Finance Committee

Inquiry into The Allocation of Capital Funds in Wales

Terms of reference

To consider the way in which capital funds are allocated by the Welsh Assembly Government having regard to the need to:

• ensure the efficient and effective use of resources to meet the Government’s stated objectives;

• balance competing political priorities both within and between departments;

• take account of previous and on ongoing commitments;

• to be able to respond flexibly to changing political or other priorities;

The inquiry will examine in particular:

• the extent to which the capital expenditure programme is managed and coordinated  strategically;

• the way in which projects are assessed prior to approval, how progress is monitored and how the budget, and expenditure, is managed within a year.

The inquiry will also have regard, as appropriate, to

• the operation of social clauses in capital procurement;

• the development of framework agreements;

• the opportunities in the capital programme to promote business in Wales;

• leverage possibilities in capital programmes.

Capital investment is generally a long-term commitment whose effectiveness can often be evaluated only in the medium to long term.   The inquiry will focus widely on the processes of allocating and managing capital expenditure and will not involve assessing the merits, or approaches to, individual projects.