Tom Parlon (Laois-Offaly, Progressive Democrats)

I thank Senators from all sides for their wide-ranging contributions to the debate on the 2007 Estimates. Before addressing the specific issues raised, I reiterate that in framing the Estimates the Government sought to strike a balance between providing for spending on improved public services, meaning social and infrastructural priorities, and preserving the sustainability of public finances. In day-to-day expenditure on services, the Government has again given priority to spending on health, education and social welfare, with 76% of current expenditure on a pre-budget basis allocated to these top three priority areas.

Senator Daly referred to the importance of expenditure on national monuments. The Office of Public Works, for which I am responsible, has responsibility for 775 national monuments and historic properties, and expenditure on this area will amount to €42.7 million in the coming year. A significant proportion of the overall Estimate for the Department will be spent on this important work.

Senator John Paul Phelan sought clarification on the reduced allocation for the CLÁR programme. The overall allocation for the programme decreased by €2.7 million to €20.2 million in 2007. Given that its expected 2006 outturn is €18.5 million, the 2007 allocation provides for an increase in actual expenditure.

The reduction of 15% in the provision for the Radiological Protection Institute of Ireland is due to a once-off purchase of new equipment in 2006. The Senator also referred to a number of offices which show a decrease in their administrative budget. The administrative budgets in Departments and offices are set within agreed limits with savings carried forward into subsequent years. These savings will be added in the Revised Estimates Volume when it is published in February. In addition, value for money expenditure is reclassified between administrative budget subheads to increase transparency on value for money and IT expenditure.

Senators expressed scepticism regarding the Government's commitment to value for money and Estimates reform. In the 2006 budget the Minister for Finance introduced significant reforms of the Estimates process. Under these reforms, Dáil consideration of the 2007 Estimates will be better informed than in previous years. After the Revised Estimates Volume for 2007 is presented to the Dáil in February next and referred to the various select committees for detailed consideration, each Minister will table with his or her Estimate an annual output statement covering the Departments and offices under his or her aegis. The statement will set out the high level goals of the Departments and offices, as contained in their strategy statement, and the programmes and strategies being followed to achieve each goal. For each programme, the statement will outline the financial resources contained in the Estimates and the human resources deployed. On the output side it will give the key output targets to be achieved in 2007.

Under the improved value for money and policy review arrangements announced last June, 90 value for money reviews with an indicative minimum coverage of 10% to 15% of each Department's budget will be carried out in the period from 2006 to 2008. These and other general reviews that impact on value for money carried out by Departments and agencies must be sent by them to the relevant select committees. This will complement the information which will be available in the new annual output statement. Select committees giving detailed consideration to the Estimates in 2007 and beyond will have available to them high quality, comprehensive information to assist their deliberations. As a result of the robust value for money framework established by the Government, most major projects are being completed within budget and ahead of schedule.

I reject suggestions that large amounts of overseas aid are being contributed to international organisations. The large increase in overseas development aid expenditure in recent years has resulted in tangible achievements in the countries assisted by Irish funding. In Lesotho, for example, where Ireland is the largest donor, the mortality rate of children aged under five years has declined by 32% since 1990. In Tanzania, with Ireland's support, the number of children in primary school increased from 4.8 million to 7 million between 2002 and 2004. Over the same period, 32,000 new teachers were recruited and 30,000 classrooms built. In Mozambique Irish Aid, through a partnership with the Clinton Foundation and Government of Mozambique, is making a major impact on the treatment of people who are HIV positive.

I also reject claims that the 2007 Estimates are based on stealth taxes or that the significantly increased levels of public expenditure under this Government have been funded through increased taxation. Aside from a technical increase in the employees' annual ceiling for PRSI purposes, which is in line with normal practice, the Estimates are not based on increases in charges, nor did increases in charges form part of discussions on the Estimates.

The overall amount available to local authorities under the local government fund will be approximately €1.5 billion in 2007. The Exchequer contribution to the fund continues to be in excess of the statutory minimum set out in the 1998 Act establishing the fund.

Deputy Bannon raised the impact on the elderly of increased fuel prices. The Estimates for the Department of Social and Family Affairs provide an additional €59 million for the free schemes to improve provision for elderly people in meeting their fuel costs. The number of electricity units carried by the free electricity scheme will increase from 1,800 to 2,400 per annum for example.

Criticisms were levelled at the Government's approach to health. Major improvements in health services have been made possible by significant increases in the front-line staff provided for by the Government. Since 1997, almost 2,400 additional medical-dental personnel, almost 8,400 additional nurses and more than 8,000 other health professionals, such as speech and language therapists, physiotherapists, social carers and social workers, psychologists and environmental health officers, have been recruited. In addition, more than 750 additional consultant posts have been filled.

The large increases in expenditure under this Government have led to real improvements in health services. Total patient throughput in hospitals has increased by more than 300,000 to more than 1 million per annum. Waiting times for operations have been dramatically reduced from years to months. Cancer patient hospital admissions have increased by more than 40,000 and more cancer sufferers are being treated and surviving the condition. More than 3,000 home care packages are in place for older people. In 1997, no home care packages were available. Approximately 1,500 additional acute hospital beds are in use. The health service has, therefore, benefited from major improvements in a range of areas.

The Government will maintain the stability orientated approach to the public finances which has delivered prosperity and social progress. It will continue to improve the quality of public services through the provision of sustainable levels of resources and the pursuit of value for money. Gross pre-budget provision for public expenditure in 2007 will increase by 8.1% to €54.3 billion. The Minister for Finance will announce a social welfare package and additional expenditure on health on budget day. The National Development Plan 2007 to 2013, which will be published in January next year, will set out the Government's seven-year investment programme for sustainable social and economic development over the medium term. I commend the 2007 Estimates to the House.