Changes to Income Tax	Full Year Cost €m
Personal Credits increased by €123 single/€246 married to €1,520 single/€3,040 married and Employee Credit increased by €152 to €660	395
New Standard Rate Bands from 1 January 2002: €28,000 Single €37,000 Married One Income €56,000 Married Two Incomes[2]	223
Age Exemption Limits (single/married) increased from €10,793/€21,586 to €13,000/€26,000	11
Other Credits from 1 January 2002: Incapacitated Child €500, Blind Persons: Single €800, Married (both blind) €1600, Widowed Person €300, Widowed Parent: Year 1 €2,600, Year 2 €2,100, Year 3 €1,600, Year 4 €1,100, Year 5 €600, Age Credit: Single €205, Married €410, Dependent Relative €60, Home Carer €770	5
Total	634

Further details of the main income tax elements of the package are set out in Annex A

OTHER INCOME TAX

All items take effect from 1 January 2002 unless otherwise stated.

Employment of a Carer

A tax allowance can be claimed at an individual’s marginal tax rate for the cost of employing a person to care for a family member who is incapacitated. The ceiling on the amount that can be claimed under this relief is being increased from €12,700 pa to €30,000 pa

The cost of this measure is estimated to be €0.1 million in 2002 and €0.15 million in a full year.

Taxation of Unemployment Benefit – Systematic Short-Time Workers

The special tax exemption for Unemployment Benefit for systematic short-time workers, which was introduced in the 1994 Finance Act and broadened in the 1995 Finance Act, will be extended for the next tax year up to 31 December, 2002.

Reduction in Specified Rate for Preferential Loans

An employee in receipt of a preferential loan is charged income tax on the difference between the interest actually paid and the amount which would have been payable at the “specified” rates of interest for home loans and other loans. To reflect recent reductions in mortgage interest rates, the specified rate in respect of home loans is being reduced from 6% to 5%. This change will take effect from 1 January 2002.

The cost of this measure is estimated to be €0.3 million in 2002 and €0.4 million in a full year.

Income Tax Rate on the Refund of Contributions to Occupational Pension Schemes

The income tax charge on the refund to a taxpayer of contributions to an occupational pension scheme will be reduced from the current rate of 25% to the standard rate of income tax (currently 20%). This change will apply to refunds made on or after 5 December 2001.

The cost of this measure is estimated to be €1 million in 2002 and €1.25 million in a full year.

Business Expansion Scheme (BES)

The Business Expansion Scheme is being renewed from 1 January 2002 for a 2 year period until 31 December 2003. The BES company limit is to be increased from its current level of €317,500 to €750,000.

To provide sufficient time for BES designated funds to raise finance from investors, it is intended to provide that any amount raised by a fund up to 31 January 2002, provided it is invested before 31 December 2002, will be deemed to have been raised by the designated funds in the tax year 2001. This will enable individual investors to claim tax relief on their investment in the short 2001 tax year or the 2002 tax year.

The cost of increasing the company limit is estimated to be €3.7 million in 2002 and €5.3 million in a full year.

Seed Capital Scheme (SCS)

The Seed Capital Scheme is being renewed from 1 January 2002 for a 2 year period until 31 December 2003. The SCS permits employees who leave employment to invest in certain new businesses and take up a job in that business to claim a refund of tax for the previous five years. An unemployed person or a person who was made redundant may also claim the relief. The level of an individual’s tax refund depends on the level of the investment and the amount of tax the individual has paid in previous years. The five year refund period is being extended to six years thereby increasing the overall individual investment limit qualifying for tax relief. The new BES company limit of €750,000 will also apply to the SCS.

The cost of increasing the individual investment limit is estimated to be €0.13 million in 2002 and €0.13 million in a full year.

Interest Relief on Borrowings for Rented Residential Properties

Interest arising on and from 1 January 2002 on borrowed monies employed in the purchase, improvement or repair of rented residential properties by an individual, partnership or company will be allowed as a deduction for tax purposes against rental income

The cost of this measure is estimated to be €36 million in 2002 and €50 million in a full year.

Tax Relief for Donations to Sports Bodies for Capital Projects

Tax relief will be made available for personal and corporate donations to sports organisations for capital projects subject to an approval process and provided the tax affairs of the sports bodies are certified as being in order by the Revenue Commissioners. Full details of the scheme and its commencement date will be set out in the Finance Bill.

The cost of this measure is estimated to be €0.7 million in 2002 and €7 million in a full year.

Payment of Tax by Means of Donation of Heritage Items

The scheme of relief for the donation of heritage items provides a tax deduction equal to the value of a heritage item donated to the national collections, provided certain conditions are met. The heritage item must be worth at least €95,250 and the value of items approved for donations under the scheme in any one year cannot exceed €3.8 million. It is proposed to increase the single item threshold to €100,000 and the annual limit to €6 million. Incidental costs, for example, auctioneers fees, etc., incurred in purchasing a heritage item will also be allowed for the purpose of this scheme.

