As I have outlined to the House on a number of occasions recently, a sum of €44.6 million has been provided in the Vote of my Department for the local development social inclusion programme this year. This amounts to a decrease of 6% in the amount provided in the Estimates in 2002.
Area Development Management Limited, ADM, manages the programme on behalf of my Department. Allocations from within the budget available for the programme in 2003 were agreed by the board of ADM earlier this year and were subsequently notified to each partnership and community group. ADM must manage the programme from within the budget available in my Department's Vote.
The reductions in available funding for 2003 were managed on a sliding scale, ranging from 4% to 7%, depending on the annual budget of the area partnership company or community group. Northside Partnership was allocated a total of €3,618,753 for the period 2001 to 2003, which equates to an annualised budget of €1,206,251 in each of the three years. As a result of the reduced budget in 2003, the Revised Estimate for 2003 is €1,121,814, a reduction of 7%.
I am aware that some partnerships and community groups had the expectation of carrying over previous years' underspends into 2003. It is important to point out that my Department, as with all Departments, operates on an annual cash basis, not on an accrual basis. Consequently, it is not in a position to facilitate a cumulative carryover of underspends. ADM is working closely with all the bodies concerned to minimise as far as possible the impact of the reductions in funding this year.
I acknowledge once again the work done by partnerships in disadvantaged areas. I have visited the Northside Partnership and seen at first hand the valuable work being undertaken.