THE GOVERNMENT spent a total of €22 billion during the first year of the seven-year €184 billion National Development Plan (NDP), according to a report published by Minister for Finance Brian Lenihan yesterday.
The annual report on the NDP for 2007, prepared by the Department of Finance, was placed before the Dáil by Mr Lenihan yesterday in advance of a full debate on the plan this week.
It shows that the NDP was on target during the first 12 months of operation following its launch in January of last year.
Both Mr Lenihan and Taoiseach Brian Cowen have insisted they will maintain capital spending, notwithstanding the sharp decline in exchequer revenues this year.
However, it is expected that Mr Lenihan will indicate this week if any NDP projects will be delayed or trimmed back in the light of the current economic situation.
According to the report, which extends to almost 200 pages, the expenditure was broadly in line with projections.
However, 5 per cent more than anticipated was spent on social inclusion, while there was an underspend of almost 6 per cent in two other of the five priority areas - enterprise, science and innovation; and social infrastructure.
Some €6.2 billion was invested last year in "economic infrastructure", mainly in the delivery of roads and public transport. It included the completion of 11 major national roads projects.
According to the report: "The investment in economic infrastructure is vital, not only for our economic future, but also for promoting environmental sustainability through sustained investment in public transport, sustainable energy and environmental services."
An appendix lists some 72 projects, each worth €30 million, which have been completed or are under way in 2008.
They include major road projects, major public transport schemes, including the Luas extensions and Dart upgrades, the Western Rail Corridor, hospital and university projects, waste and sewerage schemes, prisons and ports.
It also includes major energy-related projects such as the new Aghada power station, the North-South and East-West interconnectors as well as ambitious renewable energy schemes.
It also notes progress on other major schemes like the proposed metro system for Dublin and the underground interconnector connecting the major rail hubs in the capital city. However, no figures have yet been released in relation to these projects.
When describing the general economic situation, the Department of Finance reports that the global economy was "reasonably robust" last year, while domestically GDP in Ireland expanded by 5.3 per cent in 2007, broadly in line with the average.
But the report goes on to note: "The figure for the year as a whole, however, masks a sharp slowdown which became evident as the year progressed.
"This, in turn, mainly reflects developments in the new house-building sector, where the annual growth rate turned negative in the second quarter of last year."
The report strikes a positive note saying that NDP spending will help absorb some of the excess labour that will merge because of the decline in the new house-building sector.
It also suggested that arising from the slowdown inflationary and value-for-money considerations will "not be as problematic as might have been thought".
Mr Lenihan emphasised the successes of the NDP in its first year in his comments on the report.
"I hope deputies will acknowledge the €22 billion investment under the National Development Plan in 2007 which is contributing to real improvements in the quality of life of Irish citizens."
