Westmeath, Independent)
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I have 100% full confidence in myself as Minister of State and in the OPW. It is a 35-page report with 18 recommendations. Some people criticised the delay regarding the report. That was because I, as Minister of State, wanted to make sure we implemented all the recommendations in the report. We put our hands up. There were mistakes made. We have to improve and we are improving. Based on the final report, I will make sure those recommendations are insisted on and gone through. The OPW and I will work together to ensure better value for money for the taxpayers and people of this country.