Risk aversion in public service holding Ireland back, says Jack Chambers

By Cillian Sherlock, Press Association

Department secretaries general will be able to rely on new “risk appetite statements” if problems arise in future projects, the Public Expenditure Minister has said.

Minister Jack Chambers has identified “risk aversion” as slowing down project delivery in Ireland.

He was responding to a question on whether secretaries general would be provided with new safeguards if they are hauled in front of the Public Accounts Committee over botched projects or criticised by the Comptroller and Auditor General.

The Minister told reporters on Thursday: “Risk aversion was identified as a clear issue in the infrastructure cycle, holding back delivery and speed.

“So we’ll be publishing risk appetite statements, which give an extra layer of protection to decision makers and to encourage a greater risk appetite in the context of decisions that departments and agencies make.”

He added “In the case of the public, a greater level of risk appetite will yield better delivery in terms of infrastructure and housing over the next number of years.

“And we have to confront the evidence base, which is that risk aversion is slowing project delivery and giving a positive statement around the level of risk appetite across the public service, I think will help.”

Mr Chambers said there will remain a need to account for pubic expenditure management but set out an aim to better strike the balance between delivery and the level of risk being taken.