129 Mr. Hilliard asked the Minister for Finance the reason for the expenditure increase under Vote 45, which is £110 million in 1997 and was £25 million in 1996 Estimates for the public services; and if there will be a similar increase for 1998. [1679/97]

Under normal Estimates procedure, provision is included in the Votes concerned for, among other things, the costs of pay increases on which agreements have been reached. A separate contingency provision is normally included on a global basis in the Vote for Increases in Remuneration and Pensions (Vote 45) to meet the estimated cost of other pay increases which are still being negotiated under the terms of prevailing policy on pay in the public service. The total cost of pay increases for which provision is made in the Estimates in any particular year is, therefore, the sum of amounts for settlements on each Vote and the global contingency provision for claims which are still in procedures.

Funding is made available late in each year from this global provision to the Vote concerned to cover the costs, after account is taken of available savings which arise in respect of pay increases for which no provision had been made in these Votes.