I welcome the opportunity to present and discuss the Department's Revised Estimate for 2007 with the committee. A briefing note has been made available. I am joined by the Ministers of State, Deputies Noel Ahern and Batt O'Keeffe, who will also make statements on aspects of the Vote.
Members will be aware that Departments are required from this year to prepare an annual output statement to be submitted to the select committee in tandem with the annual Estimates for each Department. The annual output statement for my Department for 2007 has been circulated to committee members. The preparation of the annual output statement is an initiative introduced by Government to ensure greater parliamentary involvement in the budget and Estimates process and a greater focus on outputs to be achieved from investment. From next year, in addition to projecting output for the year under review, each Department will be required to report on actual output achieved the previous year. This is one of the most important and far-reaching innovations in terms of public finance and administration. For years there have been arguments about the need for public finance to be output related as opposed to purely input measured.
Before I set out the priorities for 2007, it is worth recalling how we have reached this starting point. In the space of ten years we have built a new robust and successful economy, underpinned by the sound policies of the Government which have ensured the fruits of our success have been cultivated carefully, used wisely and distributed fairly. We have developed an economy that is the envy of many and a model that others seek to follow. We have seen truly historic achievements such as the ending of high unemployment and mass emigration and the achievement of living standards unimagined not so long ago. At the root of this exceptional performance is a deeply embedded commitment to pursue policies across Government that will sustain our economic progress.
Under the policies of this Government we are well prepared for the future. The new national development plan has set out a major seven-year investment programme which has at its core investment and other policies to provide for a better quality of life for all the population, urban and rural. Sound management of our public finances will ensure that we have the resources to deliver on the economic and social programme set out in the plan.
The Estimate before the committee today is for gross spending of €2.926 billion by the Department this year, the first year of the new national development plan. This is the largest ever State investment on services provided through the local government system, up by 8% on the outturn for 2006. It is important that there is increased provision of financial resources to meet demands arising from economic growth and demographic change. Key performance indicators and delivery of outputs are the only real measure of how well my Department, the local authorities and other agencies within my remit are doing. I place the strongest possible emphasis on monitoring performance and promoting best practice to maximise the benefits of the considerable resources being made available.
The Minister of State, Deputy Noel Ahern, will deal in detail with housing. However, I will make some opening comments. There have been major advances in housing over the past decade with ten years of record output and increased options open to people seeking to avail of social and affordable housing. The backdrop to the 2007 Estimate from a housing perspective is the new policy statement, Delivering Homes, Sustaining Communities, which my colleague and I launched in February. Under this policy statement and the terms of Towards 2016, the Government is committed to the commencement or acquisition of 27,000 new units of social housing over the period 2007-2009; full implementation of the rental accommodation scheme; and the delivery of 17,000 affordable homes in the period 2007 to 2009. The resources provided for housing in the 2007 Estimates of €1.5 billion will enable year one of this ambitious programme to be progressed and key outputs to be achieved in this regard are set out. The Minister of State, Deputy Noel Ahern, will deal with this in detail.
The Estimate provides some €427 million for investment in water infrastructure this year. In addition the €20 million capital carryover from 2006 will be applied to this sector, giving an overall provision of €447 million.
As set out on page 12 of the annual output statement, it is envisaged that 40 major water and sewerage schemes will be brought to completion this year and that work will start on a further 80 schemes. I am reviewing the current water services investment programme with a view to rolling it forward to cover the period 2007-2009. I expect to make announcements on this shortly.
The Government's commitment to sustained improvement and expansion of national water services infrastructure is reflected in the €4.7 billion provision in the national development plan. This is an increase of 27% on the €3.7 billion spent under its predecessor. The €3.7 billion spent between 2000 and 2006 has resulted in major progress in preserving and improving environmental standards, as well as supporting unprecedented social and economic growth and development in every part of the country. Some of the more significant achievements have included increased compliance with the requirements of the EU Urban Wastewater Treatment Directive from 25% in 2000 to 90% at the end of 2006 — all the remaining schemes necessary for full compliance with the directive are included in my Department's Water Services Investment Programme 2005-2007. The provision between 2000 and 2006 of additional wastewater treatment capacity equivalent to the needs of a population of 3.1 million is a very significant achievement.
