Paschal Donohoe (Dublin Central, Fine Gael)
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Each individual Accounting Officer is responsible for the monitoring of performance of public contracts under his or her remit and for ensuring that the public procurement function is discharged in line with the standard accounting and procurement rules and procedures efficiently and effectively to deliver maximum value for money for the taxpayer.

Public Procurement is governed by EU legislation and national rules and guidelines with the aim of promoting an open, competitive and non-discriminatory public procurement regime which delivers best value for money. All Irish public bodies are obliged to spend or invest public funds with care, and to ensure that optimal value for money is obtained in accordance with the Public Spending Code which sets out the rules and procedures to ensure that these standards are upheld across the Irish public service.

The Office of Government Procurement (OGP), an office within my Department, has responsibility for the National Public Procurement Policy Framework (NPPPF) which sets the overarching policy framework for public procurement in Ireland. The NPPPF consists of 5 strands: Legislation (Directives, Regulations); Policy (Circulars, etc.); General Guidelines; the Capital Works Management Framework (CWMF); and detailed technical guidelines, template documents and information notes that issue periodically. This framework enables a consistent approach to public procurement across the public sector to deliver value for money for the taxpayer.

To assist Contracting Authorities in the conduct of procurement procedures, the OGP has published extensive guidance material for contracting authorities including the Public Procurement Guidelines for Goods and Services (the Guidelines) available at: www.gov.ie/en/publication/c23f5-public-procurement-guidelines-for-goods-and-services/ and the Capital Works Management Framework (CWMF) available at: www.gov.ie/en/service/1d443-capital-works-management-framework/# .

The Guidelines outline the various stages of the procurement process from specification, through to selection and award stages, and through to the contract management stage. They provide comprehensive guidance on ensuring the specifications fully and accurately capture the requirement of the goods or services and identify the risks of poor specification and the challenges that this can cause Contracting Authorities when subsequently managing their contracts. The OGP and its sector partners in Health, Education, Local Government and Defence have a range of centralised procurement frameworks and dynamic purchasing systems in place in respect of sixteen categories of common goods and services to minimise administration and to deliver enhanced service levels and value for money promptly and efficiently. Contracting authorities are encouraged to check the Office of Government Procurement website for existing or planned procurement arrangements which may meet their needs.

All public works projects that are delivered under the Exchequer-funded element of the Government's capital plan must be procured in accordance with the provisions laid down in the Capital Works Management Framework (CWMF). The CWMF is mandated by circular and was developed to provide an integrated set of contractual provisions, guidance material, technical templates and procedures, which cover all aspects of the delivery process of a public works project from inception to final project delivery and review to assist contracting authorities in meeting their ongoing procurement requirements. The Public Works Contract is a key component of the CWMF. It is a lump sum contract which operates best when tendered on the basis of a comprehensively designed project. A well-defined project enables greater efficiency since it provides the necessary information up front so the contractor can schedule the works and commence early engagement with their sub-contractors on price.

Paschal Donohoe (Dublin Central, Fine Gael)
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As Minister for Public Expenditure, NDP Delivery and Reform, I am responsible for setting the overall allocations across Departments and for monitoring monthly expenditure at Departmental level. I am also responsible for maintaining the national frameworks within which Departments operate to ensure appropriate accounting for and value for money in public expenditure such as the Public Spending Code and Infrastructure Guidelines.

The ongoing dialogue between my Department and other Departments and Offices is part of the monitoring process for ongoing expenditure and any developments throughout the year. Management and delivery of investment projects and public services within allocation and the national frameworks is a key responsibility of every Department and Minister and measures are in place to help ensure that budgetary targets are met. My Department monitors the performance of that expenditure within the overall fiscal parameters and the drawdown of funds from the Exchequer against the published expenditure profiles. There is regular reporting to Government and information in relation to voted expenditure is published monthly with the Exchequer Returns.

Budgetary and expenditure reforms remain a key feature of public expenditure management throughout all Departments. This important goal has been fully embedded across the system of Government and is progressed in a number of ways including the day-to-day management of resources, regular engagement across Departments on cross cutting issues and through the public service reform programme. It is also progressed through a range of core budgetary reform initiatives including, but not limited to:

• The Public Spending Code;

• National Development Plan;

• Performance Budgeting;

• Equality Budgeting;

• Green Budgeting

• Well-being budgeting; and

• The Spending Review Process.

These reforms and processes broaden the approach to how public expenditure is appraised, implemented and reviewed. They govern not only how and where the money is spent but also the impact of public expenditure across different cohorts of society and the different categories of expenditure. They work in tandem with broader initiatives, such as the establishment of the Irish Government Economic and Evaluation Service (IGEES), to develop capacity and enhance the role of economics and value for money analysis in public policy making.

Additionally, my Department engages in international fora, including OECD working parties and committees. These discussions focus on spending reviews, budgetary reform and other areas that that strengthen the public sectors’ ability to promote systemic change as way to respond to economic, social and environmental challenges.

