Willie O'Dea (Limerick City, Fianna Fail)
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Question 139: To ask the Minister for Public Expenditure and Reform the net impact on jobs of changes agreed for capital spending in his Department and the nature of all studies which he has undertaken on this matter; and if he will make a statement on the matter. [35051/11]

Brendan Howlin (Wexford, Labour)
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The Medium-Term Fiscal Statement published by the Government on 4 November detailed the budgetary parameters for the next four years including the revised current and capital envelopes. The Medium-Term Fiscal Statement also set out and discussed the economic and fiscal projections for the period ahead that are consistent with those budgetary parameters. As regards employment, the economy is expected to be creating jobs on a net basis by the end of next year, with the pace of hiring forecast to strengthen in subsequent years.

In considering the Capital envelope and the Government's detailed Capital Review that I published last week, it is first necessary to realise that most of the economy's key infrastructural deficits have been addressed through a massive capital investment of about €70bn over the last decade. The Budgetary situation requires spending to be prioritised and the Public Capital Programme to be scaled back.

The Review made a point of protecting supports to the enterprise sector primarily through agencies such as Enterprise Ireland and the IDA. The unprecedented level of investment over the past few years and in 2012 delivered through the Enterprise Development Agencies can foster sustainable and valuable employment in the exporting sectors of the economy which will be critical to recovery. While the overall capital envelope for 2012 has been reduced, we have actually held the level of capital allocation for the enterprise sector relative to the preceding period.

The State will be spending some €17 billion over the next five years on activities throughout the country and this will help support employment in many key areas. It is important to note that less expensive re-fit, refurbishment, and up-grade works can be more labour-intensive than larger capital-intensive projects that have been deferred.