Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

92. To ask the Minister for Public Expenditure and Reform the extent to which public expenditure on the capital side remains vigorous and sufficient to meet demands and requirements; and if he will make a statement on the matter. [56382/22]

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

This question seeks to ascertain the extent to which capital works can continue, and that sufficient funding remains available to ensure the progress of water, drainage, sewage and housing schemes throughout the country.

Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

As the Deputy is aware, my Department is responsible for allocating public funds across each area of Government spending and ensuring that expenditure is managed in line with these allocations by Departments. The National Development Plan 2021-2030, published last year, demonstrates the Government’s commitment to meeting Ireland’s infrastructure and investment needs over the medium-term horizon. The NDP provides €165 billion in public capital funding alongside a detailed and positive vision for Ireland up to 2030 as part of Project Ireland 2040.

In budget 2023, I announced an additional €800 million for capital infrastructure projects and programmes next year, which will be made available under the NDP for core capital spending to help in delivering the largest, greenest and most ambitious infrastructure plan in the history of the State. This represents a very substantial commitment of resources.

The Fiscal Monitor for October this year, published on 2 November, recorded gross capital expenditure of almost €5.5 billion to the end of October. The expenditure figure of €5.5 billion does not include capital carryover from 2021 spent in 2022. The amount of capital carryover spent to the end of October amounted to almost €750 million, giving an overall capital spend of just over €6.2 billion for this period. In year-on-year terms, gross capital expenditure is over €400 million higher, excluding capital carryover.

Capital expenditure by its nature tends to be lumpy, with a particularly high drawdown at year-end. It is, therefore, not unusual for Departments to record an underspend or overspend against profile throughout the year. There can be any number of reasons for projects to diverge from the profiles submitted at the beginning of the year, such as delays in planning, delays caused by the rising level of costs, supply chain disruptions, fuel costs and skilled labour shortages.

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I thank the Minister for his comprehensive reply. Will he continue to encourage his colleagues in various Departments to progress this as fast as possible? We always hear complaints about an inability to start a project because t's have not been crossed or i's dotted and some hold-up creates a problem.

These things are not always possible to resolve. Will the Minister keep a close watch on what is happening in the various areas that are most affected and can most benefit from the allocation he has made?

Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I thank the Deputy. I certainly will. It is an important part of our ongoing work. It is true to say that so far this year we have a significant underspend in capital. I think that will continue to year-end although it is difficult to predict what the precise amount will be. We will certainly have a substantial carry-forward of unspent capital this year into 2023. I am working very closely with colleagues to make sure that we streamline the process as best we can. There is a balance to be struck between having an assurance process and absolute compliance with public spending code rules, which we must do, and ensuring that projects continue to move forward and actually get done. The whole purpose of providing €12 billion next year is to get a lot of work done in our country that must be done in terms of building more homes, building schools, improving our healthcare infrastructure, and improving our public transport and road infrastructure to name a few. It is a great opportunity to get projects completed given the scale of funding that is now available under the national development plan.

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I thank the Minister. I think his priorities are right. It is most important to ensure that works already earmarked for progress in the near future start. If they do not start, they cannot conclude. My strong recommendation is that the Minister continues in his role across Departments to encourage them to speed everything up.

Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

Given the amount of ambition and indeed the need that is there across our country for investment in all of the areas I have already mentioned and others, we do have to make sure we deliver. It is about delivery. The budget is in place. We are at almost a unique point in our history where when it comes to capital expenditure, funding is not the greatest constraint. The greatest constraint is the capacity to deliver. That can manifest itself in a number of ways. We have to strike the right balance, ensuring that we have due process, proper project appraisal in advance and value for money at all times, and ensuring above all else that we get the projects done and secure completion of vital projects to improve the quality of life of our people, fundamentally to provide homes for our people and also, from an economic point of view, to make sure we are competitive by continuing to invest in and improve our infrastructure. I thank the Deputy for a really pertinent question. It is an ongoing part of our work.