P J Sheehan (Cork South West, Fine Gael)
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Question 70: To ask the Minister for Health and Children if the €71 million the Health Service Executive failed to spend on capital projects in 2006 can be carried over to fund capital development in 2007; and if she will make a statement on the matter. [17731/07]

Ulick Burke (Galway East, Fine Gael)
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Question 78: To ask the Minister for Health and Children if capital projects are multi-annual in nature; the reason allocated capital funding is not automatically transferred from one year to the next; and if she will make a statement on the matter. [17738/07]

Mary Harney (Dublin Mid West, Progressive Democrats)
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I propose to take Questions Nos. 70 and 78 together.

The final out-turn on Vote expenditure for the Health Service Executive, showed a capital saving of €114m of which €42m was used to offset a revenue overspend and a further €47m was used to offset a shortfall in projected Appropriations-in-Aid. This left a balance of €25m to be surrendered to the Exchequer.

The Health Service Executive's Appropriation Account for 2006 will show an overall surrender of €365m — the €25m capital and €340m in respect of the Long Stay Repayment Scheme. Unspent capital funding can not automatically be transferred from one year to the next. However, under Section 91 of the Finance Act, 2004, Government Departments and the Health Service Executive may apply to carry over up to ten per cent of any net underspend on the capital Vote to the following year. If approved by the Minister for Finance, provision for such carry over is made in the Appropriation Act for that year.

However, the HSE was not in a position to provide a firm projection of its net capital expenditure saving for 2006 within the prescribed time limit. As a result, the Appropriation Act 2006 does not include any provision for the carry over by the HSE of its €25 capital saving. The HSE has taken steps to strengthen its capital management capacity, including the establishment of a single national Estates function and the appointment of a new Director of Estates. The level of capital funding provided to the HSE for 2007 will support a continuing high level of investment in our public health services and will enable the completion and commissioning of many new acute and community health care facilities.