Enda Kenny (Mayo, Fine Gael)
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Question 10: To ask the Taoiseach if he will report on the outcome of the March 2005 meeting of the cross-departmental team on infrastructure and public private partnerships; and if he will make a statement on the matter. [8771/05]

Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 11: To ask the Taoiseach when the Cabinet sub-committee on housing, infrastructure and PPPs last met and the membership of the sub-committee. [11677/05]

Trevor Sargent (Dublin North, Green Party)
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Question 12: To ask the Taoiseach if he will report on the last meeting of the cross-departmental team on infrastructure and public private partnerships; and if he will make a statement on the matter. [11882/05]

Bertie Ahern (Dublin Central, Fianna Fail)
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I propose to take Questions Nos. 10 to 12, inclusive, together.

At the March meeting of the cross-departmental team on housing, infrastructure and PPPs, the main agenda items were: housing, particularly in the context of recent reports from the National Economic and Social Council and the All-Party Oireachtas Committee on the Constitution; strategic national infrastructure, especially proposals to expedite delivery; and the transport investment programme under the ten-year envelope announced on budget day.

The team met again on 4 April. At that meeting, it reviewed developments on housing, noting in particular the implementation of the affordable mortgage product. The team also considered its work programme, including the post-NDP scenario. On that specific issue, the Government has yet to make a decision on whether there will be a formal successor to the current NDP and if there is, what it should encompass. Regarding the Cabinet sub-committee to which the cross-departmental team reports, it last met on 9 March. That was the second meeting this year, with the next scheduled for 5 May.

The sub-committee, which I chair, comprises the Tánaiste and the Attorney General, along with the Ministers for Finance, Communications, Marine and Natural Resources, Community, Rural and Gaeltacht Affairs, Education and Science, Enterprise, Trade and Employment, Environment, Heritage and Local Government and Transport. It also includes the Minister of State at the Department of the Environment, Heritage and Local Government and the Government Chief Whip.

Enda Kenny (Mayo, Fine Gael)
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Now that reform of the EU Stability and Growth pact has been agreed, can the Taoiseach put a figure on what additional moneys the State will be able to invest here in terms of infrastructure? When does he expect that the Department of Finance will be able to bring forward proposals for reform of the PPP system? As chairman of the Cabinet sub-committee on infrastructure, housing and PPPs, when does the Taoiseach expect the critical infrastructure Bill to appear, or has it gone from the agenda? Is there a realistic chance that it will see the light of day? Given the €600 million shortfall in infrastructural spending in the BMW region and that the McCann report will be published shortly and will, I understand, recommend that as a major piece of western infrastructure, the entity from Sligo to Ennis, could be built and provided and would be economic——

Rory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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The Deputy should address detailed questions to the relevant line Minister. Only general questions should be addressed to the Taoiseach.

Enda Kenny (Mayo, Fine Gael)
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It links 20 towns. For instance, as a critical piece of infrastructure, is the Taoiseach willing to see it implemented, on the basis of the report's recommendations being favourable? As it currently applies to the western rail corridor, the law actually——

Rory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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This is a question for the relevant line Minister. The Deputy has made his point.

Enda Kenny (Mayo, Fine Gael)
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The Ceann Comhairle stated yesterday that he wanted to implement a strict rule in terms of the time available for Leaders' Questions. I guarantee that if he checks the times that were allocated today, he will find that I complied with his ruling.

Rory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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I accept that.

Enda Kenny (Mayo, Fine Gael)
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Some of the Taoiseach's answers did not. I can prove that if the Ceann Comhairle wishes.

Rory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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The Taoiseach did not speak for longer than the leader of the party to whom he was replying.

Enda Kenny (Mayo, Fine Gael)
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The Taoiseach can be very helpful to me.

Rory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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The Taoiseach came in under time when he was replying to Deputy Kenny's question.

Enda Kenny (Mayo, Fine Gael)
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If the Taoiseach can reply after this little spat——

Rory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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In fact, I would say that Deputy Kenny and the Taoiseach were models of perfection on Leaders' Questions this morning. Both of them stayed within time.

Enda Kenny (Mayo, Fine Gael)
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I thank the Ceann Comhairle.

Finian McGrath (Dublin North Central, Independent)
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It is like being in school. They can go to the top of the class.

Enda Kenny (Mayo, Fine Gael)
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In view of the Ceann Comhairle's kindness, I will desist from haranguing the Taoiseach further.

Pat Rabbitte (Dublin South West, Labour)
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I will protest later that not all leaders were described as models.

