asked the Minister for the Environment if it will be possible to commence any new capital projects in 1988 in (a) roads (b) sanitary services (c) local authority housing and (d) other local authority capital works; and if so, if he will make a statement regarding the total amount available for the purpose, together with an estimate of the employment effect for the construction industry.
Ceisteanna—Questions. Oral Answers. - Local Authority Capital Works
47.
Allocations for loan capital for local authority works programmes are made annually following the receipt of applications for funds from each local authority. Generally, the applications for each programme cover funds required for completed works, works in progress and new works to be commenced in the year in question. Local authorities may be requested to submit separate applications for commitments and new works on some programmes. It is only when the applications for individual work programmes are examined departmentally, early in 1988, and allocations for commitments decided, that the amount of money available for new works will be known. In the case of road grants, I hope to notify local authorities next month of their 1988 grants as these are required by the authorities for the purposes of adopting their estimates of expenditure. Experience over the years has shown that some new works for which funds may be provided do not necessarily commence on the projected dates or proceed as rapidly as anticipated and as a result funds originally earmarked for projects that are in progress may become available for the commencement of further projects. The Deputy will appreciate, therefore, that I am not in a position at this stage to indicate the funds that will be available for new works in 1988.
The Public Capital Programme published last week gives the capital provisions for each work programme. In line with the Government's objective of reducing the Exchequer borrowing requirement, reductions have been made in most of the expenditure programmes in the environment area. However, notwithstanding this factor, some reductions would have arisen in any event, having regard to the progress made in meeting the priority needs over the past number of years and of future demographic trends. I am sure the Deputy will agree that new projects should be started only where there is a genuine need and not just for their own sake. Any reduction in employment which may follow the reduced allocations for public expenditure programmes should be off-set by employment created by increased private investment arising from the Government's success in reducing interest and mortgage rates. In particular, employment of over 1,500 is expected in the development of the Custom House Docks site due to commence early next year, if not before the end of this year. Significant employment will also be generated in urban areas already designated and other areas to be announced shortly. As stated in the Programme for National Recovery, the Government's fiscal and monetary policies should encourage extra private investment, through the creation of a climate which will stimulate investment, increase confidence and generate economic activity.
May we take it from what the Minister is saying that there will not be a penny under any of the headings outlined in my question to provide for any new starts in the local authority capital area next year? Not a stone will be put upon a stone.
That is not so and, until such time as we know our exact commitments for ongoing works and work already in progress, we will not be able to establish the position positively. I will be delighted to answer the question when it comes up again.
The Minister is whistling past a construction graveyard.