Mr. Robert Watt:

The Government has set out its capital spending plans. This year, there has been a 10% increase on the 2016 allocation. Last year, the Government announced an additional €5.2 billion of spending over and above the previous plan. It has allocated half of that spending to housing and we are engaging in a consultation process with Departments to discuss where the remainder of that money will be allocated.

When considering infrastructure, it is useful to start with an assessment of the quality of our infrastructure. The Deputy used various terms like "dire", "chronic" and so on, but what is the assessment of our airports, sea ports, motorway network, gas and electricity? No one would deny that there are issues with housing and public transport in Dublin and the issues with health infrastructure, schools and so on are known. When demanding infrastructure, one needs a realistic and fair assessment of the quality of current infrastructure that is based on supply and availability relative to demand now and into the future.

The Government is in a process of consulting on how the additional funds will be allocated. That will lead to an increase in spending across various areas that will be decided upon over the next six months. The Minister's intention is to make announcements on budget day.

Regardless of what rules or fiscal framework we have, there is a limit on how much we can spend. We should not just focus on the quantum of capital, but also on the need in question, how we are addressing it and the nature of projects. Previously, we built infrastructure that was not required. Whatever we do in future will need to address a clear need and the infrastructure must generate a benefit.

I do not know about TII saying that it cannot undertake PPPs or that PPPs are off the table. Most of the motorway network has been built in partnership with the private sector. There are various tolling schemes and schemes that do not involve tolling but are funded by unitary payments, which are fully funded by the taxpayer. Hybrid models have been used. PPPs remain a liability to the State and are not necessarily off-balance sheet. The unitary payment is paid every year. Based on the projects that we have supported, the liability to the State is between €4 billion and €5 billion. PPPs spread the cost of funding over a period but do not eliminate the cost to the Exchequer. A liability remains.

We have a programme of PPP works in place in primary health care, schools and social housing. The Minister would be open to discussing whether any of the potential road projects could be funded through PPP or a mix of PPP and tolling. All funding opportunities are being explored. When deciding on whether to fund something from the Exchequer directly in the traditional way or via PPP, we need to determine the best value for money for the Exchequer. It is debt on the State's balance sheet, so we need to determine the best financing and cost approach to funding our capital needs.