The cost of this measure is estimated to be €2.2 million in 2002 and €2.2 million in a full year.

CORPORATION TAX

Corporation Tax Reductions in 2002

As already provided for in the 1999 Budget and Finance Act, the standard rate of corporation tax for trading income is being reduced from 20 per cent to 16 per cent from 1 January 2002. This is part of the phased reduction in the standard rate of corporation tax for trading income to a single standard rate of 12.5 per cent in 2003.

The cost of this measure (€329 million) is already taken into account in the forecasts of tax revenue.

Preliminary Tax Payment Dates for Corporation Tax

Present Position

Preliminary tax for companies is at present payable within 6 months after the end of a company’s accounting period. Preliminary tax must be at least 90% of the final corporation tax liability for the period to avoid an interest charge for underpayment.

New System

The payment date for preliminary tax is being brought forward to one month before the end of the accounting period - an advance of 7 months. This will be achieved over a transition period of five years. Any balance of tax due (over and above preliminary tax) will, as at present, remain payable within one month of the issue of the tax assessment by the Revenue Commissioners.

Transition Period

In the transition period the percentage of preliminary tax payable one month before the end of the accounting period is as follows:

Accounting periods ending:

· in 2002 (subject to special arrangements as set out below) 20%

· in 2003 40%

· in 2004 60%

· in 2005 80%

· in or after 2006 100%

During the transition period there will effectively be two instalments of preliminary tax: the 1^st instalment (i.e. 20%, 40% etc.) will be payable one month before the end of the accounting period; and the 2^nd instalment (to bring the total of both instalments up to at least 90% of the final liability) will be payable six months after the end of the accounting period as at present.

For the first year of the transition, any preliminary tax payment under the new arrangements will not have to be paid earlier than 28 June 2002. For example, if a company’s accounting period ends on 31 May 2002, the 20% preliminary tax instalment will be payable on 28 June 2002 (instead of one month before the end of the accounting period).

Further details of the new payment arrangements will be in the Finance Bill.

This will provide a cashflow yield (allowing for forecasted increases in corporation tax in future years) as follows:

2002 2003 2004 2005 2006

€792m €821m €945m €1,073m €1,124m

Shipping

For accounting periods beginning on or after 1 January 2002, qualifying shipping activities will be subject to a special tonnage tax regime instead of the normal corporation tax regime. Under a tonnage tax regime, profits are calculated on the basis of a specified profit per day according to the tonnage of the ship concerned. The standard corporation tax rate for trading income is then applied to the specified profit base. Details of this measure, including definitions of qualifying ships and qualifying shipping activities, will be contained in the Finance Bill. The measure is also subject to European Commission approval under EU State Aids rules.

The cost of this measure is estimated to be €0.3 million in 2002 and €0.3 million in a full year.

Loss Relief for Companies

The standard rate of corporation tax applies to most types of trading income while a 25% rate applies to other income. The Finance Act 2001 imposed a restriction on the offset of trading losses incurred in an activity, the income from which is taxed at the standard rate of corporation tax, against profits which are taxable at the higher rate. Where the application of this rule results in trading losses remaining unused, relief will now be available against other income on a value basis. For example, when the standard corporation tax rate on trading income is 12.5%, half of the trading loss will be allowed against income taxable at the 25% rate but the full amount of the loss so offset will be regarded as used up for the purposes of calculating losses for carry forward for set off against income of future years.

The Finance Bill will also amend the commencement rules for the Finance Act 2001 restrictions to remove an unintended restriction on the carry back of trading losses incurred in an accounting period which commenced before, and ended after, 6 March 2001.

All of the changes will apply to accounting periods ending on or after 6 March 2001.

The cost of this measure is estimated to be €12 million in 2002 and €10 million in a full year.

FARMER TAXATION

Profit Deferral and Stock Relief in Respect of the Compulsory Disposal of Livestock

The current 2 year period during which farmers can opt to defer book profits that have arisen from compensation received in respect of the compulsory disposal of livestock under a disease eradication scheme approved by the Minister for Agriculture, Food and Rural Development will be extended to 4 years. The corresponding 2 year restocking period during which such farmers can qualify for 100 per cent stock relief is also to be extended to 4 years. The four year periods in respect of these reliefs will apply in respect of such disposals arising from 21 February 2001.

CAPITAL ALLOWANCESAND TAX INCENTIVE SCHEMES

Capital Allowances (and Expenses) for Business Cars

The car value threshold is being increased from £17,000 (which equates to €21,586) to €22,000 (which is £17,326). The new threshold will apply to capital allowances and allowable expenses for new and second-hand cars used in the course of a trade, profession or employment.

In the case of corporation tax, the new threshold will apply for expenditure incurred in an accounting period ending on or after 1 January 2002. In the case of income tax, the new threshold will apply for expenditure incurred in the basis period for the tax year 2002 and subsequent tax years.

