Richard Bruton (Dublin North Central, Fine Gael)
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Question 137: To ask the Minister for Finance the latest estimate for price deflation in Exchequer-funded capital investment projects in 2009. [8923/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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We have in recent months seen a reduction in tender prices of up to 20% in certain areas and this more competitive pricing environment is expected to continue throughout 2009 and should be reflected in all new contracts entered into by the various Departments during the coming year. The 2009 Budget allocated €8.231 billion in Exchequer capital for 2009 and the recent Government decision to reduce this by €300m still leaves the capital allocation for 2009 at €7.931 billion or 5.3% of GNP, one of the highest in the EU. Due to the fall in contract prices seen in recent times, it is expected that the real level of capital investment will be maintained at a high level.