Tony Gregory (Dublin Central, Independent)
Link to this: Individually | In context

Question 296: To ask the Minister for Finance if his Department has expressed value for money concerns regarding capital funding for certain hospitals; the hospitals involved; and the reason for the concern. [26355/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context

The Deputy will be aware that the capital envelopes are agreed for each Department and office by the Cabinet. In the case of the health sector, sanction to spend this money is provided by this Department on an annual basis. This sanction is subject to a series of general and specific conditions, including adherence to national and EU requirements in relation to capital appraisal and procurement issues. In this context, all Departments and offices must comply with the Department of Finance's guidelines for appraisal and management of capital expenditure proposals in the public sector. The systematic appraisal and professional management of all capital projects helps to ensure that the best choices are made and that the best value for money is obtained.

The Deputy may be referring to my Department's letter of sanction in respect of the Health Service Executive's capital expenditure for 2005. In the context of this sanction, concerns were raised regarding the projected ongoing staffing and other costs relating to the Longford-Westmeath hospital. In this regard, my Department's sanction was subject to the Department of Health and Children arranging for an independent review of these costs. This sanction also stated that my Department's specific sanction should be obtained before the Mater project can proceed to tender. This condition was included to ensure that my Department and the Department of Health and Children are satisfied that all proper procedures have been followed in the context of the procurement process, that the necessary capital funding is in place for the duration of the project and that ongoing staffing and resource issues arising out of the project are considered and addressed in advance of signing of contracts.