Willie Penrose (Westmeath, Labour)
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Question 108: To ask the Minister for Transport the reason for the underspend in his Department in the first three quarters of 2005; the subheads under which the underspend is occurring; and the projects in which an underspend is being recorded. [29060/05]

Martin Cullen (Waterford, Fianna Fail)
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For the first three quarters of 2005 this Department has spent €1,060 million, which is €106 million less than profiled for the same period. This difference consists of €92 million less in capital spend and €14 million less in current expenditure.

The capital difference in the main is made up of a capital spend of €64 million less on roads projects, B2, and €27 million less on public transport projects, C5. This reflects the challenges associated with managing a complex multi-annual capital programme to deliver projects within the budget for a given year. It is mainly timing issues which are arising and the delivery agencies remain in a position to spend their full envelope allocations in aggregate over 2005-06.

Some specific contributory factors to the lower draw down in the first three quarters of 2005 were competitive tender pricing, planning delays, land acquisition and timing issues on the purchase of rolling stock. The arrangements for a multi-annual capital envelope are specifically designed to provide flexibility to deal with issues of this nature.

The main current expenditure difference consists of a spend of €14 million less on CIE public service provision payments, C1, due mainly to timing issues.