Kieran O'Donnell (Limerick City, Fine Gael) | Oireachtas source

In that context, we had representatives from Transport Infrastructure Ireland, TII, with us before Easter. We find that to be a measured type of body. Its representatives came in here and basically told us that the NDP was on fire and under serious threat. They did not do that lightly. We have invited representatives from the Department of Public Expenditure and Reform to appear before the committee, and we expect them to attend because this matter is of such magnitude. I happen to be a Deputy for Limerick city. When Roadbridge went to the wall a short time ago, 630 people lost their jobs. We speak to people throughout the country. The national development plan in respect of road projects is under serious threat. I would like to hear a sense of this urgency reflected in the Department of Transport.

We are arguing here about six projects that did not go ahead for the sake of €10 million, and we had to delve in and forage out this information. This issue has taken up pages of space in the media. It has caused untold anxiety for people. Side by side with that aspect, €260 million is allocated to active travel. Those are great projects and no one is questioning their value for money. For me, this is about asking questions about value for money. I want to see active travel and such projects. Equally, though, I need to see road projects getting under way as well. I am not ideologically driven. I want to see both those endeavours happening in tandem.

The problem we have here is that there is a current public works contract. In the case of all contracts put in place prior to 1 January 2022, inflation must be above 50% to enable contractors to make additional claims, and that can only happen after 30 months of a contract. Since 1 January 2022, the rate for inflation has decreased and it must now be above 15%, but contractors still cannot claim for 24 months. The witnesses are from the line Department with responsibility for the funding of road and transport projects.

With inflation rampant and with the cost of fuels, are the contracts causing the Department concern? While TII did not do this lightly, it came to this committee with a very strong message that there is a serious problem with the way contracts have been awarded historically and it worries that more firms will not be able to function. My understanding is there are four main civil building contractors in the Irish market at the moment, and many of them, like Roadbridge, have gone.

The question is how important the national development plan is for the Department of Transport on the roads side. Is what is happening at the moment causing the Department serious concern? Is the Department having active discussions with the Department of Public Expenditure and Reform to ensure public service contracts can be amended and are flexible to deal with external factors like the Ukraine war and other issues, given there was rampant inflation prior to that? Is that causing the Department concern? That is why we are here today.