Department of Finance - Government of Ireland

Communications, Marine & Natural Resources
Commentary

Overview:
The Estimates proposals submitted by the Department of Communications, Marine & Natural Resources exceeded the Government pre-Budget target by over €134m.

The Department submitted a preliminary assessment of programme reductions required to achieve the 2003 pre-Budget limit. Following discussion with the Department and consultation with the Department of Finance, the Committee concluded that some of these measures were not sustainable because of contractual commitments, impact on safety measures, etc.

The Committee has put forward proposals which have the potential to generate a total of €135m and thus meet the pre-Budget target.

Additional comments:
Forestry Grants - A reduction in Forestry Grants (subhead K4) from a demand figure of €93m to €70m is proposed. The Committee understands that this will allow all contractual commitments to be met in addition to ensuring that the necessary resources are provided to draw down EU funding.

Regional Broadband - A reduction in Regional Broadband (subhead M1) from a demand figure of €74.3 to €32.5m is proposed. The Committee understands that this will ensure that all commitments are met and that a reasonable amount of funding is available to roll-out appropriate broadband initiatives in 2003. The Committee also notes that spending in this area has been slower than expected in 2002.

Communications, Marine & Natural Resources Vote
Summary of Committee's proposals
2002 REV (Amended Estimate)*				556.14
Gross ELS figure for Vote (including transfer of programme functions)				497.45
Gross Pre-Budget target (PBT) for Vote Group				472.29
Savings below ELS required to reach Pre-Budget target (share of €900m )				25.16
Gross savings proposed by the Committee to contribute to €900m target				25.38
Proposed Revised Gross Allocation (as per Table 1)				472.07
Proposed Revised Gross Allocation post transfer of administrative functions (as per Table 2)				484.45

		€m		€m
Estimate bid submitted by the Department of Communications, Marine & Natural Resources (€134.6m above the pre-Budget target)			606.95	2003 Proposed Allocation for each subhead

*Less savings* *proposed by the Committee*
Subhead
A	Administrative Budget excess over ELS target	1.71		38.09
	Administrative Budget efficiency dividend	1.00
B1	Marine Emergency Coastal Units (E)	1.24		2.65
D1	Grants for improvement of harbours (E)	2.58		2.19
D2	Marine and Natural Resources Tourism Prog. (E)	4.20		2.44
E1	Coastal Protection (E)	2.70		2.19
F	Marine Research (E)	6.00		24.55
G1	Development of Fishery Harbours (E)	7.49		30.00
H	BIM (E)	6.79		25.78
I3	Fish processing (E)	3.00		1.50
J1	Central & Regional Fisheries Boards (E)	3.88		17.08
J2	Tourism angling (E)	4.50		0.50
K4	Grants for promotion of Forestry (FEOGA) (see text)	23.00		70.00
K5	Grants for promotion of Forestry (Structural) (E)	11.32		10.04
K6	Grants for promotion of Forestry Research (E)	1.88		1.34
L2	Energy Conservation (E)	7.41		11.40
M1	Regional Broadband (see text)	41.80		32.50
N5	Current grant to Broadcasting Commission (E)	0.82		5.22
N7	Current grant for Telefis na Gaeilge (non-capital, non-pay) (E)	3.57		21.91
	Total savings		134.88

	Proposed Revised Gross Allocation		472.07

	(E) refers to Estimating Savings


Proposed Revised Gross Allocation following decisions of Committee				472.07
Administrative Budget Adjustments
	Impact of transfer of functions			12.38

Proposed Revised Gross Allocation post transfer of functions				484.45
* For comparison purposes, the 2002 REV figure reflects the impact of the transfer of programme functions for a full 12 month period. The 2002 figures reflect the impact of the transfer of administrative budgets from June, 2002