Catherine Ardagh (Dublin South Central, Fianna Fail)
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26. To ask the Minister for Public Expenditure and Reform the action he is taking to promote value-for-money and ensure the Government’s investment delivers tangible results; and if he will make a statement on the matter. [60195/25]

Jack Chambers (Dublin West, Fianna Fail)
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My Department is responsible for the Infrastructure Guidelines, which replaced the Public Spending Code for capital appraisal since end 2023. These set the value for money requirements and guidance for evaluating, planning and managing Exchequer-funded capital projects. Management and delivery of investment projects and public services within allocation and the national frameworks is a key responsibility of every Department, Accounting Officer and Minister.

The introduction of the Infrastructure Guidelines in 2023 focused on reducing the administrative burden in delivering major capital projects which came as part of the Government’s six priority action to maximise delivery of projects. This was implemented through reducing the number of approval stages and streamlining the requirements for major projects, while retaining the international best practice governance and oversight arrangements already in place. This will ensure that vital infrastructure projects will be delivered on time and in a manner that ensures value for money through detailed evaluation, appraisal and planning.

As part of this appraisal process for projects under the Infrastructure Guidelines, Sponsoring Agents for the projects are asked to critically consider the potential schedule and cost implications of a project, which is further developed as a project progresses through the approval gates and more information becomes available as it moves from the preliminary to final business case before the awarding of the contract. This includes both detailed financial and economic appraisal, sensitivity analysis, accounting for behavioural influences such as optimism bias as well as consideration of appropriate levels of contingency.

To further ensure value for money, where a project's potential costs are likely to exceed €200 million, this project must also be reviewed through the External Assurance Process (EAP) and Major Projects Advisory Group (MPAG) at Approval Gate 1, overseen by my Department, to allow for greater scrutiny and clarity regarding such projects.

The Programme for Government commits my Department to reviewing the Infrastructure Guidelines, while the newly established Infrastructure Division within the Department is leading a cross-government effort to identify and address barriers to infrastructure delivery, and is due to produce its final report and accompanying action plan is scheduled for completion shortly.

Potential actions arising from this work, including any potential reforms to the Infrastructure Guidelines, will be considered collectively. As with previous updates to the appraisal framework, any changes made will reflect international best practice with the aim to ensure value for money for the tax payer in delivering on the infrastructural requirements of the State.