Vol. 555 No. 1
2 Mr. Penrose asked the Minister for the Environment and Local Government the way in which the spending incurred by his Department to date in 2002 compares with the amounts allocated in the Book of Estimates; if his Department will come in on target with regard to expenditure; if he anticipates cutbacks or adjustments in his Department; the areas in which these will be made; and if he will make a statement on the matter. [17803/02]
The 2002 spend in respect of my Department as it is now constituted is broadly consistent with the relevant profiles of expenditure which were drawn up in accordance with the provisions of the 2002 Revised Estimates for Public Services.
An excess of €50 million for recoupment to local authorities in respect of accommodation for homeless persons, including asylum seekers, will be offset by savings in a range of other programmes. These programmes are likely to include the regeneration of local authority housing areas, non-national roads, waste management and urban renewal grants where, for various reasons, it would not be feasible to expend the relevant Estimates provision in full.
Is it not the position that the Government had decided that cuts were to be made in advance of the general election and that they were concealed from the public until after the election? Is it not the position also that local authorities have been advised, as part of the Minister's Estimates, not to purchase any more turnkey projects? Is it not the case that the whole thrust of advice in circulars from the Minister's Department to local authorities, especially in the housing and roads building areas, is that they cannot engage in practices which they have done up to now to address significant problems? Is that not a way of slowing down the process and not addressing serious issues in those areas?
Are the parameters and criteria laid down in the growth and stability pact impacting on the Minister's Department's ability to secure necessary funding from the Department of Finance to carry out projects to which I know the Minister, from a previous existence, is committed?
I do not agree with the Deputy's first point. The Deputy will be aware that when I was Minister of State in the Department of Finance I made comments, along with many of my other colleagues, which had absolute veracity based on information and expectations. The Deputy should remember that Ireland was not alone in terms of what we thought might happen going forward, and substantive international commentators made similar comments at the time about the world economy in general and the American economy in particular in terms of what might be anticipated. We know in hindsight that the situation has deteriorated in a global sense and as Ireland is subject to the global world economy, given that 90% of what we produce is exported, therein lies the answer.
It is important to point out that the Revised Estimates for my Department for the delivery of the public services as set out for 2002, which included an increase of 14.6%, will be met in full. The budget for my Department is in the region of €2.5 billion. The Deputy will be aware that when we set out our plans for the year ahead under various headings, some projects and programmes go ahead rapidly and utilise more resources while others, due to a combination of circumstances, cannot be completed within the year. I have been able to meet my targets in full in terms of the Revised Estimates that were published.
The Minister of State with responsibility for housing is beside me and will be answering questions in a while, but the general point is that in the current year we are spending about €1.1 billion on housing. There is not an unlimited budget for any heading and one must manage the process. That is what we are doing with the local authorities around the country to ensure we are not going beyond what is achievable and what was set out in this year's Estimates.
I have read in the media about cuts being planned within the Department of about €81 million. Is this correct? Is it true that the Minister for Finance refused a request from the Department for an extra €40 million for significant projects which it hoped to advance?
It is certainly not. I am involved in the early stages of negotiating the Estimates for next year, which will be my responsibility, but can confirm that what was agreed for this year will be met in full. There is no question about that. The Deputy is being fair and understands that in some programmes the targets will not be met. I have been able to make those savings, but they are very small in the context of a €2.5 billion budget.