These measures will cost €0.3 million in 2002 and €2 million in a full year.

Capital Allowances for Independent Hospitals

The Finance Act 2001 provides for capital allowances for expenditure incurred on the construction or refurbishment of buildings used as private hospitals. In order to qualify for the allowances, the hospital had to be operated by a body with charitable status for tax purposes. This condition is now being removed. Furthermore, the minimum requirement of 100 in-patient beds is being reduced to 70.

This scheme is subject to clearance by the European Commission from an EU State Aids perspective. Discussions are on-going with the European Commission.

The cost of this measure is estimated to be nil in 2002 and €2.5 million in a full year.

Capital Allowances for Sports Injury Clinics

Capital allowances will be available for the construction or refurbishment of buildings used as independent sports-injury treatment clinics. In order to qualify for the allowances, the clinic will be required to provide a minimum of 20 beds, surgical services, diagnostic services and an operating theatre. While the clinic will provide services to those patients with private health insurance, 20 per cent of the bed capacity must be available for public patients, and the clinic must provide a discount of at least 10 per cent to the State in respect of the fees to be charged in respect of the treatment of these patients.

Capital allowances of 15 per cent per year will be available for the first 6 years with the balance of 10 per cent being written off in year 7. The allowances will be subject to a clawback if the building ceases to be a qualifying sports-injury clinic within 10 years. The allowances will be subject to the usual £25,000 limit per annum (€31,750 with effect from 1 January 2002) on the amount of capital allowances which an individual passive investor can set against non-rental income.

The scheme is subject to clearance by the European Commission from an EU State Aids perspective.

The cost of this measure is estimated to be nil in 2002 and €0.75 million in a full year.

Capital Allowances for ‘Park and Ride’ Facilities

The Finance Act 1998 provided for a scheme of capital allowances for the construction of approved ‘park and ride’ facilities in certain urban areas i.e. parking and ancillary commercial and residential premises for commuters located at public transport connections. The relief is currently available for expenditure incurred in the three year period from 1 July 1999 to 30 June 2002. This qualifying period will be extended for a further 2 years to 30 June 2004.

Extension of the Deadline for the Urban Renewal Scheme

The deadline for the Urban Renewal Scheme for tax relief for expenditure on commercial, industrial and residential projects is being extended from 31 December 2002 to 31 December 2004. As the business elements of this scheme are subject to EU State Aids rules, the extension of the deadline for these reliefs will be subject to European Commission approval. No such approval is required for the residential elements of the scheme.

Extension of the Deadline for the Rural Renewal Scheme

The deadline for the Rural Renewal Scheme for tax relief for expenditure on commercial, industrial and residential projects is also being extended from 31 December 2002 to 31 December 2004. The 2 year extension of the current 31 December 2002 deadline of the business elements of the scheme will be subject to European Commission approval in the context of the EU State Aids rules. No such approval is required for the residential elements of the scheme.

Multi-Storey Car Parks

The deadline for the relief for expenditure on the construction of multi-storey car parks will be extended for a further 2 years from 31 December 2002 until 31 December 2004 where 15 per cent of total project costs are incurred by 30 September 2003 instead of by 30 September 2001 as at present.

Relief for the Provision of Student Accommodation

There is a special “section 23 type” relief for the provision of residential accommodation for third level students located at or near campus facilities. The relief is currently available for expenditure incurred in the four year period from 1 April 1999 to 31 March 2003. This qualifying period will be extended to 30 September 2005 where an application for planning permission was made by 30 September 2003.

Where the developer lets the accommodation to third level students for a period of one year or less after completion, this will not reduce the amount of qualifying expenditure that a purchaser is deemed to incur for the purposes of claiming the relief.

CAPITAL ACQUISITIONS TAX (CAT)

New Base Date for Aggregation

At present under CAT rules, gifts or inheritances taken on or after 2 December 1988 are aggregated within the same Group threshold for the purposes of arriving at the amount of tax on a current gift or inheritance. This base date for aggregation is now being brought forward from 2 December 1988 to 5 December 1991. This measure takes effect for all gifts or inheritances taken on or after 5 December 2001.

This will cost about €0.5 million in 2002 and about €1.5 million in a full year.

STAMP DUTY

Change in Stamp Duty Rates Payable by Investors on New and Second-hand Residential Property

Investors in new and second-hand residential property will now pay the same stamp duty rates as apply to non-first time owner-occupiers who purchase second-hand property. The new single stamp duty structure for investors in new and second-hand residential property is as follows:

Up to IR£100,000 (Up to €127,000)	Exempt
IR£100,001 to IR£150,000 (€127,001 to €190,500)	3%
IR£150,001 to IR£200,000 (€190,501 to €254,000)	4%
IR£200,001 to IR£250,000 (€254,001 to €317,500)	5%
IR£250,001 to IR£300,000 (€317,501 to €381,000)	6%
IR£300,001 to IR£500,000 (€381,001 to €635,000)	7.5%
Over IR£500,000 (Over €635,000)	9%

The new rate structure will apply to the transfers of such residential property executed on or after 6 December 2001.

