The Government today announced major spending increases for health, education, for An Garda and transport as part of a €4 billion increase in public spending for 2007.
Publishing the Book of Estimates for 2007, Minister for Finance Brian Cowen said public spending would rise by more than 7 per cent to €54.3 billion, with further measures due to be announced in the Budget next month in health and education.
Mr Cowen said he still intends "bringing forward a Budget that will have a surplus" and that his spending plan will see no cut backs on Government services.
Some €3 billion - earmarked for day-to-day spending - will go towards the cost of higher wages with €0.9 billion allocated for capital spending. This brings the total capital spend to €7.6 billion.
The Minister admitted that some €18 billion was required to fund public service pay and pensions next year, up €1.2 billion, or 7 per cent on 2006. Some €156 million of this was related to wage increases under Sustaining Progress, while €740 million is linked to the next pay agreement, Towards 2016.
"A pay and pensions bill of €18 billion is undoubtedly a very significant amount and the taxpayer is entitled to full value for money on these resources," he said, adding that next measures to scrutinise public spending would be introduced. He said pay increases under Towards 2016will be dependent on changes in work practices from each sector.
Public transport is one of the big winners in 2007 with a 58 per cent increase in funding to €780 million next year. Mr Cowen said this would be used to fund an increase in capacity in the Red Luas line and phase one of the western rail corridor.
The national roads programme will be given €1.5 billion which will fund the completion of 8 road projects in 2007 and the start of six new projects.
Education spending is going to rise by 8 per cent to €8 billion representing a 7.7 per cent increase on last year's amount. Mr Cowen said this money would be used to provide 800 additional teachers and 1,400 special needs assistants.
Capital expenditure in education will rise to €707 million, an increase of 11 per cent. The Minister said this additional funding would be used for 80 new school building projects with another 160 large scale refurbishment projects.
Department of Health spending will increase by 11 per cent next year to over €14 billion, and Mr Cowen said that further spending increases for health will be announced on Budget day on December 6th.
Of the additional €1.5 billion being given to the health services, just under €500 million has been allocated to meet the rising cost of wages in the health service.
The repayment scheme for nursing home patients who were overcharged has been allocated €380 million, representing a 7.7 per cent increase on last year's amount, which the Minister said was an estimate of what was needed. He added that if the level of claims meant the demands were higher, he would increase the money available for this scheme through supplementary funding.
Mr Cowen said: "Today's Estimates will lead to improved public services and better infrastructure not only in 2007 but in the years ahead. They are sustainable, targeted and appropriate as we work to build a stronger and fairer Ireland."
Funding for the Department of Justice and An Garda will rise by 9 per cent next year, Mr Cowen said. Some €150 million of this is a capital provision to modernise An Garda's IT and communications equipment, with the main element a €971 million allocated to paying for an increase in Garda numbers - part of the Government's commitment to bring the strength of the force to14,000.
Mr Cowen said that by the end of next year there would be 13,700 full-time Gardai and a further 1,100 in training.
Minister for Justice Michael McDowel said the additional funding will yield almost three million extra man hours of policing by uniformed and special units throughout the State.
Describing the increase in funding of €181m to €2.4 billion as a "significant increase in funding," he said the allocation would "enhance the capacity the Garda Síochána to combat crime."
The Estimates also make provision for a further €85 million to be provided for development aid through other Government Departments, bringing Ireland's Official Development Assistance (ODA) in 2007 to €813 million.
The increased allocation amounts to 0.5 per cent of Ireland's GNP. The Government has recommitted itself to reaching the 0.7 per cent target of the United Nations by 2012 after failing to reach that target by the 2007 date originally promised.
The Department of Arts, Sport And Tourism, with an overall Budget of €698.6 million for 2007, has been allocated a 17.6 per cent increase in funding. Separate provisions for increases in welfare payment rates will be announced on Budget day.
