The annual average is thus 4.07 per cent, just at the Minister's own target of 4 per cent. Of course, almost since he took office, Mr McCreevy has sharply increased spending on capital investment, which goes towards infrastructure projects. The Estimates provide for an increase of 25 per cent in voted capital spending in 2000. If these targets are to be achieved then further sharp increases will be needed in subsequent years. Investment spending has increased sharply in recent years and delays in starting projects and obtaining planning permission will give headaches to policy-makers for the next couple of years.
Public pay remains a problem.
However, the Minister stressed this does not provide any estimate for any pay increases agreed in the negotiations for the successor to Partnership 2000 - or for any increases if no deal is reached. Since the end of 1996, gross current spending has risen some 37 per cent and the main reason has been the jump in public sector pay, which has risen by 38 per cent in that period. The Government will be trying to keep a cap on that figure during the negotiations for Partnership 2000's successor. This will allow significant repayment on the national debt this year. These strong trends will continue into next year, allowing room for significant tax cuts.