While each reform may be considered in isolation, it is important to recognise that each represents one part of the overall reform process. Together, these expenditure reforms aim to provide a more comprehensive and thorough insight into how public services are supporting the Irish population.

It is with this more complete understanding that policymakers can work towards the achievement of value for money objectives in the context of the entire budgetary process, ensure responsiveness to emerging opportunities and trends where appropriate, and enhance the impact of policies and programmes on the lives of people in Ireland.

Paschal Donohoe (Dublin Central, Fine Gael)
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The Government’s approach to public expenditure policy is set out in the Medium Term Expenditure Strategy (MTES). The objectives of the MTES are twofold, to ensure that the level of core expenditure growth is sustainable in the long-term and that investment in expenditure protects and delivers improvements to public services. This framework must be responsive to the economic landscape and is reviewed annually as part of the whole of year budget process including the Summer Economic Statement and the Estimates process.

Managing the delivery of services within budgetary allocations is a key responsibility of each Minister and measures are in place to help ensure that budgetary targets are met. The ongoing dialogue between my Department and line Departments is part of the monitoring process for existing levels of service provision and any emerging pressures. My Department ensures that expenditure is being managed within the overall fiscal parameters and the drawdown of funds from the Exchequer is monitored against the published expenditure profiles. There is regular reporting to Government and information in relation to voted expenditure is published monthly with the Exchequer Returns.

In seeking to smooth the impact of higher prices on public services and supports, Government sought to strike a balance in Budget 2024 between protecting investment in public services and helping to mitigate the cost of living pressures while also ensuring sustainability of the public finances. The Revised Estimates for 2024 provided €96.3 billion in gross expenditure to Departments. These amounts will form the basis of monitoring throughout 2024. The overall Government expenditure ceiling is €96.7 billion, €0.4 billion of which is unallocated.

Since the publication of REV 2024, proposals for a new public service pay agreement – Public Service Agreement 2024 to 2026 - were finalised at the Workplace Relations Commission (WRC) on 26th January. Public service unions and associations can be expected to ballot on these proposals in the coming weeks. The Revised Estimates for 2024 provided for an allocation of €700 million in respect of a future public service pay agreement, which was being negotiated at that time. The additional €400 million, upon ratification of the agreement, will be provided to departments as required through supplementary estimates later in 2024.

In addition, as part of the Government’s fiscal strategy Budget 2024 announced the establishment of two new reserve funds; the Future Ireland Fund and the Infrastructure, Climate and Nature Fund. These reserves will help to future proof our economy and public finances by enabling us to maintain our investment plans and expectations over the longer term. Investing windfall corporation tax receipts now will also help us meet any potential future fiscal challenges.

Finally the Government, through updates from the Minister for Finance, continues to monitor the macroeconomic situation including labour market trends and inflation levels.

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Government’s approach to public expenditure policy is set out in the Medium Term Expenditure Strategy (MTES). The objectives of the MTES are twofold, to ensure that the level of core expenditure growth is sustainable and that investment in expenditure protects and delivers improvements to public services. This framework must be responsive to the economic landscape and is reviewed annually as part of the whole of year budget process including the Summer Economic Statement and the Estimates process.

The ongoing dialogue between my Department and other Departments and Offices is part of the monitoring process for existing levels of service provision and any emerging pressures. Managing the delivery of services within budgetary allocations is a key responsibility of each Minister and measures are in place to help ensure that budgetary targets are met with the drawdown of funds from the Exchequer being monitored against the published expenditure profiles. There is regular reporting to Government and information in relation to voted expenditure is published monthly with the Exchequer Returns.

Budgetary and expenditure reforms remain a key feature of public expenditure management throughout all Departments. This important goal has been fully embedded across the system of Government and is progressed in a number of ways including the day-to-day management of resources, regular engagement across Departments on cross cutting issues and through the public service reform programme. It is also progressed through a range of core budgetary reform initiatives including, but not limited to:

• Performance Budgeting;

• Equality Budgeting;

• Green Budgeting

• Well-being budgeting; and

• The Spending Review Process.

These reforms and processes broaden the approach to how public expenditure is appraised, implemented and reviewed. They govern not only how and where the money is spent but also the impact of public expenditure across different cohorts of society and the different categories of expenditure. They work in tandem with broader initiatives, such as the establishment of the Irish Government Economic and Evaluation Service (IGEES), to develop capacity and enhance the role of economics and value for money analysis in public policy making.

Additionally, my Department engages in international fora, including OECD working parties and committees. These discussions focus on spending reviews, budgetary reform and other areas that strengthen the public sectors’ ability to promote systemic change as way to respond to economic, social and environmental challenges.

While each reform may be considered in isolation, it is important to recognise that each represents one part of the overall reform process. Together, these expenditure reforms aim to provide a more comprehensive and thorough insight into how public services are supporting the Irish population.

It is with this more complete understanding that policymakers can work towards the achievement of value for money objectives in the context of the entire budgetary process, ensure responsiveness to emerging opportunities and trends where appropriate, and enhance the impact of policies and programmes on the lives of people in Ireland.