Infrastructural investment/Capital envelopes

Last year we moved to a multi-annual programme for capital spending so as to plan more effectively for such large-scale spending. 2004 was its first year of operation. The multi-annual basis allows Departments to carry-over to the next year up to 10 per cent of the voted annual allocation to assist programme planning and delivery. The carryover from 2004 to 2005 is €237 million or 4 per cent of the 2004 voted capital allocation. I am providing €334 million in additional Exchequer capital for 2005. This will bring the total Exchequer cash available for capital spending next year to almost €6,300 million, or 20 per cent ahead of the 2004 cash outturn.

This means that for 2005-2009 we will maintain our high level of investment in infrastructure at nearly twice the European average. Total investment within the envelope over the next five years will be €36.3 billion, which is €2.7 billion more than last year's capital envelope. Further details are set out in the Budget Summary. I am making provision in these totals for the Government's decentralisation programme. This programme is moving forward. Considerable progress has been made and its implementation is well on track.