The collapse in the property market has had a major impact on North Ayrshire Council's capital spending programme over the next two years.

The Council's executive committee have agreed a revised investment programme which will see essential projects and others phased in over a longer period. Nothing has been axed.

Capital spending for 2008/9 was originally set at £45,794,000. The revised budget is £35,873,000. For 2009/10 the original budget was £37,899,000. This now stands at £30,680,000.

Alasdair Herbert, Assistant Chief Executive, Finance, said that the Council depended on the sale of surplus land to fund its capital pogramme. The recent decline in this area has had a major impact on plans.

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He pointed out the Council was still spending £65m over the next two years. The revised plan enabled it to meet its high level priorities within available resources. Should the position improve there was flexibility to bring projects forward.

David O'Neill, Council Leader, said that the Council had acted fast to produce a revised budget that was sensible and prudent.

"We are doing this against a background of unpredictable national and global economic problems which have raised issues which the Council needs to handle firmly and decisively/

"We have produced a flexible programme with capacity to bring projects forward should the situation improve," he said

Projects going ahead this year include the Bailey Bridge across the River Irvine with a slightly reduced budget - £1,824,000 reduced to £1,175,000. - and the replacement of Glencairn Primary School old building in Stevenston at a cost of £1,876,465.

Saltcoats Town Hall refurbishment will be phased in next year with a revised budget, down from £2,324,000 to £1,892,000.

Montgomerie Park Primary School, scheduled for 2009/10, will be phased in over two years, 2010/11 and 2011/12 at a cost of £7,100,000.

(GK/JM)