John Gormley (Dublin South East, Green Party)
Link to this: Individually | In context

Question 33: To ask the Minister for Finance if, in view of the reforms to the value for money and policy review process that he recently announced, the decentralisation policy will be undergoing an analogous review; and if he will make a statement on the matter. [24811/06]

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

I have no plans to carry out a formal review of the decentralisation programme under the value for money and policy review process.

As the Deputy will be aware, my predecessor announced in his Budget speech in December, 1999 that the Government intended to proceed with a new, more radical, programme of decentralisation. Since that announcement, my Department received submissions, representations and enquiries on behalf of more than 130 centres throughout the country seeking to be included in the new programme.

There was extensive consultation with interested parties including:—

∙meetings at official level between the Department of Finance and other Departments and with each of the civil service staff unions;

∙a meeting between the then Minister for Finance and the staff unions generally to hear the latter's views and concerns;

∙the Strategic Management Initiative Implementation Group of Secretaries General provided advice, at the request of the Government, on how implementation of the new programme could enhance the efficiency and effectiveness of the public service;

∙Heads of relevant Departments provided views, at the request of the Government, on the experience of their respective Departments with the previous programme of decentralisation; and

∙a major public service union provided advice, in response to an invitation from the then Minister for Finance on the development of criteria for the programme.

In coming to its Decision the Government took account of a wide range of factors in selecting suitable locations and departments and agencies for the new programme. I would refer the Deputy to page B.25 of the Summary of 2004 Budget Measures which describes the main factors taken into account.

Immediately following the announcement of the programme, a Decentralisation Implementation Group was appointed to prepare an overall implementation plan in co-operation with all of the organisations involved. The overall programme is being driven forward by this Group, which produced major reports on Decentralisation in March and June 2004, and further reports on the timing and sequencing of moves in November 2004 and June 2005. These reports dealt comprehensively with the people, business and property aspects of the Programme. All of the recommendations of the Group have been accepted by the Government.

All Departments and Offices have produced implementation plans setting out the detailed arrangements they are putting in place to plan for relocation while also ensuring business continuity and effective delivery of services to customers. The plans are comprehensive and their preparation involved detailed reviews of business processes as well as the logistics of the move. Departments and Offices have been proactive in identifying potential risks to service delivery and in developing strategies to ensure that such risks are managed during the transition phase.

Having already met with a number of Secretaries General, the Decentralisation Implementation Group is currently meeting with some of the Chief Executives of State Agencies to discuss their Implementation Plans, the planning framework in place, to assess progress to date and to hear about the challenges arising and steps proposed to address them.

In relation to cost issues, the Deputy will be aware that the property costs of the Programme are being managed by the OPW, which reports regularly to the Decentralisation Implementation Group on all the property aspects of the Programme.

When the Government's Decentralisation Programme was first announced, it was stated that the overall objective would be to ensure that property being acquired at a regional level is matched as closely as possible, both in time and in cost terms, by the disposal of property currently held in the Dublin region, whether held on lease or otherwise. In November 2004 the Implementation Group prepared a report, which was subsequently published, on the procurement methodology and financial assessment of the property aspects of the programme, including a financial model, based on a property finance study carried out by the Office of Public Works. While the prevailing property market conditions in each area will have a bearing on cost, this model indicates that the break-even position in relation to property will be reached in about 20 years.

At the request of the Implementation Group, the Department of Finance has issued guidelines to Departments and Offices on the capture of data on non-property costs, including transition costs such as knowledge transfer and training as well as any ongoing costs and savings. The guidelines are based on A Financial Assessment of Decentralisation Costs and Savings which was prepared by Dolomites and published in November 2004. Costs are being captured as they arise and the overall position will be assessed periodically by the Group.

I am satisfied that the reports of the Implementation Group, together with the implementation plans prepared by decentralising Departments, provide a solid basis for implementing the Programme, and see no merit in conducting an impact assessment of the type referred to.