I welcome the opportunity to present my Department's expenditure Estimate for 2008 to the committee. I know that committee members are deeply interested in the range of activities that are pursued by my Department and I look forward to our discussions. I am accompanied by my ministerial colleagues Deputies Batt O'Keeffe, Tony Killeen and Máire Hoctor, who will also make opening statements on the areas in the Department in which they are involved.
Committee members have before them a copy of the annual output statement, AOS, for my Department for 2008. The statement sets out the high-level objectives and programmes for the Department this year and the strategies being pursued to meet those objectives consistent with the Department's new Statement of Strategy 2008-2010. The statement also reports on actual outputs achieved for the targets set last year. In this way, the AOS provides both a forward looking and retrospective overview of key departmental deliverables.
The statement has been developed in such a way as to best capture major areas of expenditure related to the main operational objectives of the Department. The target outputs set for 2008 are hard deliverables, are measurable and best demonstrate output to be achieved for the expenditure involved. The outputs will contribute positively to the strategic goals the Government is trying to achieve.
The majority of frontline services promoted by the Department are delivered through the local government sector. In this way, the objectives and targets set out under each programme in the AOS are predicated on performance within that sector. The Department is also assisted in the attainment of its objectives by the many State-sponsored bodies under its aegis. I am very pleased to report that the targets set for 2007, the first year of the AOS, were largely delivered and, as members will see from the AOS, were surpassed in some instances. A briefing note has also been circulated to members setting out a snapshot description of the various provisions in the Estimate.
The Department of the Environment, Heritage and Local Government plays a pivotal role in framing policies and delivering a wide range of programmes that impinge on the lives of citizens across the length and breadth of the country. The major programmes are delivered mainly through the local government system but the Department also has a critical role in delivering on key measures. Our overarching objective is to ensure that the appropriate frameworks are in place to progress sustainable development and to foster a local government sector that is capable of delivering across a diverse agenda.
In practical terms, this means we must provide for good planning and balanced regional development, ensure that the appropriate infrastructure is in place to deliver quality water supplies and improved waste management practices, continue to provide for a broad range of housing needs and use the resources available to us efficiently and effectively.
Through our leadership across the range of policies and programmes for which we are responsible, my ministerial colleagues and I are very focused on meeting these objectives. I must also add that I have placed at the heart of much of what we do my strong ambition to advance the protection of the environment. Our planning and land use, settlement patterns, quality of housing, lifestyles and use of natural resources must change as part of a genuine commitment to environmental sustainability.
Nowhere is the test of environmental sustainability greater than in the area of climate change. Climate change is much more than an environmental challenge in the traditional sense. It threatens the world as we know it and the future of people everywhere. We know we have a very short timeframe in which to act decisively. While the Kyoto Protocol fell far short of an effective solution, it represents an important first step in the international response to climate change.
The protocol came into effect in February 2005 and this moved us, and the other countries with targets under the protocol, beyond the point of talking about climate change to controlling, containing and reducing our greenhouse gas emissions on a verifiable and binding basis. Honouring our Kyoto commitment, contributing to the success of the protocol, and preparing for more ambitious targets into the future are national priorities.
A planned, proactive response to climate change is both necessary in environmental terms and desirable in social and economic terms. The opportunities are as great as the challenge and I want to see Ireland aligned with the most progressive EU member states, providing leadership within Europe and at a wider international level. The European Commissioner for Enlargement, Olli Rehn, said recently that we can tackle climate change without compromising our economic fortunes. We have so much to gain if we make the effort and so much to lose if we do not. The choice is ours. To my mind, the benefits of meeting the challenge and taking the opportunities easily prevail and I am channelling my efforts into steering national policy in that direction.