Taking the period 1998 to date, we have created additional water treatment capacity for 1.2 million people. There has also been the completion of over 350 schemes, including some major wastewater projects in Dublin, Cork, Limerick, Wexford, Galway, Drogheda, Dundalk and many other areas. This has resulted in massive improvement. We have seen the proof in the fact that we have more blue flag beaches than ever before. Under the national development plan, we will take the necessary steps to meet identified short and medium-term needs and undertake longer-term planning to address strategic requirements, such as the projected demand for substantial expansion of water and wastewater services in the greater Dublin and Cork areas.
Investment in the rural water programme has increased enormously in recent years in response to quality deficiencies in the group water schemes sector. At the beginning of March, I announced a record capital provision of €142 million for investment in rural water services this year. This is 12 times more than the annual amount spent in 1997. The comprehensive programme of work envisaged for 2007 involving the completion of new water treatment plants, together with upgrading works already completed and the taking in charge by local authorities of existing group schemes, will secure improved water supplies for about 60,000 rural households.
This year will see investment in our regional and local roads reach a record level once again at €607 million. This represents a very substantial increase of 9% on last year's record allocation, or an increase of almost €50 million. Our regional and local road network plays a very important economic role in Ireland; it provides mobility within and between local communities and economies as well as providing vital links to the strategic national road network. Some 94% of the country's roads are non-national roads and they carry around 60% of all road traffic.
The restoration programme continues to be a central part of the non-national roads investment programme. This year, a sum of €225 million has been allocated for this programme, representing an increase of €20 million that will allow significant progress to be made in addressing deficiencies in the network. On top of this, I am providing €81 million for restoration maintenance works to ensure that the investment made under the restoration programme will be preserved.
This year over €46 million has been allocated for new strategic non-national roads schemes. Some 24 projects are receiving allocations in 2007, which will facilitate the provision of around 44,000 housing units and open up over 900 hectares of industrial land for development.
The financial allocation to the Environmental Protection Agency has increased significantly in recent years as the responsibilities of the agency have increased. New roles and challenges under the Waste Electrical and Electronic Equipment Directive, the Water Framework Directive, the Air Framework Directive, and to meet the reporting requirements of certain UN and EU conventions require additional resources, specialised equipment, accommodation and laboratory space. Its licensing and enforcement activities have also intensified in recent times. The Exchequer provision this year of €27.5 million represents an increase of 50% on the 2006 outturn.
Almost €4 million is being provided for payment of the 2007 grant to the Radiological Protection Institute of Ireland to cover the net cost of the institute's day-to-day operations. The institute plays an important role in supporting the Government's ongoing campaign against the Sellafield operations in the UK, including the provision of scientific advice to my Department and to the State's legal team.
Climate change is a top priority for the Government. Yesterday I published the revised national climate change strategy which confirms that we are on course to meet our commitments under the Kyoto Protocol in the period 2008-2012; and initiates preparations to meet more demanding emission reduction targets endorsed by Heads of State and Government in March in the period post-2012. We will deliver on our Kyoto commitments through a variety of domestic measures to reduce emissions throughout the economy, including through participation by our heaviest emitting installations in the EU emissions trading scheme. These measures will be supplemented, as necessary, by the purchase of carbon allowances which will be available to all parties through the flexible mechanisms explicitly provided for in the protocol. The Government has designated €270 million under the national development plan for such investment. This is in addition to the investment of €20 million in 2006. Some 80% of our requirements will be met from domestic measures.
Turning to performance and efficiency in local government, an area close to my heart, a total of €1.5 billion is being provided to local authorities this year through the local government fund. Efficiency in the use of funding by local authorities is essential to ensure that taxpayers get a fair return from their investment. An independent consultancy review of local government finance, published in March 2006, acknowledged that local authorities have achieved significant efficiencies in a number of areas and are focused on pursuing ongoing improvements. I am anxious to ensure that the efficiency agenda is further embedded across all local authority policies and programmes. To this end I have recently amended the Local Government Act 2001 to provide for the mandatory establishment of audit committees to ensure a more comprehensive audit function in all local authorities. These committees, to be established this year, will have an independent role in advising the council on financial reporting processes, internal control, risk management and audit matters, as part of the systematic review of the control environment and governance procedures of local authorities.
