Oireachtas Joint and Select Committees

Tuesday, 26 November 2013

Committee on Transport and Communications: Select Sub-Committee on Transport, Tourism and Sport

Estimates for Public Services 2013
Vote 31 - Transport, Tourism and Sport (Supplementary)

7:15 pm

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael) | Oireachtas source

That is the point. We tried to select the motorways where there appeared to be significant diversion. We also took account of what the cost would be to compensate the toll operators. The money goes to the PPP toll operators who built and own the road.

The indication so far in regard to the tolled roads is that in the Limerick tunnel, admittedly from a very low base, there has been almost an 80% increase in heavy goods vehicles using the tunnel. On the other roads, the increase has been more like 20% or 25%. We are also counting the number of vehicles passing through Slane to see the impact there, though the figures may be skewed due to some other works being carried out near the town. When we have all the figures in December or January, we will go through them to see what they mean. Other issues, such as fuel savings for HGVs will have to be taken into account also.

With regard to the extra €50 million, believe it or not, we did not know it was coming. It came as a pleasant surprise during the summer. Members will all be aware that a number of other State assets are currently for sale, so I hope for some more surprises during the year. I would not like to see any further funds just go to roads, but would like to some going towards public transport. Whatever we have to spend on roads, it is still not enough. Whether the funding comes from the Exchequer or local authorities, it is down. This is a concern, but we are doing the best we can during this difficult period to maintain roads to as good a standard as we can.

The €50 million was allocated to local authorities according to a formula based on the length of road they have and the level of use. They were given significant discretion with regard to how they spend it, but it was to be used for repair and resurfacing rather than anything else. Some special moneys were also set aside for drainage works and Deputy Coffey articulated very well the reasons that was needed. We also gave a top-up to local authorities that put their own resources into roads. I felt this was important. In law, local authorities have primary responsibility for the roads, particularly when it comes to local and regional roads. Some authorities, not always the wealthy counties, are very good at deciding they should put a fair amount of money into roads, but others decide to put it all into housing and parks and to go to the Department for funding when the roads fall apart.

Whatever they decide, we want to send a message to managers and councillors that when preparing their budgets for next year, which they will do shortly, they should not come begging to the Department for extra money for roads if, when they had the opportunity, they decided to put much less of their resources into the roads. There are huge variations between counties. Some put 35% of their discretionary resources into roads, while others put in as little as 10%. The reason we gave the top-up to those counties that invested more was to send a message to managers and councillors that we want them to take their responsibility for roads seriously, so that if they want money for roads, they should use some of their own discretionary funds to prove they think their roads are a priority, rather than just come to the Department and say they are a priority.

The European Investment Bank is currently helping to fund the works at Newlands Cross and at the N11 at Rathnew. We are also confident, although I do not want to jump the gun, that it will help to fund the M17-M18. I hope that will go to a financial close and start construction in quarter 1 of next year, but it is a PPP, which involves construction companies, banks and pension funds. These must all go to their boards and credit committees and the rest and clear the project, which can take some time. I believe it will happen in quarter 1 of next year, but if it does not happen then, that will not be due to a lack of effort on my part or that of the NRA.

When we speak of the European Investment Bank, it is important to bear in mind that it is a bank and that any moneys we get from it are a debt that must be paid back with interest. There is a certain culture in Ireland and Irish politics that hears the word European and thinks of grants. I see that in the argument about TEN-T and the western arc and all of that, as though being on a European network means we get European money. It does not. What it means is that we may get debt or may be required to upgrade our infrastructure, at huge cost to taxpayers, and perhaps get 10% from Europe. We are in a very different space when it comes to European money and we need to be aware of that.

Mention was made of the road safety improvement scheme. This scheme was funded last year and will be funded in the coming year, but no extra money has been provided for it. We managed to fund many of the schemes put forward. The scheme is a good programme and provides good value and it will continue. Deputy Coffey asked a pertinent question regarding our asset management system. We use a system called MapRoad and the expert on it is here with me, so I will hand over to him to tell the committee about it.

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