Batt O'Keeffe (Cork South Central, Fianna Fail)

A number of Senators have referred to the difficulty in understanding the Estimates and the lack of supporting information about what is being achieved for the expenditure involved.

In last year's budget the Minister for Finance stated he was open to considering how improvements could be made in the Estimates and the budgetary process in the context of the current situation in which we publish three-year economic and fiscal programmes in the EU stability programme updates included in the budget booklet; we have moved to multi-annual budgets which allow us to focus more clearly on the reasons we are investing and what we expect from such investment; and each Department publishes a strategy statement setting out what it is seeking to achieve.

On foot of his budget 2005 announcements, the Minister for Finance has been examining proposals for reform of the Estimates and budgetary process in conjunction with his Government colleagues. The recent report of the Committee of Public Accounts is a useful contribution to the general consideration of this matter. While retaining the right and duty of the Government to direct and manage the budgetary process, the Minister has been considering options which would facilitate more informed Dáil scrutiny of both the global tax and expenditure budgetary aggregates and of the individual Estimates for each Department.

In so doing, however, care must always be taken to ensure that the annual budget is based on the most up-to-date information available and that timely decision making by Government is not impacted upon adversely. The Minister intends to return to this matter on budget day.

As regards the local government fund, which provides the principal Exchequer contribution towards the day-to-day funding of local government services, this will be €30 million higher in 2006, bringing the total provision to €519 million. This is a 6% increase, similar to 2005, and will allow service improvements to be put in place.

I wish to emphasise that the decline in the provision for water and sewerage programmes reflects the significant progress made in recent years in completing major schemes in cities and towns. As regards claims that there is no increase in provision for Transport 21, courthouses and other areas, the 2006 pre-budget Estimates are the figures set out in the 2005-09 capital envelope. The Minister for Finance will announce a new capital envelope for 2006-10 on budget day. This will reflect increased investment in the Transport 21 framework and other areas.

Contrary to the impression given by Senator McDowell, the capital carryover arrangement under the capital envelope is working extremely well. It is certainly leading to better management of programmes, a more even flow of projects and with the revised capital appraisal guidelines to move projects coming in on time and within budget, it is proving to be very satisfactory. If the carryover is examined in the two years of its operation to date, it is just over 4%. This is money which would otherwise have been lost to the very programmes that are being questioned.

We are also seeing real improvements in services from the substantial increases in expenditure provided by the Government. Anyone waiting for more than three months for a routine surgical procedure will now be facilitated by the National Treatment Purchase Fund. Up to 31 October 2005, over 36,300 patients have had treatment arranged for them by that fund. The fund has also made significant progress in reducing waiting times for patients. Data for the seven hospitals currently included on the new patients treatment register showed that, on average, patients are waiting between two and four months for their operations for 17 out of the 20 most common surgical procedures.

The pupil-teacher ratio at primary school level has fallen from 22.3:1 in 1997 to 17:1 in 2004. At second level, that ratio has fallen from 16:1 to 13.6:1 in the same period. This has been achieved at primary level despite a steady increase in the number of pupils from under 440,000 in 2001 to 446,000 in 2004. Hospital inpatient and day case patient discharges increased in 2004 by 4.4% over 2003. In line with international best practice, the emphasis is on day work. Day work discharges increased by 8% the same period.

The Minister for Finance will be making additional provision on budget day for social welfare, child care, and care of the elderly, as well as the capital investment programme. The Government's sound fiscal and economic policies have led to increased prosperity and have improved the quality of life for all our citizens. It has enabled us to fund real improvements in public services and to target priority social needs. Priority is also being given to spending on health, education and social welfare in the 2006 Estimates. The Estimates provide for gross expenditure of around €48.5 billion, of which €42.2 billion is current and €6.3 billion is capital. It represents an increase of almost €3 billion over the 2005 budget, or an increase of 6.6%. Therefore, I am very pleased to commend the 2006 Estimates to Seanad Éireann.