Written answers
Thursday, 16 June 2005
Department of Communications, Energy and Natural Resources
Departmental Funding
5:00 pm
Michael Lowry (Tipperary North, Independent)
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Question 92: To ask the Minister for Communications, Marine and Natural Resources the amount of unspent money returned by his Department to the Department of Finance each year since 1997; the total Departmental budget for each year since 1997; the projects for which this money was originally earmarked; and if he will make a statement on the matter. [20433/05]
Noel Dempsey (Meath, Fianna Fail)
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Table 1 shows the budgets and outturns for expenditure and receipts together with the amounts surrendered to the Exchequer in the period 1997 to 2004. As the surrender to the Exchequer in any one year is a function of both expenditure and receipts in that year, it is not possible to identify the projects in respect of which the surrenders in the years 1997 to 2004, inclusive, were earmarked. Table 2 sets out details of planned expenditure which did not take place in each of those years and which contributed to overall gross savings.
In general, savings under the annual Vote provisions arise within capital expenditure programmes. Prior to the introduction of multi-annual capital investment framework in 2004, Departments were allocated, within the annual Estimates process, a capital budget for the current year. No provision was made for the carryover of any capital savings to future years. The process did not facilitate best practice multi-annual project planning or guarantee future allocations for capital projects. The multi-annual capital investment framework announced by the Minister for Finance in the December 2003 budget, provides for five-year multi-annual capital envelopes and year-to-year carryovers and addresses these difficulties by enabling Departments and their agencies to plan and manage more efficiently and effectively their capital investment programmes. Savings arising on one year can now be carried forward to fund future requirements as part of a multi-annual capital investment plan. The framework will also ensure that both a proper balance is maintained between different areas of investment and that value for money is obtained from capital investment.
| Table 1: Outturns and Surrenders 1997-2004. | ||||||||
| (€000s) Year1 | ||||||||
| 19975 | 1998 | 1999 | 2000 | 2001 | 20022 | 2003 | 2004 | |
| Gross Estimate3 | 152,044 | 184,296 | 251,514 | 259,551 | 289,509 | 458,139 | 543,155 | 465,928 |
| Gross Outturn | 112,572 | 160,609 | 209,575 | 250,998 | 265,312 | 432,761 | 535,584 | 441,080 |
| Estimated Receipts | 42,515 | 73,407 | 79,413 | 67,452 | 65,247 | 131,910 | 241,390 | 208,346 |
| Actual Receipts | 20,240 | 55,848 | 64,091 | 66,764 | 52,025 | 145,223 | 235,117 | 194,977 |
| Net Estimate | 109,529 | 110,889 | 161,942 | 192,099 | 224,262 | 326,229 | 301,765 | 257,582 |
| Net Outturn | 92,332 | 104,761 | 145,484 | 184,234 | 213,287 | 287,538 | 300,467 | 246,103 |
| Capital Deferred Surrender4 | NA | NA | NA | NA | NA | NA | NA | 10,000 |
| Actual Surrender | 17,197 | 6,128 | 16,458 | 7,865 | 10,975 | 38,691 | 1,298 | 1,479 |
| 1The amounts for the years 1997 to 2001, inclusive, relate to the Department of the Marine and Natural Resources. The amounts for the years 2002 to 2004, inclusive, relate to the Department of Communications, Marine and Natural Resources which was established with effect from 18 June 2002; | ||||||||
| 2The amounts for 2002 reflect the following transfers with effect from 18 June 2002, of (a) the communications and energy functions of the former Department of Public Enterprise and (b) the broadcasting functions of the former Department of Arts, Heritage, Gaeltacht and the Islands, respectively, to the Department of Communications, Marine and Natural Resources. Expenditure prior to 18 June 2002 relating to the transferred functions is included in the following Votes for that year: the Department of Transport for the functions at (a) above and the Department of Community, Rural and Gaeltacht Affairs for the functions at (b) above; | ||||||||
| 3Including Supplementary Estimate provisions, where relevant; | ||||||||
| 4The Government's decision of 22 November 2003 and the Minister for Finance's subsequent announcement in the December 2003 budget provided for a five-year multi-annual capital investment framework. Under the framework, Departments may, subject to certain conditions and commencing in 2004, defer the surrender of capital savings in a current year and carry these forward to the following year; | ||||||||
| 5The amounts for 1997 reflect (a) the transfer, with effect from 11 July 1997 of the forestry functions of the former Department of Agriculture, Food and Forestry to the Department of the Marine and Natural Resources. Expenditure prior to 11 July 1997 relating to the forestry functions is included in the Department of Agriculture and Food Vote for that year, (b) the transfer, with effect from 15 July 1997 of the exploration and mining functions of the former Department of Public Enterprise to the Department of the Marine and Natural Resources. Expenditure prior to 15 July 1997 relating to the those functions is included in the Department of Public Enterprise Vote for that year and (c) the transfer with effect from 1 October 1997 of the petroleum and offshore exploration functions of the former Department of Public Enterprise to the Department of the Marine and Natural Resources. Expenditure prior to 1 October 1997 relating to those functions is included in the Department of Public Enterprise Vote for that year. |
