Leo Varadkar (Dublin West, Fine Gael)

At this stage there is major uncertainty with PPPs which does not relate to traffic levels. As neither road would be tolled, traffic levels are not relevant. The major issue with PPPs is that banks are not willing to lend money to Ireland on a 30 year basis at an interest rate we can afford. That could get even harder because next year. European banks must hoard capital to raise their tier 1 capital ratios and if there are defaults in Greece or elsewhere, banks will be badly hit. Money to invest in these projects is thin on the ground and investors do not want to invest in the eurozone and where they do, they do not want to invest in Ireland because it is included in an IMF programme and there are Members in this House suggesting we should default on our debts. There is no way anyone would lend money to a country for 30 years when people are talking about that sort of thing. We must hope the country will return to the markets in the next few years and if we are in that position, money might become available. That is why the Newlands Cross-M11 project, the cheapest of the all the PPPs, is being continued and why we continue to engage with the banks and others who might fund it. We will be ready to start if we can secure funding and agree the appropriate guarantees. This project is still being pursued, but I cannot make any promises and it would be wrong for me to do so, given that I do not control the banks we want to lend us money.

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