Peter Fitzpatrick (Louth, Independent) | Oireachtas source

I thank Deputy Shanahan for a fantastic job getting this Bill to the House. Budget 2024 set out an approach centred on balanced budgetary policies, which allows for sustainable investment in our public services and extra supports to respond to external challenges, where needed. The figure of €91.2 billion in core expenditure for the normal spending and everyday business of Government sets a clear vision for continuous improvement of public services, living standards and infrastructure. The aim of the increased investment over the past decade is to deliver improved services for a more equitable and inclusive society, to support productivity and economic growth and to future-proof public services and infrastructure. This increasing level of investment has taken place against a backdrop of significant population increase and, more recently, elevated inflation levels. However, the issue of overspend and underspend indicates that adequate project proposals are either not submitted or provided for.

With the Exchequer awash with cash, many Departments have struggled to roll out projects that account for the totality of their capital budgets. Earlier this year, it transpired that the Department of housing failed to spend more than €1 billion earmarked for housing over the past three years, in the midst of an unprecedented housing crisis. On the other hand, there are problems of chronic overspending, or, some would say, underfunding. For example, the HSE reported a deficit to the end of March of €178 million. The HSE's allocation for the period was €5.33 billion but spending was more than €5.5 billion, primarily due to spending in the early months of 2023 in acute hospitals. Due to its overspend and the perceived underfunding of health within budget 2024, service delivery within our health system is likely to be affected negatively. Already, there is a freezing of administrative posts and industrial action taking place. While the Minister for public expenditure ensured increased supports and additional funding for mental health services, social inclusion services, older people and health and well-being initiatives, there is a growing sense of apprehension about the future of mental health funding. Increasing demand for mental health supports and services is evident. Mental Health Reform, the national coalition of groups working on mental health, estimated that an additional €115 million for mental health funding in budget 2024 was essential to improve access to timely and effective mental healthcare. What percentage of the health budget will go to mental health? It is likely to remain stagnant at between 5% and 6%.

The purpose of this Bill is to deliver a fair allocation of Exchequer funding across Departments and regions, along with the associated capital infrastructural development to promote economic and social development in the future. The Government’s aim is to deliver sustainable investment, which supports better public services and infrastructure for our growing and changing population, while facilitating a suitable response to externally driven challenges. To deliver this objective, a responsive fiscal policy supported by a credible approach to managing spending in the medium term is required. However, to obtain adequacy in terms of demand versus supply per Department and per region, there needs to be a measure of accountability and governance whereby project and regional needs are considered before allocation of funding and continuous accountability is held throughout the project timeframe to ensure timely and efficient project completion.

It is not only distribution between Departments but distribution between regions that needs to be adequately measured and controlled. Balanced regional development is a key priority of this Government, which is at the heart of Project Ireland 2040. I acknowledge that there was record capital spending. A fair share of Exchequer spending should be pro rataper citizen. However, the majority of funding followed Cabinet power to the constituencies of Dublin and Cork. For example, the Dublin metropolitan population is circa 27% of the national population and receives between 48% and 64% of total national capital spend. In contrast, census 2022 revealed that County Louth’s population stood at 138,703. Ireland’s smallest county has the two largest towns in the State - Drogheda, with 44,135 people, and Dundalk, with 43,112. Yet, average pro ratacapital delivery of Exchequer funding is assessed to be significantly less. How can that be justified? The bottom line is that nothing will change until a transparent, accountable reporting standard is implemented at both Department and Government level. The Capital Supply Service and Purpose Report Bill 2023 seeks to implement such a reporting standard, delivering some accountability for Departmental decision-making in State capital investment and achieves transparency and fairness for constituents.

I back this Bill, which calls on each Minister with responsibility for a Department to prepare, on an annual basis, a capital supply service and purpose report for the relevant financial year.

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