Catherine Connolly (Galway West, Independent)
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254. To ask the Minister for Public Expenditure and Reform for details of the engagement his Department has had with the Department of Health and the HSE with regard to the recent changes to the public spending code, and in particular the introduction of a three-stage approvals process, and the impacts of these changes on an ongoing project (details supplied); and if he will make a statement on the matter. [31301/23]

Paschal Donohoe (Dublin Central, Fine Gael)
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In March this year, I informed Government of a package of significant actions aimed at enhancing project delivery for the NDP and announced that the Public Spending Code will be replaced by a set of Infrastructure Guidelines. This package represents a fresh approach to securing delivery as part of the Department's enhanced remit around the NDP.

The actions include significant changes to reduce the administrative burden for Departments and public bodies developing capital projects. One of these specific changes is the reduction of the number of approval stages prior to implementation from 5 to 3, reducing the administrative burden on Government departments charged with developing and delivering projects. Additionally, the general threshold for major projects is increasing from €100m to €200m.

The 3 approval stages prior to implementation are:

1. Strategic Assessment & Preliminary Business Case - approval by the Approving Authority is approval in principle for the proposal.

2. Pre-tender - Detailed Project Brief and Procurement Strategy - approval by the Approving Authority is approval for the project to proceed to tender

3. Post-tender - Final Business Case - approval by the Approving Authority is approval to award the main construction contract.

For major projects (those over €200 million), the relevant Approving Authority is required to seek Government consent at 2 stages, the Preliminary Business Case stage and the Final Business Case stage (stages 1 and 3 above).

These updates were implemented after a high-level review among Secretaries Generals in key capital spending departments was commenced in April 2022 in order to review the requirements of the Code. Following a series of meetings, this group set out a series of six key principles to be referred to a practitioner group of experienced public servants across Government departments to consider. The practitioner group was tasked with considering the principles and returning to the Secretary General group with recommendations as to how the PSC could operate in a more streamlined manner and take account of the appropriate legal responsibilities of Accounting Officers. The Department of Health was involved in this review process at both the Secretary General and Practitioner Group level.

For public investment proposals, which are already progressing through the project expenditure lifecycle, Sponsoring Agencies and Approving Authorities should ensure that these comply with the requirements in the updated guidance as they move forward and in particular as the reach the next approval stage.

A Strategic Assessment Report for the proposed new emergency department and women and children's block at University Hospital Galway was submitted by the Department of Health to the National Investment Office in my Department for technical review on 8 March 2023. As this was submitted before circular 06/23 which implemented the changes to the Public Spending Code referenced above, the technical review was carried out by the NIO and returned to the Department of Health on the 11 April 2023. Further appraisal of this project will be carried out in line with the updated guidance.