Christopher O'Sullivan (Cork South West, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

79. To ask the Minister for Public Expenditure and Reform if he will provide an overview of NSO 8 of the National Development Plan 2021-2030; and if he will make a statement on the matter. [55859/21]

Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

At the outset it should be noted that my Department, in carrying out its role in coordinating the NDP Review, does not consider the merit of individual projects or sectoral policy strategies as this is primarily a matter for individual Departments and Agencies.

With that point noted, I would be glad to give a summary of the NSO 8 which seeks the Transition to a Climate-Neutral and Climate-Resilient Society. The next ten years are critical in order to address the climate crisis and we have significantly stepped up our climate ambition by committing to reduce our overall greenhouse gas emissions by 51% by 2030, and to achieving net zero emissions by 2050.

This is set out in the new Climate Action and Low Carbon Development (Amendment) Act 2021. Under the new legislation, the Climate Action Plan must be updated every year so that our actions keep step with the trajectory required to achieve our targets.

The sectoral strategies for flood risk management are outlined in the Government’s Climate Change Sectoral Adaptation Plan for Flood Risk Management. These strategies play a critical role in identifying the goals and priorities for the sector and are therefore critical in informing the investment projects set out in the NDP.

Over the period out to 2030 an additional €5 billion of the expected €9.5 billion in additional carbon tax receipts will be invested in energy efficiency. In terms of strategic investment priorities for the energy sector, this includes supporting the delivery of offshore renewable energy, retrofitting of 500,000 homes, and the installation of 600,000 heat pumps. Specific projects include the Celtic Interconnector, which will be, when completed in 2026, Ireland’s largest electricity interconnector. Strategic investment priorities for Transport include the transition to a low or zero emissions public bus fleet, an additional 500,000 sustainable journeys per day and nearly one million electric vehicles on the road by 2030. In addition, there are a wide range of major flood risk management projects planned throughout the country, for example the Lower Lee flood relief scheme.

These are just some of the many investments which will be delivered under this NSO in the coming years to support Project Ireland 2040. Further details on projects, by NSO, can be found on the investment tracker on gov.ie/2040.

Dara Calleary (Mayo, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

80. To ask the Minister for Public Expenditure and Reform the progress that has been made on initiatives to improve the delivery of capital investment projects and to achieve greater value for money as set out in the national development plan. [55837/21]

Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

Delivering greater value for money in the expenditure of public funds is a key element of all public investment policy.

The update of the Public Spending Code in 2019 combined with lessons learned from domestic projects and international best practice highlighted the need for more structured scrutiny of major public investment projects, particularly in the areas of planned delivery, costings and risk. This is to ensure that Government is making decisions with a full picture of the proposal, its costs, risks and benefits.

The revised National Development Plan (NDP) 2021-2030 pledges to restructure the oversight and implementation of capital projects to strengthen scrutiny of major public investment proposals and to drive improved project performance and value for money.

In order to achieve this, my Department has put in place an External Assurance Process (EAP) to provide independent project scrutiny at key decision stages. It is a mandatory requirement for all funding departments to participate in the process for major projects over €100m. My Department has established a framework of suitable suppliers who can provide a range of independent specialist expertise, to conduct reviews at critical points in the decision-making and project development stages. This framework is in place and will be utilised once projects over €100m reach the key decision gates for Government approval.

The purpose of the EAP is to improve value for money and support funding departments and Government with expert insight relating to project risks, delivery feasibility, and robustness of costings, governance and procurement. The EAP for major public capital projects (projects which cost in excess of €100m) will focus on issues such as cost, risk and ability to deliver, at two key points in the project lifecycle, Decision Gate 1 (Approval in Principle) and Decision Gate 2 (Pre-Tender Approval).

To support the External Assurance Process a new Major Projects Advisory Group (MPAG) has been established to further strengthen project management. As a prerequisite to seeking Government approval for projects at the relevant decision gates, project proposals and external reviews will be scrutinised by the MPAG in advance of the decision to proceed. The new arrangements bring Ireland into line with leading international performers and meet a recommendation of the IMF’s Public Investment Management Assessment of Ireland.

These updates are due to be actioned imminently within November 2021 and have been discussed at Government in recent weeks.