Seanad debates

Tuesday, 25 March 2003

Finance Bill 2003 [ Certified Money Bill ] : Second Stage.

 

In a private company, when a spending proposal is made, the first question asked relates to the benefits that might flow from the expenditure, and if the benefits are in proportion to the costs. If they are, the spending is approved. That never seems to happen in the public sector. The private sector considers goals, objectives and measurements in order to see if value for money can be obtained. Companies which do not take this approach soon go out of business. Because Governments do not go out of business, that basic discipline is lacking. When a proposal is made in the public sector, the decision to accept it is largely based on political factors. Cost comes into it peripherally, and a costs and benefits balance hardly ever arises. What often decides the question is whether or not the money is there to spend.

Comments

No comments

Log in or join to post a public comment.