"€2.5 billion for capital projects has not yet been spent"

Amtmann · 05-11-2010 1:23pm #1

From today's Independent:

GOVERNMENT departments have failed to spend almost half of the €6bn allocated this year for major capital projects, raising fears that they have been hoarding cash to plug the huge gaps in the State's finances.

Despite a desperate need for cash for school buildings, hospital facilities and public housing, almost €2.5bn remains to be spent with just two months of the year to go.

If individual departments do not spend their allocations, they can keep just 10pc of what is left. The rest must be returned to the Exchequer.

The figures from the Department of Finance provoked fury yesterday among school chiefs when it emerged that the Department of Education had failed to spend €331m this year -- despite crumbling school buildings with poor facilities.

For every €1m spent on construction projects, between 10 and 12 jobs are created. The underspend so far this year means that up to 12,000 construction workers are needlessly claiming the dole.

Hundreds of schools are clamouring for new buildings, but just €381m out of a total of €712m granted to the department this year for capital projects has been spent.

The department could not say last night how much it will hand back to the Exchequer, but next year's capital spending on schools and colleges will be reduced. The exact cut has yet to be agreed.

Tanaiste and Education Minister Mary Coughlan last night said more than €450m had been invested this year and that the extra €70m spend was not reflected in Department of Finance figures because it had been carried over from 2009.

Jobs

Construction of 53 new schools will have begun before the end of the year, but there have been some delays in purchasing suitable sites.

She also admitted that spending on new schools was €50m behind projections. Some 1,200 schools are currently awaiting approval for capital works.

Ms Coughlan said: "There is a high number of projects going on site and substantial monies are now being paid out of the schools' capital budget, which will see significant expenditure before the end of the year."

The Irish National Teachers' Organisation said the failure to spend almost half the budget earmarked for school buildings was indefensible.

The departments of environment (€371m) and transport (€275m) have also failed to spend their allocations, despite a desperate need for water-treatment plants and new public housing.

The Department of Energy, which is tasked with making older homes warmer and more energy-efficient, has an underspend of €40m.

The Construction Industry Federation said: "The situation will deteriorate further over the course of 2011. The implications for employment are very grave."

The Department of Finance last night confirmed that it expected €300m of the capital budget to be unspent by the year end. Some €5.5bn will be allocated in 2011, a drop of €500m on this year.

- Paul Melia and John Walshe

Irish Independent

http://www.independent.ie/national-news/budget/news/euro25bn-for-capital-projects-has-not-yet-been-spent-2408568.html

thesimpsons · 05-11-2010 5:30pm

I don't understand how or why this happens. there are schools the length of the country needing refrubishment, extensions, new premises, they have plans drawn up and planning permission in alot of cases. why isn't the money being spent if its sitting there allocated.

jdivision · 05-11-2010 5:34pm

Much lower initial cost to continue to rent prefabs. Basically that money is being returned to finance to cut the amount we borrow next year.

Sponge Bob · 05-11-2010 5:49pm

I covered the roads aspect of this deliberate underspend early this year somewhere hereabouts.

dubhthach · 05-11-2010 6:27pm

During the boom years the same thing happened. The capital budget was underspent for several years. During which time Messers McCreevey et Cowen would come out at budget time telling us we were 1billion in surplus here's a tax-cut etc. If you actually spent what was planned ye wouldn't have had such big surpluses -- one reason motorways are 4years behind schedule.

Chris_5339762 · 05-11-2010 7:08pm

Department of Finance allocated it but told them not to spend it I guess. That way they win votes.

I wouldnt be surprised if they cut Metro North in the budget and claim to have saved €3 billion.

Pete_Cavan · 05-11-2010 7:42pm

thesimpsons wrote: »

I don't understand how or why this happens. there are schools the length of the country needing refrubishment, extensions, new premises, they have plans drawn up and planning permission in alot of cases. why isn't the money being spent if its sitting there allocated.

At current rates of income the government has to borrow €20bn a year to cover their expenditure. The cost of borrowing has increased greatly in recent years and the current level of borrowing is not sustainable. We need to reduce our deficit and to do this we need to reduce spending and save money. That is the way it is going to be in this country for the next few years so better get used to it.

DWCommuter · 05-11-2010 11:12pm

Pete_Cavan wrote: »

At current rates of income the government has to borrow €20bn a year to cover their expenditure. The cost of borrowing has increased greatly in recent years and the current level of borrowing is not sustainable. We need to reduce our deficit and to do this we need to reduce spending and save money. That is the way it is going to be in this country for the next few years so better get used to it.

But the money was allocated so it should have been spent. Otherwise and alluding to your opinion above, the capital allocation was just a sham. (of course Ive no problem believing that.)

Sponge Bob · 06-11-2010 11:39am

My issues are with the sheer waste on the current side.

