Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

The formulation and implementation of policy decisions around strategic infrastructural capital projects such as meeting housing, transport and energy requirements are primarily a responsibility for the relevant Departments.

My Department has a role in monitoring the State's activities or projects that might have implications for the general government balance, the general government debt levels and compliance with the fiscal rules. This includes the consideration of requests for ministerial approval of borrowings and guarantees from Departments, commercial semi-States, State agencies and other State bodies, including local authorities. 

My Department also provides ex anteadvice to Departments on the statistical classification of policy proposals that are considered.

The question of whether an investment is off balance sheet is a statistical matter and at national level the Central Statistics Office is responsible under EU regulations for ensuring that all investments within the economy are classified according to the rules set out under the European System of Accounts 2010. EUROSTAT is then the ultimate arbiter on the classification of investments in relation to excessive deficit procedure returns and other Government finance statistics.

The Department of Finance has an important role in supporting alternative financing models for State infrastructure, particularly in relation to increasing investment in productive infrastructure so as to mitigate constraints on economic growth. My Department led the negotiation of the European Fund for Strategic Investments, EFSI, and has co-ordinated with a number of Departments and entities such as the Ireland Strategic Investment Fund, the Strategic Banking Corporation of Ireland and NewERA to oversee implementation in Ireland. This EU initiative which is managed by the European Investment Bank seeks to advance the use of borrowing for key infrastructure projects that might not otherwise be delivered due to perceived risk. As a recent example, my Department has worked closely with the National Development Finance Agency, the Department of Health and the Department of Public Expenditure and Reform in progressing the Primary Care public private partnership project to a financial close in May this year. This project, which is a key element of the Government's healthcare agenda, is being supported by the EFSI.

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