Brian O'Shea (Waterford, Labour)
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Question 96: To ask the Minister for Finance if he is satisfied with the rate of implementation of the national development plan; if he expects the plan to be implemented in full by the end of 2006; 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. [39000/05]

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 committee for the national development plan and the community support framework meets this week to consider progress on the NDP overall to end June 2005. It is estimated that approximately €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. The Exchequer contribution to the NDP is expected to be close to the planned level of expenditure for the period to the end of 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 the low rate of expenditure 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 for this programme.

The Border, midland 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.

Although Structural Funds are profiled for each operational programme for the years 2000 to 2006, expenditure under co-funded measures will continue until the end of 2008 in accordance with Structural Funds regulations. Account must be taken of expenditure in 2007 and 2008 in evaluating the final position of the NDP. Based on progress reported to date, Ireland will draw down its entitlements of Structural Funds for the programming period.

My Department does not maintain data on the completion status of individual projects under the NDP as this is a matter for individual Departments and agencies which are responsible for project funding and, where appropriate, project implementation.