Written answers

Thursday, 24 April 2008

Department of Finance

Expenditure Reviews

5:00 pm

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 30: To ask the Tánaiste and Minister for Finance the progress made to date in achieving better value for money from the latest round of expenditure reviews. [15693/08]

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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Value for Money and Policy Reviews are part of a package of changes that I have introduced to the Estimates and Budget processes in recent years to move resource allocation policy away from a narrow focus on financial inputs, on to a broader consideration of performance and the delivery of outputs and outcomes. The Government approved some 90 formal Value for Money Reviews to be carried out for the period 2006-2008. This programme of reviews focuses on significant areas of expenditure and major policy issues. To date, 54 reviews are complete or almost complete under the 2006-2008 round. Responsibility for carrying out each of the reviews and for publishing them and submitting them to the Select Committees rests with the individual Departments and Offices and details of any individual review should be sought from the relevant Minister.

The reviews when completed will normally be published and submitted to the relevant Select Oireachtas Committee for consideration and in this regard consideration of Value for Money and Policy Reviews is now included in the Orders of Reference for the Select Committees. I have also written to the Select Committee Chairpersons earlier this year to encourage them to ensure that time is scheduled to consider the reviews in detail, and where appropriate, to discuss the reviews and their conclusions and recommendations with the relevant Departments and Offices.

In respect of the reviews under my own Department and the Offices for which I have responsibility the following is the position:

Department of Finance reviews under the 2006-2008 round
ReviewStatus
Economic and Social Research InstituteCompleted July 2006
Information Society FundCompleted August 2006
Ordnance Survey IrelandCompleted April 2007
Civil Service Child care InitiativeExpected completion end May 2008
Construction Procurement Reform InitiativeExpected completion end May 2008
Procurement Management within the DepartmentScheduled for completion by end 2008

The Value for Money and Policy Review of the Grant-in-Aid payment to the Economic and Social Research Institute (ESRI) contained five recommendations, all of which are in the process of being implemented. The recommendations are intended to improve the overall value for money for the grant-in-aid. Among other things, they are directed at relating funding to outputs; benchmarking the ESRI with comparable institutes in other EU member states, and periodically reviewing the policy relevance of the Institute's research. The level of the grant in aid has not changed significantly as a result of the review. The Information Society Fund terminated at the end of 2005 in line with its intended lifespan. As a result, an annual allocation for the fund is no longer required. The Fund was focussed on initiatives in the areas of Electronic Government and Electronic Commerce.

The focus of the Ordnance Survey Ireland (OSI) Review was largely on policy aspects relating to the payment of the grant-in-aid and several of the recommendations should contribute to the efficiency of the organisation and reduce not only the direct Exchequer grant, but also the payments for services made to the organisation by both the public and private sector. One of the recommendations of this Review was that responsibility for Ordnance Survey Ireland should move to the Department of Communications, Energy and Natural Resources. This change took effect from 1st January, 2008. The DCENR will be better placed to comment on further progress achieved as the other recommendations of the Review are implemented.

With regard to the reviews of Procurement Management within the Department, Construction Procurement Reform Initiative (formerly Procurement Management Reform) and the Civil Service Child care Initiative, it is not possible to anticipate the consequences of these reports until their findings are finalised, considered and implemented.

Office of the Revenue Commissioners reviews under the 2006-2008 round
ReviewStatus
Revenue's Data Capture Outsourcing ProgrammeCompleted October 2006
Information Technology External Resources ExpenditureCompleted March 2008

The first review Revenue's Data Capture Outsourcing Programme was completed in October 2006. The report contained six recommendations, three of which have been implemented. These relate to the promotion of e-facilities for returns filing and the ongoing review and research of form design and simplification. There is an ongoing project in Revenue to simplify and improve all PAYE forms. Post-implementation reviews have been carried out on existing contracts. The implementation of the other recommendations will only be possible should Revenue initiate further data outsourcing projects and will be addressed at that time.

The second review Information Technology External Resources Expenditure was published in March 2008. The report contained eleven key recommendations relating primarily to:

the use of more formal project and programme management methodologies and best practice techniques;

expansion of internal resources and skills; and

implementation of a multi-sourcing strategy.

The majority of the key recommendations of this review and the best practice techniques proposed have already been implemented or are very significantly advanced. The remaining best practice techniques proposed by the VFM Review will be assessed to determine their suitability for and relevance to Revenue's ICT programme. The implementation of the recommendations will deliver improved effectiveness in the delivery of ICT programme objectives and optimise the value obtained from this expenditure.

Office of Public Works reviews under the 2006-2008 round
ReviewStatus
Provision of Flood Relief SchemesCompleted and will be published shortly
Property ManagementTerms of Reference approved

The Review of Provision of Flood Relief Programme, which has been completed and will be published shortly, concludes that the programme is being implemented in a manner that represents good value for money. It makes a number of recommendations to further improve the management of the programme.

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