Mr. Ken Spratt:

I will be as quick as I possibly can be. We have two concession PPP contracts. One is for the M3 from Clonee to Kells and the other is for the N18 Limerick tunnel. They provide for variable operational payments to the operator when traffic volumes fall below specified levels. Variable operational payments continue to be payable on both of these contracts and estimates of future liabilities are based on observed traffic data, forecasts of traffic growth and inflation. Inflation indices are derived from the forecast consumer price index on the assumption that toll charges will rise in line with that index. Where return traffic growth and-or inflation differ from the forecast, this impacts on the variable operational payment amounts provided for. Such payments were included in PPP contracts for these important groups, which are less trafficked than those on which such payments are not provided for, to ensure an appropriate balance of risk between the commercial operators and the Exchequer. They were subject to scrutiny before contracts were signed to ensure they deliver value for money and the economic and social benefits they bring. That is a long way of saying there is a risk to be balanced and there are compensation payments provided for in those contracts.