Cian O'Callaghan (Dublin Bay North, Social Democrats)
Link to this: Individually | In context | Oireachtas source

110. To ask the Minister for Housing, Planning, and Local Government the amount returned from his Department’s allocation in each of the years between 2018 and 2022, inclusive in tabular form; and if he will make a statement on the matter. [5142/23]

Cian O'Callaghan (Dublin Bay North, Social Democrats)
Link to this: Individually | In context | Oireachtas source

111. To ask the Minister for Housing, Planning, and Local Government the amount carried over by his Department’s allocation in each of the years between 2018 and 2022, inclusive in tabular form; and if he will make a statement on the matter. [5143/23]

Darragh O'Brien (Dublin Fingal, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I propose to take Questions Nos. 110 and 111 together.

My Department's Appropriation Accounts which are published by the Comptroller and Auditor General (C&AG) set out the full details of expenditure for the relevant years and can be found at www.audit.gov.ie/en/ by clicking on "Appropriation Accounts".  

Summary details of the Allocations and Final outturn of expenditure for the years 2018-2022 are set out below: 

* My Department will shortly submit its Capital Expenditure Management Report End Q4 2022 to Government. In addition, the 2022 Appropriation Account is currently being prepared and will be published later this year following audit by the C&AG.

Under Section 91 of the Finance Act, 2004, all or part of any unspent appropriations for capital supply services may be carried over for spending in the following year.  This provides for the carryover of up to 10% of the REV allocation (Capital) from one year to the next. This must be expended in the following year- i.e. it is not permissible to further defer any surplus.

In 2019, unspent capital balances from the Urban Renewal & Regeneration Fund and the Land Development Agency amounting to €33.5m was carried over into 2020.  The balance of €6.5m was surrendered to the Exchequer.

In 2020, as a result of the impact of COVID-19 restrictions on the construction sector there was a total surplus amounting to some €226.5m arising from unspent allocations in respect of the capital elements of Programmes A (Housing), B (Water), D (Planning) and F (Heritage) of which €214m was carried forward to 2021 while the remaining balance of €12.5m was surrendered to the Exchequer.

In 2021, due to ongoing significant disruption to the construction sector due to Covid-19 and the consequential impacts on drawdown of capital funds, there was a surplus arising from unspent capital allocations on elements of Programmes A (Housing), D (Planning) and F (Heritage) of which €275.8m was carried forward to 2022.

Continued impact of Covid-19 on the construction sector, compounded by supply chain issues and then in early 2022 the onset of war in Ukraine with resulting further detrimental impact for the sector had a substantial impact on drawdown of capital investment for the programme areas identified back in 2021. Capital expenditure in 2022 was lower than profiled resulting in surplus balances on the capital elements of Programmes A (Housing), B (Water), D (Planning) and F (Heritage).  

Despite the very challenging context my Department continued to engage proactively on a range of measures to manage, mitigate and expedite where possible throughout 2022.  In the case of significant capital projects, it is important to note that the aforementioned impacts push a project out rather than cancelling it and therefore Capital Carryover ensures that where delivery arises beyond the calendar year in which initially anticipated, the capital can transfer to meet the commitment up to a maximum of 10%.€340m capital has been carried forward to 2023.

It should also be noted that the lead-in time for capital programmes do not, by their nature, readily facilitate in-year substitution for alternative capital delivery.