Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

Aggregate information on the future cost of each PPP project is available on my Department's website, but I will take the Deputy through the figures she has requested.  My Department is updating the projections for the future cost of these projects, with the assistance of the various sponsoring agencies, as part of the regular annual updating of PPP statistics.  However, provisional figures indicate that the aggregate cost to the Exchequer of all outstanding unitary payments for existing PPPs is €6.6 billion.  Projects currently in planning or procurement will, of course, add to this figure. Once these projects are finalised, my Department will update the table to include the relevant costs associated with the new projects.

PPPs offer an alternative model for delivering infrastructure that can be effective in particular circumstances.  However, the long-term nature of these financial commitments arising from PPPs requires that the use of these arrangements must be carefully planned in order to ensure they meet needs in an affordable manner. It was for this reason that in 2015 the last Government introduced an investment policy framework for PPPs.  The purpose of the framework was to set a limit to the extent to which the annual costs of PPPs would pre-commit capital funding available to future Governments for investment purposes in terms of the overall capital allocation projected and made available in any single year. This applies to the future cost of payment charges in respect of both existing and new PPPs, together with the upfront Exchequer costs.

I am aware of the debate to which the Deputy has referred and the different views on PPPs. The way in which I am handling it is to have a specific module which will carefully make a decision on whether PPPs can be of help in the future in the review of the capital plan we have under way. They do offer benefits; however, they also have costs. I am aware of both and it is for this reason that I have required the matter to be reviewed again this year in the light of decisions we might make for next year.

Additional information not given on the floor of the House

The current requirement is that, taken together, such future costs of PPPs should not pre-commit more than 10% of the overall aggregate capital funding projected to be available to future Governments in any individual year.

On the research referred to by the Deputy that suggests PPPs ultimately cost the State more than alternative funding models, I do not know the precise research or the alternative funding models to which she refers, but I would be happy to have any such material reviewed by my Department and the NDFA.

See this speech in context