Damien English (Meath, Fine Gael)
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Question 187: To ask the Minister for Finance his views on whether the reasons underlying the shortfall in capital expenditure in 2005 will be corrected by the end of 2005; and if he will make a statement on the matter. [33124/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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At end October, Departments indicated a net capital underspend against profile of €514 million. When account is taken of the €237 million spend of capital carryover from 2004 net voted capital spending actually increased year on year by 8.8%. The main areas of underspend as compared with profile at end October were: Department of Transport, €196 million; Department of Health and Children, €108 million; Office of Public Works, €53 million; and Department of Enterprise, Trade and Employment, €48 million. The reasons for the underspend include rollout of some projects being behind target, timing delays in relation to certain land projects, lower demand for some schemes and higher other source income.

While Departments have been urged to maximise spending over the rest of the year consistent with Government accounting requirements and value for money best practice there will be an underspend at end year. The first indication from Departments generally of the extent of their possible underspend will be known when the 2006 Abridged Estimates Volume is published on 17 November. Departments will have the option of carrying over unspent Exchequer capital of up to 10% of their voted overall capital allocation to the following year under the rolling multi-annual annual capital envelopes thereby ensuring that such amounts are not lost to the capital budget.