Alan Farrell (Dublin North, Fine Gael) | Oireachtas source

I thank the Minister of State for appearing before us. It is my understanding that the fiscal space available to Government is 3% and that the €1.5 billion proposed in next week's budget is 1% of that, which means there is still 60% plus available in terms of fiscal space. The Minister of State has referred to this a number of times. My understanding of it is that €1.5 billion is 1% but the Minister of State can correct me if I am wrong.

I am pleased that the fund is available for projects under the concept of connectivity. It was always my understanding that connectivity would be related to the transport area as opposed to a wide range of other issues. I listened with interest to Deputy Rabbitte's contribution on connectivity earlier in which he said the concept of connectivity is much broader at the European level. That is news to me. I am not dismissive of it, but it was my understanding that this fund would literally go into connectivity, that is, transport infrastructure, the possibility of upgrading certain State owned facilities and so on. ISIF's involvement in it is inevitable and I welcome it, although I have a slight concern in relation to the requirement that the projects that will receive funding over the coming years will be required to have a commercial element. That more or less rules out non-tolled roads and projects, such as infrastructure in and around the airports or ports, where I would have thought the money would have gone. It does not rule out investment in the likes of some of the other transport capital plan projects that were announced last week, such as Metro, which will have a commercial element and clearly the State will have an involvement in that and a payback over a period of years, or probably decades.

I welcome the use of the fund but I ask for clarity on the definition of connectivity and for the Government and the Minister to make a judgment call on what we should be investing in. While I am not adverse to broadband and so on, this fund should be invested in transport infrastructure and the whole concept of my interpretation of connectivity, that is, Irish citizens availing of our airport, ports, roads or railways, which I know will benefit from investment, and if not investment in rolling stock, certainly in expansion of lines and or additional service provision.