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

I must clarify a few points. I wish to reassure Deputy Byrne that the Dutch Infrastructure Fund, DIF, has been mandated by the funders to put together the rectification plan. It is being put together as quickly as possible, so there is no question of funders anywhere not being interested in this. To answer the question of whether we are at the mercy of funders, that is not the case. Funders will not get their money unless they complete and hand over the building and get the licence agreement. They have paid the money, not the State. As such, the only way in which they will get their money back is by handing over the buildings and completing them. That is why there is such urgency on the part of DIF and the funders to get this rectification plan in place.

I must clarify a misunderstanding. Subcontractors do not have a contract with the State. They have a contract with the provider. The State is not stepping in to underwrite the obligations of the provider because under the public private partnership, PPP, contract, it is DIF that holds the responsibility, which is set out in the contract, to complete these schools. DIF will not be paid until it completes them.

In regard to PPP reviews, in our situation, 17% of school completions have been done by PPP. Any state will have a mixture of projects. I am always open to looking at the merits of cases, and the Department of Public Expenditure and Reform is undertaking a review of PPPs as is the Comptroller and Auditor General, and we are open to that. In regard to this issue, however, the concentration must be on getting the contract to work and getting to completion, as is the legal obligation. The funders will only get their money if they can hand over the schools, completed to the proper standard. Then they will get their licence agreement. Without completing that, they do not get their licence agreement and the State will not be paying them or anyone involved any money. That is really the important thing. We must use the power of the contract, which protects people, to ensure that those who took on the legal responsibility complete their work.

I can assure the Deputy that the National Development Finance Agency, NDFA, will be vigorously pursuing that. It is in everyone's interest, most of all those who have funded and built this project, that they do get to that completion point as quickly as possible. To be fair, that is what they have indicated they are seeking to do. I can assure the Deputy that I will keep a very close eye on this. I understand the concerns, and I will work with the NDFA to secure this outcome as quickly as possible.

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