Barry Cowen (Offaly, Fianna Fail)
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291. To ask the Minister for Jobs, Enterprise and Innovation the specific reason for the underspend in gross voted expenditure of €16 million as outlined in Appendix V of the June 2018 fiscal monitor; the specific projects that have an underspend; the value of the underspend on each project; and if she will make a statement on the matter. [31300/18]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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Department of Business, Enterprise and Innovation capital funding is primarily in the form of enterprise and innovation grants awards provided through Enterprise Ireland, IDA Ireland, Science Foundation Ireland, the 31 Local Enterprise Offices, InterTrade Ireland, Tyndall National Institute, the Programme for Research in Third-Level Institutions and the Interreg programme. It also covers some funding to support the National Standards Authority of Ireland, the Credit Guarantee Scheme and payment of Ireland’s membership and participation in various International Research Organisations such as the European Space Agency. 

The underspend to the end of June is primarily in the following areas;

Subhead A5 IDA is €6m behind profile: the variance occurs because of some delays in anticipated projects, which will now happen later in the year. Given the nature of IDA supports there will invariably be some delays from time to time on projects which can impact on profiled expenditure.

Subhead A7 Enterprise Ireland is €1.9m behind profile: the variance occurs because of higher than anticipated Own Resource Income (ORI). EI is obliged to expend its Own Resource Income before drawing on Exchequer funding. In addition, it is important to appreciate that the EI funding model is demand-led and grants provided to client companies are typically multi-annual in nature, usually over a 3 to 4-year period. Funding provision is dependent on their client companies adhering to, and delivering on, certain terms and conditions associated with the EI grant award. For example, delivering on a certain number of additional jobs, or achieving increased export sales etc. Good corporate governance in relation to public finances means that grant payments can only be made upon receipt of vouched expenditure claims have been submitted by the client companies and properly vetted by EI.

Subhead B4 Science & Technology Development Programme is €8.5m behind profile : the variance occurs as SFI is €7.2m behind profile, this is due to timing differences on SFI Grant payment items and SFI awaiting financial reports. Tyndall Institute is also €1.3m behind profile, due to timing issues.

In terms of the Department’s Capital allocation, notwithstanding the variance at the end of June, based on information currently to hand the Department expects to fully expend its capital allocation this year.