Departmental Programmes.

Thursday, 27 October 2005

Ceisteanna (140)

Beverley Flynn

Ceist:

135 Ms Cooper-Flynn asked the Minister for Finance the underspend in the BMW region to date in 2005 under the National Development Plan 2000-2006; the breakdown of budgeted and actual expenditure applying to each of the specific programmes under the plan; his plans to address the underspend in each programme; and the projected final outturn. [31078/05]

Amharc ar fhreagra

Freagraí scríofa

Minister for Finance (Mr. Cowen)

Table 1 sets out the indicative expenditure profiles and the estimated expenditure incurred under each operational programme in the BMW region. Table 2 sets out the indicative expenditure profiles and estimated expenditure by the Exchequer for the same period in the BMW region for each operational programme. The expenditure data presented in the tables relate to the period January 2000 to the end of June 2005. These are the latest data reported to the operational programme monitoring committees. The 2005 annual expenditure profiles have been reduced by half in calculating the profile but the Deputy will be aware that significant expenditure, particularly Exchequer expenditure, takes place in the latter half of the year. The position will become clearer when data are available for the full calendaryear.

Table 1 — Total Profiled and Estimated Expenditure in BMW Region from January 2000 to the end of June 2005.

Operational Programme	Profile	Expenditure	Expenditure versus Profile
	€m	€m	%
Economic and Social Infrastructure	5,319	4,514	85
Employment & Human Resources Development	3,378	3,156	93
Productive Sector	2,030	692	34
Border, Midlands & Western Regional Programme	3,168	1,946	61
PEACE II & Technical Assistance	145	86	59
Total Expenditure	14,040	10,390	74

Profiles and Expenditure data include all NDP sources of funding: Exchequer, EU andprivate.

The vast bulk of NDP spending is financed by the Exchequer. Table 2 sets out the position at end the of June 2005 in regard to Exchequer expenditure.

Table 2 — Profiled and Estimated Exchequer Expenditure in BMW Region from January 2000 to the end of June 2005.

Operational Programme	Profile	Expenditure	Expenditure versus Profile
	€m	€m	%
Economic and Social Infrastructure	3,756	3,633	97
Employment and Human Resources Development	3,238	2,903	90
Productive Sector	1,663	514	31
Border, Midlands & Western Regional Programme	2,542	1,557	61
PEACE II & Technical Assistance	248	111	45
Total Exchequer Expenditure	11,447	8,717	76

As the Deputy will note from the data presented in table 2, the Exchequer contribution to the key economic and social infrastructure operational programme, ESIOP, is very near to profile. Performance on the employment and human resource operational programmes, EHROP, is also on course.

The performance of the productive sector and the regional operational programme remains disappointing due a number of factors already outlined in previous replies. These range from poor demand for a number of schemes, particularly in the agricultural sector and research and development, to initial over profiling of expenditure in the region, and poorer than expected private sector involvement. This underspend is also a feature in the southern and eastern region.

As regards final outturn, I expect the ESIOP and EHROP to be close to target but the productive sector and regional programme will be below profile for the reasons set out above.