The Treasury has released the Quarterly Investment Report for January to March 2024, covering 318 projects and programmes across government with a whole of life cost of $172.7 billion.
This report was provided to Cabinet on 24 June and presents information as of 31 March 2024. It sought Cabinet’s approval for five new investment proposals to progress towards developing a business case, as well as sought agreement from Cabinet that agencies are required to:
- undertake the appropriate Gateway review completed (if applicable), before seeking approval for an investment’s business case, and
- seek Cabinet approval of the business case for an investment before seeking Budget funding for the investment.
Quarterly Investment Reports are published to ensure that the status of investments is open and transparent. They are developed based on investment information that government agencies submit to the Treasury following the end of a quarter. Agencies are responsible for the accuracy and completeness of investment information in its submission to the Treasury. The Treasury does not edit or update agency information, save for correcting minor data formatting issues. The Treasury has previously published these reports as part of the respective year’s Budget Proactive Release but will now do so on a quarterly basis.
The Quarterly Investment Report for January to March 2024 highlights that the quality of investment information provided by agencies is poor. Factors include a lack of long-term planning, insufficient attention to the investment reporting process, and inconsistent application of the rules and requirements of the investment management system set out in Cabinet Office circular CO (23) 9: Investment Management and Asset Performance in Departments and Other Entities. To address these issues Cabinet has clarified its expectations for robust investment discipline. Cabinet expects agency Chief Executives to drive improvements within their agencies to meet expectations regarding:
- full and accurate data
- robust business cases and decision points
- improved asset management, and
- greater ministerial engagement, which will be facilitated through the Infrastructure and Investment Ministers Group.
This report also highlights that because unsuccessful Budget 2024 initiatives are re-entered into the investment planning pipeline, there is a need for agencies to undertaken greater prioritisation of investments currently in planning so that only those investments that are of the highest value for money, highest Government priority, and are ready for a funding decision, are brought forward through to future Budget processes.
The report notes that the Government’s portfolio of ‘Investments in Delivery’ continues to face cost escalations and delivery delays. It states that the Infrastructure and Investment Ministers Group has a key role in closely monitoring the performance and progress of major investments to identify where intervention is needed to resolve significant issues. The report highlights for Cabinet’s attention seven investments which are experiencing cost pressures and/or delivery delays and the next steps currently implemented to manage these issues, however it does not recommend any further intervention at this stage for these investments.
Also included in the report is an update to Cabinet on the Treasury’s programme of work to fully review and update the Treasury’s Better Business Case and Gateway frameworks to ensure these are fit for purpose and are delivering value for ministers and Cabinet. The outcomes sought from this review are shorter business cases that are faster to produce, and have the key information needed for Ministers and Cabinet to make well-informed, timely decisions throughout the investment lifecycle.
The Quarterly Investment Report for January to March 2024 information release can be accessed here: Quarterly Investment Report for the January – March 2024 Quarter
For more information on the Treasury’s Quarterly Investment Reporting, as well as to find links to previous Quarterly Investment Reporting, please visit: Quarterly Investment Reporting