The euro amounts quoted will be operative from 1 January 2002.

The cost of this measure is estimated to be €20 million in 2002 and in a full year.

VALUED ADDED TAX

Increase in standard rate from 20 per cent rate to 21 per cent

The standard rate of VAT will be increased from 20 to 21 per cent with effect from 1 March 2002. This increase will apply to all goods and services which are currently subject to VAT at 20 per cent.

This measure is estimated to yield €194 million in 2002 and €290 million in a full year.

EXCISES

Tobacco Excise

The excise duty on a packet of 20 cigarettes is being increased by 10p (including VAT) with a pro-rata increase on the other tobacco products, with effect from midnight on 5 December 2001. This will bring the price of 20 cigarettes in the most popular price category to £3.94.

This measure is estimated to yield €0.9 million in 2001 and €37.1 million in a full year.

Mineral Oil Tax - Petrol

The excise duty on unleaded, superunleaded and leaded petrol will be increased by 5p per litre (including VAT) with effect from midnight on 5 December 2001.

This measure is estimated to yield €4.4 million in 2001 and €110.6 million in a full year.

Mineral Oil Tax – Auto Diesel

The tax on auto diesel will be increased by 5p per litre (including VAT) with effect from midnight on 5 December 2001. There will be two rates of excise duty for diesel from 1 March 2002. The rate for auto diesel with a sulphur content above 50ppm will be increased to a further 5p (a litre) higher than the rate for Low Sulphur Diesel.

This measure is estimated to yield €5.0 million in 2001 and €103.4 million in a full year.

Cider and Perry Excise

The Budget contains a provision for an increase of about 21p (including VAT) in the rate of excise duty on a pint of cider/perry with effect from midnight on 5 December 2001. This brings the rate of excise duty on cider/perry and beer into broad alignment.

This measure will have no significant effect in 2001 but is estimated to yield €33.6 million in 2002.

Betting Duty

The Budget contains a provision to reduce the betting tax rate from 5% to 2% from 1 May 2002.

The cost of this measure is estimated to be €29.2 million in 2002 and €45.7 million in a full year.

ANTI-AVOIDANCE MEASURES

(a) Limit on Use by Investors of Relief for Expenditure on Significant Buildings

Section 482 of the Taxes Consolidation Act provides tax relief on expenditure incurred on significant buildings. In order to combat an unintended use of this relief by passive individual investors, there will be an annual limit of £25,000 (€31,750 with effect from 1 January 2002) on the amount of losses that can be claimed by such investors for offset against their other income. This change is in line with what generally applies in the case of tax relief on expenditure on buildings. This £25,000 limit will apply in the case of such expenditure incurred on and from 5 December 2001.

(b) Detailed rules relating to the Anti-avoidance Measure dealing with Personal Portfolio Life Assurance Policies

The Minister for Finance made an announcement on 26 September last stating that there would be legislation in the Finance Bill, 2002 to change the tax treatment of personal portfolio life assurance policies. The main change was the imposition of a 20% surcharge on the proceeds of such policies. The legislation will apply on and from 26 September 2001. A Budget Day Financial Resolution is being published today which confirms this announcement and which also provides for some additional rules governing the application of the surcharge to certain life assurance policies (those relating primarily to land and building investments) issued on or after today.

These measures are estimated to yield €10 million in 2002 and in a full year.

PRSI CHANGES

Employee

As from 1 January 2002, the PRSI contribution ceiling will increase from €35,870 (£28,250) to €38,740 (£30,510)

This increase underpins the 2002 Estimates.

Employer

As from 1 March 2002, the PRSI contribution rate for employers (the top rate) will be reduced by 1.25% from 12% to 10.75% (both figures are inclusive of 0.7% National Training Fund Levy).

The cost of this measure is €237 million in 2002 and €347 million in a full year.

PART II

SOCIAL INCLUSION MEASURES

NOTE FOR INFORMATION

The sums set out below should be read in conjunction with the amounts provided in the recently published Abridged Estimates Volume.

SOCIAL WELFARE – (see also Annex D where the changes are given in euros and Irish pounds)

The total cost of the Social Welfare improvements is €968.3 million in 2002 and €1,079.3 million in a full year.

Earlier Dates of Payment

Weekly payment increases will take effect 3 months earlier, from the first week of January 2002.

Child Benefit increases will apply 2 months earlier and will be effective from April 2002.

Note: where, for administrative reasons, implementation of these increases is delayed, arrears/advances, where appropriate, will be paid as a lump sum in February 2002 (May 2002 in the case of Child Benefit). Details of the arrangements to apply are set out in Annex D.

