As requested by the committee, I have provided some advance briefing material for the meeting this morning and I will therefore keep my opening statement short.
The Department had significant achievements in 2011 in delivering on key policies and programmes within available resources. We were again assigned the second largest capital allocation of any Department to implement major housing, water, rural development and other programmes.
In the housing area, the housing policy statement published in June 2011 outlined the Government’s approach to addressing rising demand for social housing through a restructured investment programme, the use of more flexible funding models, the standing down of affordable housing schemes and a continued focus on meeting the most acute housing needs. A key development in this area was the publication in October 2011 of a national housing strategy for people with a disability to support people with disabilities in living more independently in communities. Total spending from the Vote on the various housing programmes, including the provision of social housing and improvement and regeneration measures, amounted to over €740 million in 2011.
During the year, nearly 1,200 housing units were delivered through leasing and more than 6,300 units were delivered under the rental accommodation scheme. Some €117 million was invested in regeneration programmes in Dublin, Limerick, Cork, Waterford, Tralee, Dundalk and Sligo. Approximately 12,000 households benefited under the housing adaptation grant schemes through combined Exchequer and local authority funding of over €76 million. The total spend from the Vote in this area in 2011 ensured the needs of over 23,000 households were met from the full range of housing measures.
Department expenditure of €429 million on water services infrastructure in 2011 allowed completion of 61 major water services contracts and the continuation of work on a further 61 contracts. In addition, work commenced on 33 contracts in the course of the year. Some 200 km of public water supply pipes were rehabilitated. Between 2000 and 2011, we added 1.526 million population equivalent to the capacity of water treatment systems and some 3.96 million population equivalent in wastewater treatment capacity. In terms of programme planning, a review of the Water Services Investment Programme 2010-2012 was carried out and an additional 39 contracts were added to the programme, mainly to meet key environmental requirements.
As reflected in the appropriation account before the committee today, 2011 saw the assignment to the Department of community-related functions which were the responsibility of the former Department of Community, Equality and Gaeltacht Affairs. Heritage spending became the responsibility of the new Department of Arts, Heritage and the Gaeltacht.
During the year, funding of €47 million was provided under axes 3 and 4 of the Leader rural development programme, resulting in the creation of 634 full-time jobs in 2011 and infrastructural enhancements in 658 villages and communities across the country. Under the local and community development programme, which benefited from €62 million in funding in 2011, support and guidance was provided to almost 62,000 young people and children through youth actions. Almost 39,000 adults received advice and information under the programme, while a further 39,000 received one-to-one supports, mentoring, training and employment supports. Up to 8,000 people were progressed into labour market training as a direct result of the programme’s interventions.
The environment fund was established in 2001 and its income derives from levies on landfill waste and on plastic bags. These levies are first and foremost economic instruments which have as their objective the encouragement of more environmentally sustainable behaviour. However, the fund is used to meet important expenditure requirements in the waste management and other environmental areas. For example, the fund is used to support the operation of local authority recycling centres and bring banks, as well as the enforcement work of local authorities and the EPA.
The fund accounts for 2011 show that the surplus in the fund was reduced from €36 million at the end of 2010 to €14 million at the end of 2011, demonstrating the increasing pressures on the fund. This reduction reflects the support from the fund to priority areas, such as water quality monitoring and assessment, for which Exchequer funding was unavailable due to decreasing resources in the Vote.
Chapter 27 of the Comptroller’s annual report concerning environmental levies reviews the arrangements for collection of the levies. Local authorities are responsible for collection of the landfill levy, while the Revenue Commissioners are the collection authority for the plastic bag levy. The chapter outlines four recommendations for the plastic bag levy, of which two relate to procedures that are in the control of the Office of the Revenue Commissioners. One recommendation is made on the landfill levy. My Department has taken measures to address the issues raised in the relevant recommendations and will continue to work to implement them to the greatest extent possible.
The local government fund was established in 1999 as a dedicated source of funding for local authorities to meet general purpose spending needs, as well as a range of other local spending requirements. Motor tax is the principal source of income for the fund. The fund accounts for 2011, which are also on the committee’s agenda for today, detail income and expenditure in that year. The accounts for 2011 show income of €1.189 billion, down almost 6% on the 2010 figure. Some €737 million was allocated directly to local authorities, with a further €411 million being allocated to the Department of Transport, Tourism and Sport. This includes €398 million to assist local authorities in meeting costs associated with the programme of works on regional and local roads.
In 2012, the Exchequer contribution to the fund was replaced by revenue from the household charge. On the spending side, a payment of €46.5 million was made to the Exchequer from the fund in respect of proceeds arising from increases in motor tax in budget 2012.
Total income in 2012 was €1.168 billion, with €676 million being allocated directly to local authorities and a further €419 million allocated to the Department of Transport, Tourism and Sport for roads and public transport infrastructure purposes.
The recent report from the Office of the Comptroller and Auditor General addressed issues regarding the SIPTU national health and local authority levy fund. In relation to the funding of €789,000 provided by the local authority national partnership advisory group, LANPAG, the report found that about €589,000 or 75% had been paid on a reimbursement basis on foot of paid supplier invoices. As previously indicated to the committee, in relation to the remaining €200,000, third party invoices were not provided for LANPAG and the Department sought and LANPAG refunded €200,000 to the local government fund in March 2011. All payments by LANPAG were included in the annual audit of the Local Government Management Agency.
The items on the committee’s agenda for today, including the EPA's financial statements for 2011 on which the agency’s director general will comment, illustrate well the range of issues for which my Department has responsibility. I am, of course, happy to respond to questions on these issues that arise in the course of the committee’s work.
