Dáil Éireann Debate, Tuesday - 21 March 2023
361. Deputy Thomas Pringle asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the reason projects have been put on hold due to capital funding pressures; and if he will make a statement on the matter. [12954/23]
View answer362. Deputy Thomas Pringle asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the number of projects and the projected cost that have been put on hold due to capital funding pressures, disaggregated by Government department; and if he will make a statement on the matter. [12955/23]
View answerI propose to take Questions Nos. 361 and 362 together.
The National Development Plan 2021 – 2030 (NDP) published in October 2021 provides a detailed and positive vision for Ireland over the next 10 years, and delivers total public investment of €165 billion over that period. As Minister for Public Expenditure, NDP Delivery and Reform I am responsible for setting the overall capital allocations across Departments and for monitoring monthly expenditure at Departmental level. My Department is also responsible for maintaining the national frameworks within which Departments operate to ensure appropriate accounting for and value for money in public expenditure.
The responsibility for the management and delivery of individual investment projects, within the allocations agreed under the National Development Plan (NDP), rests with the individual sponsoring Department in each case. Multi-annual capital allocations out to 2025 were set out in the NDP to give Departments certainty about funding over the medium term and to assist them in scheduling delivery of their projects in a planned manner.
It is important to recognise that the country has already seen a step change in capital investment in a short period of time. In 2017, the total level of Exchequer capital stood at €4.6 billion, which has jumped significantly to the c.€12 billion available this year from the Exchequer for investment in public capital projects, which will provide more schools, homes, hospitals and other pieces of vital infrastructure. When combined with the capital carryover of €687 million from 2022 into 2023, Departments and Agencies will have the potential to spend almost €12.8 billion this year. This level of expenditure will be pivotal in consolidating the progress already made, and, most importantly, delivering the infrastructure to support our future climate, social and economic requirements.
Delivery of NDP projects have been adversely impacted over the past three years as a result of pandemic related pauses in the sector, the inflationary impacts from both COVID-19 and the war in Ukraine, with knock-on impacts on the supply chain for construction materials. This has resulted in underspends in capital spending over the past few years. Departments will be encouraged in 2023 to utilise their full capital allocations to the greatest extent possible while adhering to value for money principles.
In response to the changed mandate for my Department in terms of National Development Plan Delivery, I am currently examining the support structures and levers available across Government to maximise delivery of vital infrastructure. I will be working throughout 2023 to identify capacity and capability gaps across the public sector and construction sector in delivering the NDP.
