Department of Finance - Government of Ireland

Environment & Local Government
Commentary

Overview:
The proposals submitted by the Department of the Environment & Local Government complied with the approved pre-Budget figure but identified additional pressures amounting to some €79m. The Committee accepted that some of these pressures (amounting in total to nearly €34m) are unavoidable. The Committee identified additional measures which would generate a total of €47m and which would, therefore, result in an allocation some €13m below the approved pre-Budget target.

Additional comments:
New House Grants - The Committee recommends the immediate abolition of this scheme. The Committee believes that while immediate abolition may produce only small savings in 2003, it would produce significant savings in 2004.

Environment Fund - Savings of €30m should be achieved by funding from the Environment Fund projects which would otherwise be funded on the Vote.

Other proposals - An overall reduction of €10.2m on non-national roads, one-stop shops, radon remediation grants and Dúchas capital.

Asylum seekers’ accommodation - The Committee recommends that responsibility for recouping local authorities for the costs incurred by them in relation to asylum seekers’ accommodation be transferred from the Department of the Environment & Local Government to the Department of Justice, Equality & Law Reform.

Environment & Local Government Vote
Summary of Committee's proposals
2002 REV (Amended Estimate)*				2470.93
Gross ELS figure for Vote Group				2589.76
Gross Pre-Budget target (PBT) for Vote Group				2395.15
Savings below ELS required to reach Pre-Budget target (share of €900m)				194.62
Gross savings proposed by the Committee to contribute to €900m target				207.85
Proposed Revised Gross Allocation (as per Table 1)				2381.91
Proposed Revised Gross Allocation following transfer of administrative functions				2329.15

			€m	€m
Estimate bid submitted by the Department of Environment & Local Government (in line with pre-Budget target)			2395.15	2003 Proposed Allocation for each subhead

*Plus additional pressures* *which Committee accepts must be met:*
	Homeless recoupment	12.63		128.00
	Home improvement grants	9.01		40.00
	Planning Tribunal	7.66		13.32
	Rapid Co-ordinators	1.12		2.21
	BNFL case	1.59		1.69
	Contributions to international organisations	1.29		4.62
	Environmental Protection Agency	0.20		10.33
	Total additions		33.50

	*Estimate bid including pressures*		*2428.65*

*Less savings* *proposed by the Committee*
Subhead
A	Administrative Budget efficiency dividend	1.53		51.37
C1	Non-national roads (Exchequer) (E)	3.10		39.96
	Environment Fund (see text)	30.00		0.00
F	One stop shops (E)	3.90		0.00
G	Radon Remediation Grants (E)	2.00		0.00
G	Dúchas (capital) (E)	1.20		9.80
B2	New House Grants (see text)	5.00		32.38
	Total savings		46.73

	Proposed Revised Gross Allocation		2381.91

	(E) refers to Estimating Savings

Proposed Revised Gross Allocation following decisions of Committee			2381.91

Administrative Budget Adjustments
	Impact of transfer of functions		25.24
Transfer to Vote 19
Asylum accommodation			-78.00
Proposed Revised Gross Allocation post transfer of functions			2329.15
* 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