Brendan Howlin (Wexford, Labour) | Oireachtas source

For 2013, the Government set a general Government deficit target of 7.5% of GDP and the expenditure ceilings underpinning the budget were set on this basis. It is too early to estimate the end of year outturn in regard to the 2013 current and capital expenditure allocations. As I indicated, the end of September Exchequer returns are on target.

While net capital expenditure was 17% below profile at the end of September, information supplied to me by Departments indicates that the majority of their remaining capital budgets will be spent by year end. The spending pattern is in line with trends from previous years which show that the bulk of capital expenditure takes place in the last quarter of the year. Where this is not possible, the allocation, to a maximum of 10%, will be rolled over into the next year.

As the Deputy will be aware, capital spending has general characteristics which influence the allocation drawdown pattern. Expenditure on capital projects typically occurs in large payment tranches at fixed milestones, unlike current expenditure which is generally continuous throughout the year. Obviously, this affects the phasing and profiling of capital expenditure. The profiling of capital expenditure is carried out by individual Departments on the basis of the likely timing of payments related to capital projects and programmes which they deliver.

In June of this year, I announced additional Exchequer investment of €150 million. The focus of this investment will be on relatively small-scale capital works that are labour intensive. Specifically, €50 million will be invested in maintenance and repair of our local and regional roads, €50 million will be used for retrofitting of local authority housing and €50 million will go towards refurbishment, replacement and extension works to 28 schools. Through this additional investment, I hope the jobs impact of Exchequer capital spending will be significant this year and into next year.

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