Seán Ryan (Dublin North, Labour)
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Question 93: To ask the Minister for Finance the progress made to date with regard to the implementation of the 12 point programme to improve value for money in public spending, announced by him on 20 October 2005; and if he will make a statement on the matter. [24959/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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As I indicated in my reply to question 12386/06 on 30 March I wrote to my Ministerial colleagues on 20th October last enclosing a copy of my address of the same date to the Dublin Chamber of Commerce and requesting them to ensure that their Departments take all the necessary steps to implement the measures set out in my address. My Department issued a Circular Letter to all Departments on 25 January last outlining in detail the requirements to give effect to the measures in my announcement of 20th October 2005 as well as earlier decisions made by Government in relation to ICT and consultancy procurement. Copies of the Circular Letter were also placed in the Library of the House.

The Circular included changes to existing guidelines in relation to public procurement, consultancy and capital appraisal and outlined the necessary additional steps being taken to give effect to the various value for money measures announced. It is primarily a matter for individual Departments and their agencies to make the necessary arrangements and to implement the changes arising in their area.

Follow up on a number of measures outlined in the Circular of 25 January last falls within the direct responsibility of my Department. In relation to the fixed price contracts, following a very useful exchange of views with representatives of the construction industry earlier this month, I am currently reflecting on the points made with a view to finalising the contracts very shortly. When the contracts are finalised, essential training of the relevant public sector staff will take place to allow the contracts to be available for use by the end of 2006.

The inter-Departmental review group on the guidelines on commissioning consultants will circulate draft guidelines to Departments in the next few weeks for comment. When the guidelines are being finalised, any necessary action on foot of these comments will be implemented as a matter of urgency.

Two further peer reviews of major ICT projects are now underway bringing the total to six reviews.

As regards recruitment and training of specialist staff in ICT projects and consultancies, my Department is still in the process of conducting a survey of all Departments seeking details of areas where skills shortages currently exist. Plans to put in place a new project management course aimed at those in the public service who procure and manage capital projects are advancing.

Whilst not directly related to the measures which I announced on 20 October last, I would also refer the Deputy to my announcement of 11 June last which set out my plans to strengthen arrangements for carrying out Value for Money and Policy Reviews as part of the continuing process of putting in place a framework for achieving better Value for Money for public expenditure.

The existing Expenditure Review Initiative (ERI) will in future be titled Value for Money and Policy Reviews and have a broader coverage than the ERI. It will encompass formal Reviews for the period 2006-2008 already agreed to be carried out under the ERI as well as all other Policy Reviews conducted and commissioned by Departments which impact on Value for Money. The VFM reviews when completed will be published and submitted to the relevant Oireachtas Committee. Other policy reviews which impact on VFM may also, at the discretion of individual Ministers, be published and submitted to the relevant Committee. Departments will also report on progress on Value for Money issues in their Annual Reports and identify separately in their Estimates their expenditure on VFM and Policy Reviews.

Some ninety formal Value for Money Reviews will be carried out by Departments and Offices under a programme of reviews for the period 2006-2008. Details of these reviews have been placed in the Library of the House. Each Department's and Office's programme of reviews will focus on significant areas of expenditure and major policy issues and will, as a general rule, have a minimum coverage of 10-15% of each Department's and Office's Budget.

A Central Expenditure Evaluation Unit is also being established in my Department. It will promote the Department's role in relation to VFM including reviewing compliance by Departments and Agencies with capital appraisal guidelines and recent VFM requirements such as audits of major projects. The Unit will also assist the implementation of the overall Value for Money Review Framework.