Dáil Éireann Debate, Tuesday - 23 November 2004
79 Mr. Penrose asked the Minister for Finance if he will make a statement on the progress of the capital programme under the national development plan; and if he intends to provide for increased capital spending in 2005 in view of the significant reduction in the level of capital spending in the first nine months of 2004. [29861/04]
View answerCapital investment under the National Development Plan 2000-2006 is mainly delivered through the economic and social infrastructure operational programme, ESIOP. Total spending to date under the ESIOP is close to target, and the Exchequer contribution is well above target; by mid-2004, the Exchequer had provided €1.8 billion more to the ESIOP than was originally planned. ESIOP investment is delivering major improvements to the economic and social infrastructure throughout the country in the areas of roads, public transport, environmental infrastructure, housing and health.
On the broader matter of capital spending across all Votes, the end October figures show that the amount spent in the first ten months of the year was below the amount that Departments had profiled to spend over that period. However, in line with usual trends, Departments expect their rate of spending to increase over the remainder of the year. Also, I would remind the Deputy that Departments can now carry over unspent capital allocations from one year into the next, up to a limit of 10% of the voted capital estimate. This new facility is part of the arrangements associated with the five-year, multi-annual capital envelopes announced in the 2004 budget and allows Departments more flexibility to plan and manage their capital expenditure programmes.
The forecast outturn figures published in the 2005 Abridged Estimates show that there will be a capital carryover of some €250 million from 2004 to 2005. When that carryover is added to my pre-budget provision for capital spending in 2005, the total cash amount available for the year will be over €5,970 million. This is an increase of 14% over the 2004 projected outturn.
