Vol. 553 No. 5
88 Mr. Boyle asked the Minister for Finance the extent to which the national development plan projections need to be adjusted as a result of building price inflation in the construction of new hospital facilities; the extent to which moneys will be removed from other national development plan projects in order to compensate; and if he will make a statement on the matter. [14450/02]
National development plan, NDP, expenditure on health capital is provided for under the Economic and Social Infrastructure Operational Programme, ESIOP, of the NDP. By the end of 2002 it is estimated that almost €1.16 billion of expenditure will have been invested under the heading of NDP health capital. This investment which is fully funded by the Exchequer is slightly in excess of the target for the period and represents a major acceleration of spending over the pre-plan levels under this heading.
I am conscious that construction industry inflation has been higher than anticipated since the launch of the NDP and this has impacted on all NDP capital investment, including the health area. Additional costs have also arisen in some areas due to respecification of projects as they move from conception to planning, design and construction. Despite these factors, good progress has been made with financial outturns well on target and significant physical output being achieved, including in the health area.
I would also point out that by end 2002, the gross Exchequer spend on NDP economic and social infrastructure will be approximately €8.5 billion or €740 million more than planned.
I can assure the Deputy that implementation of the NDP, including investment in health capital, will be a priority for Government. As was signalled in the plan as published, the yearly allocations for NDP investment will have to take account of wider budgetary priorities and accord with the requirements of economic stability. Specific yearly allocations for the various sectors covered by the NDP infrastructure programme, including health, will therefore be decided by the Government in the light of available resources and the priority which the Government has accorded to such investment.
