Dáil Éireann Debate, Tuesday - 30 May 2023
381. Deputy Rose Conway-Walsh asked the Minister for Housing, Local Government and Heritage if he will provide further details on the causes of the underspend of 32.5% or €141 million below profile, as outlined in the April Fiscal Monitor (details supplied); and if he will make a statement on the matter. [25835/23]
View answerCapital expenditure by its nature does not generally arise in an even pattern throughout the year, and is dependent on the expected drawdown based on matters such as vouched expenditure, projects reaching milestones and completions etc. Profiles are set at the start of the year based on the prevailing circumstances and variances may arise over the course of the year.
As set out in the most recent Fiscal Monitor and in the table below, Gross Voted Capital expenditure for the Housing; Local Government and Heritage Vote Group amounted to nearly €293 million in the year to date at the end of April, €141 million or 32.4% below the profiled spend. Compared to 2022, gross capital expenditure in the Vote Group is running €93 million or 46.5% ahead of the outturn at the same point last year.
|
Gross Capital Expenditure at end April 2023 (€m) |
|
|
2022 Outturn |
200 |
|
2023 Outturn |
293 |
|
Variance |
93 |
|
% Variance |
46.5% |
|
|
|
|
2023 Profile |
434 |
|
2023 Outturn |
293 |
|
Variance |
-141 |
|
% Variance |
-32.4% |
This variance of expenditure against profile at the end of April arises mainly from lower than anticipated expenditure across a small number of specific expenditure lines in the Housing Programme as a result of a combination of factors including: continued challenges in relation to price inflation in construction materials, supply chain disruption, inflation pressures in the price of fuel and energy and certain developments initially projected for completion being delayed until later this year. Further to this, the earlier than expected signing of the Deferred Surrender Order has also impacted the expenditure profile variance.
As is the norm with all major capital programmes, the bulk of capital expenditure occurs during Q4 of a given year. This is particularly so in my Department, where local authorities submit large volumes of claims for recoupment towards the end of the year. Accordingly, this level of activity is expected to result in a very significant increase in capital expenditure later in the year.
My Department will continue to engage proactively on a range of measures to manage and expedite capital expenditure where possible throughout the year with a view to keeping within projected investment levels.
