John Gormley (Dublin South East, Green Party)

I welcome the opportunity of contributing to this debate on foot of announcements by the Minister for Finance on the measures agreed by the Government to take action in addressing our public finances. Yesterday, the Taoiseach made a particularly apt comment when he said:

While we must not overstate the difficulties, equally we must not understate the necessity for decisive action. We must act responsibly to secure the long-term future of our economy and our people.

I agree with the Taoiseach's succinct analysis and the Government has made decisive interventions to address and manage the pressures on our public finances. Our tax revenues are significantly lower than expected and it is incumbent on the Government to tailor planned expenditure within the resources available in a manner that contains the emerging pressures.

The adjustments that have been announced by the Government are measured, appropriate, proportionate and targeted in a manner that minimises the impacts on frontline public services that we are delivering in the current year. It is to be acknowledged, however, that we are in a period of change from sustained economic growth to more challenging conditions nationally and globally. Higher energy costs, tighter credit and economic conditions internationally are having an inescapable impact on our ability to sustain domestic growth. This is a challenge we face, however, and the Government has moved in a decisive way. Corrective action is needed now and it will carry through into the budgetary position for 2009. Taking action now to curb public expenditure lays a sounder foundation on which public spending in 2009 can be better managed within the resources available.

It is my responsibility as Minister for the Environment, Heritage and Local Government to oversee the spending of over €3 billion in current and capital expenditure. This is a substantial public expenditure and I assure the House that we will continue to implement our key programmes as vigorously and effectively as ever. My Department's capital expenditure of €2.233 billion will be reduced by €40 million this year. There are some capital areas where expenditure has been less than expected in the first half of the year or where capital spending has not begun as in the case of the Gateways innovation fund. Rather than unspent capital being available to me to carry forward into 2009, as is normally allowed under the multi-annual capital arrangements, this amount is to be returned to the Exchequer. None of this is being taken from the local authority housing construction or the water services investment programmes. These are key infrastructural areas for economic development and environmental protection.

As regards current expenditure, the provision of €964 million is being reduced by €8.3million for 2008. Essentially this reduction is focused on achieving more effective administration and I am reviewing various current provisions to achieve this level of saving overall. I accept that we have to find greater efficiencies in the way we operate and this will be a challenge for my Department and the agencies that operate under it. There will have to be new discipline in managing administration and no area is immune from retrenchment because expenditure reduction will have to carry through into 2009 and subsequent years. This will certainly cause discomfort for current practice. Tough choices will have to be made but they will be based on prudent judgment.

My Department plays a pivotal role in framing policies and delivering a wide range of programmes that impinge on the lives of citizens across the length and breadth of the country. The major programmes are delivered mainly through the local government system but the Department also has a critical role in delivering on key measures. Our overarching objective is to ensure that the appropriate frameworks are in place to progress sustainable development and to foster a local government sector that is capable of high quality service delivery across a diverse agenda. In practical terms, this means we must provide for good planning and balanced regional development, ensure that the appropriate infrastructure is in place to deliver quality water supplies and improved waste management practices. We must continue to provide for a broad range of housing needs as well as using the resources available to us efficiently and effectively.

Nowhere is the test of environmental sustainability greater than in relation to climate change, which is much more than an environmental challenge in the traditional sense. It threatens the world as we know it and the future of people everywhere. We know we have a relatively short time to act decisively. While the Kyoto Protocol fell far short of an effective solution, it represents an important first step on the international response to climate change. This is what we are trying to do not just concerning the Kyoto Protocol, but also the post-Kyoto situation. As I said at today's leadership forum on climate change, I am confident that we will have a binding agreement in Copenhagen in 2009.

In presenting my first carbon budget last year, I said it marked the beginning of a new era, one in which climate change moves to the heart of Government decision-making. It puts our responsibilities to tackle climate change on an equal footing with our responsibilities to manage the economy. That is real progress on which we will build to make an effective transition to a low-carbon society. It is absolutely essential therefore that any investment decisions are taken in light of our international climate change commitments. That was part of the Government's decision announced yesterday by the Minister for Finance. I was very glad when I heard it.

We have ramped up our performance, moving forward in the first six months or so of this Government's term, with regard to vehicle taxation, building standards and energy standards for lighting. We will measure the impact of climate measures in presenting the second carbon budget later this year.

My responsibilities include heritage matters and I am pleased that substantially increased funding is available this year for the programme of work undertaken by my Department's national parks and wildlife service. Over the past 20 years, Ireland has experienced an unprecedented period of growth and development that has seen us narrowing the historic development gap with our western European neighbours. Substantial population growth, large increases in our housing stock, major expansion in transport infrastructure, changed farming practice, more intensive development and climate change have placed increasing pressures on our natural heritage. The issue here is sustainability. Increased emphasis on heritage protection will ensure that as Ireland continues to develop, the quality of our environment will not be compromised. Investment of the kind we are making is vital to safeguard our architectural heritage and the increased funding, which the Government is providing this year, underlines our commitment in this area. I am confident the package of funding measures we are undertaking is encouraging an integrated and multidisciplinary approach to built heritage conservation as a whole.

Local authorities will spend over €10 billion in 2008, supporting increased investment in housing, water and waste services, national and non-national roads, and an ever-expanding range of other services. Between capital and current funding, my Department will contribute more than €3 billion of this figure. Deputies opposite who have expressed concerns about that can be assured that the funding for major infrastructural projects will continue.

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