In presenting the first ever carbon budget last December, I said that it marked the beginning of a new era, one in which climate change will move to the heart of Government decision making. It puts our responsibilities to tackle climate change on an equal footing with our responsibilities to manage the economy. That is real progress on which we will build to make an effective transition to a low-carbon society. We have ramped up our performance, moving forward in the first six months or so of this Government with regard to vehicle taxation, building standards and energy standards for lighting. We will measure the impact of climate measures in presenting the second carbon budget later this year. The more successful we can be in increasing energy efficiency and lowering our carbon intensity, the less we will have to rely on buying carbon credits to comply with the Kyoto Protocol. This will enable Ireland to meet our protocol commitments on much more positive terms. It will also see us better prepared to respond to the challenges and opportunities presented by the green industrial revolution to all countries in the medium and longer term.
The Estimate provides for total spending of €3.2 billion by the Department this year. It is the largest ever State investment in services provided by the Department and through the local government system. Comparing the spend this year and last year shows an increase of 12%. That is a clear demonstration of this Government's commitment to meeting demands arising from environmental imperatives, economic growth and demographic change. However, I and my colleagues recognise also that key performance indicators and delivery of outputs are the only real measures of how well our Department, the local authorities and other agencies within our remit are doing. I will continue to place strong emphasis on monitoring performance and promoting best practice to maximise the benefits of the considerable resources being made available.
Local authorities will spend more than €10 billion in 2008 supporting increased investment in housing, water and waste services, national and non-national roads, and an ever-expanding range of other services. Between capital and current funding, my Department will contribute more than €3 billion of this sum. We clearly have a big stake in what is being done within the local government system. The local government fund continues to play a significant role in the financing of local government, with total funding for 2008 amounting to some €1.6 billion. The fund comprises two elements, an Exchequer contribution of €545 million and the proceeds of motor tax, which are projected to exceed €1,000 million for 2008. For 2008, I have allocated a record level of some €999.2 million in general purpose funding to local authorities from the fund. This underlines our commitment to the local government sector and to the services it provides. Although responsibility for regional and local roads was transferred to the Department of Transport with effect from 1 January 2008, the local government fund will continue to make a significant contribution to roads. For 2008, I have allocated €565 million for this purpose from the fund to the Department of Transport.
While central Government has played its part in securing the financial sustainability of local government, it is essential that we continue to develop measures to improve efficiency and value for money in partnership with local authorities. Significant progress has been made in this area in recent years, as acknowledged in the Indecon review of local government financing. Within the wider public service, for example, local authorities were the first to introduce financial management systems based on modern accrual accounting principles and they now have a range of tools to continue to measure and deliver value for money and efficiency.
Last year we identified two important targets under the financial management-audit heading. The first of these related to the introduction of a new standardised costing system. Substantial progress has been made in this area. By the end of this month, the vast majority of city and county councils will have converted their 2008 budget to the new costing format, with the remaining one or two authorities completing the exercise in May. The new system will lead to greater transparency in the financial affairs of local authorities and in the presentation of financial data. It will strengthen the capacity of local authorities to enhance value for money and efficiency, and it will be of considerable benefit to councillors in supporting their role in monitoring performance and in taking a strategic overview of local authority activities.
The second objective related to the establishment of audit committees in county and city councils. I am pleased that audit committees are now up and running in 33 of the 34 county and city councils, with the final committee to be established shortly. These committees will have an independent role in advising their councils on financial reporting processes, internal control, risk management and audit matters. I am satisfied the committees will be an important driver in enhancing the control environment and governance procedures of local authorities into the future.
I will now focus on some of the major programmes that are provided for in the Estimate. In the area of housing there have been major advances over the past decade, with ten years of record output and increased options for people seeking to avail of social and affordable housing. However, more recently there has been a reduction in overall house-building accompanied by moderation in house prices. Rational assessment can only conclude that this movement towards more realistic house prices is essential both for stimulation of the market in the short term and for its long-term sustainability. The €1.7 billion housing Estimate before the committee provides for the following: continued progress in meeting commitments under Towards 2016 and will be invested in the provision of affordable housing; new local authority housing; the continuation of the Ballymun regeneration project; remedial and improvement works to existing local authority housing estates and flat complexes; the provision of accommodation for Travellers; housing provision by the voluntary and co-operative sector; and private housing supports, particularly for the elderly and disabled. My colleague, the Minister of State, Deputy Batt O'Keeffe, will outline for the committee the range of housing developments with which he is actively engaged.
