Patrick O'Donovan (Limerick County, Fine Gael) | Oireachtas source

I might be back. As Minister of State with responsibility for the OPW and flood relief, I am here to propose a technical Supplementary Estimate for the OPW. The net Estimate in respect of the OPW Vote for 2022 is €581.5 million. I am pleased to inform the committee that this Supplementary Estimate is, in effect, Exchequer-neutral and the additional gross expenditure of €36.9 million can be fully made from savings identified on the Vote.

A total of €33.1 million relates to additional capital investment in the estate management programme, of which €30 million relates to capital projects and programmes of work on the new works subhead. The OPW has been assigned a number of high-profile projects for delivery through the national development plan, NDP, in the estate management area. The restrictions on construction activity in the early months of 2021 as part of the Government’s response to Covid resulted in delays in getting projects to construction during the year. However, the OPW has now accelerated a number of delayed projects, resulting in a significant increase in the level of committed projects on site in 2022. In addition, unavoidable costs have been incurred on foot of accelerating tender price inflation and the agreed Office of Government Procurement, OGP, co-operation framework.

The balance of the capital funds is requested to fund additional capital works at Dublin Zoo and Fota Wildlife Park, as well as increased investment in plant and machinery on the flood risk management programme. This is crucial to the safe and effective delivery of construction-related activities across the organisation.

As stated, the surplus spend can be met by savings in other capital subheads, namely, flood risk management and projects funded under the national recovery and resilience plan, NRRP. Despite trebling the number of schemes in the pipeline from 30 to 90 since 2018, a number of projects remain in the early stages. This is due to planning issues and other issues, such as a shortage of specialist surveyors to carry out surveys. Savings are profiled under the NRRP as the data centre project at Backweston did not get to construction stage at the planned time.

On the current allocation, €2 million of pay savings is proposed to be reallocated between a number of pay subheads to allow the OPW to meet its obligations following the review of the Building Momentum public service agreement made in 2022. Finally, a reallocation of €1.8 million is proposed from subheads that have been particularly affected by inflation during 2022 due to the onset of the conflict in Ukraine.

I am happy to recommend the technical Supplementary Estimate for consideration and approval by the committee and to answer any questions members may have. If I am unable to respond on their questions today, I will endeavour to revert to Deputies directly.