Rory O'Hanlon
Question:37 Dr. O'Hanlon asked the Minister for Finance the projected increase in public spending as a result of decisions taken since budget day; and if he will make a statement on the matter. [7727/97]
Written Answers. - Public Expenditure.
In my Budget Statement I announced that, taking account of the expenditure changes provided in the budget, the estimate for gross non-capital supply services expenditure in 1977 is £12,950 million. The provisional 1996 outturn figure in the budget was £12,206 million. To obtain a valid figure for the percentage increase in spending in 1997, the 1996 outturn must be adjusted to exclude £98 million in rate support grant funding which was taken off the 1997 figures as part of the new local authority financing arrangements. The adjusted 1996 outturn figure is therefore £12,108 million. On this basis, the increase in gross non-capital supply spending in 1997 is 7 per cent in nominal terms or 4.7 per cent in real terms.
Since the budget, the most significant development affecting expenditure has been the Government's decision to accept the recommendation of the Labour Court on nurses' pay and conditions. The additional cost of the nurses' award in 1997 is estimated to be £49 million. The Government gave very careful consideration to the impact which the nurses' pay award would have on the 1997 budgetary and expenditure aggregates. In the light of this, and as evidence of its determination to ensure that spending stays under firm control, the Government agreed measures to offset the full additional cost of the nurses' pay award in 1997.
Provision for the full cost of the nurses' pay agreement will be included in the Revised Estimates Volume which is due to be published very shortly. The 1997 departmental expenditure allocations included in the volume will also incorporate the agreed measures to offset the additional £49 million cost of the nurses' pay award.
The Revised Estimates Volume, therefore, will now show any increase in expenditure since budget day. The Revised Estimates Volume will also include provision for some other adjustments to the budget-day spending allocations, largely of an estimating or technical nature which have the effect of reducing the overall current spending total very slightly. The 1997 estimate for gross non-capital supply services expenditure provided in the volume will be £12,949 million, compared to £12,950 million provided in the budget.
The Government has decided to reappraise and amend the hepatitis C scheme of compensation. It is not possible to quantify the additional costs that will flow from that decision. The 1997 allocation for capital spending which I announced in the budget was £1,576 million. There have been minor estimating and technical adjustments to the capital figures since budget day which have reduced the 1997 allocation to £1,574 million. This represents an increase of 9 per cent over the 1996 provisional outturn of £1,449 million.
The Government has noted the proposals of the Minister for the Environment to approve the redevelopment of the Ballymun estate with Exchequer capital over a period of eight years.