Dáil debates
Thursday, 29 March 2012
Finance Act 2004 (Section 91) (Deferred Surrender to the Central Fund): Motion
11:00 am
Seán Fleming (Laois-Offaly, Fianna Fail)
The Minister of State has it in the front page of his book. It should either be in it or not in it. We cannot pass the Estimate for the Minister of State's Department and have the same figures earmarked for every other Department unless we approve the carryover during the Estimates discussion that will take place in April and May this year. The €114 is part of the Estimates of expenditure. If the Minister of State feels it is not and is going to take it out during the Estimates discussion, he cannot do so, as he and I know, because it is a fundamental part. Several months into the year, we will be discussing this matter.
My second question concerns the €114 million and capital works, to which reference was made. Capital expenditure in 2011 was budgeted at €4.65 billion. The Department of Public Expenditure and Reform, when producing capital expenditure plans for the next four years, reduced that to €3.9 billion for 2012. Is the €114 million in addition to the €3.9 billion or will €114 million be shaved off the €3.9 billion because it is being carried forward into this year? The Minister of State might explain that. These are not insignificant amounts because they come to close to the amount of moneys that will be collected by the household charge in the days, weeks and months ahead. When one considers the amount of time given to discussing the household charge which is expected to raise €160 million, this figure of €114 million deserves a similar time allocation for debate.
While the information on the Leader programme is a little light, it can be taken up further during the Estimates debate. Up to €34 million was unspent in this programme. Part of that unspent allocation is because the Government, already in its second year, has not got credit flowing through local banks. For example, a local business wishing to expand or hire more workers can apply to its local Leader company for a €50,000 grant. To qualify, it must produce bank certificates and accountants' reports to show it has the matching fund to draw down the fund. While its bank may say this is a great idea and may consider advancing the matching funds, often it turns out the bank does not have the funds and cannot advance the loan. Accordingly, the local business cannot pursue the application with its local Leader group.
Demand for Leader funding is being suffocated at ground level by the fact the banks are not providing funds at local level. The Minister spoke about microfinance and related issues. This is the issue on the ground. I have dealt with cases where people have had to borrow €30,000 from family members, aunts and uncles to match the Leader grant and get their business set up. That is not the way to start a business. Part of this drawdown failure, particularly with Leader, is because of the lack of credit. It has also been complicated by the confusion as to whether Leader could assist food companies. Under the rural development programme, Ireland and other EU countries drew down some grants for small food businesses under a wrong heading. I understand this matter has had to be examined by the Department.
Will the Minister explain whether the €144 million is in addition to the €3.9 billion or will be taken out of it? Will he respond on the lack of drawdown for the Leader programme?
Many grants could have been allocated to the smarter travel scheme. Some 35 applications were originally submitted from 11 local authorities. Of these proposals, 11 were short-listed from Cork city, Drimnagh, Dundalk, Dungarvan, Galway, Kilkenny, Limerick, Loughrea, Navan, Sandyford and Westport. The short-listed areas were then asked to submit detailed bids and business cases for investment for consideration by a selection panel involving representatives of the Department of Transport, Tourism and Sport and the Department of the Environment, Community and Local Government as well as an independent expert on sustainable travel. It was intended this programme would be allocated €50 million. The Government, however, has actually cut that by more than half to €23 million. When such major reductions occur, it is no wonder projects fall off the rails. When the Government is cutting funding for these projects, those interested in proceeding often wonder if they should continue with them.
Under the jobs initiative last year, several on the ground, shovel-ready - that is probably the cliché used in the Office of Public Works - projects could have proceeded immediately in every local authority but did not. I accept the method for allocating funding is quite cumbersome but it should have been made available last year to facilitate improved cycling ways and safe routes to school, key businesses and work place zones. Funding could also have been made available for cycle parking in town centres and public transport nodes, better walking facilities, including pedestrianisation and reduced speed limits in town centres especially in front of schools. In the case of the latter, a speed limit of 20 km/h should be introduced at the entrances of the 3,000 primary schools and 800 second level schools across the country. I know flashing warning lights have been installed outside schools but one cannot have cars whizzing by at 50 km/h. Funding could also have been provided for works on improving or providing additional safer footpaths to and from schools and work places. Walking to school would assist in tackling childhood obesity.
Why was there no proper planning in place to ensure the funding that was tight last year was drawn down? I hope the funding in question will be properly utilised and when we debate the Estimates in April and May that we will get further details about this figure of €114 million. The Minister will have to accept we only got a one-liner in respect of each Department. Will he circulate a more detailed note to members of the finance committee in due course?
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