Vol. 503 No. 3
61 Mr. Noonan asked the Minister for Finance the way in which he will bridge the gap between the capital requirements for infrastructural projects for the next five years and the allocation of Structural Funds to Ireland agreed at the recent Berlin Summit; and if he will make a statement on the matter. [10037/99]
The Government has started work on the national development plan for 2000-2006.
The purpose of the plan is to address the general development needs of the economy over that period. It will cover a wide range of expenditure programmes, both current and capital. I do not want to go into the details of the plan, but I assure the Deputy that it will set out the investments in key areas, such as infrastructure and human resources, which will allow Ireland to continue to develop both economically and socially over the medium term.
The drafting of the national development plan, which is being co-ordinated in my Department, is taking place in partnership with Government Departments, regional authorities and the social partners. The national development plan will take into consideration the ESRI ex-ante evaluation and the Fitzpatrick Associates NUTS II regional strategies commissioned by the groups of regional authorities which will comprise the two new NUTS II regions.
The expenditure plans which will be presented in the national development plan will also take full account of the funding which will be available from the EU, the Exchequer and private sources. In this regard, I assure the Deputy that work on using public-private partnership to support investment is a priority in my Department, in the context of the national development plan.
Is the Minister not aware that he has already in print estimates for expenditure for the next three years, including the current year? What is the gap now emerging between estimated expenditure and the money the Minister will actually get from Europe? How does he propose to fill that gap?
This falls back somewhat on the debate with Deputy McDowell on the previous question. The figures in the last two budgets set out estimates of revenue on one side on the basis that there will not be significant policy changes, and the underlying assumptions are set out in the notes regarding taxation and other matters. That does not prevent the Government from making decisions on taxation in future years. The figures for expenditure are projected forward on a "no policy change" basis, and included in that is the limit on the 4 per cent limit current net level. A contingency sum is also set aside for unanticipated developments. It also takes into account what will be the runover from the current tranche of EU funds. When the national development plan is produced the figures for future budgets will reflect the decisions taken by the Government when it decides the plan later this year. As far as expenditure is concerned, the national development plan will be a breakdown between EU, Exchequer and private funding. If additional Exchequer moneys are required when we decide the national development plan, they will be built into the framework for future years.
The Minister is not having a good day; there is much fudging in the replies today. I am putting something very simple to the Minister. He has projected expenditure for this year and the next two years, based on various assumptions of tax receipts and transfers from the EU. EU transfers will be well short of expectations. How does the Minister propose to make up the shortfall?
The Deputy will have to wait until we produce the national development plan in which we will signal how we intend to fund it. Funding will be from a combination of the three sources I have spoken about. These decisions will be reflected in future budgets. Every year the Government has to make an assumption about what will happen in the coming year. We know the amount of EU funding we will receive. The national development plan will encompass whatever budgetary revisions are made in the coming years.
I understand the process. However, I am asking the Minister about something different. He has projected expenditure for 2000 and 2001. Can we take it the figures he has published are of no value on the capital side? Will they be replaced by projections as soon as the Government decides which projects will be included in the national development plan and at what cost?
The future figures in the multi-annual budgetary process involve costs based on existing policies. The Government will decide on the new national development plan and new projects will be fed into that process. As a result the new multi-annual budgetary process will be projected from there. We will then see the budgetary expenditure figures for future years.
A very unsatisfactory answer.
