Chairman and committee members, it gives me great pleasure to introduce the Estimates for the Finance group, including the Office of Public Works, to the Select Committee on Finance and General Affairs. It is the first time the Finance Estimates will be considered by the select committee. In that sense we are making a little piece of history here today. I congratulate all who have been involved in bringing this and the other committees into operation and I wish your committee well in its future work.
I will endeavour to give every assistance possible to the committee members. If aspects are raised for which I do not have an immediate response, I will communicate the information later to the Member concerned.
Before turning to some of the individual Votes in the Finance group, I would like to make brief observations on the more general economic and public finances background.
The Irish economy has performed well in recent years. Our rate of economic growth averaged around 5 per cent per annum over the over the last six years, well above the European Community average. Over the past two years, while the international economy experienced a sharp slowdown and some of our major trading partners were in deep recession, our economy continued to expand at a reasonable, if somewhat reduced, pace.
I am reasonably optimistic about the prospects in the present year. Following a difficult period in the final quarter of 1992 and into the early part of this year, when activity slowed down because of the currency difficulties and high interest rates, the economy now appears to be picking up again.
In overall terms, my Department now expects our growth rate this year, in gross domestic product terms, to be 2.75 per cent, among the highest in the European Community. This compares with our view at budget time that growth would be about 2.5 per cent. The more optimistic view now is largely due to the fact that interest rates have fallen a lot faster than had been anticipated — they are now virtually the same as those in Germany. This should provide a boost to both consumption and investment as the year progresses.
Our level of employment has been kept up at a time when many of our fellow EC members states have seen their levels of employment fall. With several large European economies now in recession, it is no mean achievement that we in Ireland have managed to sustain growth and employment at this difficult time.
I would now like to say a few words about the public finances generally. One of the key developments in recent years was the reduction in the Exchequer borrowing requirement from 9.8 per cent of GNP in 1987 to a target level of 2.9 per cent for 1993, as stated in my budget speech last February. Over the same period, the national debt to GNP ratio has been reduced from 129.3 per cent to an expected level of 104 per cent by the end of 1993.
This sustained adherence to a policy of debt and deficit reduction has helped to underpin the confidence of the financial markets in our economy, and has played a crucial part in bringing our interest rates down.
The improved economic outlook since the budget will undoubtedly help to ensure that our overall budgetary targets for 1993 are met. The first quarter Exchequer returns have confirmed that this expectation is well-founded, and I am confident the forthcoming end of June quarter returns will indicate that the trend is being maintained.
To turn to the Finance group of Votes specifically, excluding the Office of Public Works, the group comprises of 13 separate Votes covering a wide range of services, with a net provision of over £291 million for 1993. I can only comment in the time available on some of the more prominent Votes.
A Vote in which Members have a direct interest, Vote 2, covers the Houses of the Oireachtas and the European Parliament. There is a sizeable increase, of the order of 25 per cent, in the Estimate, which comes to nearly £29 million. Apart for the Programme for Economic and Social Progress related increase in the pay bill, the major elements contributing to the increase are new arrangements which have been introduced in the past six months in relation to severance and superannuation benefits, and expense allowances of Members of the Oireachtas as recommended in Report No. 35 of the Review Body on Higher Remuneration in the Public Service.
Another factor influencing expenditure is the introduction of standing committees, such as our own committee here, with their associated servicing and operational costs such as travel, subsistence and Members' allowances. The costs involved in the televising of the committees' proceedings have also been taken into account.
I now turn to Vote 6, the Vote for the Department of Finance. The provision mainly covers expenditure of an administrative nature. The Estimate for 1993 shows an increase of about 12 per cent and amounts to nearly £24 million. The increase arises in two areas: — administrative costs of the Department have risen mainly because of salary increases and increments in 1992. If these elements are taken out of the picture, and account is taken of allowable additions, the figures show a 2 per cent reduction on 1992. This result is in accordance with the administrative budget requirements.
The second area of increase is consultancy services. This expenditure arises mainly in connection with the sale of State shareholdings in Irish Life and with costs associated with the Government's intention to develop a third force in banking.
The third Vote to which I shall refer is that for the Office of the Revenue Commissioners, Vote 9. The bulk of the increase of 7 per cent on the Estimate arises for pay and allowances for approximately 6,100 staff. The Estimate total is over £130 million.
The completion of the Single Market on 1 January 1993 has necessitated major administrative and legislative changes in the Office of the Revenue Commissioners. The office has taken on responsibility for the vehicle registration tax, new arrangements for the collection of trade statistics and for the VAT information exchange system. The Customs and Excise service has been reorganised with much greater resources allocated to detection of drug trafficking and enforcement.
Amidst all the changes, a major decentralisation programme has also been put in place. Last year saw the decentralisation of over 300 Revenue staff to Ennis and Nenagh. Staff from the Collector General's Office have also begun to decentralise to Limerick and in the coming weeks over 150 staff will be transferred. The move to Limerick will continue on a phased basis resulting ultimately in the transfer of over 550 staff. These moves express in a very practical way the Government's commitment to regional development and rolling back of centralisation.
The final Vote to which I wish to refer at some length is Vote 10, the Office of Public Works. The total amount sought is over £105 million, an increase of nearly 6 per cent on 1992. It is intended to refer to the office's activities under broad programme headings.
