Peadar Tóibín (Meath West, Sinn Fein)
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Question 16: To ask the Minister for Public Expenditure and Reform his net projected employment gain from the capital and expenditure budget cuts year on year from 2012 to 2016 taking into account the recently announced medium term fiscal and infrastructure/capital statements. [35191/11]

Mick Wallace (Wexford, Independent)
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Question 31: To ask the Minister for Public Expenditure and Reform his views on the fact that, from the outset he has been insisting that facilitating the creation of jobs is one of its top priorities yet the capital spending programme published last week does little to support this claim; and if he will make a statement on the matter. [35202/11]

Brendan Howlin (Wexford, Labour)
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I propose to take Questions Nos. 16 and 31 together.

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. In addition, the Budgetary situation requires spending to be prioritised and the Public Capital Programme to be scaled back.

There will be direct employment benefits in the delivery of the infrastructure proposed in the Medium Term Capital Investment Framework. However, the most important contribution capital investment can now make is in providing the capacity for the economy to grow, which will in turn create employment. The focus of the investment outlined in the plan is on creating the framework conditions in which the enterprise sector can thrive.

The Review made a point of protecting supports to the enterprise sector primarily through funding agencies such as Enterprise Ireland and the IDA. This funding 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.