Written answers
Wednesday, 18 October 2006
Department of Finance
National Development Plan
9:00 pm
Dan Boyle (Cork South Central, Green Party)
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Question 168: To ask the Minister for Finance the end figure costs of implementing the National Development Plan 2000 to 2006; and the variations in costs that have occurred since the original publication of the plan. [33191/06]
Brian Cowen (Laois-Offaly, Fianna Fail)
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In the matter of cost variations, it is important to recall that in the early years of the NDP, following the acceleration of public expenditure on capital projects, construction cost inflation was running at 12% per annum in 1999 and 2000. This has now moderated and in the interim cost estimation and control systems have been strengthened. Procurement policy and practice has also been advanced. As a result most infrastructure projects are now being completed on time and within budget.
The latest Value For Money measures and the Government's proposals for Estimates and Budget Reform build on initiatives in recent years such as Public Service Modernisation, PPPs, multi-annual budgets for capital programmes, and the revised Guidelines for the Appraisal and Management of Capital Expenditure Proposals of February 2005. These are part of a concerted effort to improve public expenditure management and to maximise value for money from public expenditure.
The Deputy may be interested to know that the National Development Plan/Community Support Framework (NDP/CSF) 2000-2006 is implemented through seven Operational Programmes. The most recent expenditure data on the National Development Plan relates to the period January 2000 to December 2005. The data for the first six months of 2006 will be available at the end of October 2006 following the meetings of the Operational Programme Monitoring Committees. I will write to the Deputy with this data when it becomes available.
Table 1 as follows sets out the total estimated expenditure (Exchequer, EU and private) to end 2005 and compares it against the total original indicative forecast for the corresponding period. This represents some €44.8 billion or 92% of the total original indicative forecast for expenditure (Exchequer, EU and private).
Table 1 — Total Original Forecast and Total Estimated Expenditure from January 2000 to December 2005 | |||
Operational Programme | Original Profile 2000-2005 | Estimated Expenditure to end 2005 | Expenditure versus Profile |
€m | €m | % | |
Economic and Social Infrastructure | 21,941 | 23,701 | 108 |
Employment & Human Resources Development | 12,222 | 12,205 | 99 |
Productive Sector | 6,170 | 3,191 | 52 |
Border, Midlands & Western Regional | 3,519 | 2,274 | 64 |
Southern and Eastern Regional | 4,695 | 3,376 | 72 |
PEACE and Technical Assistance | 153 | 116 | 76 |
Total | 48,700 | 44,863 | 92 |
Profiles and Expenditure data includes all NDP sources of funding; Exchequer, EU and private. |
Table 2 sets out the total estimated exchequer expenditure to end 2005 and compares it against the total original indicative forecast for the corresponding period. This represents some €38.6 billion or 102% of forecast Exchequer expenditure. The figures reported indicate that all demands for expenditure are being met.
Table 2 — Profiled and Estimated Exchequer Expenditure January 2000 to end December 2005 | |||
Operational Programme | Original Profile 2000-2005 | Estimated Expenditure to end 2005 | Expenditure versus Profile |
€m | €m | % | |
Economic and Social Infrastructure | 14,693 | 19,004 | 129 |
Employment and Human Resources Development | 12,222 | 11,985 | 98 |
Productive Sector | 4,874 | 2,672 | 55 |
Border, Midlands & Western Regional | 2,566 | 1,920 | 75 |
Southern and Eastern Regional | 3,388 | 2,987 | 88 |
PEACE & Technical Assistance | 153 | 116 | 76 |
Total | 37,896 | 38,684 | 102 |
With respect to the Operational Programmes, the Economic and Social Infrastructure OP is performing well with total expenditure at 108% of profile for the period January 2000 to end December 2005. Expenditure on the Employment and Human Resources Development OP has achieved 99% of profile for the same period and is on course to meet its targets.
This is a healthy implementation rate in view of the slow start up in some areas at the very beginning, the relatively disappointing response in certain demand-led schemes and the fact that Exchequer spending in relation to the Structural Fund OPs for the 2000-2006 period will in fact continue up to 2008.
I have made the point previously that the overall outturn for the NDP is expected to be near to forecast by the end of 2006, but with some over-performance and underperformance of expenditure taking place within the Operational Programmes. It is also expected that co-funded measures under the Plan will achieve their full entitlement to Structural Funds in the BMW Region by the end of 2008, the timetable set out in the Regulations.
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