Breeda Moynihan-Cronin (Kerry South, Labour)
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Question 131: To ask the Minister for Finance if he is satisfied with the rate of implementation of the current national development plan; if the plan will be implemented in full by the end of 2006; the figures available on the number of projects under the plan that have been completed to date in 2005; and if he will make a statement on the matter. [33057/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am broadly satisfied with the rate of both financial and physical implementation of the national development plan, NDP. The monitoring committees for each of the national development plan's seven operational programmes, OPs, have met in recent weeks to consider progress to end June 2005 for their respective programmes. It is estimated that around €39 billion or some 88% of the profiled expenditure for the period of the NDP from January 2000 to end June 2005 has been incurred at end June 2005.

With respect to the operational programmes, the economic and social infrastructure OP is performing well with expenditure at 102% of profiled expenditure for the period January 2000 to end June 2005. Expenditure on the employment and human resources development OP has achieved 97% of profiled expenditure for the same period and is on course to meet its targets. Performance of the productive sector OP is behind target with 49% of the original profiled expenditure having been achieved. The key factors accounting for this relate to the lower take up of financial opportunities by the private sector and less than anticipated absorption capacity for research and development projects in the BMW region. Despite this, physical performance is close to target for the period.

The Border, midlands and western, and southern and eastern regional OPs, are showing absorption rates of 61% and 68% of profiled expenditure for the period January 2000 to end June 2005, respectively. Good progress is evident under the local infrastructure and social inclusion and child care measures. Difficulties still exist in the tourism and agriculture sectors where implementation has been slower and demand for grant support has been less than anticipated. The PEACE and technical assistance OPs are on track to meet their targets by the end of the programming period.

With respect to the eventual outturn for the NDP, I expect the end-2006 position for the key economic and social infrastructure OP and employment and human resources development OP to be close to or above targets. Similarly, the position for the PEACE and technical assistance OPs will be close to their targets at the end of 2006. The regional programmes and the productive sector OP are unlikely to achieve their end 2006 targets.