Mr. Graham Doyle:

The Chairman has already introduced my colleagues. I thank the committee for inviting me here today. To briefly add to the Chairman's very kind words earlier, I would like to offer my thanks to the various teams within the transport family of agencies and operators, including those in the Irish Coast Guard, who worked tirelessly last week and into the weekend to ensure the safety of people throughout the recent Storm Emma. I would like to thank also An Garda Síochána, Civil Defence and local authority staff for the assistance and support given to our transport operators in restoring our transport services and in helping to keep open our road network.

I will begin with the report on central Government funding of local authorities. I hope to clarify how the Department of Transport, Tourism and Sport distributes funding to local authorities. In 2016, local authorities received over €2.2 billion from Departments. Of that, my Department provided funding of just over €620 million, representing approximately 28% of the total central local authority funding.

The roads maintenance and improvement area is by far the biggest recipient of funding from my Department representing over €570 million of the overall amount from us in 2016. Public transport received just under €40 million, with the balance allocated between grants for swimming pools, sports capital grants and tourism related projects.

The improvement and maintenance of regional and local roads is the statutory responsibility of the relevant local authority in accordance with the provisions of section 13 of the Roads Act 1993. There are three main grant programmes operated by the Department and these are pavement sealing to protect the road surface from water damage; road strengthening to lengthen the life of road pavements; and a discretionary grant, which allows for a range of activities including pothole repairs, edge strengthening, renewal of signs and lines and winter maintenance. Those three programmes account for most of the grant funding and are allocated based on the length of the road network in a particular local authority area.

The selection and prioritisation of works is decided by local authorities and is funded by their own resources supplemented by State road grants. Local authorities can also apply each year for bridge rehabilitation grants and for safety improvement schemes to address particular hazards.

As our funding is intended to supplement local authority funding, the Department continues to emphasise to local authorities the importance of prioritising roads' maintenance when allocating their own resources.

The Department has focused in recent years on developing an evidence based approach to determining long-term funding requirements for annual maintenance of the road network. The Strategic Framework for Investment in Land Transport was published in 2015. That sets priorities for investment in land transport, and estimates an appropriate quantum of investment on an annual basis. It seeks to cover the annual maintenance requirement for the network and allows some limited funding for new transport projects. In 2015, it was calculated at €1.6 billion per annum in total, with approximately €300 million of this coming from non-Exchequer sources. A sum of €1.3 billion was therefore the annual Exchequer contribution required for capital maintenance of the land transport network. The Department’s evidence based approach has been influential in securing greater focus on the requirement for ongoing maintenance of the road assets.

The Building on Recovery Capital Plan 2016 to 2021 provided for a gradual build up in capital funding from a relatively low base in 2016 towards the levels needed to maintain the road network in a steady-state condition and allow for some investment in road improvement schemes.

The 2018 capital allocations are the first in a four year period of increased investment. Allowing for an additional €490 million approximately in funding allocated under the capital plan review last year, total roads investment for the period 2018 to 2021 is planned to be approximately €4.3 billion.

By 2022, we will be in a situation where the maintenance and renewal of our assets matches the pace needed to protect our infrastructure such as national and regional roads and the public transport fleet. We are acutely aware that this capital investment needs to be bolstered by current spending to support the services we deliver. The national development plan has acknowledged that also.

The national development plan shows the breadth of capital investment this Department aims to bring forward for the benefit of our citizens and our economy. Under that plan, the Department is in a position to bid for resources to move from maintaining our infrastructure to adding to that infrastructure investment in future years.

In the context of the multi-annual funding approach, the Department is now progressing a further project called the planning, land use and transport outlook 2040, working closely with our national transport agencies and the Department of Housing, Planning and Local Government. The goal is to develop a high-level outline of the amount, type and location of transport investment required to realise the strategic outcomes of the national planning framework. We aim to look at protecting past investments, catch up on under-investment, research climate change adaptation needs and analyse the future transport needs of a growing economy and a growing population. This is planned to be substantively complete by July 2018, with a public consultation planned to be issued in October 2018.

I would now like to offer some insight into the way our funding is distributed to local authorities. Funding for roads is distributed in two ways. First, the Department itself makes grant allocations directly to local authorities for the upkeep of regional and local roads and utilises Transport Infrastructure Ireland's, TII's, payments system for this purpose. Second, the Department allocates an overall sum of money to TII in respect of national roads each year. TII is then responsible for the allocation of those moneys to local authorities.

With regard to public transport investment, funding is also allocated in two ways. First, under the sustainable transport measures grant and the regional cities programme funding to local authorities is distributed via the National Transport Authority. Second, funding goes directly to local authorities under a number of programmes, including active travel towns, smarter travel and national cycle network programmes. Regarding the smaller allocations, payments for tourism activities are paid via Fáilte Ireland to local authorities. Lastly, the Department itself makes payments direct to local authorities under the sports capital programme and the swimming pool programme.

The Department also offers some supports for local authorities over and above direct funding. A good example of that is the MapRoad project, which helps local authorities to monitor and track the performance of their road networks. The system also incorporates a centralised web based licensing module which allows utility companies to apply online for road opening licenses and road works permits.

I will briefly mention the local government fund financial statements that are also being examined.

I understand my colleague from the Department of Housing, Planning and Local Government has separately provided members with information on the local government fund financial statements which are also being examined and local government fund operations now and in the past. The fund has historically provided local authorities with funding to meet some of their day to day activities, including the provision of water services, roads and other public transport infrastructure, and for certain other local government initiatives. Motor tax receipts paid online are now routed directly to the Exchequer. At the time of the reports under discussion the money had been routed to the local government fund. Some moneys then came back to the Department of Transport, Tourism and Sport as appropriations-in-aid. Since the beginning of the year, my Department has received the vast majority of its funding directly from the Exchequer. The level of funding is the same as it would have been, regardless of the change in the routing of funding.

On special report No. 97 on the administration and collection of motor taxes, responsibility for motor tax policy transferred to my Department from the Department of Housing, Planning and Local Government on 1 January 2018. The functions transferred include motor tax policy and legislation, as well as responsibility for the related services provided by local authorities, including motor tax collection. In that regard, motor tax will continue to be payable in 26 licensing authorities - motor tax offices - as well as through the online motor tax facility which is managed by the driver and vehicle computer services division of the Department of Transport, Tourism and Sport which is based in Shannon. The transfer of the motor tax policy function from the start of this year brings the policy and operational aspects of the motor tax function under the umbrella of one Department. This should provide for greater cohesion in future policy and technological developments.

The Comptroller and Auditor General made seven recommendations and progress has been made on all of them. I have appended an update for the benefit of members. If the committee so wishes, I will go through the seven recommendations made and take questions as the session continues.