Brian Cowen (Laois-Offaly, Fianna Fail)

On the public capital programme, it is our intention to spend about 5% of GNP, one of the largest ratios in the developed world for capital spending as a proportion of total goods and services being provided in the State in any given year. The €7.3 billion represents the equivalent of 5% of GNP, one of the highest ratios in the world. It is important that we continue that programme over the course of this year and I expect that money to be spent.

It is also important to point out that thankfully the prices in tenders have decreased by 15% to 20% and therefore the volume of output we can get is clearly available in the same measure for 15% to 20% less. Next year, as based on the present budgetary strategy which is outlined by the Minister in the supplementary budget, we expect a spend in the region of €6.6 billion. It is important to point out that not alone will the money that is allocated be spent this year, for next year the arrangements are in place that all Departments can arrange for committal of up to 70% of spend during the course of this year going into next year. Many of these works are multi-annual in nature, such as roads and hospital programmes. It is important to point out that arrangements are in place for Departments to pre-commit next year's spend, during the course of this year, at up to 70% of the ceiling that has been allocated to them.

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