Brendan Howlin (Wexford, Labour) | Oireachtas source

In July 2012, I announced a €2.2 billion stimulus package that included the launch of for the time time of a new PPP programme. The PPP projects, involving estimated overall capital investment of approximately €1.4 billion, are being delivered by a range of Departments and agencies across the education, transport, health and justice sectors. All the projects have been issued to the market.

The capital review, which is being completed by my Department and will be published in the new year, will outline the total level of unitary payments on operational PPPs . It will also include an outline of unitary payment commitments for the programme currently in procurement and offer a complete picture of the ongoing cost of PPP projects accruing to the State. In overall terms, the report of the capital review will highlight that the State will expect to face annual PPP charges of approximately €440 million from 2020.

In budget 2015, I announced that it is this Government's intention to deliver social housing units by 2017 via PPPs as one of the various modalities to deliver such units. The units will be provided by using the successful model that has helped deliver 23 schools in recent years. Following on from the budget, my colleague, the Minister for the Environment, Community and Local Government, has announced a comprehensive housing strategy that involves providing up to 35,000 additional housing units by 2020. The strategy confirms a range of delivery methods, including the extension of the PPP Programme announced.

It is my intention to use the forthcoming capital review to help inform future policy in relation to PPPs. Such partnerships have enabled the Government to make additional crucial investments across a range of areas, while respecting the constraints of our immediate fiscal parameters. Although our fiscal position continues to improve, there is a need to continue to maintain strict budgetary discipline while investing in critical infrastructure. PPPs provide government with one approach to delivering such infrastructure. The capital review will offer an assessment of the affordability and desirability of future PPP programmes and help determine the context in which such programmes should be established.

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