Joan Burton (Dublin West, Labour)
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Question 139: To ask the Minister for Finance if the terms of reference for his proposed review of the performance of the Department of Finance during, and in the run up to the financial crisis here will extend to the Department of the Taoiseach in respect of economic decision-making and macro-economic policy coordination; if these terms of reference are to be made public; and if he will make a statement on the matter. [28428/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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As I mentioned at the Joint Committee on Finance and the Public Service, I have in mind that there would be a review of the Department of Finance, by an Independent Review Group, comprising a small number of experts with relevant international and/or domestic experience, to evaluate the systems structures and processes used by the Department of Finance in relation to those elements of economic management that are relevant to its role and operations.

The review would be informed by a detailed consideration of the Department's performance in the past 10 years, including in relation to the development and management of the current crisis, with a view to ensuring that the lessons of this period of stress will inform the development of the Department in the future. In this context the review would consider how external information and advice, including critical and dissenting advices, were dealt with by the Department and how they should be dealt with in the future.

The review will have due regard to the skills, training and staffing mix required by a modern Finance and Economic Ministry in order that it can best fulfil its role in relation to, for example, Economic risk assessment; Policy development, advice and implementation; Optimising the Department's performance in all of its areas of operation; Communication, transparency and accountability.

I want to ensure for the future that the Department of Finance can give the best achievable policy advice, can better assess risks and opportunities in the fiscal, economic and financial system, and in relation to the public service, can manage its own operations with high levels of effectiveness and efficiency. I know that the Department has good, skilled and capable staff, but I want to be sure they are used to best effect and that the mix of skills is optimised.

When terms of reference are finalised they will be published.

I would intend that the review will be carried out – expeditiously - by individuals who have informed expertise on the role and operation of Finance Ministries internationally. The proposed review is of the Department of Finance and its functions but may, presumably, draw conclusions in relation to broader relationships and assignments within the Government system in that context.

As far as the Department of the Taoiseach is concerned, if there are any issues relating to the role of that Department arising from the consideration of the reports into the banking inquiry, and from the review of the Department of Finance, the Taoiseach will, of course, be anxious to deal with them. That Department is currently the subject of a review under the Organisational Review Programme and any issues arising from that Review will be addressed in that Department's follow-up Action Plan.