Written answers

Wednesday, 4 June 2008

Department of Finance

Departmental Expenditure Reviews

10:00 pm

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Labour)
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Question 130: To ask the Minister for Finance the purpose and extent of the efficiency reviews of public expenditure as cited in the OECD's 2008 Economic Survey of Ireland; the terms of reference of these reviews; the person who is carrying out these reviews; when he expects these reviews to be completed; if and when these reviews will be published; and if he will make a statement on the matter. [21970/08]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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In my predecessor's 2008 Budget Statement before this House on 5th December 2007, he announced the Government's agreement to an efficiency review of all administrative spending across the whole public service. In the Summary of Budget Measures, he set out his intentions as to how the review process should proceed.

In essence, all Government Departments and Offices were required to examine all administrative spending within their area, including spending by state bodies under their aegis, and to report back to my Department by March 2008 with specific proposals to maximise administrative savings in their area. The results of this exercise would then be reviewed within the Department of Finance, and the savings identified would be used in reducing the cost of the existing level of services for 2009 and subsequent years.

In setting out the parameters of the Efficiency Review, no requirements were laid down as to the persons who should be involved in conducting the examinations within each Department, nor as to the specific terms of reference that would guide the examination exercise in each case, as these are matters to be determined by the Head of Department or Office in each case. However, in the Summary of 2008 Budget Measures, particular areas of interest identified included possible inefficiencies due to the multiplicity of Boards and Agencies; the need for better sharing of certain services; and efficiencies in management, travel and consumables in general. It was also indicated that the measures identified would not jeopardise the maintenance of front-line services.

The Efficiency Review process has been completed in all Departments at this stage and my Department is reviewing the results at present. I anticipate that the outcomes of the exercise will have a bearing upon the preparations for the 2009 Pre-Budget Expenditure Estimates, which are due to be published in October this year.

As indicated in the 2008 Summary of Budget Measures, each Secretary General will be required to advise their relevant Oireachtas Committee of the savings agreed by Government arising in the Efficiency Review and be examined on these. The question of making the outcomes of the Efficiency Review exercise available to the Committees and public will naturally arise in that context.

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