Mary Harney (Dublin Mid West, Progressive Democrats)

I also welcome the Deputy. I propose to take Questions Nos. 70 and 78 together.

The final outturn on Vote expenditure for the HSE showed a capital saving of €114 million, of which €42 million was used to offset a revenue overspend and a further €47 million was used to offset a shortfall in projected appropriations-in-aid. This left a balance of €25 million to be surrendered to the Exchequer. The HSE's appropriation account for 2006 will show an overall surrender of €365 million comprising the €25 million capital saving and €340 million in respect of the long-stay payments.

Unspent capital funding cannot automatically be transferred from one year to the next. However, under section 91 of the Finance Act 2004, Departments and the HSE may apply to carry over up to 10% of any net underspend on the capital Vote to the following year. If approved by the Minister for Finance, provision for such carry-over is made in the Appropriation Act for that year. However, the HSE was not in a position to provide a firm projection of its net capital expenditure saving for 2006 within the prescribed time limit. As a result, the Appropriation Act 2006 does not include any provision for the HSE to carry over its €25 capital saving.

The HSE has taken steps to strengthen its capital management capacity, including the establishment of a single estates function and the appointment of a new director of estates. The level of capital funding provided to the HSE for 2007 will support a continuing high level of investment in our public health services and will enable the completion and commissioning of many new acute and community health care facilities.

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