Noel Dempsey (Meath West, Fianna Fail)

With the permission of the House I will share my time with you, Acting Chairman, and Deputy Michael Kennedy.

This is my first budget as Minister for Transport and I am delighted to announce such favourable funding news for 2008. More than €3.8 billion is being provided to my Department, which will continue to deliver on the commitments made by the Government to further develop our transport infrastructure and services. The funding being provided is unparalleled and the outlook is very positive for 2008.

Prior to this budget, the pre-budget outlook had already set the groundwork for maintaining existing levels of service in 2008. It had also provided for certain increases in funding, even prior to budget day. An additional €1.8 million was provided to the Medical Bureau of Road Safety to help meet an increased workload arising from the new mandatory alcohol testing. There was also an additional provision of €8 million for operational/unitary payments in respect of public private partnership road projects such as the M8 Rathcormac to Fermoy bypass and the N4 from Kilcock to Kinnegad. Increases were also included in the pre-budget outlook for CIE subvention, road maintenance and maritime transport and safety.

Budget 2008 provides for additional increases over the pre-budget Estimates of €599 million in current and €404 million in capital funding. These amounts reflect both the transfer of certain new functions to my Department from the Department of Environment, Heritage and Local Government and the honouring of previous commitments under our agreed capital envelopes.

In 2008, the main spending areas will be €1.3 billion for public transport, nearly €2.3 billion for national and non-national roads and almost €48 million to support maritime safety and the vital work of the Irish Coast Guard.

Of the €599 million increase in current funding, €565 million relates to the transfer of non-national roads functions and the associated provision from the local government fund. Some €12.7 million in current funding is being provided for vehicle and driver licensing expenses, another new function for my Department.

Budget 2008 provides an additional €20.7 million to the Road Safety Authority. Of this amount, more than €11 million is being provided towards the reduction of the driving test backlog. Following on from the recent changes to the driver licensing laws for learner drivers, the RSA and I have confirmed that all 122,000 applicants on the waiting list at the end of October 2007 will be tested by early March 2008 and that by the end of June 2008, all driving test applicants will be able to get a test on demand, that is, within ten weeks. This does not mean, obviously, there will be no waiting list at the end of June 2008. The increase in funding for the RSA will also provide an additional €5.9 million towards road safety promotion campaigns and programmes. The overall budget for the RSA in 2008 is almost €40 million, nearly double the provision in the pre-budget outlook.

The budget also provides for an increase over the pre-budget outlook of €74 million on national roads, bringing the total provision in 2008 to almost €1.6 billion. This will allow the pace and momentum already achieved in the national roads programme to continue. In particular, it will provide for the continued on-schedule delivery of the major inter-urban routes linking the country's main cities to Dublin, as well as important progress on other key national routes.

Progress will continue in 2008 on the inter-urban motorways, with the completion of the Kilbeggan to Athlone scheme on the N6 and the Carlow bypass on the N9. Further progress will be made on the N6 Galway to Ballinasloe scheme, the N7 from Nenagh to Limerick, the Limerick tunnel, the M7/M8 from Portlaoise to Culahill/Castletown, the N8 from Cashel to Mitchelstown and from Culahill to Cashel and the N9 from Waterford to Knocktopher. Today, more than 70% of major inter-urban routes are either open to traffic or at construction and all projects have completed statutory procedures.

On the M50, work will be completed on phases 1 and 3 of the upgrade project and work will advance on phase 2 during 2008. Barrier-free tolling will also be introduced in 2008. Other major schemes that will be brought to completion in 2008 will include the N4 Dromod to Rooskey scheme and the N51 Navan inner relief road. Work will continue on the M3 Clonee to North of Kells scheme and the N25 Waterford city bypass. The following schemes will commence in 2008: the N7 at Newlands Cross, the N7 from Castletown to Nenagh, the N8 from Mitchelstown to Fermoy, the N9 from Carlow to Knocktopher and the N9 from Kilcullen to Carlow.

Overall, the National Roads Authority is currently overseeing the construction of 23 major national roads projects, 21 of which are due to finish on or ahead of time. An example of the exceptional delivery now being achieved by the NRA is that of the five major road projects completed so far in 2007 all have come in on budget and on or ahead of time. For example, the N6 Tyrellspass to Kilbeggan scheme opened in May 2007 on budget and six months ahead of schedule.

Capital Exchequer funding of €53.8 million is being provided for the non-national road investment programme. This is only a small element of the State investment in non-national roads. In addition to Exchequer capital, almost €565 million will be provided from the Local Government Fund for the improvement and maintenance of the non-national roads network.

Budget 2008 provides almost €262 million in additional funding for public transport capital investment over the pre-budget outlook. This funding guarantees continued progress on expanding the Luas network. The extension of the existing tram fleet on the Tallaght line will be completed in mid 2008, bringing a 40% increase in passenger capacity per tram. Construction will continue on the Cherrywood and Docklands extensions. Construction may commence, subject to the grant of a railway order by An Bord Pleanála, on the Citywest extension and public consultation and planning work will continue on the planned Luas lines to Lucan, Liffey Junction and the Bray area. Planning and design work and the public private partnership process will continue on Metro North. An application for a railway order for the project will be made during 2008. Public consultation and design and planning work will continue on Metro West.

The transformation of the Iarnród Éireann network and services will continue. The Portlaoise train care depot will be completed and construction work will continue on the Kildare route project and on phase 1 of the western rail corridor. Main construction work will start on the Cork to Midleton rail line. The introduction into service of the 183 new intercity railcars will pick up pace in 2008 and will transform the intercity service. Planning and design work will continue on the Navan rail line and detailed design work will begin on the interconnector and associated electrification works.

Bus capacity will continue to be enhanced with the introduction of new buses and further bus priority measures through an expansion of the QBC network in Dublin and the introduction of new measures in other cities.

The budget also provides for a continuation of the regional airports capital investment programme to facilitate further progress on the roll-out of the €86 million multi-annual capital grant programme for these airports, which was approved by the Government under the Transport 21 framework. Total Transport 21 investment for 2008 will be more than €2.6 billion, which will ensure the programme will continue to be rolled out and that the transformation of our transport system will continue unabated.

As mentioned previously, the total allocation for the maritime safety sector in 2008 amounts to €48 million, comprising €8.8 million capital and €39 million current. This is a reflection of my commitment to modernise and develop the Irish Coast Guard and maritime administration. This will require a sustained effort within the Department of Transport over a number of years but my target is to ensure that we have a modern maritime administration on a sound legal footing and equipped to meet the needs of a 21st century maritime nation. In 2008, this will involve commencing the upgrade of our radio communications infrastructure and implementing the first phase of a Safe Seas Ireland project, which will meet our EU obligations in relation to vessel traffic monitoring and reporting. The Safe Seas Ireland project will provide a foundation for a single window for electronic delivery of services. The funding also underpins the emergency response capability provided by the Coast Guard helicopters and the national network of local volunteer units who work in close partnership with other agencies and services.

This continued level of heightened investment supported by the 2008 budget demonstrates our commitment to the ongoing transformation of our transport systems and services. The high quality transport network being developed under Transport 21 is contributing significantly to national competitiveness, job creation and the achievement of more balanced regional development.

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