I welcome the opportunity to discuss with the select committee this evening my Department's proposed Supplementary Estimate for 2018. I am accompanied by departmental officials, Ms Mary Hurley, Mr. Sean Hogan, Mr. Niall Cussen and Ms Janet Jacobs.
The Revised Estimate for my Department, which was considered by the committee last March, provided for gross expenditure of €3.264 billion this year, made up of €1.633 billion in current spending and €1.631 billion on the capital side. At end November 2018, more than €2.6 billion had been already spent with good progress having been made in using these resources to achieve the objectives set for the various programmes. As we approach year-end, our assessment is that some additional provisions are needed in the Vote to meet essential needs which have emerged in the course of the year. The Supplementary Estimate has three elements, namely additional 2018 capital funding of €120 million; €10 million in respect of recoupment of local authority costs arising from the severe weather earlier this year, and technical provision in the Vote to create a subhead from which payments can be made to fund the operating costs in 2018 of the new Land Development Agency. I have circulated a briefing note on these items to the committee and will simply make some short comments at this point.
More than €1.8 billion has been already made available in the Vote for housing programmes in 2018. In addition, local authorities are funding a range of housing services with €92 million from surplus local property tax receipts, bringing the total housing provision as matters stand to more than €1.9 billion. The Supplementary Estimate before the committee follows through on a commitment in budget 2019 by providing €60 million to fund additional emergency accommodation for rough sleepers and further family hubs to accommodate families experiencing homelessness. Increased delivery of emergency accommodation remains a key priority. While more than 200 new beds were introduced towards the end of 2017 and a further 60 were introduced in the context of Storm Emma earlier this year, we still have too many people rough sleeping and we need to provide additional emergency accommodation to ensure there is a bed available for everyone who requires shelter. The extra capital allocation will permit the provision of a further 203 permanent beds, and 130 contingency beds, by the end of the year.
The Government is committed to minimising the numbers of families experiencing homelessness who are being accommodated in hotels. Dublin local authorities are working on the delivery of a variety of family hub facilities and further hubs are also being progressed in other areas of the country where required. The €60 million in homelessness-related capital funding will support the delivery of these family hubs, as well as the extra emergency accommodation. In addition, €60 million in capital funding is being provided to meet commitments under the local authority social housing programme. In line with the targets set out in Rebuilding Ireland, local authorities are engaged in large-scale construction activity throughout the country as well as targeted acquisitions where they are viable and appropriate and represent good value for money. The additional funding is required to ensure the costs of the full level of activity expected under the programme by the end of the year can be met. The €120 million in supplementary funding will see the overall housing budget for my Department, including local property tax receipts, increase to some €2.04 billion for 2018. The joint committee's session tomorrow morning on the Rebuilding Ireland update for quarter 3 of 2018 will provide us with a good opportunity to review the progress achieved with this funding in the first nine months of the year.
The second element of the Supplementary Estimate is an additional provision of almost €10 million to meet local authority costs arising from the response to the severe cold weather of February and March 2018, also referred to as Storm Emma.
Recoupment of costs is a vital enabler of local authority emergency responses, providing the assurance that availability of resources is not, and will not in the future be, a limiting factor in providing the vital local responses.
We all recognise the exceptional nature of activities carried out by local authorities in responding to these types of emergencies and the fact that the costs of these unprogrammed activities cannot be met from within existing resources. Reflecting this, my Department requested local authorities to prepare and submit claims for recoupment of costs associated with the Storm Emma response. Eligible costs include staff overtime, hire of plant and contractors for snow clearing and road patching, and materials associated with the response. Provision now needs to be made in the Vote to cover recoupment of the local authority costs involved.
The committee will be aware of the background to the new Land Development Agency and of the importance the Government attaches to its success. The committee has met representatives of the agency and my Department.
To support the agency in its early months of operation, I will be providing necessary current funding, of the order of €600,000, from within the Department’s existing 2018 budget provisions to meet initial start-up administrative and other running costs. The Supplementary Estimate before the committee today will create the required subhead in the Vote to allow payments to be made this year.
With the additional funding now proposed, the total Vote for my Department will now amount to nearly €3.4 billion in 2018. I am, of course, happy to discuss the details of the Supplementary Estimate with the committee.