The Estimate provides for a €471 million Exchequer investment in water infrastructure this year. The main objective is to continue delivering the strategic environmental and economic objectives set out in the national development plan for the period to 2013. A total of €336 million is earmarked for local authority water and waste water schemes under the water services investment programme. A total of €135 million is being allocated to the rural water programme, mainly to improve water quality standards in private group water schemes. There is a growing momentum in the volume of new schemes reaching construction under the water services investment programme. The current phase of the programme for the period 2007 to 2009, which I published in September 2007, provides the framework for this year's spending requirements. As outlined in the output statement, local authorities completed 44 schemes and started construction on 78 new schemes last year. The number of schemes in progress at the end of 2007 rose to 124, compared with 77 at the end of 2006. A further 40 schemes should be completed this year and up to 60 new ones started.
Considerable progress is being made on many of the relatively smaller schemes over which major projects required for earlier compliance with the EU urban wastewater treatment directive necessarily had to take precedence. More streamlined approval procedures introduced by my Department have assisted in getting more projects moving through the approval system and onwards to construction more quickly. My colleague, the Minister of State, Deputy Killeen, will expand further on developments in this area.
One of the key mechanisms in delivering on the Government's objective to have more balanced regional development under the National Development Plan 2007-2013 is enhancing the growth capacity of the nine gateway cities and towns designated under the national spatial strategy and strengthening their role as drivers of the development of their wider regions. As an incentive to stimulate and reward joined-up action at gateway level, a €300 million gateway innovation fund was established under the NDP to help fund targeted strategic investments that could trigger the accelerated development of the gateways and their wider regions. The fund will be additional to the significant NDP capital investment already envisaged for the NSS gateways and hubs under the major sectoral investment programmes and will operate initially on a pilot basis over a three-year period 2008 to 2010, with a significant element of co-funding to be provided locally. A new Exchequer provision of €40 million is made for this purpose in 2008.
Referring to funding for heritage purposes, I am pleased that a provision of €46.6 million is being made available for the programme of work undertaken by my Department's national parks and wildlife service. This represents an increase of 36% on the 2007 outturn and will support increased levels of works and services at national parks and nature reserves, as well as strategic land acquisitions around these properties, further research, species protection and the designation of special areas of conservation.
During the past 20 years Ireland has experienced an unprecedented period of growth and development that has seen us narrowing the historical development gap with our western European neighbours. Substantial population growth, large increases in our housing stock, major expansion in transport infrastructure, changed farming practices, more intensive development and climate change have placed increasing pressures on our natural heritage. The issue is sustainability.
Increased funding for heritage protection will ensure that, as Ireland continues to develop, the quality of our environment will not be compromised. Recently, I announced a funding package amounting to almost €25 million to support built heritage projects in 2008. The capital provision represents a record increase of 42% on the capital amount spent in 2007. Almost €7 million will be spent on architectural protection grants administered by the local authorities, an increase of 17% on the amount spent in 2007. Funding for civic structure grants will more than double from €1.9 million in 2007 to €4.4 million this year, with a new grants scheme of €1.9 million to support works on churches of significant architectural importance. An allocation of €7 million, an increase of almost 30% on the amount allocated in 2007, is being made to support works on properties in State care, while an allocation of more than €6.1 million is being made to fund works on properties not in State care - much of this investment will be channelled through the Heritage Council.
Investment of the kind we are making is vital to safeguard our important architectural heritage. The increased level of funding this year underlines the Government's commitment in this area. I am confident the package of funding measures will encourage an integrated and multidisciplinary approach to built heritage conservation as a whole.
