Dáil Éireann Debate, Thursday - 26 October 2023
166. Deputy Bernard J. Durkan asked the Minister for Public Expenditure, National Development Plan Delivery and Reform his preferred options to meet the ongoing social and economic requirements of the country in the context of current and capital expenditure in line with prudent management, while placing sufficient emphasis on important infrastructure such as social housing; and if he will make a statement on the matter. [47229/23]
View answerIn terms of infrastructure this Government has committed to €165 billion in capital investment through the National Development Plan (NDP) published in 2021. As a percentage of national income, annual capital investment is now among the largest in the EU. In 2024, almost €13 billion will fund vital infrastructure in areas such as social housing, transport, education, enterprise, sport and climate action. Achieving value for money and reducing cost and schedule overruns is a vital part of NDP delivery.
In terms of prudent management of capital projects, in March this year, I secured Government approval for six priority actions which:
• Brought significant reductions in the administrative burden in delivering major capital projects, through streamlining the Public Spending Code (to become the Infrastructure Guidelines);
• Saw the Minister for Public Expenditure, NDP Delivery and Reform take a direct role in overseeing delivery of the NDP through chairing the Project Ireland 2040 Delivery Board;
• Asked for capacity reviews of departments and agencies with significant delivery programmes to be carried out, where appropriate, to ensure that adequate resources for project delivery are in place;
• Saw additional reforms to the Capital Works Management Framework, which sets out the contracts used for public capital projects;
• Saw direct reporting to Government on NDP delivery on a quarterly basis throughout 2023 and 2024 and
• An independent evaluation of NDP priorities and capacity.
This package represents a fresh approach to securing delivery as part of my Department’s enhanced remit around the NDP.
In summary, there is a focus now on supporting and streamlining the delivery of NDP projects in a timely manner, while ensuring value for money for the taxpayer. These reforms will boost the delivery of the critical infrastructure needed to support a growing economy and to secure higher living standards for those living here.
With regard to social housing, this is a vital part of the Housing for All plan which has the aim of ensuring that everyone in the State has access to a home to purchase or rent at an affordable price. Budget 2024 allocated €4.1 billion in total to Housing for All. This funding will support the provision of an additional 28,000 households overall; meeting the social housing needs of an additional 21,830 households and supporting a further 6,400 to buy or rent at an affordable price. This shows the Government's commitment to prioritising housing as a cornerstone of its expenditure policy.
With regard to core current expenditure and the ongoing social and economic needs of the country, Budget 2024 raised the ceiling for core current expenditure to almost €79 billion for the coming year. This is an increase of 5.9 percent on 2023 and once again reflects the Government's clear vision for the continuous improvement and delivery of better public services.
The Government's expenditure policy and framework is set out in the Medium Term Expenditure Strategy (MTES), in the Summer Economic Statement 2021, and this articulates the prudent management within which current expenditure is managed. Being conscious of the pressures on households and business from inflation, that will remain with us until the end of the year and into early 2024, the Government had to balance the short term requirements of society with the medium term sustainability of the finances.
That is why Budget 2024 also included a package of temporary expenditure Cost of Living measures costing €2.3 billion that will benefit the most vulnerable households more. Making such measures temporary in nature means they are not built into the core and therefore do not roll into commitments in the following years.
The adoption of this dual policy approach to expenditure ensures sustainability into the medium term while also responding to emerging needs.
