Dáil debates

Thursday, 8 May 2008

4:00 pm

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)

I met Mr. Barry, the chief executive of the NRA, a few months ago. At that stage, the Minister was refusing to approve any further PPPs. Why has he changed his mind? I welcome the fact that he is proceeding with a unitary payment system rather than with a concession, which would inevitably have resulted in the imposition of tolls.

Media reports indicate that two sections of the N20, the N11 Gorey to Enniscorthy route and the N17, Galway to Claremorris route, which are all extremely important, all require work. Are there any other proposals in respect of this particular tranche of PPPs?

Why do PPPs not come under the remit of the centre of excellence of the National Development Finance Agency? Why is the NRA allowed to proceed with PPPs on its own? International opinion is beginning to be extremely critical of PPPs, particularly in the context that borrowings by a private company will usually be that bit more expensive than those relating to the State sector. In addition, the private sector can obtain massive rates of return. One need only consider the ongoing debacle with the M50 and the €600 million the Minister will pay out in the coming years in respect of a project that originally cost approximately £20 million. Is it not time to engage in a fundamental evaluation of PPPs? Perhaps it should again be the case that we will not proceed with PPPs unless an important value for money result can be obtained.

The Minister for the Environment, Heritage and Local Government, Deputy Gormley, appeared to make some ambitious proposals regarding the cost of land. The latter has often accounted for 25% of the cost of PPP projects rolled out by the NRA. Is an in-depth evaluation of PPPs being carried out? Is such an evaluation not the correct way to proceed?

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