Local authorities continue to face major challenges in meeting the necessary costs of proper landfill operation and aftercare. For this reason in 2008 provision towards the remediation of closed, legal, licensed landfills has increased by 45% to €13.4 million. In addition to the primary aim of waste prevention, the major goal of waste management policy, in accordance with the EU landfill directive, is to reduce our dependence on landfill in favour of more environmentally sound alternatives.
Ireland has made considerable progress in many areas of recycling. Nevertheless, and without question, the most significant challenge that lies ahead is to achieve similar progress with biodegradable waste in order that we will meet the diversion targets set out in the landfill directive. In some areas of biodegradable waste, we are already doing well. For example, recovery rates for wood, paper and cardboard are high. We now need to improve recovery and recycling rates for textiles and organics.
Since 2002 my Department has allocated more than €100 million in capital grants to assist local authorities in the provision of recycling and recovery services. The projects assisted include bring bank networks, civic amenity sites, materials recovery, composting and biological treatment facilities. Between 2002 and 2006 the number of bring banks rose from 1,636 to 1,919, while the number of civic amenity sites increased from 49 to 86, an increase of over75%. We will continue to provide financial support for local authorities with a view to further improving and expanding infrastructural capacity in order to achieve higher levels of recycling.
In 2003 it was estimated that just over 50,000 households had access to segregated collections for organic waste, or brown bin collections, principally in Waterford city and county and Galway city. The provision of such services in all suitable urban and rural areas, as part of an integrated collection system, is a critical element of the national strategy on biodegradable waste. Plans for the roll-out of brown bins are at advanced stage in many local authority areas, including a further 170,000 households by early 2009 at the latest in Fingal and Dublin City Council, in addition to the 37,500 bins already provided by Dublin City Council to date. It is anticipated that segregated collections will be initiated in the Clare-Kerry-Limerick region and further expanded in the south east in 2009. Pilot schemes have also been carried out in other local authority areas, such as Westmeath and Louth. These are ongoing and involve 10,000 households in preparation for more widespread provision of these services. My Department will shortly issue a circular letter to all local authorities seeking implementation, as rapidly as possible, of the measures for the management of biowaste within the various statutory regional waste management plans, including the provision of source separated collections for organic waste
I also anticipate further progress this year on the availability of authorised treatment facilities where members of the public can deposit end-of-life vehicles free of charge. The latest reports from local authorities indicate that, by the end of December last, waste permits had been granted to a total of 79 of 80 facilities to operate as authorised treatment facilities, thereby indicating that my Department's annual output target for 2007 was virtually achieved. Current indications from local authorities are that this number will be exceeded in 2008. In addition, I have recently asked packaging producers to develop a packaging waste prevention initiative similar to the Courtauld Commitment in the United Kingdom and for voluntary measures by producers to address litter from packaging waste. Both initiatives will be progressed this year.
The Environmental Protection Agency's mission is to protect and improve the natural environment for present and future generations, taking into account the environmental, social and economic principles of sustainable development. The agency plays a vital role in helping to ensure a clean environment, encouraging sustainable development and prosecuting offences under the environmental legislation. It also provides essential support in meeting our international commitments, assisting Ireland to attain and demonstrate compliance with EU and wider international environmental targets.
In recognition of the increasing importance of the agency's work and its expanding responsibilities on foot of European and international environmental obligations, I am increasing the Exchequer provision for the Environmental Protection Agency, EPA, by 42% to €39 million. The additional financial resources are essential to ensure that the agency has in place the necessary staff, specialised equipment, accommodation and laboratory space to take on its expanded roles and challenges.
I thank the committee for the opportunity to outline some of the key elements of my Department's 2008 Estimates. It is clear that we have very substantial resources for 2008 and, as the Minister in charge of these resources, I recognise and accept the responsibility for their proper and effective use. My ministerial colleagues in the Department and I will continue to work in collaboration with the local authorities and the Department's various agencies to deliver on our mandate under the Estimates. We will be happy to respond to matters the committee may wish to raise.
