Mr. Ken Spratt:

In 2019, the Department of Transport, Tourism and Sport was one of the largest capital spending Departments. Its net allocation in the Revised Estimates for 2019 was €2.327 billion, comprising €1.85 billion capital and €742 million current expenditure. The allocation of capital was in line with the Department’s core remit in investing in transport infrastructure and assets. Some 92% of the capital allocation was allocated to the land transport programme. Our allocation and expenditure in 2019 was closely aligned with our statement of strategy for 2016 to 2019.

The high-level goal for aviation in 2019 was to maximise air transport connectivity with a safe, sustainable and competitive transport network and services. We invested €26.188 million in current expenditure and €10.579 million in capital in the aviation sector. This financed public service obligations for the regional airports as well as capital investment. The Exchequer is not responsible for financing major projects at State airports. However, two of the biggest projects ongoing in the State during 2019 were financed by the Dublin Airport Authority, DAA, and Irish Aviation Authority, IAA, namely the north runway and the visual control centre, both at Dublin Airport.

For land investment, our goal was to service the needs of society and the economy through safe, sustainable and competitive transport networks and services. In this regard, we are responsible for the corporate governance of the two lead planning and investment agencies, Transport Infrastructure Ireland, TII, and the National Transport Authority, NTA. It is worth noting that over 75% of all inland passenger kilometres travelled in Ireland in 2019 were by private car. Public service obligation, PSO, funded public transport providers carried more than 295 million passengers. Of public transport passenger journeys, bus journeys accounted for more than two-thirds. Until the time Covid-19 struck, there was a steady upward trend in growth in all public transport services, with near-term forecasts suggesting limitations in public transport capacity were being reached, particularly at peak times.

The Department has clearly defined investment programmes in all the main modes of transport - active travel, heavy rail, light rail, bus, and road - geared towards supporting the ambitions of the national planning framework, the programme for Government, and the climate action plan. The Government has also signalled its ambition to provide competitive fares and socially beneficial services for consumers through a system of public service obligations. In 2019, PSO payments accounted for 38.3% of the Department’s gross current expenditure allocation. Protection of these vital services during the Covid-19 pandemic required an additional emergency allocation of €460 million for PSO services in 2020, on top of the annual core allocation of approximately €300 million. A further emergency allocation of €370 million is required this year.

Under the maritime programme, our goal was to facilitate safe and sustainable maritime transport and the delivery of emergency management services. Of the €103.068 million allocated to the maritime sector, €77.235 million supported Coast Guard services, €62.515 million of which was invested in the Coast Guard search and rescue service delivered by CHC Ireland DAC. A budget allocation of €5.659 million was also invested by the Commissioners of Irish Lights, who are responsible for maintaining marine navigation systems in Irish waters.

Turning to sport, our goal in 2019 was to contribute to a healthy and more active society by promoting sports participation, supporting high performance and the provision of sport facilities. A total of €126.162 million in Exchequer funding was provided to sport that year. The bulk of the funds were allocated to the sports grants scheme and to Sport Ireland.

On tourism, we focused on supporting the industry to grow in a sustainable way. The vast bulk of Exchequer funds were disbursed directly to Fáilte Ireland and to Tourism Ireland, which has responsibility for promoting tourism on an all-island basis. Some €175.655 million was allocated for tourism investment. Tourism Ireland, Fáilte Ireland and the marketing and product development funds managed by the two agencies accounted for over 91% of the budget allocation.

Projects under our remit will be key to improving citizens’ quality of life. We all want less congestion, cleaner air and pleasant journeys. We also want to play our climate part and improve our economy’s productive capacity. As we progress towards the tendering and construction phases of major infrastructure projects, we must be mindful of the reasons major projects overrun on cost, but also, if the right projects are successfully planned and delivered, of the significant benefits that will accrue. I am confident that, as a Department, we are taking an effective governance approach which emphasises responsible and prudent management of public funds and that we will see the benefits of careful planning and investment starting to emerge over the coming years.

I note the Comptroller and Auditor General’s remarks regarding it potentially being time for the Department to consider splitting the programme. That is something we will take up with our colleagues at the Department of Public Expenditure and Reform.