Robert Troy (Longford-Westmeath, Fianna Fail)
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618. To ask the Minister for Public Expenditure and Reform his views on whether it is required in the public spending code that projects included in the capital investment plan should have undergone at least a preliminary business case analysis. [12960/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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As specified in the Capital Plan itself each Government Department must ensure that individual projects and investment proposals are subject to all of the relevant appraisal processes and value for money tests in accordance with the Public Spending Code (PSC) before Exchequer resources are committed under the Capital Plan.

The Capital Plan itself sets out the framework and broad direction for investment priorities and provides Exchequer allocations to Departments.  

The Public Spending Code includes a comprehensive set of expenditure appraisal and Value for Money requirements, together with related guidance, covering all public expenditure at all stages in the spending lifecycle before, during and after spending.  The complexity of the appraisal or evaluation of a project or programme, and the methods used, will depend on the size and nature of the project or programme and should be proportionate to its scale.  

The Capital Plan also specifies that Departments are also responsible for ensuring that projects meet with appropriate regulatory requirements including those related to planning law and environmental impact assessments.  In addition, it also points out that all capital investment projects and programmes costing more than €100 million will be subject to a further level of scrutiny, requiring specific Government approval before final contracts are agreed.

Finally, the PSC clearly acknowledges that the economic costs and benefits are not always the only factors influencing policy decisions regarding public expenditure. There may also be social or other public policy considerations which inform the decision making process.  It observes that a fundamental principle is that nothing in the PSC should be taken as precluding Government or Ministers from deciding to approve projects independent of the evidence arising from detailed application of the Public Spending Code appraisal requirements. Any such decisions still require Departments to ensure that best practice is adhered to as regards public financial procedures generally, in terms of ensuring that the necessary terms and conditions are applied to secure full accountability and transparency for the funds including the rules regarding sanction of the Minister for Public Expenditure.