A sum of £54 million is sought for Programme 1, the accommodation programme, which is by far the largest programme in the Office of Public Work's operations. Within this, nearly £20 million is required for capital building. This covers the cost of erecting new buildings as well as adapting and refurbishing existing buildings to meet the State's accommodation requirements.
Expenditure on Garda buildings will be some £4 million. Work has already begun at a number of sites throughout the country, Cahir, Roscommon, Milford and Midleton. The modernisation of stations at Togher in Cork and Glenties, County Donegal, will also be completed. The third and final phase of the current redevelopment project at the Garda Training College, Templemore will commence in 1993 and involves the provision of a new and modern physical education block.
Also included in the accommodation programme are funds for Departments' accommodation. The main expenditure is on the fitting out of a building in Mespil Road to serve as the headquarters of two new Departments, namely the Department of Arts, Culture and the Gaeltacht and the Department of Equality and Law Reform.
A sum of over £3 million is required for employment exchange buildings. A new employment exchange at Navan Road, Dublin, will be completed and work will begin on a new exchange at Tallaght. The extension and refurbishment of the Government offices in Carlow, which include Carlow employment exchange, is underway with completion expected early in 1994.
Work will continue on the major £6 million refurbishment of the 1968 wing of the National Gallery of Ireland which commenced in 1992 with a two year completion date.
Another notable project is the restoration of the renowned "Turner Curvilinear Range of Glass Houses" in the Botanic Gardens, a sum of nearly £2 million is included for this.
Necessary remedial work on cladding defects in Agriculture House, Kildare Street and at the Meteorological Office, Glasnevin are also included in the programme.
A contract has been placed for extensive repairs to the perimeter roofs of the National Museum of Ireland. Major works to the central roof were carried out a few years ago. Replacement of the heating system, will be completed this year.
Progress continues on the implementation of decentralisation. Deputies will be aware of the importance the Government attaches to this policy of decentralisation which is giving the opportunity to substantial numbers of people to return to their native areas on a permanent basis. The very desirable long term objectives of helping to reduce regional imbalances and pressure on the Dublin area are also being achieved. Offices in Longford and Cork are under construction and will be occupied by the end of the year. Work on the Tullamore project should commence shortly. Preparation work is in hands in relation to two other centres at Portlaoise and Wexford.
The Commissioners of the Office of Public Works are currently examining accommodation in Leinster House. The setting up of the new committees requires that we look in depth at the accommodation needs of both Houses. When the Commissioners' report is to hand, arrangements will be made to have discussions with the appropriate bodies to agree an overall approach and a programme for implementing the plan.
Programme 4 covers our national parks and wildlife services. The expenditure of over £9 million includes the cost of projects which will be part-funded by the EC Structural Funds for tourism-related projects.
Provision has been made for the general management and maintenance of the five national parks, 72 nature reserves and other State-owned lands acquired for conservation. Among the more noteworthy projects which will be dealt with this year are the continuing moves to eradicate rhododendrons at Killarney and Glenveagh National Parks where the introduced species is threatening the survival of our native oak woods. A number of research projects are also in progress, notably on our internationally important raised bogs at Clara and Raheenmore in County Offaly.
Work on the visitor centres for the Burren and Wicklow national parks and the Boyne Valley has been suspended following a recent Supreme Court judgment. In the light of this decision, the Commissioners of Public Works has been instructed to undertake wide-ranging consultations with all interested parties over a two month period, following which my colleague, the Minister of State, will make a decision on the nature of the proposals for which planning permission will be sought.
Programme 6 of the Office of Public Works provides for the National Monuments and Historic Properties Service for which over £18 million is sought, including £9 million for capital services.
There are over 700 monuments in State care and the bulk of the allocation will be spent on the conservation of these monuments. National monuments in State care include the Rock of Cashel, where major works are continuing to Cormac's Chapel. Other Office of Public Works national monuments sites where major works will continue in 1993 include Newcastle West, County Limerick; Tintern Abbey, County Wexford; Fore Abbey, County Westmeath; Barryscourt Castle, Charlesfort and the French Prison, all in County Cork. Continuing works at Carlingford Abbey and Donegal Castle are being grant-aided through the EC INTERREG programme.
Just over £9 million is sought under the capital and EC tourism related programmes. The project at Clonmacnoise is nearing completion, while the new visitor centre at the Ceide Fields in north County Mayo was recently officially opened. Ross Castle will also be completed this year. At the Corlea Bog, County Longford, work commenced early this year on a visitor centre building which will display part of the trackway found in the bog. I am delighted that the work completed last year on saving the bog, and thereby conserving the unexcavated ancient trackway, has proved extremely successful.
The administration of the Office of Public Works is covered under Programme 9, for which £20 million is sought. This cover staff salaries as well as travel charges and the cost of office expenses, machinery and various services necessary for the efficient running of the office. This programme is governed by the administrative budget agreement, the current phase of which concludes at the end of this year. Other important programmes of the Office of Public Works, which time does not permit me to discuss in detail, are for arterial drainage and inland waterways. Committee members will, however, be particularly interested to know in this area that work on the Ballinamore-Ballyconnell Canal restoration, to link the Shannon and Erne systems, is nearing completion. The link will be fully open to navigation next year. This is a most significant cross-Border project that should give a marked boost to the tourism and commercial potential of the whole area traversed by the canal.
Finally, Chairman, I wish to conclude by thanking you for your attention. The Minister of State and I shall be pleased to answer any questions that the Members of the committee wish to raise.
