Written answers

Thursday, 18 January 2018

Department of Public Expenditure and Reform

Expenditure Reviews

Photo of Mick WallaceMick Wallace (Wexford, Independent)
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18. To ask the Minister for Public Expenditure and Reform his plans to initiate a cost benefit analysis review of information technology expenditure across all Government Departments and State agencies under their aegis; the most recent figure for the combined annual spend on information technology by Government Departments and State agencies; if all information technology contractors follow a specific framework with regard to recording of hours, renewal of contracts and skilled resources; and if he will make a statement on the matter. [2217/18]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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Given the differing purposes and functions of public bodies, each will have its own particular perspective on what constitutes cost-benefit.  In addition, since each Department and agency is a specific legal entity, with its own governance structure and responsibilities, it is therefore the responsibility of that department or agency to undertake a cost benefit analysis in regard to information technology (ICT) expenditure.  It is also the responsibility of that department or agency to prioritise spending in line with business needs and the overall framework of relevant government policies, and to achieve value-for-money for all such expenditure.  My Department’s role is an oversight one to ensure that all new ICT-enabled initiatives are aligned with the Public Service ICT Strategy and the eGovernment Strategy 2017-2020.  

Under the terms of Circular 2 of 2016, which delegates responsibility for ICT-related expenditure to public bodies, specific approval is required from my Department for expenditure on all new ICT initiatives.  The deputy may wish to be aware that approval was conveyed for expenditure of approximately €130 million for such new ICT-related initiatives during 2017.  My Department intends to collate returns from across all Government Departments and State Agencies to establish the aggregate actual spend on ICT for 2017, the first full year of operation of the Circular; that information will be made available in mid-2018. 

Given the varied business requirements of public bodies, which might be met in a number of ways such as a fixed price or draw-down, time and materials basis, there is not a specific framework for ICT contractors to follow.  Public bodies are directly responsible for the management of external resources engaged by them and the appropriate recording of hours worked, or adequate quality of output being delivered.  All such arrangements must result from a valid procurement exercise, utilising either an open procurement or availing of arrangements established by the Office of Government Procurement, and an agreed contract on foot of the procurement exercise.

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