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Written Answers 14 December 2017 Written Answers. The following are questions tabled by Members for written response and the ministerial replies as received on the day from the Departments [unrevised]. Question No. 1 answered orally. 14/12/2017WRA00300Public Private Partnerships 14/12/2017WRA004002. Deputy Jonathan O’Brien asked the Minister for Public Expenditure and Reform if his attention has been drawn to a report from the IMF (details supplied) that makes a range of recommendations regarding PPPs, including that the State begin using a cost benefit analysis of them. [53507/17] 14/12/2017WRA00500Minister for Public Expenditure and Reform (Deputy Paschal Donohoe): I should first explain that Public Private Partnerships are already subject to a strong public investment man- agement methodology, which includes appraisal. The Deputy may be referring to a recom- mendation made as part of the recent IMF PIMA report, to the effect that appraisals should be published on a more systematic basis. The National Development Finance Agency was established in 2003 under the National Development Finance Agency Act 2002. The role of the NDFA is to advise State Authorities on the optimum means of financing public investment projects in order to achieve value for money and to provide advice in relation to all aspects of financing, refinancing and insurance, includ- ing risk analysis, of public investment projects. All PPP projects involving the use of private finance must be referred to the NDFA. In addition, all projects valued at €20 million or above, whether traditional or PPP, must be referred to the NDFA for advice. The Public Investment Management Assessment (PIMA) mission to Ireland was under- taken by the IMF in July this year. The final report was published on my Department’s website (www.per.gov.ie) on 10 November 2017. The report and its recommendations are the work of an expert team from the IMF who were invited to assess our public investment institutions to evaluate the design and effectiveness of the institutions that shape decision-making at the three key stages of the public investment cycle: - planning investment; - allocating investment to the right sectors; and - implementing investment. The PIMA report concluded that, overall, Ireland manages its public infrastructure rela- tively well. It highlights both strengths and weaknesses and contains a number of recommen- 1 Questions - Written Answers dations to improve future performance in terms of the efficiency of public capital investment. One of the recommendations in the PIMA report is for the publication of the results of cost- benefit analysis on Public Private Partnership (PPP) projects, and the criteria used to select them. As the Deputy will be aware, PPPs are subjected to the same robust and rigorous project appraisal process as traditionally procured projects. In ensuring Departments obtain the best value-for-money from public capital investment PPPs, just as traditionally procured projects, are subject to the requirements contained in the Public Spending Code. The Public Spending Code encompasses guidance on a variety of issues related to the man- agement of expenditure at each stage of the expenditure lifecycle. This includes central guid- ance on the application of appraisal and evaluation methodologies including cost benefit analy- sis. This methodological guidance aims to enhance consistency across sectors through common approaches and the use of key technical parameter values needed for quantifying costs and conducting economic appraisals. While there is already significant guidance and data published on PPPs I acknowledge that the publication of cost-benefit analysis on PPP projects would provide greater transparency in reporting on PPP projects. However, in assessing the implementation of the PIMA recommen- dation, it would be important to take into account the commercial sensitivity of specific data included in the appraisal of PPPs. An inter-Departmental and Agency Group was established earlier this year to make recom- mendations on the future role of PPPs, in the context of the new 10 year capital plan. The group comprises relevant officials from the Departments and agencies with experience of procuring projects by PPP. As part of its work, the group is considering the recommendations made in the PIMA report that relate to PPPs, including the recommendation in relation to publication of CBAs for PPP projects, to inform future decision-making on these matters. I expect the Group’s deliberations to be completed alongside the finalisation of the new 10-year capital plan, which is currently being developed by my Department to support the implementation of the Ireland 2040 Plan detailing the new National Planning Framework. Questions Nos. 3 to 7, inclusive, answered orally. 