Written answers

Wednesday, 21 April 2021

Department of Public Expenditure and Reform

Capital Expenditure Programme

Photo of John McGuinnessJohn McGuinness (Carlow-Kilkenny, Fianna Fail)
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92. To ask the Minister for Public Expenditure and Reform the action he is taking to strengthen oversight of the capital budget; and if he will make a statement on the matter. [20395/21]

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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I should first explain that as Minister for Public Expenditure & Reform I am responsible for the annual Estimates of Expenditure, and for the multi-year capital envelopes, which set the overall capital allocations across Departments; and for the ongoing monitoring of expenditure, both current and capital, that takes place across the Departments. Responsibility for the management and delivery of the Departmental capital expenditure programmes, and of individual investment projects, within these agreed allocations is the responsibility of the individual Department in each case.

In addition to the regular monthly reporting of progress on current and capital expenditure, Government has recently approved the introduction of quarterly sectoral reporting requirements on capital expenditure in relation to the Health, Social Protection, Education, Justice, Housing, Local Government & Heritage, and Transport sectors. This new requirement is in recognition of the significant increase in capital expenditure as part of Project Ireland 2040 and the key role that capital spending can play in mitigating risk, enhancing the resilience of the economy and raising our growth capacity. Quarterly sectoral reporting will allow for:

- a closer examination of spend against profile,

- improved monitoring of progress,

- highlighting any areas of risk, and

- facilitate timely decisions and interventions where needed.

My Department also publishes a major capital projects tracker, which sets out details of the key projects and programmes being implemented under the National Development Plan, including the location of the projects where possible. While the capital tracker does not provide an exhaustive list of all capital expenditure, the list of projects serves to highlight the diverse range of infrastructural investments being delivered across the country.

These actions build upon the suite of key reforms that have been introduced since 2018 to support the efficient implementation of Project Ireland 2040 and its objectives including:

- Establishment of a Construction Sector Group to ensure regular and open dialogue between Government and the construction sector;

- A Project Ireland 2040 Delivery Board of Secretaries General which meets regularly to ensure effective leadership of the implementation process;

- The establishment of an National Investment Office in my Department to coordinate reporting on the plan and to drive reforms included strengthened business case and project appraisal;

- A Capability Review of public sector bodies recently completed by my Department to ensure that the State’s delivery practices are of the highest standard; and

- The update of the Public Spending Code and review of construction procurement strategy as part of the ongoing reform of Ireland’s capital management systems.

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