Dáil Éireann Debate, Thursday - 8 November 2018
1. Deputy Éamon Ó Cuív asked the Minister for Rural and Community Development the amount of funding allocated to his Department for current and capital expenditure, respectively, for 2018; the amount spent under each category respectively to date in 2018; his plans to ensure full spend of the available funds by the end of 2018; and if he will make a statement on the matter. [46146/18]
View answerThe question relates to continued underspend in the Department even against its own profile which is skewed towards the end of the year and which is bad practice. Even allowing for that, however, there is a significant underspend in the Department. Will the Minister give us the up-to-date situation on what he proposes to do about it?
The Revised Estimates for 2018 in respect of the Department of Rural and Community Development sets out gross capital expenditure of €87.5 million and the current expenditure of €144 million for the Department. The capital expenditure is supplemented by some €7.7 million capital carried forward from 2017.
As of 5 November, €54.8 million of my Department’s capital allocation has been spent and €124.7 million in current expenditure has been spent. There remains €40.4 million in capital expenditure and €19.3 million in current expenditure to be utilised before the end of the year.
My Department is working in partnership with key stakeholders to fully utilise the available resources. Local authorities, community and voluntary groups, as well as dedicated agencies have key roles to play in supporting job creation and attracting investment across rural Ireland and supporting the development of communities throughout Ireland. Close monitoring of expenditure is a matter of significant priority so as to ensure full use of our allocated resources, and that value for money is delivered in respect of our funding. I have already identified areas where some capital programmes are unlikely to spend their full allocation this year. For example, while LEADER activity is ramping up and a healthy pipeline of projects have been approved, the programme will not require its full allocation this year.
I have been proactive in reallocating capital resources where possible. For example, I have already expanded the community enhancement programme this year, increased investment in libraries, and provided additional support to fund the local improvement schemes. I have also supported the development of Coillte trails, Tidy Towns, agricultural shows and men’s sheds organisations. By ensuring claims are made, continued close monitoring of expenditure and, if necessary, further reallocation of resources, I will ensure the resources made available to my Department will be fully utilised, delivering for all communities and for rural Ireland.
Will the Minister explain why, according to the Exchequer returns, the expenditure on the current side is €8 million behind profile at the end of November? The Minister said he has reallocated money and I saw an announcement on local improvement scheme, LIS, roads, but, as of yesterday, the local authorities have not received formal notification. These local authorities obviously cannot spend money they have not been notified about, no matter how many press releases have been issued by the Minister. Will he inform us when it is intended to let the local authorities, which have been told this money is on the way but about which they have not received formal notification, know that they have this money?
Today is 8 November and these authorities will not be working on LIS roads over Christmas. They have to get the bills in and the work has to be certified and inspected before that. When is the Minister going to notify them about the extra LIS money?
I am surprised to hear that because I was told by colleagues yesterday that some of the local authorities have started spending some of the money that was reallocated to them last week. My understanding is that the local authorities have been notified, but I will correspond to the Deputy on that. The local authorities have been notified of the amount of money they are getting for the year.
Let us call a spade a spade. I allocated money in early February of this year to some of the local authorities and some of them have still not spent some of it. As a former councillor, the Deputy knows the LIS money, in particular, is always spent at the end of the year. I have been told by colleagues that many LIS roads are being done. Looking at the newspaper cuttings from around the country, I am being accused of giving money for roads because the local elections are coming up. I am pleased to have put €37 million into LIS roads to date.
Deputy Ó Cuív, to be fair to him, has been pushing me to reallocate money and the LIS is one of the better schemes. We wrote to the local authorities last year and gave them an indication of when we would allocate money. As I said, by October there had been a drawdown of €24.6 million from the capital budget. As Deputy Ó Cuív knows, the local authorities are always complaining that they have no money, yet when they are given money to spend and asked to draw it down, they leave it to the last minute to do so.
Not so long ago I submitted a question about money allocated in 2016 on a forward payment basis that had not been spent. I cannot understand why, when local authorities are consistently not spending the money allocated to them, the Department does not allocate funds on a use or lose basis. The Department allocated local improvement scheme money in January, for example. Why did it not specify that any money not spent and accounted for by June would be lost and reallocated in July? Now is not a great time of year to make a big push on roads, with dark, wet and frosty days ahead.
The Minister did not answer the question regarding the underspend in the current budget, amounting to €8 million against profile at the end of November. I ask him to explain where that underspend has occurred because it is significant in the context of the current budget. Regarding the capital budget, the position at the end of November was that €45 million out of a total of €88 million had been spent. I ask the Minister to explain the underspend on the current side.
On the LIS, the Deputy will be interested to note that €10.8 million was allocated in April of 2018 and up to October, €7.8 million had been drawn down, which is acceptable. I am happy with that and many of the local roads projects will be completed before the end of the year.
Deputy Ó Cuív asked why there is an underspend on the current side. I can give him a guarantee that my money will be spent in full by the end of the year. In terms of current spending, we are awaiting some bills that have yet to come in. I have no doubt, however, that both my capital and current budgets will be spent. As I have said at committee, I intend to have my money spent before the end of the year. That is why I have reallocated money to the local improvement scheme, men's sheds and the Tidy Towns competition. I have also reallocated money to the community enhancement programme. All of the aforementioned schemes are delighted to be getting additional funding. There is a underspend in LEADER and Deputy Ó Cuív has tabled a number of questions in that regard to which I will respond later. I can give a guarantee in the House today that my money, both current and capital, will be spent by the end of the year.
