Infrastructure Capital Spending Exceeds £1.1 Billion In The North

The figures emerged today when the Finance Minister, Rt Hon Peter Robinson MP, MLA published details of spending by Northern Ireland Departments in the last financial year (2007-2008).

Mr. Robinson today said: "This is the highest figure on record and reflects the priority attached by the Executive to sustainable investment in our public infrastructure. The Executive will build on this good start with gross investment in public infrastructure planned to increase to more than £2billion by 2010-2011.

"A key factor in achieving this record level of investment has been the enhanced performance by departments in spending their capital allocations.  Under Direct Rule, almost a fifth of the amount allocated to Departments to fund capital projects remained unspent at the end of the year.

"Thanks to strong, focused and effective management by devolved Ministers this level of capital underspend has been reduced substantially, although we must maintain our efforts to ensure that the improvements in our infrastructure are delivered on time as we move forward."

The Minister pointed out that figures for current expenditure show that the total spent by departments last year amounted to some £8.2billion, or 98% of the maximum outlay possible:

"The level of spend on public services has continued to grow - by 4.9% in real terms compared to 2006-2007, equivalent to an additional £630million.

"However, it is important that departments make progress in spending the resources that have been allocated to them.  Although some have registered significant improvements in this respect, the overall level of underspend in relation to current expenditure remains higher than best practice levels.

"Following the successful Budget outcome earlier this year, departments will need to begin delivering on the improved outcomes set out in the Programme for Government.

"A critical first stage in this process is for departments to spend the funds that have been allocated to them. Therefore there is a need for departments, working with the support of Statutory Committees, to refocus their efforts to ensure that underspend for this year will be demonstrably lower than in 2007-2008."

Mr Robinson stressed the need for departments to deal with resources, as allocated in the Budget process, before applying for more funding for public services:

"Throughout the Budget process and beyond, some departments have stressed the need for additional resources for specific services, which I fully recognise in terms of the need to make a difference to the lives of local people.

"However, there is little point in allocating funds that are not subsequently spent, which has too often been the case in the past.  It would strengthen their case significantly if departments could prove that they were capable of spending the additional funds by reducing underspend."