Pat Gallagher (Donegal South West, Fianna Fail)

This debate has been characterised by a negative focus on some problems that have arisen concerning the return on public expenditure. Opposition Deputies have deliberately chosen to ignore the huge advances in public services across the board, implemented by the Government and its predecessor. They have also overlooked the vital initiatives taken by the Minister for Finance and his predecessor to improve the management of capital programmes and projects. While we acknowledge that there have been problems with the capital programme and project management, the Minister for Finance, the Minister of Transport and other Ministers have pointed out that remedial steps have been taken to address these matters.

The Government was accused of stoking building cost inflation through its actions and by making unprecedented levels of resources available under the national development plan for capital investment. These resources were provided against the background, accepted by all, including those on the opposite side of the House, of the need for major acceleration in capital expenditure to address urgently our infrastructural deficit.

Given the historically low level of investment and the state of the country's infrastructure, the Government was right to provide for massively accelerated capital investment in the NDP. We have continued to give priority to public capital investment by maintaining such investment under the five-year multi-annual capital envelopes at or close to 5% of gross national product, which is approximately twice the EU average. Were it not for this investment, we would not have experienced such high levels of economic and employment growth. Neither would we be in a position to promote sustainable economic and social development and to maintain national competitiveness.

There were problems with capacity and construction cost inflation but these have been addressed. Since 2001, construction cost inflation has moderated from an annual average of 12% to less than 5%. As stated by the Minister for Transport, cost benefit analyses confirm that road improvement projects provide a high rate of return and represent good value for money, given the significant economic and social benefits that derive from improving our national road network. The majority of road projects constructed in the last two years are coming in on budget and many are ahead of schedule.

I reject accusations levelled at the Government of a lack of political leadership and of incompetence in the management of public expenditure. The opposite is the case. The investment decisions taken by this Government show political leadership and a clear vision for the future of this country. Its decisions, for example, to upgrade the scale of certain road projects to motorway or dual carriageway status, were driven by its desire to invest for the long term and address future needs. This is in contrast to the tendency of past Governments to under-invest on the basis of a short-term view of current political needs.

I remind the House of the significant measures taken by the Government to improve appraisal and management of public capital programmes and projects and generally to secure better value for money from the high levels of public expenditure through the five-year rolling multi-annual capital envelopes, guidelines for the appraisal and management of capital expenditure and rules relating to public procurement and public sector contracts.

I have been in politics long enough to remember the situation between 1982 to 1987, when there was a doubling of the national debt.

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