Brian Cowen (Laois-Offaly, Fianna Fail)

Deputies will recall that the Appropriation Act, which was enacted before Christmas, contains provisions relating to the carryover of €345.7 million capital spending from 2005 to 2006. The Seanad is due to hear statements on this Act tomorrow, in accordance with an agreement that a discussion would take place after the recess. As the Dáil has the primary role in financial matters and as I will be referring to a particular matter in the Seanad, I wish to draw attention to that matter now because it may affect the envisaged scale of the carryover.

My Department was advised late in the evening of Tuesday, 17 January 2006, by the Department of Health and Children, that the Health Service Executive had advised it on that day that there may be some alterations to its estimated outturn and, consequently, to its capital carryover figure of €56.4 million, included in the Appropriation Act 2005. The Act provided that, in regard to the HSE, a sum of €56.4 million could be made available for spending in 2006 in respect of capital not disbursed in 2005. My Department has been advised by the Department of Health and Children that, on the basis of the preliminary outturn figures for 2005 from the HSE, the capital savings anticipated by the executive in December may have been used to meet similar sized costs under the current expenditure heading. The Department of Health and Children is awaiting final verification of the outturn from the HSE.

The implications of this development for the 2006 capital budget for the HSE will be reviewed in the context of the Revised Estimates Volume 2006. I am determined to ensure that it will not have an adverse impact on the plans for the HSE's capital spending in 2006. As matters stand, the 2006 capital allocation for the HSE is €558 million, an increase of 10% on the provisional 2005 outturn.

The legal instrument that gives effect to the carryover of funds from 2005 to 2006 and which determines the actual amounts to be carried forward is a ministerial order. Under the relevant legislation, section 91 of the Finance Act 2004, the order must be made before the end of March and the draft order will be formally put before the House for approval by resolution. The Revised Estimates Volume will also include details of the carryover under each Vote and, accordingly, I will be advising the House in due course in compliance with the legal requirements.

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