Tánaiste announces 2004 estimates for Department of Enterprise, Trade & Employment

"Government's priority is to manage and invest public monies wisely" - Tánaiste

The Tánaiste and Minister for Enterprise, Trade & Employment, Mary Harney, this afternoon (Thursday 13 November 2003) announced the spending estimate for her Department for 2004 and welcomed the publication of the Government's overall spending programme for next year.

Commenting on the overall Government spending programme, the Tánaiste said: "Today's estimates provide for over €40bn in public spending. That's well over €10,000 for every man, woman and child in the country. This is €40bn provided by the hard work of Irish people and the Government's first job is to manage and invest the funds wisely on their behalf. We are maintaining steady progress within the speed limits for our economy. We are neither braking hard nor accelerating dangerously.

The estimate for the Tánaiste's Department for 2004 is €1,124,150,000 which represents an increase of 3% over 2003.

Making the announcement, the Tánaiste said: "I am confident that the estimate for my Department for next year clearly underlines the Government's commitment to continuing economic growth, maintaining the competitiveness of Irish Industry, providing more high quality employment and ultimately to building a better and fairer society in the interests of all citizens."

"My Department's overall estimate clearly reflects the new and increasing emphasis on support for research and innovation, areas which are crucial to driving Ireland's future economic progress and fundamental to providing sustainable, high quality, well paid jobs, now and in the future," the Tánaiste added.

Overall spending on science & technology will increase by 36% over 2003 levels. The bulk of this will go to Science Foundation Ireland to fund their ambitious research programme while Enterprise Ireland will also see a significant increase in the monies available to it to support innovation and R&D within indigenous industry. Funding to promote greater awareness of science, particularly among young people, is also being increased.

The Tánaiste acknowledged that reductions in funding allocations to the development agencies, including IDA, Enterprise Ireland, Shannon Development and the County Enterprise Boards would impact on the amounts available to these agencies to provide grants to new industry. "Activity in this area is driven by demand and funding allocations reflect this fact. Nonetheless investment in both foreign and indigenous industry remains relatively high compared to our main economic competitors," the Tánaiste said.

Exchequer funding for FAS training and employment programmes is augmented by an increased allocation of monies from the National Training Fund. Overall the FAS budget will increase by 2.7%. "This amount of investment means that the combined participation levels on Community Employment, Jobs Initiative and Social Economy programmes will be maintained at end 2003 levels and no further reductions in numbers are envisaged in 2004," said the Tánaiste.

"The Government recognises the invaluable contribution such programmes make to local communities all around the country and the level of funding provided for next year reflects this," she added.

Meanwhile, funding for FAS training and integration programmes will increase by 3.8% in 2004.

The estimate also provides funding to facilitate the establishment on a statutory basis of the Personal Injuries Assessment Board. The text of the PIAB Bill will be published in the coming days and the Board will be up and running early in 2004. Once fully operational, the PIAB will be funded on an on-going basis by fees levied on respondents and it is the intention that exchequer funding will not be required beyond 2004.

"It is critical that the PIAB get itself up and running with the minimum of fuss and that is why I established the Board on an interim basis some time ago. The funding now provided for 2004 will ensure that the Board is adequately resourced to fulfil its statutory functions immediately the Bill is passed through the Oireachtais," the Tánaiste said. .

She continued: "With today's estimates, the Government has set priorities with limited and precious public resources. We are maintaining overall public spending in line with our capacity to pay and with economic growth. At 5 per cent, we are increasing public spending at a moderate rate that will not put a strain on jobs and the economy.

And she concluded: "Ireland's economic progress means we can grow public spending at twice the average expected for European countries next year."

Notes for Editors

The estimate for the Department of Enterprise, Trade & Employment can be found at http://www.djei.ie/publications/corporate/2003/aevfinal.xls.

The FÁS budget is augmented by an increased allocation of funds from the National Training Fund (NTF). The combined Exchequer/NTF allocation for FÁS is €836,937,000 representing an increase of 2.7% over 2003.

Enterprise Ireland also receives an allocation of funding from Subhead F (Science & Technology Development Programme) to support innovation, R&D and the flow of applied research from third level institutions. The total amount of this allocation for 2004 is €82,880,000.

ENDS/ETE 1154