I propose to take Questions Nos. 379 and 380 together.
The Capital Provision for my Department’s Vote Group (inclusive of Vote 34 - Department of Housing, Local Government and Heritage; Vote 16 - Valuation Office and Vote 23 - Property Registration Authority) for 2021 and 2022 is set out in the table below:
|
CAPITAL
|
2021
|
2022
|
2021 vs 2022
|
|
Gross*
|
€2,767bn
|
€3,410bn
|
+ €645m
|
|
Net*
|
€2,762bn
|
€3,407bn
|
+ €645m
|
*rounding affects totals
The 2022 provision for my Department, Vote 34, is supplemented by €275.8m capital carried over from 2021.
The impact of Covid restrictions on the construction industry, as well as other current economic issues impacting delivery, have contributed to the variance from profile. Expenditure does not generally arise in an even pattern throughout the year, and is dependent on the expected drawdown based on matters such as vouched expenditure, projects reaching milestones and completions etc. Profiles are set at the start of the year based on the prevailing circumstances and variances may arise over the course of the year.
The variance of expenditure from profile at the end of April arises from lower than anticipated expenditure across a small number of specific expenditure lines in the Housing Programme as a result of a combination of factors including: fewer than expected claims from Local Authorities, an element of expenditure being offset by Local Authorities against their Local Property Tax (LPT) receipts and the expenditure of capital carryover following the earlier than anticipated signing of the Deferred Surrender Order. Capital Carryover expenditure was due to commence in April however the Deferred Surrender Order was signed earlier than anticipated on 22 February and this has impacted the expenditure-profile variance.
My Department’s Housing Programme has a Gross Capital provision of €2.25 billion in 2022 – representing an increase of some €419 million on the Estimate for 2021. An additional €78.55m from LPT receipts will also be used by certain Local Authorities to fund housing programmes. A further €247.3m capital carried over from 2021 is allocated to the Housing Programme, bringing the total Gross Capital provision in 2022 to almost €2.6 billion.
My Department reports to Government on a quarterly basis on Capital expenditure. The report examines capital expenditure to date compared to profile identifying key areas where spending is either above or below profile; outlook for the year taking into account the impact of Covid-19 and other emerging challenges on programmes and projects; and measures required to mitigate any significant risks. The report for the first Quarter 2022 will be brought to Government shortly.
