Brian Cowen (Laois-Offaly, Fianna Fail)

It is precisely because of the fact we have that asset in place that we will be able to proceed with a prison, which is needed. The Mountjoy complex is nearly 160 years old and we need to replace it. Therefore, we will proceed with this project in a different way, on the basis of a proposal that will come from the Minister for Justice, Equality and Law Reform, Deputy Dermot Ahern, in the coming weeks. There will be 400 extra places available to come into commission in the meantime at Wheatfield, Castlerea and Portlaoise. They are already built and should be ready to come on stream during the course of this year. It is important that we continue with a prison building programme.

Regarding the PPP system itself, it will continue to be a feature of how we finance capital projects. I was in Shannon during the week where an excellent community school was built by PPP. There are four schools in my own constituency built by PPP. There are excellent examples in, I believe, Tubbercurry in Sligo, where there is a similar arrangement. There are certain times, in meeting the various criteria in which public-private partnerships have to operate, where it can be an option to go ahead. It has worked well in many instances, including regeneration projects in this city. There are other projects where, because of financial problems, they have not been proceeded with and we have to find other options.

It is clear to me that we need to replace the Mountjoy complex and do so in a manner that recognises the market conditions in the building industry, the changed economic circumstances we are in today and, ultimately, protects the taxpayers' interests. That is the basis for the decisions which have been taken. It is the change in the marketplace, in terms of the cost of financing, that has been the main issue here, and I want to make that point.

Deputy Kenny asked what would happen regarding certain other major projects. Urban regeneration, on which we spent €190 million last year, will continue to a similar scale this year. We will continue to roll out public transport projects, as we have been doing in this city, increase capacity and user numbers and provide a very modern and impressive stock of public transport. Previously, our investment in our public transport system totalled a princely sum of zero when the Opposition was in office.

See this speech in context