The overall Estimates for 2003 were framed against a background of changing economic and budgetary circumstances and prudent management dictates that we will have to manage our activities carefully within available resources. Specifically, the 2003 gross provision for the Department of Agriculture and Food is €1.218 billion which, after projected receipts, gives a corresponding estimated net expenditure allocation of €842.2 million. While the 2003 gross provision for my Department of €1.218 billion is lower than the latest projected outturn for this year, it is nevertheless, a very considerable sum of money.
However, in addition to the Estimates provisions, my Department is also responsible for the payment of further substantial sums of EU funds on various agricultural measures, including direct payments to farmers. These large sums, which do not appear in the Department's Vote, amount to €1.6 billion. Therefore, the total combined expenditure by my Department next year comprising Exchequer and EU funding is projected to be approximately €2.8 billion. This is a very high level of public expenditure and underlines the continuing strong commitment of the Government to the Irish agri-food sector.
The change in the Department's gross Estimate in 2003 over 2002 reflects the fact that some expenditures in 2002, such as agri-monetary compensation, foot and mouth disease costs and retrospective compensatory allowances in mountain areas, will not recur in 2003 and that the relatively positive outlook for animal disease should also lead to expenditure reductions. Similarly, the lower 2003 appropriations-in-aid figures also reflect that some items in the 2002 appropriation figures were non-recurring.
While funding for Teagasc, Bord Bia and Bord Glas has been reduced, the 2003 allocations, nonetheless, represent increases of 30% and 50% since 1997 in the case of Teagasc and Bord Bia. The 2003 allocation for Teagasc will involve the rescheduling of its capital programme over a longer period, but I am satisfied that the funding provided will enable it to continue to provide an excellent service to the agri-food and rural sectors.