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08/01/2008
MLAs Unite To Condemn Underspending
In an unusual show of solidarity, the Assembly's scrutiny committees have combined to demand the Stormont Executive eradicate "underspending".
They jointly said today that millions of pounds is being wasted by government departments and that they need to urgently improve their management of taxpayers money.
The committees joined forces to warn Executive Ministers that the current average underspend across government departments of 2% of their budgets for the last financial year is "unacceptable".
It is the first time since the restoration of devolution that the MLAs committees have come together in an attempt to influence the Executive in managing its first potential major hurdle - agreeing a budget.
A total underspend across government departments over the last three years has been put at between £113m and £115m - cash which could have been used elsewhere.
In addition, between £97m and £227m of capital budgets has remained unused each year.
Under the umbrella of the Assembly's finance committee, the Executive was also told that some departments face a greater challenge in achieving a 3% across-the-board efficiency saving target than others.
The report also called for a "more visible linkage" between programme for government priorities and goals with departmental objectives and budget spending areas and said the future budget process and timetable needs to be agreed at an early stage this year so the committees can perform their scrutiny functions.
The report asked for steps to be taken to ensure the effective planning and management of capital projects to minimise delays and underspend.
It recommends a target is set for reducing current underspend to an average of not more than 1.5% in the next financial year and more than 1% thereafter.
The all-party committee also says it sees considerable potential in the proposal for a performance and efficiency delivery unit (PEDU) but warns it must not contradict or cut across the work of the Northern Ireland Audit Office.
Nonetheless, it says some departments may be in a position to achieve efficiencies higher than the 3% target and calls on Finance Minister Peter Robinson's department to keep the impact on individual departments under review.
In broader, background terms, the committee said it recognised Northern Ireland has one of the United Kingdom's least prosperous economies, and that living standards are also lower than the Republic's.
(BMcC)
They jointly said today that millions of pounds is being wasted by government departments and that they need to urgently improve their management of taxpayers money.
The committees joined forces to warn Executive Ministers that the current average underspend across government departments of 2% of their budgets for the last financial year is "unacceptable".
It is the first time since the restoration of devolution that the MLAs committees have come together in an attempt to influence the Executive in managing its first potential major hurdle - agreeing a budget.
A total underspend across government departments over the last three years has been put at between £113m and £115m - cash which could have been used elsewhere.
In addition, between £97m and £227m of capital budgets has remained unused each year.
Under the umbrella of the Assembly's finance committee, the Executive was also told that some departments face a greater challenge in achieving a 3% across-the-board efficiency saving target than others.
The report also called for a "more visible linkage" between programme for government priorities and goals with departmental objectives and budget spending areas and said the future budget process and timetable needs to be agreed at an early stage this year so the committees can perform their scrutiny functions.
The report asked for steps to be taken to ensure the effective planning and management of capital projects to minimise delays and underspend.
It recommends a target is set for reducing current underspend to an average of not more than 1.5% in the next financial year and more than 1% thereafter.
The all-party committee also says it sees considerable potential in the proposal for a performance and efficiency delivery unit (PEDU) but warns it must not contradict or cut across the work of the Northern Ireland Audit Office.
Nonetheless, it says some departments may be in a position to achieve efficiencies higher than the 3% target and calls on Finance Minister Peter Robinson's department to keep the impact on individual departments under review.
In broader, background terms, the committee said it recognised Northern Ireland has one of the United Kingdom's least prosperous economies, and that living standards are also lower than the Republic's.
(BMcC)
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