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

As Minister of State at the Department of Public Expenditure, National Development Plan Delivery and Reform, with special responsibility for the Office of Public Works, OPW, and flood relief, I am here to propose a Supplementary Estimate for the OPW.

The OPW’s Estimate provision for 2023 is €626.8 million and, at present, is profiling an excess of €8.8 million on capital spending and €15.5 million on current spending. The capital excess spending is driven in part by the opportunity for a lease buy-out of a strategically located office block that arose during 2023. A business case, with relevant financial and economic analysis, has been prepared in line with the public spending code and approved by the Department of Public Expenditure, National Development Plan Delivery and Reform. The purchase represents a unique strategic opportunity for the State to increase its stock of State-owned office accommodation in line with overarching policy objectives. To allow the purchase to go through in 2023, a Supplementary Estimate is required.

A Supplementary Estimate is also required for the new works, alterations and additions subhead to allow the OPW to continue to deliver the State's national development plan. Extra funding is also to be provided to Dublin Zoo and Fota Island Wildlife Park to support both organisations' ongoing capital projects. These two items are funded by savings elsewhere in the Vote.

Flood risk management has a surplus of €19.5 million primarily due to certain projects not getting through the planning system and into the construction phase when the bulk of expenditure occurs. There is also an underspend of €19.3 million in the national recovery and resilience plan subhead, due to the later than expected start of the State's data centre project.

Regarding the current non-pay Estimate provided, this has not been sufficient to allow the OPW meet its remit. The factors in this regard include the impact of the ongoing construction and energy cost inflation crisis, which was flagged in the OPW’s Estimates submission and continues to place considerable strain on its ability to live within its Estimates provision. Other factors leading to this excess expenditure relate to the humanitarian crisis in Ukraine, the amendment to the Social Insurance Fund apportionment policy and a change in accounting policy for mature liabilities, all of which occurred after the Revised Estimates Vote 2023.

On a positive note, the OPW will deliver a substantial surplus of €4.5 million in appropriations-in-aid in the year, which will go some way to offset the excess in non-pay spending. This is due in large part to the increased admissions at heritage sites around the country, which is a testament to the quality of service the OPW provides. It is also a reflection of the positive impact of the investment made in the facilities at such sites in recent years. There is also likely to be a substantial windfall from sales of OPW properties that will be returned to the State through appropriations-in-aid.

I am happy to recommend this Supplementary Estimate for consideration and approval by the committee and to answer any questions the members may have on this additional requirement.