Mairead Farrell (Galway West, Sinn Fein) | Oireachtas source

I will focus on public private partnerships on large public infrastructure projects. PPPs have frequently been used for large infrastructure and in social housing, healthcare and education. Today they represent a €11 billion liability for the State. The PPP model of delivery often promised that it would bring great benefits, including better value for money, accessing private finance, greater efficiency from private sector management and risk transfer whereby risk from delays and cost overruns transfer to the private investor. However, these supposed benefits often simply do not materialise. Not only that but the additional costs are often left with the public. This experience has mirrored the disappointing results elsewhere. As a result, PPPs have attracted a bad reputation. A 2018 study by the European Court of Auditors found that PPPs frequently produce considerable delays and major cost increases and had weak transparency. Research by economists Dr. Eoin Reeves and Dr. Donal Palcic, by housing expert Dr. Rory Hearne, by the former chief economist in the Irish Congress of Trade Unions, Paul Sweeney and by the Comptroller and Auditor General have had similar findings.

We often see aggressive tax avoidance through the use of special purpose vehicles, SPVs, and holding company structures and creative accounting. I will give a concrete example, namely, the PPP for the M4 motorway. In 2014, the company that carried out the work changed how its turnover was reported. It went from measuring turnover on the basis of toll revenue and other payments to a profit margin on operating costs incurred for the year and a return on the financial asset of the company based on future cash flow projection. In one fell swoop, this reduced its reported turnover from €29.5 million to €21.2 million and more than halved its corporate tax bill. Nevertheless, PPPs remain a part of the national development plan and a key part of Housing for All. Those are the major concerns.

The Minister of State and I are in the same constituency and we often have to go through those tolls. I heard the Minister, Deputy Eamon Ryan say at the weekend that 10 cent is not a lot of money but when we see all the bills rising, 10 cent then is considerable.

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