Social Welfare Rates

Maximum weekly personal rates for all old age and related pensions will be increased by a minimum of €12.71, with proportionate increases for pensioners on reduced rates, from the first week of January 2002.

There will be a special increase of €2.58 in the weekly rate of Widow(er)’s (Contributory) Pension and Deserted Wife’s Benefit for those aged 66 and over, bringing the total increase to €15.29 per week, from January 2002.

There will be an increase of €12.14 per week in the personal rate of short-term Unemployment Assistance and Supplementary Welfare Allowance bringing the lowest social welfare payment rates to €118.80 per week, from January 2002.

Other personal rates will be increased by a minimum of €10.17 per week, from the first week of January 2002.

Qualified Adult Allowances (QAAs) will be increased as follows:

· a minimum of €12.71 per week for Contributory Pensions where the qualified adult is aged 66 and over

· a minimum of €11.43 per week for Old Age (Non-Contributory) Pensions where the qualified adult is aged under or over 66 and for Contributory Pensions where the qualified adult is aged under 66

€10.23 per week for all other QAA payments.

The above increases will cost €582 million in 2002 and in a full year.

Child and Family Income Support

Child Benefit will be increased by €31.89 per month for each of the first and second children to €117.60 per month; and by €38.10 per month for each of the third and subsequent children to €147.30 per month, effective from April 2002.

These increases will cost €310.4 million in 2002 and €413.8 million in a full year.

Family Income Supplement income thresholds will be increased by at least €34.22, from January 2002.

This measure will cost €15.1 million in 2002 and in a full year.

The minimum rate of Maternity Benefit will be increased by €10.28 to €135.60 per week, from January 2002.

This measure will cost €0.80 million in 2002 and in a full year.

The rate of Back to School Clothing and Footwear Allowance paid in respect of children aged 12 years or more will be increased by €20.96 to €120, from June 2002.

The weekly income disregard for the Back to School Clothing and Footwear Allowance scheme will be increased from €6.35 per week to €50, from June 2002.

These measures will cost €2.2 million in 2002 and in a full year.

Carers

The €158.72(single)/€317.43(couple) weekly income disregards for means assessment for the Carer’s Allowance Scheme will be increased to €191/€382, from April 2002.

From June 2002, the Respite Care Grant will be increased by €127.10 to €635.

The cost of these measures will be €15 million in 2002 and €19 million in a full year.

Disabilities

The disregard for Disability Allowance in respect of earnings from rehabilitative employment will be increased from €95.23 to €120 per week, from April 2002.

This measure will cost €1.7 million in 2002 and €2.2 million in a full year.

Widow(er)s

The Widow Parent Grant will be increased by €1230 to €2500, from December 2001.

The cost of this measure is €1.5 million in 2002 and in a full year.

Free Schemes

From May 2002, the conditions for receipt of Free Telephone Rental Allowance will be relaxed and brought into line with the Free Electricity Allowances.

The Free Travel Companion Pass will be extended to Invalidity Pensioners, from May 2002.

The cost of these measures will be €7.9 million in 2002 and €10.9 million in a full year.

Fuel Allowance

The Fuel Allowance will be increased by €2.65 to €9 per week, from January 2002.

The cost of this measure will be €22.2 million in 2002 and in a full year.

Employment and Educational Supports

Funding will be allocated for a range of extensions and improvements to the Employment and Educational Support Schemes administered by the Department of Social, Community and Family Affairs.

The upper ceiling for tapered Qualified Adult Allowance arrangements will be increased from €184.11 to €196.81 per week, from January 2002.

The additional income disregard for recipients of Rent Supplement will be increased from €31.74 to €50 per week, from January 2002.

The cost of these measures will be €0.8 million in 2002 and in a full year.

Voluntary, Community, Family and Information Services

Additional funding will be provided for Voluntary and Community Services, including the Community Development Programme and the Carmichael Centre, as well as the Money Advice and Budgeting Service and Comhairle.

Additional funding will also be provided for the scheme of grants for Marriage, Child and Bereavement Counselling Services.

This package of measures will cost €8.1 million.

HEALTH AND CHILDREN

Acute Hospital Services - Waiting Times for Public Patients

In line with the Health Strategy, 650 additional beds will be provided for public patients in 2002, 450 of which will be in the public sector and the remaining 200 contracted from the private sector.

This will cost €40 million in 2002 and €78 million in a full year.

The Treatment Purchase Fund, also envisaged in the Strategy, will be set up to purchase treatment from the private hospital sector in Ireland, and, where appropriate, from the public sector, or abroad.

This will cost €30 million in 2002 and in a full year.

Cardiac Services

Further progress will be made in implementing the recommendations of the Cardiovascular Health Strategy Group Report Building Healthier Hearts.

This will cost €5 million in 2002 and €11 million in a full year.