14/12/2017WRA00700Appointments to State Boards 14/12/2017WRA008008. Deputy Jonathan O’Brien asked the Minister for Public Expenditure and Reform his plans to improve the gender balance on each of the State boards under his remit. [53246/17] 14/12/2017WRA00900Minister for Public Expenditure and Reform (Deputy Paschal Donohoe): Each Minis- ter is ultimately responsible for appointments to boards under their aegis and must have regard to the Guidelines on Appointments to State Boards. Relevant issues relating to the effective operation of each board, including those such as diversity, gender balance and mix of expertise and skill sets are for each Minister to consider. As set out in the Guidelines, compliance with the Government Decision of 23 July 2014 on Gender Balance on State Boards is an essential requirement. These requirements include: - Each Department should prepare a plan to reaffirm and achieve the target of at least 40% 2 14 December 2017 for representation of each gender on State Boards within its remit during the lifetime of the present Government. - Departments should maintain a particular focus on those Boards on which either women or men are currently significantly under-represented and should actively seek to appoint candi- dates of the under-represented gender from the PAS short list. - Departments should in the case of Boards which have already achieved the 40% target seek to move towards 45% of each gender as a new target for gender equality. Indications are that 48% of State boards have reached the target of a minimum of 40% female membership set by the Government and indeed that some 35% of boards have met the higher 45% target. This compares very favourably with the private sector, with a figure of somewhere around 13% female participation. The position on individual State boards is a mat- ter for the relevant Minister. Up to the end of September this year, over 500 appointments have been made under the new system. Some 30% of over 8,700 applications received for state board appointment came from women, who made up some 45% of the appointments made. The Board of the Public Appointments Service (PAS) is the only State Board under the ae- gis of my Department. The Public Service Management (Recruitment and Appointments) Act 2004, which established PAS, specifies that the chairperson and ordinary members of the Board shall be appointed by the Minister for Public Expenditure and Reform in consultation with the Minister for Health, the Minister for Housing, Planning and Local Government and the Minis- ter for Justice and Equality. The Act also specifies that in appointing persons as members of the Board the Minister shall ensure that: - at least 2 of them have either or both civil service and other public service experience and knowledge which the Minister considers relevant, and - at least 2 of them have expertise in human resource management, customer service and recruitment outside the public service which the Minister considers relevant. Up until recently, five of the nine members (or 55%) were women, including the 3 positions recruited through the State Board process operated by PAS. However, two of these three posi- tions are currently vacant but are in the process of being filled through the PAS process and the issue of gender balance will be considered along with other issues. There is also a third vacancy which is normally filled following a recommendation from the Minister for Justice and Equality. Questions Nos. 9 to 14, inclusive, answered orally. 14/12/2017WRA01100Expenditure Reviews 14/12/2017WRA0120015. Deputy Jonathan O’Brien asked the Minister for Public Expenditure and Reform the rolling selective spending review process which will take place in his Department between 2017 and 2019; and if he will make a statement on the matter. [53247/17] 14/12/2017WRA01300Minister for Public Expenditure and Reform (Deputy Paschal Donohoe): As part of my Estimates speech on Budget day last year I announced that a spending review would take place on a three-year rolling basis. 3 Questions - Written Answers The first cycle of the Spending Review in 2017, which culminated in the publication of over 20 analytical papers on Spending Review topics, was successfully completed in October fol- lowing the publication of Budget 2018. This was the first cycle of a series of selective reviews of the current expenditure base that will remain in place for a 3-year period, thereby informing the preparation of the next two Budgets. In advance of Budget 2019, the Spending Review in 2018 will examine the next phase of expenditure topics. It is planned that the remaining phase of current expenditure topics will be covered the following year. The primary objective of the Spending Review in 2018 is to build on the work completed in 2017 and continue to reinforce the use of data, evidence and analysis to support decision-making in the Estimates process. As the Deputy will be aware, there are a number of significant risks - both internal and ex- ternal - to the sustainability of our current growth and fiscal performance. These require that Government secure the continuation of sound public finances to underpin sustainable economic growth.
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