Seán Kyne (Galway West, Fine Gael)

I am delighted to have this opportunity to speak on the important issue of public expenditure and reform. When the textbooks of modern Irish history are written, and there has been much analysis in recent times, they will clearly show the inability of the last Government to manage our finances correctly. We have been left in the situation that we are now in, but we can see how the proceeds of the property bubble were used to fuel a bloated public sector and growth in public sector numbers over the years. We have also seen the use of stamp duty revenues and capital gains tax to promote and increase public sector numbers. Many of our public servants do great work, which I acknowledge, but we have seen many quangos and small committees in every area and in every Department that have taken from the public purse. Before the election Fine Gael gave a commitment that we would merge, reform and reduce quangos, and it is good to see in this public service reform report that the programme for Government's commitment to reforming the public sector is taking hold this year in the merger and abolition of a certain number of quangos.

In our manifesto we also discussed reductions in the numbers within the public service of up to 30,000, with the programme for Government settling on a figure of 25,000. Many of these will come from not replacing those people who retire, although there is a view to protecting front-line staff. I agree with Deputy Fleming that we have seen a new energy with Fianna Fáil in opposition, both in my constituency and the other constituencies which it represents. The new energy looks to argue what we should do without taking responsibility for what the party did while in government. I agree that the moratorium on recruitment of nurses and other front-line staff in hospitals must be examined. Unfortunately, there is a case in St. Francis's nursing home in Galway that we would prefer to have sorted out but a decision of the previous Government is coming home to bite with a possible closure. Such closures may be seen all over the country, unfortunately, as a legacy of the last Government.

We have seen much money spent on planning major bypasses and transport projects around the country. Although this has created a certain amount of employment, many people do not see those projects going anywhere. The Minister, Deputy Varadkar, made a tough decision to suspend the planning on such projects when there was no realistic expectation that we can conclude and complete them. That was the right move. There is no point in trying to fool people by saying we will do this, that or the other, continuing to plan those projects without having the relevant finances available when the planning process finishes in 18, 24 or 36 months.

There has also been a suspension of interest from international companies in public private partnerships, PPPs, and there has been none for the past two years. That shows recognition of the reluctance of international companies to invest in the State because of the dire economic circumstances. Firms wondered if they would get money back, which was the whole point of investing in the State. The Minister's plan is about dipping our toe into the water with PPP projects, and he has indicated that a number of smaller projects will test the level of interest from international companies for investing in the State.

We have seen a more positive view of the country over the past eight months since the new Government, with a strong mandate, has taken over. That can be compared with where we were this time last year, when there were questions about when the Government would collapse. We have come a long way and the view of international markets and companies of our country is more positive. It is important to consider what the reaction will be when we seek public private partnership companies to invest in various projects.

I will be slightly parochial with regard to a number of projects which have at least been mentioned within the reform proposals in transport, including the Galway city outer bypass. It is significant and a large project but by seeing how we get on within the smaller projects within PPPs, we can better judge how to progress the Galway city outer bypass. This large project would require considerable investment by outside companies and I am confident we will make progress on this vital project. It has the best cost-benefit analysis result of any road project in the country and it is imperative that in the coming years we make progress towards commencement and construction of the project.

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