Written answers

Wednesday, 3 May 2017

Department of Public Expenditure and Reform

Capital Expenditure Programme

Photo of David CullinaneDavid Cullinane (Waterford, Sinn Fein)
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215. To ask the Minister for Public Expenditure and Reform the criteria and the processes which will be applied to proposed capital projects for inclusion in the Government's capital investment plan for 2016 to 2021. [21020/17]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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The Capital Plan "Building on Recovery", sets out a €42 billion framework to address our priority capital projects up to 2021.

The Plan is now being reviewed to ensure that capital spending is strictly aligned with national economic and social priorities, consistent with Programme for Partnership Government objectives. This includes examining how available capital funds can best be allocated to underpin sustainable medium-term economic growth and future growth potential. 

The process will comprise a focused review of priorities aimed primarily at advising Government, in the context of Budget 2018, on how the additional capital funding committed by Government should be allocated over the remainder of the plan.  This will examine priority areas for investment, consistent with the objectives of the existing Capital Plan and the specific investment priorities contained in the Programme for Government.

My Department has written to all Departments initiating the Review process and has sought submissions, including proposals for any of the additional capital funding available. In the first instance, it is therefore a matter for each Department as to how it has assessed its sectoral capital plan in the light of any factors since the plan was originally published in 2015, and propose any consequent reprioritisation or additional priorities when making their submission.

A public consultation has also been undertaken to inform the review of the Capital Plan, as detailed on my Department's website ().  As part of that consultation we have sought views as to what criteria could be used to assess capital programmes. Possible criteria include: economics benefits; positive impact on equality and social inclusion; consistency with the achievement of Climate and Energy Goals; alignment with the new National Planning Framework; and addressing current bottlenecks. Views were also sought as to whether any other criteria should be considered.

Taking these submissions into account and drawing on analysis carried out by my Department, the proposals received from Departments will be assessed with a view to making recommendations to Government in Q3 2017, to inform final decisions by Government on revised capital allocations, to be announced in the context of Budget 2018.

It should also be noted that, 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.

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