The Supplementary Estimate now sought for Vote 10 arises for a number of reasons. First there was the decision of the Oireachtas, with the passing of the Canals Act, 1986, to transfer responsibility for the Grand and Royal Canals from CIE to the Commissioners of Public Works. The sum of £650,000 included for the canals in the Supplementary Estimate is the unexpended balance of the 1986 allocation to CIE for that purpose. There will be a corresponding saving under that heading in the Vote for Communications, so no extra cost to the Exchequer arises from the transfer.
Just over half of the £650,000 is required for the salary and wages of the 78 canals staff transferred from CIE. The balance of the money is needed to cover some expenditure on works, services and supplies incurred by CIE but not paid for before the transfer, and also similar expenditure by the OPW since that date. Works undertaken by the OPW include replacement of some defective lock gates, major repairs to a breached weir on the Barrow navigation, repairs to and tidying up of sections of canal banks as well as routine day-to-day maintenance. Arrangements are also in hand for the purchase of essential transport vehicles, equipment and supplies.
I am glad to inform Deputies that a detailed engineering survey of the Grand Canal by the OPW engineers has commenced and consultants are engaged on a major study of the entire system, taking into account the vast amount of interest in and views on the canals manifested by local authorities and members of the public since the transfer. The consultants' report on the study, which will be available early in 1987, will provide advice and guidance to enable the OPW to formulate a programme for the future management and development of the canals as a public amenity in accordance with the terms of the Act.
Another reason for the Supplementary Estimate is the purchase of Agriculture House for a sum in the region of £7.9 million by the commissioners on behalf of the State. Agriculture House is a large modern office block fronting on to Kildare Street beside the Shelbourne Hotel. It houses the headquarters of the Department of Agriculture and has a total of 165,000 square feet of office space and forms an integral part of the Government Buildings complex. The building, which was held on a long term lease was due for rent review in the current year and the purchase price represents what would amount to about eight years rent following the review. Given the size, condition and prime location of Agriculture House the purchase is considered a sound economic investment. It is in the block broadly referred to as Government Buildings.
The additional provisions being made in subheads E, F.1, F.2, F.3 and F.4 are for certain works and charges which arose after the allocation for the subheads had been settled. There were identified savings in the Votes for the Departments for which the services in question were required. The Departments concerned will surrender amounts to the total involved, so that, again, there will be no extra cost to the Exchequer.
The additional sum required for subhead F.5 covers essential maintenance work at Galway Courthouse undertaken by the commissioners on behalf of the Minister for Justice. The cost of this work is recoverable from the local authority.
The reduction in Appropriations-in-Aid is to cover an expected shortfall in moneys due for the maintenance of completed drainage and coast protection schemes. The amount which had been budgeted for the current year was £5.5 million but the rate at which payments have been coming in does not hold out hope that the figure is going to be realised. It is, in fact, estimated that there will be a shortfall of £3 million. It is necessary to adjust the Appropriations-in-Aid provision downward by that amount to ensure that the commissioners are not deprived of funds which they need to discharge their functions.
There is a statutory obligation on county councils to meet the costs of maintaining drainage and coast protection schemes. The funding of county councils for this purpose is, of course, a matter for the Department of the Environment. The existing arrangements for funding and execution of drainage maintenance is one of the subjects covered in the Review of Arterial Drainage, which is being submitted to Government by the Minister for Finance.