In addition, these committees will assess and promote efficiency and value for money across all local authority functions. I have long believed that elected members of local authorities find themselves in a difficult position when it comes to judging efficiency and they need the type of supports that will be provided through these committees. Key outputs for 2007 in this and other areas that will strengthen local government's performance are included on page 16 of the annual output statement.
Local government has a key community development role. I introduced a new social and community facilities capital scheme last year and announced capital grants totalling €7.4 million under the scheme. Around 20 projects funded under the scheme will be completed during 2007. I will be continuing and consolidating the scheme this year and recently announced details of a further €5.1 million for capital grants during this year.
My Department has a total multi-annual funding allocation of almost €53 million for the period 2005-2009 to assist the delivery of the national disability strategy by local authorities, the Department and bodies under the aegis of my Department. Funding of €15 million is available in 2007. Local authorities will continue in 2007 to address the priority needs of people with disabilities by providing and improving access to public buildings, roads, footpaths, amenity areas and heritage sites. In addition, the funding will continue to contribute towards the training of relevant local authority personnel in order that they will be able to adequately address the needs of the disabled in the context of the strategy.
In the period 1997 to 2006 my Department has provided over €90 million towards the local authority public library service. This is one of the most important of all public services and the public has shown a great affinity for it. On foot of this expenditure, supplemented by local authorities from their own resources, 57 new library buildings were opened by the end of 2006. The 19% increase in the 2007 provision for this area reflects an ongoing commitment to the service and, as set out on page 20 of the annual output statement, will allow for the completion of six new library projects this year with a further four projects to commence.
We are progressing the e-government agenda in the local government system this year. Building on the success of the online motor tax facility which has been enthusiastically received and used by over 34% of the motoring public nationally, we now propose to complement the service with another Internet-based facility which will allow approved motor dealers to notify us of changes in ownership of vehicles purchased and sold by them. There are currently nearly 900,000 changes of ownership processed manually by my Department's staff in Shannon and this is growing at the rate of over 10% per annum. We estimate that some 600,000 transactions relate to vehicles which are either purchased or sold by motor traders, with the remainder being attributed to private sales. The project to deliver this new service is already at an advanced stage and the system should be available generally later this year, as set out on page 16 of the annual output statement. I believe that will be a phenomenal improvement and, having spoken with the personnel in Shannon, who greatly impressed me, I have no doubt that the system is robust and will be welcomed by everybody.
The investment of over €42 million in heritage conservation in 2007 confirms my Department's commitment to the conservation of our built heritage throughout the country. Regeneration of our historic buildings fosters pride in a community, it frequently acts as a catalyst for further heritage projects in an area and it makes our towns and villages more attractive places in which to live and to visit. In addition to funding for programmes operated by my Department, I have also provided €11.8 million for the Heritage Council for its excellent work in the protection and conservation of our heritage, and €5.5 million to the Heritage Trust for endowments to contribute towards the conservation, maintenance and presentation of properties it acquires.
Turning to natural heritage, a provision of €35.5 million is being made available for the programme of work undertaken by the National Parks and Wildlife Service. This represents an increase of 18% on the 2006 outturn and will provide for works and services at national parks and nature reserves, as well as strategic land acquisitions around these properties, research, species protection and the designation of special areas of conservation. The process of designating sites to meet EU obligations continues to be a priority in 2007. Key outputs for 2007 in this area are included on page 12 of the annual output statement.
Provision of nearly €23 million is being made this year in respect of the urban and village renewal measures of the regional operational programmes 2000-2006, under which local authorities receive funding for environmental improvement projects in city, town and village locations. Expenditure under this programme is expected to exceed €150 million towards more than 900 individual projects and will be completed by early 2008. Proposals are being finalised for investment in urban regeneration post 2007 in accordance with the national development plan.
I thank the committee for its attention and for the courtesy it has shown to me over the year. It is clear that my Department has at its disposal a considerable level of resources this year. We will be working in collaboration with local authorities to deliver on our mandate under this Estimate. What I have set out in my statement should be taken in conjunction with the more detailed overview and the annual output statement already circulated to Members.
The Minister of State, Deputy Noel Ahern, will now deal with the housing components of the Estimate.