Dáil Éireann Debate, Wednesday - 11 July 2018
229. Deputy Barry Cowen asked the Minister for Education and Skills the specific reason for the underspend in gross voted expenditure of €38 million as outlined in Appendix V of the June 2018 fiscal monitor; the specific projects that have an underspend; the value of the underspend on each project; and if he will make a statement on the matter. [31305/18]
Amharc ar fhreagraThe underspend at the end of June 2018 on the Department's capital programme relates to a number capital subheads.
The PPP capital subhead is approximately €14m behind profile. This is due to the impact of the Carillion liquidation on the timing of completion of Schools Bundle 5. The profile had estimated the completion of Schools Bundle 5 in the first half of the year which would have resulted in a significant VAT payment and the commencement of unitary charges; these payments have now been delayed.
Expenditure on the Higher Education capital subhead is €2m behind profile. Claims for payment on this subhead are submitted to the Department by the Higher Education Authority and the variation from profile is due to timing issues.
The Schools Capital subhead is €21m behind profile due to a variety of factors. A number of building contractors experienced serious difficulties in 2018 resulting in either liquidation or examinership; this had an impact on a number of large scale projects where building works were either halted or significantly delayed. The unfavourable weather in February and March also had an impact on the pace of delivery of building projects, and a number of large scale projects expected to commence on site in the early months of 2018 experienced delays. A combination of these factors meant that expenditure on major building projects was less than anticipated in the first half of the year, in particular during the period February to April. Progress on a number of programmes such as the Emergency Works Scheme and the provision of furniture and equipment was also slower than anticipated in the first half of the year.
In addition, there is an underspend of €1m on the Public Sector Reform subhead due to delays in the procurement process and the appointment of a project manager.
It should be noted that capital spend for the months of May and June was in line with profile. I do not expect that there will be any underspend in my Department's capital budget at end year.
