Mr. Robert Watt:

I thank the Deputy for his comments on the Department. With regard to the budgetary process, we have three-year envelopes. We try to set out spending over a three-year basis. The broad parameters of the expenditure are set out based on a comprehensive review of spending which we carry out every three years. We go through a review with a Department very extensively and the papers are published and publicly available. We work with Departments in terms of determining the trends that are having an impact on spending on a no-policy-change basis. If we do nothing and deliver the same service, what would it mean for the cost of services? We look at new policy initiatives and commitments the Government has entered into and we build up an assessment of how much is required. Ultimately, it comes down to a question of politics. When the officials have done their work on figuring out the implications of policies and the no-policy-change position, the making of the allocations is a political decision. On an annual basis, that is refined with the budget. The intention of the three-year envelope-----