Pat Breen (Clare, Fine Gael)
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Question 49: To ask the Minister for Finance if he is arranging to receive regular reports on the progress of major capital projects with regard to cost over-runs and scheduled delivery times. [13270/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Primary responsibility for managing capital programmes and the evaluation, planning and execution of capital projects on time and in line with budget rests with the Government, Ministers, Departments and the implementing agencies directly concerned. Specific questions about individual projects should be directed to the relevant Ministers.

I have, with the approval of the Government, set out the overall policy framework for capital programmes and this is articulated through the multi-annual capital envelopes which set out resources available on a rolling five year basis. I have also put in place best practice guidelines for the appraisal and management of capital projects. Ministers and their Departments have, in general, delegated sanction to approve projects within this framework.

Under the general conditions of sanction for the capital envelopes, each Department or agency is required to: observe the guidelines for the appraisal and management of capital expenditure proposals in the public sector; report regularly — at least every six months — to its MAC on the evaluation of capital projects prior to approval, the management of capital projects and on progress on its capital programmes; put a system in place to carry out annual spot checks of projects. Departments are also now required under the capital envelope framework to report annually to my Department on progress on capital programmes and projects above a specified threshold.

This framework is designed to ensure that Departments and their agencies apply best practice in regard to project assessment, including better appraisal at appraisal stage of project costs over the project life cycle and the close monitoring of projects against approved budget and time frame.