Cancer Services (including Breast Cancer)

Treatment and support services will be improved and clinical trials will be undertaken to ensure rapid delivery of new and effective therapies.

This will cost €5 million in 2002 and €11 million in a full year.

Disability

The momentum of the Government’s accelerated development programme of support and training services for the disabled is being maintained, with €25 million for persons with an intellectual disability and those with autism, and €25 million for people with physical disabilities.

This will cost €50 million in 2002 and €96 million in a full year.

Mental Health

Further development of both community care and specialized psychiatric services is being undertaken.

This will cost €5 million in 2002 and €11 million in a full year.

Older People

Services for this group are being enhanced, with the emphasis on support for care in the community through the home helps, respite care and day centers. Additional funds are also being provided for the Nursing Home Subvention scheme and for Palliative Care services.

This will cost €49 million in 2002 and €83 million in a full year.

Primary Care

Consistent with “Primary Care: A New Direction”, measures are being taken to improve service delivery by increasing the number of GP co-operatives, to facilitate “out-of-hours” activity and by development of the Primary Care Team Model.

This will cost €15 million in 2002 and €27 million in a full year.

Child Welfare

Measures will be taken to implement the Youth Homeless Strategy and develop the care and protection initiatives provided for in the Children Act, 2001.

This will cost €10 million in 2002 and €17 million in a full year.

Health Allowances

Increases in line with those for social welfare recipients are being implemented from January 2002.

This will cost €6 million in 2002 and in a full year.

EDUCATION AND SCIENCE

Extra Teaching Staff

An additional €3 million is being provided to appoint an extra 350 teachers at first level and 200 teachers at second level from the commencement of the next school year.

This will cost €3 million in 2002 and €13.75m in 2003 and 2004.

Special Education

An additional €10 million is being provided for a range of measures in the education sector to assist pupils with disabilities and to provide improved services in the special needs education area. Details to be announced by the Minister for Education and Science at a later date.

This will cost €10 million in 2002, €10.3m in 2003 and 2004.

Disability Awareness Programme

An additional €250,000 is being provided for a one-year pilot disability awareness programme for second-level transition year students to be provided by the Rehab Foundation.

This will cost €0.25 million in 2002.

ENTERPRISE, TRADE AND EMPLOYMENT

At the initiative of the Tánaiste, support for a range of other Social Inclusion projects is being provided via the Department of Enterprise, Trade and Employment.

These will cost €0.5 million in 2002.

JUSTICE, EQUALITY AND LAW REFORM

Integrated Information Service for Immigrants

Funding is being provided for the establishment of an Integrated Information Service for Immigrants which will provide information on or to immigrants in the areas of policy, services, rights, responsibilities and entitlements.

This measure will cost €0.15 million in 2002.

Neighbourhood Watch

Funding is being provided for a new organisation which would establish a network of Neighbourhood Watch schemes throughout the country.

This measure will cost €0.1 million in 2002.

Missing Persons Helpline

Funding is being provided to Victim Support to set up a Missing Persons Helpline.

This measure will cost €0.07 million in 2002.

Other Social Inclusion Measures

Funding is being provided to assist a series of initiatives in the areas of child begging, youth crime and delinquency.

These measures will cost €0.1 million.

Note for Information

Additional Social Inclusion spending is included in Part IV – Capital Expenditure Measures. Additional provision for Local Authority and Social Housing (€146 million), additional bed capacity in the health services (€25 million), Public Transport Accessibility Projects (€5 million), Youth Organisations (€5 million) and funding for the Kerry Diocesan Youth Centre (€0.25 million) are included in the total figure for Social Inclusion spending

PART III

OTHER CURRENT EXPENDITURE MEASURES

NOTE FOR INFORMATION

The sums set out below should be read in conjunction with the amounts provided in the recently published Abridged Estimates Volume.

HEALTH AND CHILDREN

Provision has been made for necessary adjustments associated with the emerging outturn for the Health and Children Vote in 2001.

These will cost €170 million in 2002.

€320,000 is also being provided to the Irish Cancer Society to support a study into prostate cancer, including diagnosis, and €75,000 is being allocated to Open Heart House for the care of HIV patients.

These measures will cost €0.395 million in 2002.

EDUCATION AND SCIENCE

Supervision and Substitution in Schools

Funding is being provided for payments in respect of supervision and substitution in schools.

This measure is expected to cost €70 million in 2002.

Third Level Research and Skills

An additional €5 million is being provided for third level research activity and skills initiative.

This will cost €5 million in 2002 and €5.15m in 2003 and 2004.

Irish Science Olympiad

Funding is being provided to allow Irish Science Olympiad host an International Science Olympiad in Ireland in 2002. A similar event was to be hosted during 2001 but was cancelled as part of the precautions to prevent the spread of Foot and Mouth disease.

This will cost €0.3 million in 2002.

ARTS, HERITAGE, GAELTACHT AND THE ISLANDS

Additional funding is being provided to enable TG4 to sustain and improve its original language programming.

