This Supplementary Estimate is for increased expenditure on Subheads A to F and I. 2 of the Vote for Public Works and Buildings. The total additional sum required, including provision for an expected deficit of £76,000 in receipts, is estimated at £764,100 but this is offset by expected savings on other subheads amounting to £44,100, leaving a nett amount of £720,000 to be provided. The largest single item is £500,000 extra for schools as we built quicker than anticipated. The original estimate was for £2.4 million and it appears we will spend £2.9 million.
Subhead A covers the purchase of sites and buildings. Expenditure on this service is always difficult to forecast accurately because of unexpected demands for accommodation and because premises often have to be bought at short notice. One of the items causing the excess this year was the purchase of an embassy residence in Washington. Until this year, the ambassador has been living in various rented premises. It was not possible to get long-term leases for any of these and frequent changes of residence were necessary; apart from the inevitable expense associated with such changes, rents were continuously increasing.
Property values in Washington have been spiralling and it was obvious that the most economic course in the long run would be to purchase a residence if a suitable premises at a reasonable price could be obtained. After a full survey of the market, we finally succeeded in finding such a premises this year and purchased it. It is a suitable building in a good location in the diplomatic centre of Washington and is, according to professional advice, very good value in comparison with present property prices in Washington.
Two other major items which helped to cause the excess on this subhead were the purchase of some properties in connection with the provision of the proposed Kennedy Memorial Concert and Assembly Hall and the purchase of a building at Merrion Square to be used as a new headquarters by the Irish Red Cross Society. Deputies will recall that I referred to this latter item this time last year and that the project was commented upon favourably; the payment did not mature until this year.
The increase in Subhead B (New Works) is once again due mainly to acceleration of the school building programme. In fact, as I stated at the outset, expenditure on schools this year is expected to reach £2.9 million as against £2.4 million provided. Deputies will regard this as very satisfactory. The target of 100 new schools in a 12 months' period has been reached; arrangements are in hands to proceed with building to the new modular system and I have great hopes of continued good output.
The prototype school to this system at Ballyboghill, North County Dublin, has been completed and is now occupied. The time taken in erection was about half that of a school on traditional lines. The experiment has been a success and everyone concerned is very pleased. The film with sound commentary showing some of the processes in the erection of this school has been shown to some managers, contractors and representatives of trade journals. Further showings will be arranged and if any Deputy would like to see it, I shall be glad to arrange it. Arrangements with a view to inviting tenders for some twenty new schools on this system are virtually completed. Building should start in June or July.
A falling-off in some other building works due to the recent strikes in Dublin has reduced the additional amount required for the subhead to £171,000.
Subheads C and D cover maintenance and furnishing of State premises. The excess expenditure on these subheads is due to increased costs generally and in particular to increased wages. Wages increases are also responsible for the additional expenditure on Subhead 12, in which provision is made for Arterial Drainage construction works.
The excesses on Subheads BB and F, covering Coast Protection works and the heating and lighting of State premises respectively, arise because some claims for payment for work done last year were not received in time to be paid before the beginning of the current year.
The total additional sum of £720,000 required includes, as I mentioned earlier, an expected deficit of £76,000 in receipts. This also is due, strange though it may appear, to the recent strikes in the building industry in Dublin. The Office of Public Works now recovers from the Department of Posts and Telegraphs the cost of works executed for that Department. This year, progress on some major works for the Department in Dublin was less than expected because of the strikes and consequently recoveries were proportionately reduced.
I trust that these few remarks will explain the need for the Supplementary Estimate. It will be seen that it is due to three main factors: purchases of properties which were not foreseen when the Estimate was framed, increased productivity on school building and increases in prices generally especially in wages.
If any Deputy would like more information on any point, I shall do my best to give it to him.