Bertie Ahern (Dublin Central, Fianna Fail)

Yes, we had a lot of discussion on this issue. The new initiative is aimed at accelerating delivery of PPPs for key infrastructural projects in central Government areas. The new centre of expertise will be located in the National Development Finance Agency. Its role will be expanded to include the procurement function on behalf of Departments in addition to its existing role as adviser to Departments on PPPs. The agency has commenced this new activity on an interim basis pending the introduction of enabling legislation.

The centre will provide the skills and capacity to support the procurement of key infrastructure in Departments. It will concentrate initially on three: the Departments of Education and Science, Health and Children, and Justice, Equality and Law Reform.

The recent example Deputy Kenny mentioned is the 23 new post-primary schools and the four primary schools under public-private partnership. There are many issues in this. They will be taken in bundles of five or six and can be done speedily. There are issues of maintenance and efficiencies. In many of these cases the schools are for 800 or 1,000 pupils in growing new areas. The PPP system is seen as being speedy and efficient and giving value.

There is an added cost. I have stated on many occasions there is no doubt that in the normal course of events the cheapest way to borrow money is for the State to do it. That will always be the way, except where the State is not in a position to borrow money at all. However, there are several areas, particularly with big projects where private sector involvement enables us to get them done efficiently and one can get quality of design and procurement procedures. The private sector has taken a number of these projects and is building them. There is not an argument for doing this everywhere but in projects like these there is an argument.

See this speech in context