Joan Burton (Dublin West, Labour)
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Question 104: To ask the Minister for Finance the steps he intends to take to deal with the shocking waste of taxpayers' money coming from the over-spends, under-estimates and aborted projects highlighted in the recent "Prime Time Investigates" programme, transmitted on 9 May 2005; the steps he intends to take to ensure value for money in public expenditure on capital projects; if he intends to implement in full the recommendations of the NESC study, Achieving Quality Outcomes, the Management of Public Expenditure; and if he will make a statement on the matter. [18272/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I dealt with most of the issues raised in the Deputy's parliamentary question in my address to the House in response to the Private Members' motion on 17 May on this matter. As I stated then, while I accept that there have been instances over the years of project overspends, etc., that could have been managed better, I do not accept that there was a shocking waste of taxpayers' money, etc., as suggested by the Deputy. The fact is that the Government has made available unprecedented levels of investment to urgently tackle infrastructural priorities, including investment of €36.3 billion planned for the period 2005-09. We have taken important steps to promote more efficient and effective management of public capital programmes and projects and to optimise value for money from public capital investment.

As Minister for Finance, my key role is to advise Government on prioritisation of resources at programme level for capital investment purposes and to set the framework within which capital programmes and projects must be appraised and managed by Departments and their agencies. Departments have extensive delegated sanction within this framework for project level appraisal and selection. I have with Government approval progressed the work commenced by my predecessor on the roll-out of the five-year rolling capital envelopes, on revising guidelines for the appraisal and management of capital programmes and projects and on reform of the rules relating to public procurement and public sector contracts. These initiatives are all designed to lead to better appraisal and management of capital programmes and projects and to assist the execution of programmes and projects within budget.

The capital envelopes also incorporate a facility to carry over to the following year savings of up to 10% of voted capital. This feature is also facilitating better planning and management of capital projects and programmes and discouraging any tendency to rush end of year spending on inefficient measures.

The move to fixed price public construction and construction related contracts and the shifting of risks to the private contractor will result in a closer match between tender prices and final project outturn costs.

Already, Departments are reporting evidence of better management of capital projects, notably in the transport area, where projects are now being completed ahead of schedule and within or in some cases below budget.

As my speech of 17 May last indicated, there have been significant improvements in the quality of public services arising from the investment of taxpayers' money. Many of the issues raised in the NESC study have been or are being addressed under the above mentioned reforms to the arrangements for the management and appraisal of public capital programmes and projects, reforms to the management of public expenditure generally and the Government's modernisation programme. Multi-annual budgets have been put in place in the rolling five-year multi-annual capital envelopes. Evaluation arrangements have been strengthened in the newly published capital appraisal guidelines, which include, for the first time, a requirement to evaluate capital programmes with an annual value in excess of €50 million. Improvements have been made to the expenditure review initiative, including the implementation of the recommendations in the recent report of the expenditure review central steering committee to me. Evaluation capacity within the Civil Service is being enhanced though programmes such as the masters programme and diploma programme in public policy analysis introduced by the Centre for Management and Organisation Development, CMOD, in my Department and run on its behalf by the IPA in conjunction with UCD. Basic training in policy analysis is also being provided to Departments by CMOD which is also currently developing practical training in the application of the new capital appraisal guidelines. There has been a greater focus on outputs and increased use of IT through initiatives such as the roll-out in Departments of the management information system, MIF. On foot of my announcement in the 2005 budget, I am currently considering options for reform of the budget and Estimates process which I intend will address the issue of greater accountability to the Oireachtas for results.