This will cost €1 million in 2002 and in a full year.

ENTERPRISE, TRADE AND EMPLOYMENT

County Enterprise Development

Additional funding is being provided for the establishment of Special Centres of Best Practice in Information, eWork and Enterprise Development. The funding is to be targeted at small communities in rural areas within the BMW region.

This will cost €0.1 million in 2002.

FOREIGN AFFAIRS

Additional funding is being provided for the development of a modernized and more secure passport production and distribution system.

This will cost €5 million in 2002.

JUSTICE, EQUALITY AND LAW REFORM

Age Card Awareness Campaign

Funding is being provided for a targeted advertising campaign to promote the age card scheme established by the Minister for Justice, Equality and Law Reform to counter underage drinking.

This measure will cost €0.15 million in 2002.

Cross-Border Co-operation

Funding is being provided to enhance police co-operation between An Garda Síochána and the Police Service of Northern Ireland, particularly in the area of lateral entry, secondment and exchanges between the two forces.

This measure will cost €0.4 million in 2002.

Asylum Seeker Initiative

Funding is being provided for the introduction of new identification measures for asylum seekers.

This measure will cost €1 million in 2002.

PUBLIC ENTERPRISE

Railway Procurement Agency

This funding will facilitate the procurement of Light Rail and Metro.

This will cost €13 million in 2002; €13.3m in 2003; and €13.6 million in 2004.

CAIT Initiative

The CAIT (Community Application of Information Technology) Initiative is aimed at introducing new technology and information systems to those who are unfamiliar with, and who do not use, the new technologies in their everyday lives. CAIT intends to harness the experience, local knowledge and relationships of the community and voluntary sector to implement projects which achieve this aim.

This will cost €3 million in 2002.

MARINE AND NATURAL RESOURCES

Additional funding is being provided to An Bord Iascaigh Mhara (BIM) for the sea fisheries development programme.

This will cost €2.5 million in 2002.

TOURISM, SPORT AND RECREATION

Regional Festivals and Cultural Events

Funding of €6.35 million annually is being provided for five years to enable Bord Failte to expand regional tourism through festivals and cultural events.

This will cost €6.35 million in 2002 and in a full year.

International Sports Tourism Initiative

This highly successful initiative currently provides for €6.35 million annually to 2005 to support efforts to attract sporting events with tourism potential for Ireland. Funding is being increased to €7.62 million from 2002 and extended to 2007 to enable longer term commitments to be made by Bord Failte.

This will cost €1.27 million in 2002 and in a full year.

Rose of Tralee

€0.32 million is being provided as a once-off contribution in recognition of the role of the festival in generating tourism in the region.

This will cost €0.32 million in 2002.

Tourism Ireland Ltd.

Funding of €3.5 million is being provided for international marketing and to meet costs arising from start-up.

This will cost €3.5 million in 2002.

High Performance Strategy

Funding of €3 million is being provided to the Irish Sports Council to commence the implementation of the high performance strategy which has been developed following the completion of a review of the Irish teams’ performance at the Sydney Olympic Games 2000. The strategy includes initiatives aimed at strengthening the organizational capacity of selected sporting organizations, together with the provision of top class coaching and training for Ireland’s elite performers.

This will cost €3 million in 2002 and in a full year.

PART IV

CAPITAL EXPENDITURE MEASURES

NOTE FOR INFORMATION

The sums set out below should be read in conjunction with the amounts provided in the recently published Abridged Estimates Volume.

ENVIRONMENT AND LOCAL GOVERNMENT

In addition to the capital expenditure measures announced in the recent Abridged Estimates Volume, a further €300 million is being allocated to meet key infrastructural priorities. This increase will be targeted at the key priority areas in the National Development Plan including roads, housing, water services and waste management provision.

The € 300 million is comprised of the following;

· € 146 million for local authority and social housing;

€ 100 million for national road improvements;

€ 38 million for water and sewerage services;

€ 16 million for waste management.

PUBLIC ENTERPRISE

In addition to the capital expenditure measures announced in the recent Abridged Estimates Volume, a further €44 million is being allocated for public transport development in 2002 as listed under:

Public Transport Infrastructure

Additional funding is being provided to allow CIE to make progress on addressing key rail infrastructure deficits including the Kildare mainline and suburban rail line and Dublin suburban and DART services.

This will cost €31.6 million in 2002; €32.6 million in 2003; and €34.1 million in 2004.

Integration Measures using Information and Communications Technology and Transport Research

This funding will allow the development of integrated ticketing and real time passenger information. These measures will improve the quality of service to intending passengers and will help to achieve the modal split in favour of public transport which is a key aim of the Government’s public transport policy.

This will cost €3.6 million in 2002; €5.3 million in 2003; and €5.4 million in 2004.

