Ossian Smyth (Dún Laoghaire, Green Party) | Oireachtas source

The Government has committed to €165 billion in capital investment through the NDP, which was published in 2021. As a percentage of national income, annual capital investment is now among the largest in the EU. In 2023, almost €13 billion will fund vital infrastructure in areas such as housing, transport, education, enterprise, sport and climate action. Achieving value for money and reducing cost and schedule overruns is a vital part of delivering the NDP. However, the Government and I acknowledge that the significant investment under the NDP does not come without delivery challenges.

As the Deputy knows, delivery of some NDP projects has been adversely impacted over the past three years as a result of the pandemic and the war in Ukraine. I am also acutely aware of the challenges the construction industry has faced with material price inflation, labour supply constraints and supply chain disruption. As a result, in order to safeguard the delivery of key NDP projects, in January of last year my Department introduced measures to address inflation for new contracts and tenders. Furthermore, in May 2022, a new set of measures to apportion additional inflation costs between the parties to public works contracts was introduced. These arrangements were then made permanent in July of this year, which allow for more appropriate risk sharing in the delivery of public works contracts. Nevertheless, no one is in any doubt that the need to ensure timely project delivery must be part of the Government’s focus to respond effectively to the pressing challenges of our time, particularly in areas like housing, health and climate.

The renaming of my Department as the Department of Public Expenditure, NDP Delivery and Reform has brought about a greater emphasis and mandate for the delivery of the NDP. In light of this new role, a review of the support structures and levers available across government to maximise delivery of projects was undertaken. As a result, a series of actions and reforms were identified as priorities to improve delivery of NDP projects, including reducing the administrative burden on Departments charged with infrastructure delivery. Earlier this year, I secured Government approval for six priority actions. This package represents a fresh approach to securing delivery as part of my Department’s enhanced remit around the NDP. I am confident that the combination of these actions outlined will boost the delivery of the critical infrastructure we need to support a growing economy and higher living standards for everybody who lives here.

See this speech in context