Joe Higgins
Question:13 Mr. J. Higgins asked the Minister for Finance if the ESRI review of the national development plan has been studied by his Department; and if he will make a statement on the matter. [26521/03]
Vol. 576 No. 6
13 Mr. J. Higgins asked the Minister for Finance if the ESRI review of the national development plan has been studied by his Department; and if he will make a statement on the matter. [26521/03]
In my reply to Priority Questions Nos. 2 and 3 and oral Questions Nos. 10, 11, 76 and 82 of 6 November last, I set out in some detail the broadly positive assessment of the NDP by the ESRI. Key conclusions in the ESRI evaluation are: the NDP strategy remains valid; the NDP has made significant progress towards attaining its objectives; the plan is having a sustainable positive economic effect with expenditure adding a permanent increase of 3% to GNP and an overall rate of return of 14% for 2000-2003 is being achieved on investment; infrastructural investment should remain a core priority for Government investment.
In the Estimates published on 13 November 2003 and the budget on 3 December, I have taken a number of steps which are consistent with the ESRI evaluation. I have provided €5.6 billion for infrastructure investment in 2004, the highest ever in the history of the State, an amount close to 5% of GNP, double the European average.
In my Budget Statement, I announced a major change in the financial treatment of capital spending. Building on the successful rolling investment programme or financial envelope in place for public transport I extended this approach through the introduction of five-year multi-annual envelopes for all investment areas. The envelopes include a commitment to keep the level of capital investment at close to 5% of GNP during 2004-2008, a total investment of €33.6 billion during the period.
In implementing the new envelope system I intend, with effect from financial year 2004, to allow Departments to carry over to the following year any unspent Exchequer capital allocations, up to a maximum of 10% of each annual capital subhead. The introduction of multi-annual capital envelopes was recommended by the ESRI in their mid term evaluation of the NDP. It ensures that infrastructure investment will remain a priority for the Government to end 2006 and beyond. The global amount and sectoral allocation of the envelopes is also broadly in line with the ESRI recommendations.