In Galway alone there are consultants in situ on the road jobs listed below. Some will never be built in my opinion but the consultancy pork barreling continues apace. Each of these main framework consultants then hires lots of eco bollix consultants and that rabble are the backbone of the Galway green party ...naturally

This is all a ****ing scam between FF and the Greens IMO.

Why are we paying for this waste, get rid of 80% of them and use the money to build roads FFS

1. M17/M18 motorway
2. Claregalway Bypass
3. R336 project ( Barna - Screeb)
4. N59 Moycullen Bypass
5. N17 Tuam Claremorris
6. N59 Oughterard- Clifden

I am not sure about the Galway Bypass, probably has a consultant or two attached as well.

Victor · 06-11-2010 11:57am

How does this compare to other years?

There tends to be a backlog of payments towards the end of the year.

enda1 · 06-11-2010 12:05pm

Is cheese considered a capital expenditure?

If so
<<
>>
I've a plan.

irjudge · 07-11-2010 12:22am

Sponge Bob wrote: »

My issues are with the sheer waste on the current side.

In Galway alone there are consultants in situ on the road jobs listed below. Some will never be built in my opinion but the consultancy pork barreling continues apace. Each of these main framework consultants then hires lots of eco bollix consultants and that rabble are the backbone of the Galway green party ...naturally This is all a ****ing scam between FF and the Greens IMO.

Why are we paying for this waste, get rid of 80% of them and use the money to build roads FFS

1. M17/M18 motorway
2. Claregalway Bypass
3. R336 project ( Barna - Screeb)
4. N59 Moycullen Bypass
5. N17 Tuam Claremorris
6. N59 Oughterard- Clifden

I am not sure about the Galway Bypass, probably has a consultant or two attached as well.

Yeah I could never figure out why they need consultants on these things. Why not just build the damn things, start at one end and finish at the other. Simples.

Victor · 13-11-2010 2:39pm

So who will tell the contractor where to build the road? Who will supervise the quality? What if changes are needed - how will the price be agreed?

Sponge Bob · 13-11-2010 5:51pm

Keep them working on 20% of projects _hint_ like the 20% of projects with consultants attached that likely to be built in the next 20 years. Sack the rest and save some money for building that 20%

mgmt · 13-11-2010 7:29pm

Completion Dates for Selected Major Projects

2006
Introduction of hourly services on Dublin-Cork rail route

Dublin Port Tunnel

2007
New Portlaoise train depot

Delivery and introduction to service of 120 intercity railcars

M1 Motorway

M50 Upgrade (Phase 1)

2008
Joining of the Tallaght and Sandyford Luas Lines in City Centre

Luas extension from Connolly to Docklands

Luas extension Tallaght to Citywest (subject to developer contributions)

Cork commuter rail service to Midleton

Ennis – Athenry rail line (Western Rail Corridor)

2009
Dublin City Centre rail resignalling project

M3 Motorway

Phase 1 of Navan Rail Link

Opening of new Dublin City Centre rail station

Limerick Southern Ring Road

Waterford City Bypass

Galway – Athenry commuter rail services

2010
Metro West Phase 1 Tallaght to Clondalkin

Kildare rail upgrade

Sandyford Luas line extension to Cherrywood

Dublin- Cork Inter-Urban Motorway

Dublin-Limerick Inter-Urban Motorway

Dublin-Galway Inter-Urban Motorway

Dublin-Waterford Inter-Urban Motorway

M50 Upgrade (Phase 2)

2011
Metro West Phase 2 Clondalkin to Lucan

Athenry – Tuam rail line (Western Rail Corridor)

2012
Metro North

Luas extension from city centre to Liffey Junction

Metro West Phase 3 Lucan to Blanchardstown

2013
Lucan to city centre Luas

Rail Safety Programme completed

2014
Metro West Phase 4 Blanchardstown to Ballymun

Tuam – Claremorris rail line (Western Rail Corridor)

2015
Interconnector completed

Extend Electrification to Balbriggan, Maynooth, Navan, Hazelhatch.

Phase 2 of Navan rail link

Luas extension Cherrywood to Bray

Note: The 2011-2015 road programme will involve the development of approximately 150 km of dual carriageway, 400 km of 2+1 roads and 300 km of single carriageway. The sequencing of projects for implementation post-2010 will be decided by the National Roads Authority at a later date.

http://www.transport.ie/upload/general/7048-4.pdf
:rolleyes:

Chris_5339762 · 14-11-2010 7:14pm

ahahaha what a pile of lies

veryangryman · 14-11-2010 8:25pm

Chris_5339762 wrote: »

ahahaha what a pile of lies

Got to admit it looks great on paper though even if complete cack.

Metro West - not a fear!

"€2.5 billion for capital projects has not yet been spent"

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