Alan Kelly (Tipperary North, Labour)
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I welcome the opportunity to set out the progress made to date in 2015 in expenditure under the various programmes in my Department. The total allocation for my Department in 2015 is €1.329 billion, of which €834 million has been allocated to current expenditure programmes, while €449 million has been allocated to capital programmes.

The total allocation for my Department in 2015 amounts to €1.329 billion, with €834 million allocated to current expenditure programmes and €494 million allocated to capital programmes. To date in 2015, some €847 million, or 64%, of the overall allocation has been spent, namely, €647 million on the current side and €200 million on the capital side. The provision of more than €1.3 billion to the Department for 2015 is firm evidence of the Government’s commitment to the sector. Department programmes are also benefiting in 2015 from resources available from both the local government and environment funds.

Turning to some specific areas in housing, 2015 has seen a very significant level of new investment in housing across a range of measures, which will increase the supply of homes to be made available. In 2015 the housing programme accounts for 51% of the overall allocation for the Department. The overall provision for housing increased by more than €230 million since 2014, with capital funding having been increased significantly by €160 million. This investment is providing for significant expansion in social housing provision with a target of more than 15,900 housing units to be delivered in 2015 under a range of social housing initiatives. More than 2,500 of these units are being delivered under the various capital programmes with more than 13,000 units targeted to be made available through the local authority leasing scheme, the rental accommodation scheme and the housing assistance payment scheme.

Social housing continues to be a top priority for the Government and my Department and this is evidenced by the additional funding recently announced in budget 2016. In overall terms, housing spend by my Department will increase by 18%, from €686 million in 2015 to €811 million next year. An additional €56 million will be made available for capital programmes and a €69 million increase in current spending. In addition, €112 million will be provided directly by local authorities, bringing the total housing provision in 2016 to €923 million. This provision will support the delivery of more than 17,000 new units in 2016.

In the area of local government, the Local Government Fund has undergone significant change in recent years. While motor tax continues to be paid into the fund, local property tax, collected by the Revenue Commissioners, is now also coming into the fund. The year we have seen the ending of the general purpose grant payments and the introduction of the local property tax being paid to local authorities through the fund.

Some 80% of the local property tax revenue is being retained locally to fund vital public services. The remaining 20% is redistributed to provide top-up funding to local authorities that have lower property tax bases due to the variance in property values across the country. These measures are necessary to create a balanced system of funding across local authorities. The Government has devolved more powers to local authorities in recent years by giving elected members discretion to vary the rates of local property tax by up to 15%. This allows for greater transparency and accountability at a local level. Some 14 local authorities lowered their basic local property tax rate for 2015.

The income sources to the Local Government Fund this year are estimated to be motor tax of €1.167 billion, local property tax of €440 million and a payment from the Exchequer of €233 million. My Department will make payments estimated at €1.839 billion from the fund in 2015, including local property tax payments to local authorities of €459 million, payment of €364 million for the maintenance of non-national roads to the Department of Transport, Tourism and Sport, and a payment to the Exchequer of up to €484 million.

With respect to water services, €399 million is being provided from the Local Government Fund to Irish Water in 2015 in respect of operational subvention. This is funding the allowance of 21,000 litres of free water, which is being provided to all children in the State along with the cost of capping domestic water charges at the levels set out in the Water Services Act 2014. To date, some €297 million has been paid to Irish Water in 2015 from the Local Government Fund.

The 2015 Estimate for my Department also contains an allocation of €130 million for the new water conservation grant. The estimated level of demand for 2015 took account of the number of primary residences recorded in 2011 Census of Population as well as experiences with other demand-led schemes. It is expected that the final outturn in respect of the grant, including administrative costs, will amount to some €97 million.

The Government remains committed to supporting the group water sector as a very important element of the water industry in Ireland. This was reflected in the provision of €17.5 million in 2015 for my Department’s rural water programme, under which funding is provided for group water schemes.

The environment and waste management programme provides for expenditure of €35 million in 2015, largely to meet the cost of the important work of the Environmental Protection Agency, including the work of the former Radiological Protection Institute of Ireland, which was merged successfully with the agency in 2014.

The environment fund, financed from the landfill and plastic bag levies, provides a further €44 million to be directed to key priority areas such as environmental enforcement, waste prevention and recycling.

The Leader elements of the rural development programme provide for voted expenditure of €45 million in 2015. Up to €30 million of this is to meet the outstanding commitments under the 2007-2013 programme, which has been successful with over 9,000 projects receiving funding. Financial support has been provided to over 8,000 enterprises and over 4,000 full-time jobs have been created. In addition, provision of €15 million was made for the new 2014-2020 Leader programme, which will build on the previous programme’s success in creating new and innovative opportunities for rural businesses and communities.

The Vote provides funding for the local and community development programme, LCDP, which concluded in March and for its successor, the social and community activation programme, SICAP, which was rolled out from April. SICAP takes account of the new alignment of local development and local government in its objectives and delivery. In particular, SICAP is being managed and implemented through the new local community development committees, as the new governance model for local and community programmes in each local authority area. The allocation of over €45 million for 2015 to cover the funding requirements of both LCDP and SICAP, as well as related supports, has allowed further good progress to be made in this vital area. I expect the 2015 allocations will be fully spent by year end.

As I outlined earlier, 64% of the Department’s overall allocation for 2015 has been spent to date. I expect significant further expenditure to take place by the end of 2015. Traditionally, a significant proportion of the Department’s capital spend takes place in the final months of the year. Where savings emerge in the finalisation of departmental spending in 2015, consideration will be given, in consultation with the Department of Public Expenditure and Reform, to the appropriate use of the resources concerned. I expect to meet any additional requirements in 2015 from within existing departmental allocations without the need for a Supplementary Estimate.

I have kept my remarks as brief as possible to allow members an opportunity to discuss both the activities of the Department and how our programmes and significant resources are being deployed in 2015 in greater detail. Those programmes are benefiting communities and citizens across the country, making the maximum contribution to job creation and economic recovery and helping the less well-off in our society.