Cabinet concern about underspend on road projects
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Cabinet concern about underspend on road projects

Dec 29, 2023

A Government spokesperson said that the €97m underspend at the Department of Transport would even out as the year progressed as several ministers expressed concerns about road projects.

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Concerns have been raised by several Cabinet ministers over the Department of Transport's failure to spend its budget on national roads, the Irish Mirror understands.

As Eamon Ryan's department confirmed that it had not used nearly €100m of its budget for the first quarter of 2023, Minister Stephen Donnelly told his colleagues that his Department of Health had spent €178m too much.

Ministers were told during Thursday's Cabinet meeting that the Department of Transport's spending on active travel, greenway investment, electric vehicle infrastructure and spending on national roads were all less than expected in the first three months of the year.

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The total underspend was €97m. Mr Ryan was not at Cabinet as he was attending the IEA Energy Efficiency Conference in Paris.

Several Cabinet ministers told the Irish Mirror that the majority of those in attendance agreed that the underspend on national roads was a concern. It is understood that the Green ministers did not take part in the discussion to the same extent as their Fianna Fáil and Fine Gael colleagues.

"There was a concern expressed by a number of ministers about the progress of certain roads projects, as well as the underspend overall in the Department," one source said.

It is understood that Taoiseach Leo Varadkar, Higher Education Minister Simon Harris, Enterprise Minister Simon Coveney and Finance Minister Michael McGrath spoke about their worries about the maintenance of existing roads and delivery of new roads.

Sources also said that the Minister of State at the Department of Transport Jack Chambers shared some of these concerns.

The Irish Mirror also understands that Public Expenditure Minister Paschal Donohoe raised the fact that there is an ongoing underspend in the Department of Transport.

Another Minister noted that there was a "triple figure underspend last year". Transport carried forward €137m of last year's budget into 2023.

A number of ministers insisted that there was no row. One source said that any potential underspend could "be resolved by allocating more funds for maintenance or repair of roads, footpaths and cycle lanes".

Another Minister stated that if there was going to be underspending in some areas of the Department of Transport, then the opportunity should be taken to resurface or carry out other works on smaller and regional roads.

There was general agreement at the Cabinet meeting that there needed to be further discussion on the matter with Minister Ryan.

A Government spokesperson insisted that the "Department is confident that expenditure will return to profile as the year progresses".

Elsewhere, Minister Donnelly told his colleagues that there is some financial risk to the health budget as the HSE reported that it spent €178m over its budget in the first three months of 2023.

The deficit is primarily due to spending in acute hospitals. There has been a higher demand for the Emergency Department and a significant increase in inpatient and day cases.

Based on a five-year average of emergency department figures, attendances for the first quarter of this year were up 13 per cent and admissions were up 11 per cent.

Compared to the same period last year, inpatient and day cases are up 11 per cent and outpatient attendances were up 10 per cent.

A Government spokesperson said that work on Expenditure Management Projects and financial control measures are underway, including reviewing the need to continue COVID responses.

Bernard Gloster, CEO of the HSE, has already announced a temporary pause on senior management and administrative grades across the HSE. Recruitment of frontline staff will continue, however.

The Cabinet also agreed to a plan brought by Minister Donnelly to delay the delivery of Pfizer COVID-19 vaccines that were due by the end of 2023. Instead, there will be a staggered delivery over the next four years,

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