Dáil Éireann Debate, Tuesday - 3 July 2018
3. Deputy Barry Cowen asked the Minister for Public Expenditure and Reform the projects that make up the €1.5 billion in pre-committed capital expenditure highlighted in the summer economic statement; and if he will make a statement on the matter. [29060/18]
View answerMy question relates to the national development plan expenditure outlined by the Minister in his summer economic statement. He stated that €1.5 billion is pre-committed in capital expenditure for the forthcoming year. I am at a loss to know what is contained in that commitment that has not already been published. In written replies to previous parliamentary questions I have put down, the Minister has said that €700 million extra was dedicated to capital expenditure in the national development plan other than the allocation set out in the economic statement of the previous year. Can the Minister inform me and, by extension, the public, of what exactly is contained within that, what impact it will have and on what regions and what benefits will accrue to those for whom it is intended?
In my role as Minister for Public Expenditure and Reform, I am responsible for setting the overall capital allocations across Departments and for monitoring monthly expenditure at a departmental level. I do not have a direct role in respect of project selection. Decisions on how departmental allocations are invested and what projects are selected are matters in the first instance for my ministerial colleagues. I can, however, inform the Deputy that capital expenditure allocations by ministerial Vote group for the years 2018 to 2022 were published in the first annexe of the national development plan, NDP, and these allocations remain valid. Capital expenditure will increase by €1.5 billion between 2018 and 2019, which is a sizeable increase of approximately 25%. The total capital expenditure allocation for 2019 is €7.3 billion, which will result in capital expenditure increases across almost every Department. For example, the Department of Housing, Planning and Local Government's allocation will increase by approximately €400 million next year.
In direct answer to the question the Deputy put to me on what this increased capital allocation is delivering, I note that while I am not responsible for the individual projects, I have sought information on them to share with him now. Across 2018, more than 80 large-scale school projects will be delivered while 140 additional accommodation projects will be at construction phase. Much of that work will begin later this year and continue into next year. As to roads projects, I point to progress on the Portlaoise southern distributor road and the improvement scheme at the Grange Castle Business Park. There is also a target to build 6,385 social housing units next year from the allocation I detailed a moment ago.
I thank the Minister for his response and his efforts to bring some light to the darkness that is contained within what has been already outlined. I take in good faith the commitments that have been made by Government in the Project Ireland 2040 document that has been produced and much talked about in recent months with regard to the extra allocations that are provided for, notwithstanding what was already announced and in this instance up to 25% of which the Minister refers to. However, when I and my party are seeking to inform the public as to what might be contained within a budget package of €3.5 billion, €1.5 billion of which is written off as previously committed, it is incumbent on me to ensure those who I represent are made aware of what this actually contains, what it entails and what benefits might accrue to those for whom it is intended. I hope and expect that the Minister would bring about a situation whereby it is laid out in black and white, not what is promised by 2040 but what is provided for in 2019. I simply ask that the Minister elaborate on the examples he has given in response to this question on there being 80 large-scale developments relating to the provision of education capital expenditure that will run from this year into next, on the roads project he mentions in Portlaoise and regarding the Grange Castle Business Park. If the Minister can produce those three, he can produce them all and I would hope the Minister would do so as soon as possible.
That is a fair point. One of the reasons I announced the capital allocations for many years in advance as early as I did is experience has taught me, particularly when I was Minister for Transport, Tourism and Sport, that telling a Department in October what capital expenditure it will have available the following year for constructing new projects inevitably means that such funding is not drawn down in the way that it is needed. The reason we announced the capital envelopes for the larger Departments for three to four years in advance is in order that they can better plan. What I will do well in advance of the budget is ensure that every Department can identify what it is delivering behind the massive increase in capital expenditure for next year.
I welcome that final sentence that the Minister has committed to and would expect that his colleagues in Cabinet would be forthcoming with that information at the earliest possible opportunity. Notwithstanding my recognition of the need to have multi-annual funding envelopes for various Departments and commitments, I am well aware of Fianna Fáil's commitment to the disability sector and a multi-annual funding envelope being provided for that many years ago, for which there was not a great deal of representation made by others and which, thankfully, has set in train a process that has been followed. In these times, having come through the difficult period we all have come through and considering a previous Government was successful in bringing about two thirds of the adjustment that was necessary and that the Government has now spent seven years completing the other third, as well as considering that there is potential for increased expenditure across various capital expenditure programmes, I would say to the Minister that when it is in the order of €1.5 billion in the forthcoming year, especially as we are about to complete the three-year agreement we had, we would like to know in advance what exactly will be laid out before the public regarding the commitments from a capital expenditure perspective that will be made in the forthcoming year.
In my time in both the previous Dáil and this Dáil, I have never heard anybody argue that we should have completed the deficit correction quicker. If Deputy Cowen is arguing that, it is a new departure.
The Minister was glad two thirds were done before he arrived.
If Deputy Cowen is arguing it, then it is truly-----
We paid the political price. They need not tell me anything about that.
It is truly a new departure in economic policy this afternoon if Deputy Cowen is arguing that we should have done the deficit reduction quicker.
Is the Minister not damn glad two thirds of it was done before he was there?
Of course, I am aware of the political price that Fianna Fáil paid but, as the Deputy will be equally aware, that is paltry in comparison with the price the people of Ireland paid for the ruination we all went through for many years.
No recognition of the programme that changed it.
As I stated, I am happy to look to ensure that further detail is provided to the House as we move through the rest of the year.
I insist on it.
Regardless of whether Deputy Cowen insists on it or not, I have already given a commitment to do it.
Exactly. The Minister gave me a commitment to the previous response that he has not adhered to.
Deputy Cowen asked a question and I stated that I will do it.
We will move on. I call Deputy Burton.
I would make the point that when I started off in this role I heard so many people say that what we need to do is increase capital expenditure. I have now increased capital expenditure, by €800 million this year and by €1.5 billion next year.
That is fine.
The signs of that are evident across the country-----
Just tell us where.
-----for example, in the new figures that have come out today that further point to the rate of unemployment in the country falling.
Not in housing. I would agree with the Minister if I could use housing as an example we could follow.
