Brian Cowen (Laois-Offaly, Fianna Fail)
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I would stress that the efficient management and implementation of capital projects is a matter for implementing Departments and Agencies. My Department has set out an elaborate Value for Money framework dealing with such areas as appraisal, implementation, procurement etc to assist Departments and Agencies in delivering projects in a Value for Money way.I recently established a small Central Expenditure Evaluation Unit (CEEU) in my Department to more generally promote the better application of aspects of the Value for Money framework referred to above. Key responsibilities of the Unit include:—

Verification of the application of the 2005 Capital Appraisal Guidelines issued by my Department;

Co-ordination of overall implementation of the comprehensive programme of Value for Money and Policy Reviews agreed by Government last year;

Preparation and rollout of the Programme Evaluations under the National Development Plan 2007-2013; and

General remit to promote Value for Money across the system including through the provision, as resources permit, of technical and other advice to Departments and Agencies.

One element of the Unit's work programme does relate to the requirement for spot checks of capital projects for compliance with the capital investment VFM frameworks. Spot checks are in the first instance the responsibility of each spending Department, who are required to put a system in place to carry out spot checks of projects to ensure compliance with the VFM frameworks and to report their findings annually to my Department. The CEEU will review these spot check reports and may also directly undertake its own spot checks of individual capital projects either as part of this review process or on its own initiative.

The CEEU is currently reviewing the spot check reports submitted in 2007 by line Departments. It has also commenced its own series of spot checks of individual capital projects and is at present finalising its reports on a number of projects in the transport sector. The Unit will be rolling out its programme of spot checks over the remainder of 2007 primarily focussed on the bigger capital spending Departments. In this connection, the Unit is currently finalising arrangements for spot checks of projects in two other significant capital spending Departments and it expects to commence spot checks in these sectors shortly.

Reports on CEEU spot checks will be conveyed to the relevant Departments. These reports may include advice on the planning, appraisal and execution of specific projects by reference to the VFM framework in place. It will be a matter in the first instance for the relevant Department/ Agency to respond to and action this advice. The CEEU will, however, pay particular attention to follow up on advice it has given in subsequent engagement with relevant Departments and Agencies.