Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

It is important to point out that from a public investment point of view PPPs are subject to the same robust and rigorous project appraisal process as traditionally procured projects. It is essential that projects are judged on their merits. In cases where PPPs can be demonstrated to give better value for money than traditional procurement, it is appropriate that they should be selected on that basis. The central point I am making is that PPPs are but one option. They are an option that should not be ruled out in all circumstances. If it can be demonstrated that better value for money can be secured through the PPP option, then it is one we remain open to.

Making cost comparisons is a valid exercise but can be difficult. Comparing the construction costs of a project with the total payments made by the Exchequer over a 25-year PPP contract does not compare like with like. The Deputy will be familiar with many of the major infrastructure projects in Ireland that have been developed using the PPP model. I believe it is an option that we should retain on the list of delivery mechanisms.

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