Richard Bruton (Dublin Bay North, Fine Gael) | Oireachtas source

Under the PPP contract, there are clear obligations on the parties in the event of a liquidation, as has occurred here. The NDFA is the Government's agent dealing with the contracting parties, in this instance the DIF. Both the NDFA and the DIF have indicated that they are fully committed to working out the issues involved here. As the Taoiseach and others have pointed out, we have not made payments in respect of these schools and the only way investors can retrieve their money is by entering a licence agreement with the State on the handing over of those schools. As such, we are in a much stronger position in respect of these contracts than had they proceeded under a traditional build. That is in answer to Deputy James Browne's question. As the Taoiseach said, that is not to say that PPPs should be chosen in every case. In this situation, however, the NDFA, which is handling this, is in a very strong position because payment has not been made. Of course, we have to work through these remaining issues and the contract commitments in the PPP agreement have to be fulfilled.

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