Mary Upton (Dublin South Central, Labour)
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Question 40: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if she will make a statement on her Department's Estimate for 2009; and the main areas where savings will be made. [41754/08]

Mary Coughlan (Donegal South West, Fianna Fail)
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My Department's Estimate for 2009 amounts to €1.569 billion (gross) in Exchequer funding. A further €382 million is being made available to my Department from the National Training Fund, giving me a total budget of €1.951 billion (gross) for 2009. This represents a reduction of €47.2 million, or 2%, on the 2008 allocation.

Appropriations in Aid for my Department in 2009 are estimated at just over €70 million. This represents a reduction of €25.4 million compared to the 2008 Estimate and is largely due a reduction in the level of receipts from the European Social Fund under the current Structural Fund programmes.

Within the allocation available to me for 2009, I am prioritising spending to stimulate the productive capacity of the economy, while at the same time providing supports to those who are impacted by the changing labour market conditions. Thus, my Estimate includes an increase in funding of €8.4 million, or 3%, for science, technology and innovation programmes; an increase of just under €3 million, or 9%, for small business support through the County and City Enterprise Boards; an increase of €10.5 million, or 2%, for FÁS Employment programmes; and an increase of €9.5 million, or 5%, from the National Training Fund for FÁS's training programmes for the unemployed.

For the most part, where reductions in spending were necessary to meet the Government's budgetary targets, they were made in areas where demand for services was reducing, or where there was a downward trend in expenditure in the last twelve to eighteen months.

Thus, the allocation from the National Training Fund for FÁS's training programmes for people in employment has been reduced by €35 million, or 20%, for 2009, mainly reflecting the reduced demand for new apprenticeship places. Some of this reduction in funding has been reallocated to training programmes for the unemployed, including measures to assist redundant apprentices. FÁS's Capital expenditure has been reduced by €6 million compared to the 2008 Estimate. Other Capital savings have been realised in relation to grants paid by the industrial development agencies, based on recent trends in expenditure and demand.

Reductions have also been made in the administrative costs my Department and most of its Offices and agencies. My Department's Administrative Budget has been reduced by €2.1 million, or 3%, compared to 2008. The administrative savings across the Department, its Offices and agencies include a 4% payroll cut in real terms, after taking account of the carry-over cost of Towards 2016 increases paid in 2008 and the fact that no additional funding is being provided to cover the cost of increases which will become payable from 1 September 2009. Consultancy savings will amount to at least €3.1 million in 2009, while advertising/PR savings will amount to a minimum of €5.4 million. Other savings in my Department's allocation can be identified in the 2009 Estimates published in parallel with the 2009 Budget.