| Department of Communications, Marine and Natural Resources. | |||
| Table 2: Savings, Surrenders and Main Variations in period 1997-2004. | |||
| Year | Savings on Gross Estimate | Surrender to Exchequer | Explanations for Main Variations |
| (€000s) | (€000s) | ||
| 1997 | 39,472 | 17,198 | Savings of some €28 million arose from a lower than anticipated level of afforestation and the fact that a number of new Forestry Development Schemes did not progress as quickly as expected. €2.9 million in savings arose from operational costs for Dún Laoghaire Harbour being transferred to the new Harbour Company while a further €1.6 million saving arose from there being no requirement in that year for assistance to BIM in the write-off of advances. |
| 1998 | 23,687 | 6,128 | Savings of some €24 million arose from a lower than anticipated level of afforestation and the fact that a number of new Forestry Development Schemes were not availed of to the extent anticipated. |
| 1999 | 41,939 | 16,458 | Savings of some €10 million arose from a lower than anticipated level of afforestation. Savings of €4.4 million and €1.8 million arose from difficulties in progressing certain fishery harbour infrastructure works and coast protection works respectively. €2.1 million in respect of the Port of Waterford's loan repayment commitment was not drawndown pending legal advice while almost €3 million committed to certain forestry developments projects was not drawndown before end year. Other savings arose on Premises Expenses (€1.6 m) and Marine Research Projects (€1.95 m). |
| 2000 | 8,553 | 7,864 | Savings of some €9.5 million arose due to the fact that certain commitments in relation to seaport infrastructure (€5.6 m) and a marina development at Dún Laoghaire Harbour (€3.9m) were met from the Central Fund rather than the Vote. |
| 2001 | 24,197 | 10,976 | Savings of €7.1 million arose from planning and start-up difficulties in progressing certain fishery harbour infrastructure works. Savings of some €4.7 million arose due to the fact that responsibility for grants to Coillte for superannuation purposes was transferred to the Department of Finance with effect from 1 April, 2001. €4.7 million in savings arose from less than anticipated take-up and/or progress on a number of BIM seafood development schemes while a further €3.7 million saving arose because two marina projects did not commence as anticipated. Other savings arose on Coast Guard Station House Construction (€2.9 m), State Aid approval delays for Angling Tourism Scheme (€2.1 m) and delays in he roll-out of the NDP Aquaculture Measure (€1.7 m). |
| 2002 | 25,378 | 38,691 | Savings of some €20 million arose because work on the construction of Metropolitan Area Networks for Broadband did not commence as early as anticipated. A reduced requirement in respect of search and rescue flying hours gave rise to savings of €3.8 million. Savings also arose on the Fishery Harbour Infrastructure Programme (€3.1 m), Broadcasting Commission of Ireland (€2.3 m), Fishing Vessel Decommissioning Scheme (€1.6 m), Seaport Infrastructure (€4.1 m) and Marina Projects (€3.6 m). An increased level of grant claims led to planned expenditure of some €7.3 million over budget on Afforestation. |
| 2003 | 7,571 | 1,298 | The main savings arose from (1) delays in commissioning the new 24-hour search and rescue helicopter service at Waterford, a reduced requirement in respect of search and rescue flying hours and delays in progressing the construction of new Coast Guard stations (€3.4 million), (2) delays in the further roll-out of the NDP Seaport Infrastructure Measure (€2.7 m), (3) slow progress on certain marine access infrastructure projects (€2.5 m), (4) the non-enactment of legislation to expand the remit of the Loughs Agency (€1.5 m), (5) the fact that certain planned consultancies did not proceed before year end (€1.2 m) and (6) lack of progress on claims for compensation from the owners of private mineral rights (€1.03 m). Expenditure over budget arose on, among other areas, broadband due to accelerated progress in the final quarter on certain projects (€2.8 m), the fit-out of new premises at Adelaide Road (€2.6 m), priority coast protection works (€1.04 m) and on the Moriarty Tribunal (€0.95 m). |
| 2004 | 14,84811 | 1,479 | The main savings, excluding the deferred capital surrender of €10 million, arose from (1) the level of progress and timing of expenditure in relation to certain fishery harbour infrastructure projects (€5.7 m), (2) a reduced requirement in respect of search and rescue flying hours (€1.9 m), (3) a reduced drawdown requirement in respect of the Broadcasting Commission of Ireland (€1.4 m) and (4) lack of progress on claims for compensation from the owners of private mineral rights and reduced miscellaneous expenditure (€1.2 m). Expenditure over budget arose on, among other areas, the support of critical IT projects (€3.1 m), priority coast protection works (€1.34 m) and EU Presidency costs (€0.95 m). |
| 1Net of deferred capital surrender. |
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