Ossian Smyth (Dún Laoghaire, Green Party) | Oireachtas source

This is the third year in a row in which I am presenting the Bill and I am pleased to do so in Seanad Éireann today. The Bill is a key component of the annual budgetary process that must be concluded by both Houses of the Oireachtas before the end of the year. While it is a technical item of legislation, it is one of fundamental importance.

It serves two key purposes. First, it is necessary to provide a lawful basis for the expenditure incurred this year. It is based on the total Estimates voted on by the Dáil. This comprises the sums included in the Revised Estimates for 2022, voted by the Dáil earlier this year, and all Supplementary Estimates voted by the Dáil during 2022. These sums to be appropriated for supply services are set out in section 1 and Schedule 1. For 2022, these Estimates amount in aggregate to almost €75.1 billion, representing a significant investment to support the delivery of essential public services and allowing us to progress longer term priorities and invest in high-quality front-line services for a growing population. Funding allocations in 2022 have provided for record investment under our national development plan, NDP, to deliver infrastructure projects to support economic, social, environmental and cultural development.

The 2022 Estimates also reflect the significant expenditure to respond to external challenges facing our economy and society. Measures to support households and business with the challenges of rising prices were introduced during the year to reduce the burden, especially for the most vulnerable. Funding has also been provided for accommodation, welfare and education supports for those arriving in Ireland from Ukraine. Our continued responses to the Covid-19 pandemic and Brexit are also reflected in the supply sums in the Bill.

The second critical purpose of the Bill is to provide a legal basis for public spending to continue into 2023. If the Bill were not enacted before the end of this month, there would be no authority to spend any voted moneys from the start of January 2023 until approval of the 2023 Estimates by the Dáil. This authority is contained in the Central Fund (Permanent Provisions) Act 1965 and is based on the sums provided for in the Bill. They include continued spending in areas such as social welfare payments from the social protection Vote, Exchequer pay for our key public services and the running costs of our schools and hospitals.

The Bill also provides for the capital carryover from 2022 into 2023. Under the rolling multi-annual capital envelopes introduced in budget 2004, Departments may carry over unspent capital funding from the current year to the following year, subject to a maximum of 10% of voted capital expenditure in the current year. This multi-annual system is designed to improve the efficiency and effectiveness of the management by Departments and agencies of capital programmes and projects. The carryover facility recognises the difficulties inherent in the planning and profiling of capital expenditure and allows for a portion of unspent moneys that would have been lost to the capital programmes and projects concerned under the annual system of allocating capital to be made available for spending on programme priorities in the subsequent year. The proposed capital carryover into 2023, set out in section 2, is almost €690 million. This represents 6% of the total Exchequer capital programme of more than €11.5 billion for 2022. The proposed sums to be carried over by Vote are set out in Schedule 2. A table listing the sums to be deferred by subhead for each Vote availing of the capital carryover facility is also included in the 2023 Revised Estimates Volume published this week.

The Bill includes a provision to advance funds from the Central Fund to the Paymaster General's supply account to facilitate payments due in the initial days of January 2023. This provision will ensure the necessary funds are in place for salary, pension and social welfare payments at the start of 2023. Section 3 will provide for up to €355 million to be advanced for this purpose. The need for this provision arises as certain Exchequer liabilities and social welfare payments are due for payment by electronic funds transfer in the first week of January 2023. With the banking system closed on 2 January, funding will need to be in place in departmental bank accounts before the end of this year to meet these liabilities in a timely fashion. In addition, An Post requires prefunding before the end of 2022 to distribute funds to its network of post offices for processing social welfare payments.

In light of the urgency and importance of the Bill, an early signature request is sought. The signed Act is required by the Comptroller and Auditor General to enable end-year funding to issue from the Exchequer. Under Article 25.2.1° of the Constitution, the President may not sign a Bill earlier than on the fifth day after it has been presented to him or her. However, there is provision in Article 25.2.2° whereby, at the request of the Government and with the prior concurrence of Seanad Éireann, the President may sign a Bill on an earlier date than the fifth day mentioned.Approval to utilise the provision in Article 25.2.2 is now sought and a motion to this effect has been placed before the Seanad. An early signature motion has also been sought for the Appropriation Bill in previous years.

The Appropriation Bill is an essential element of housekeeping that must be undertaken each year. As I outlined, the passing of the Bill will authorise in law all of the expenditure undertaken in 2022 based on the Estimates voted on by the Dáil during the year. It is of fundamental importance to those who depend on our essential public services. The passage of the Bill will also ensure payments can continue in 2023 in the period before the Dáil approves the 2023 Estimates. I commend this Bill to the House.