Dáil Éireann Debate, Monday - 11 September 2023
836. Deputy Rose Conway-Walsh asked the Minister for Housing, Local Government and Heritage the reason for capital expenditure running €233 million behind profile, as outlined in the Mid-Year Expenditure Report; and if he will make a statement on the matter. [37475/23]
View answerThe Total Gross Provision for Vote 34 - Department of Housing, Local Government and Heritage for 2023 as set out in the Revised Estimates for Public Services 2023 published by the Department of Public Expenditure, NDP Delivery and Reform (DPENDR) and available at www.per.gov.ie/en/rev/ is €6,322m. This is made up of €2,797m Current and €3,525m Capital and will also be supplemented by €340m Capital Carryover from 2022. The allocation to the Vote Group also includes the provision to Votes 16, Tailte Éireann, and 23, the Electoral Commission. Inclusive of these votes, the Gross Provision to the Vote Group amounts to €6,414m excluding capital carryover.
Capital 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 2023 Mid-Year Expenditure Report, Gross Capital expenditure for the Vote Group at the end of June amounted to €583m, which was €233m behind published profile of €816m. This variance of expenditure against profile at the end of June arises mainly from lower than anticipated expenditure across a small number of specific expenditure lines in the Housing Programme primarily as a result of certain developments initially projected for completion being delayed until later this year.
It should be noted that the earlier than expected signing of the Deferred Surrender Order greatly impacted the drawdown of 2023 Voted expenditure and subsequent comparisons against profiles. The reporting in the Mid-Year Expenditure Report does not account for capital carryover expenditure incurred to date this year. Net capital expenditure for Vote 34 is €901m (€577m plus Deferred Surrender of €324m) to the end of Q2 2023, which is €195m higher or an increase of some 28% compared to Q2 2022.
Further to this, it should also be noted that the bulk of capital expenditure occurs during Q4 of a given year, as is the norm with all major capital programmes. 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.