Public Transport Accessibility Projects

Funding for these projects will help the mobility impaired in accessing public transport facilities and vehicles.

This will cost €5 million in 2002; €6.5 million in 2003; and €6.8 million in 2004.

Rural Transport Initiative (RTI)

The Rural Transport Initiative will fund both the pre-development and operational costs of a number of pilot projects in public transport services in rural areas to be provided by community based organisations.

This will cost €3.8 million in 2002; €1 million in 2003; and €1 million in 2004.

Telecommunications Infrastructure

A provision of €19 million has been made in the area of broadband interconnectivity to facilitate projects aimed at ensuring that this technology contributes significantly to social and economic development in Ireland.

HEALTH AND CHILDREN

Additional Beds

Capacity in acute hospitals will be increased in various areas, including medical assessment units and high dependency beds, to support the provision of an additional 450 public beds in 2002.

This will cost €25 million in 2002.

Other Capital Infrastructure

€5 million is being provided for the Primary Care Model, GP co-operatives and Primary Care Diagnostics; €4 million for a range of projects in the disability sector; €3 million towards 0additional facilities for older people such as community nursing units; and €3 million to enhance information and communications technology in the health sector.

These measures will cost €15 million in 2002.

All of the above and other capital expenditure items are detailed in the table overleaf.

DETAILS OF CAPITAL EXPENDITURE

Department/Measure	2002 Cost €m	2003 Cost €m

*AGRICULTURE, FOOD & RURAL DEVELOPMENT*
Teagasc Training Colleges	3.58	3.54
Iverk Agricultural Show, Piltown, Co. Kilkenny	0.10
*ARTS, HERITAGE, GAELTACHT & THE ISLANDS*
Cultural Projects (additional provision)	3.00
Refurbishment of Cork Opera House	1.90
Restoration and fitting out of Fota House, Cork	1.27
Heritage Development Project, Lucan	0.57
Preservation/Cataloguing of Books and Archival Material – Allen Library, North Richmond Street, Dublin	0.13
*DEFENCE*
Programme of Re-investment in Defence Forces Barracks and Other Installations	19.00
*EDUCATION AND SCIENCE*
Primary School Building (additional provision)	36.00
Secondary School Building (additional provision)	19.00
DCU Swimming Pool	7.00
Youth Organisations	5.00
St Catherine’s Senior School, Dublin 7 – Security Project	0.64
Scouting Ireland, Mount Mellery for 75^th Anniversary	0.15
*ENTERPRISE, TRADE & EMPLOYMENT*
County Enterprise Development – special centres for best practice	0.20

Department/Measure	2002 Cost €m	2003 Cost €m

*ENVIRONMENT & LOCAL GOVERNMENT*
Key Infrastructural Priorities (as detailed above)	300.00	300.50
Mulroy Bay – Bridge, Donegal	1.48
Ballybough Redevelopment Centre	1.27
YMCA, Aungier Street	0.75
Cobh Community Centre	0.45
Leixlip Community Centre	1.40
*FOREIGN AFFAIRS*
Development of a modernised and more secure passport production and distribution system	3.00
*HEALTH & CHILDREN*
Key Infrastructure Priorities (as detailed above)	40.00	42.00
Barrettstown Castle	1.27
Children at Risk in Ireland (CARI)	0.13
Cabra Health Centre Refurbishment	0.64
KARE	0.50
*JUSTICE, EQUALITY & LAW REFORM*
Kerry Diocesan Youth Centre	0.25
*MARINE AND NATURAL RESOURCES*
Development and Upgrading of Fishery Harbours (additional provision)	20.00
Sea Fisheries Development Programme (BIM) (additional provision)	4.50
Department/Measure	2002 Cost €m	2003 Cost €m

*OFFICE OF PUBLIC WORKS*
The Louvain Institute for Ireland in Europe	0.90
St. Isidore’s Irish College, Rome	1.27
Restoration of Christ Church Cathedral, Waterford	1.27
*PUBLIC ENTERPRISE*
Public Transport Development (as detailed above)	44.00	45.40
Broadband Interconnectivity Projects (as detailed above)	19.00
*TOURISM, SPORT & RECREATION*
Additional funding for Sports Capital Programme: - Cusack Park, Mullingar - Neville Park, Rathkeale - Fitzgerald Stadium, Killarney - O’Moore Park, Portlaoise - Intermediate School, Killorglin Sportslink, Santry Prussia Street, Community Centre	2.77 0.25 0.25 0.25 0.38 0.25 1.25 0.14
Aquatic Pool Sports Campus Ireland Carryover of underspend of 2001 allocation	7.00	0.64
Special Olympics World Summer Games 2003 Kill Equestrian Centre, Kildare	0.64

[1] Comparisons are calculated on 2001 12-month amounts. It should be noted that 2002 costs may be different than full year costs because of payment arrangements or time of commencement, etc.

[2] With a maximum transferability of €37,000 between spouses.