Brendan Howlin (Wexford, Labour)

In recognition of Ireland's current difficulties, both the European Investment Bank and the Council of Europe Bank have indicated their support for Ireland and indicated a willingness to offer loans directly to Ireland in respect of infrastructure projects. The interest rate on these loans would be lower than those obtainable either in the bond market or from the European Financial Stability Facility, EFSF. The loans could be used to finance the traditional procurement of infrastructure projects or to finance an Exchequer capital contribution to PPPs. Any moneys obtained would not represent additional funding for infrastructure projects but would simply displace more expensive sources of Exchequer financing.

I understand the Council of Europe Bank would be willing to lend money for such projects as detention facilities, projects in the education and health sectors, Government buildings and environmental protection projects. The European Investment Bank has been a significant investor in Ireland's PPP roads programme and has also made substantial investment in the commercial semi-State energy sector. The EIB has indicated that it would be willing to contemplate further applications for direct loans to the State to fund projects such as public transport, research and development, energy, environmental services and education. For example, we may be seeking EIB assistance for the Luas Broombridge project, which I announced last week. We continue to work with EIB on maintaining its engagement with PPPs.

This morning, officials from my Department met representatives from European Investment Bank. Deputy McDonald was a little breathless arriving here today. I ran in from a meeting I had just left with the vice president of the European Investment Bank to discuss investment projects, two of which he signed off today relating to education and energy. There are others on which I want to engage with him.

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