Bertie Ahern (Dublin Central, Fianna Fail)
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I will deal briefly with the three issues raised. The Stability and Growth Pact as it now stands allows an increase in funding. If one performs an arithmetical exercise, the potential figure is something like €1 billion. All the other criteria of capital projects would have to be fulfilled, but it allows for a greater level of funding. The Members should remember that we are already spending 6% in Ireland, which is at least 2% above the average and probably double the rate in most countries. However, as I stated to Deputy Rabbitte recently, during the debate on the Stability and Growth Pact, the Government argued that the reason for this is that Ireland is a low debt country with an infrastructural deficit. The amended pact allows flexibility in the multi-annual programmes for transport and other areas.

The infrastructure Bill has just returned from the office of the Attorney General. It will be brought before the Government shortly. It is at an advanced stage and I hope it will be published by the summer although I do not think it will be taken before the summer recess.

Without going into the details, I wish to make a brief statement on the western rail corridor to be helpful to Deputy Kenny. That project should be taken on a phased basis. I noticed that as soon as I said "phased basis", everyone shouted that it should be completely implemented. Realistically, the thing to do is to try to create the corridor on a phased basis. It makes a great deal of sense to push forward on this project.

Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Has the Cabinet sub-committee on housing, infrastructure and PPPs examined the issue of second homes? I ask in the context of the absence of real statistics regarding second homes. However, the indication is that currently, as far as new starts are concerned, the number of second homes outstrips the provision for social housing in a ratio of three to one.

Rory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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The Deputy is aware that discussions of the Cabinet sub-committee are confidential and a detailed question on housing should be addressed to the line Minister.

Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Will the Cabinet sub-committee address this matter? This is the focus of these questions. As it is so important, will the Taoiseach state whether the Cabinet sub-committee will address this major disparity? The NESC report recommended a significant increase in local authority housing. Will the Cabinet sub-committee address the details in the NESC report? It is a damning indictment of the failure of this administration to meet social housing needs.

Rory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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The Deputy has made his point.

Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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We have more than 40,000 households——

Rory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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The Deputy is making a statement.

Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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I have made the point and I would appreciate an answer from the Taoiseach.

Bertie Ahern (Dublin Central, Fianna Fail)
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The categorisation of second houses is broad. One cannot infer from the figures that a second house is a house that someone lives in at weekends. Many second houses are bought for investment purposes. In that broad categorisation, the Deputy put forward figures which are probably accurate, but he is including people who have bought houses for investment purposes which are then let out in the market.

Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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My main concern is the absence of social housing.

Bertie Ahern (Dublin Central, Fianna Fail)
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On the other point, the Government has addressed the NESC report and the all-party committee report. As I stated earlier, the Minister for the Environment, Heritage and Local Government will bring forward a position on the issue shortly. I have already stated that the matter will be debated in the House when we do so.

Eamon Ryan (Dublin South, Green Party)
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I have two transport-related questions for the Taoiseach. He will have noticed in the newspapers today that the Minister of State at the Department of Transport, Deputy Callely is out with what he terms his shopping basket, although it is more like a shopping trolley, of €16 billion worth of transport projects.

Rory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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Does the Deputy have a question?

Eamon Ryan (Dublin South, Green Party)
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I do. Does the Minister of State at the Department of Transport attend this sub-committee's transport meetings? If not, what credence should the House give to his shopping trolley full of transport projects? In the past, the Taoiseach has stated in this House that the buy-out of the West Link bridge is not possible. Since then, the National Roads Authority has stated in the Oireachtas Joint Committee on Transport that not only is it possible——

Rory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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Detailed questions should be addressed to the appropriate Minister.

Eamon Ryan (Dublin South, Green Party)
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Has this issue of the buy-out of the West Link and its replacement by an alternative tolling arrangement on the approach roads to the M50 been addressed at this sub-committee given that it is now the favoured option of the NRA and other transport experts in the city?

Bertie Ahern (Dublin Central, Fianna Fail)
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The issues the Minister of State at the Department of Transport, Deputy Callely listed are issues that have been discussed in the ten-year multi-annual transport review. The Department of Finance and the Minister for Transport will make a final decision over the coming weeks. The Minister announced the multi-annual programme in the budget last December and the debate on the decisions to be made in that context now opens up. However, there is a finite sum available, and even if the figure is slightly bigger because of the changes to the Stability and Growth Pact, it is still not large enough to accommodate every single project that is being proposed everywhere. The issue of the respective views on the toll bridge held by the NRA and the Department has been mentioned but not debated at this sub-committee. However, the matter is being debated in the Department and in the NRA to ascertain the feasible options. If the Deputy tables a question, he will receive the update from the Minister.

Pat Rabbitte (Dublin South West, Labour)
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The Taoiseach said that one of the main priorities on the agenda was the strategic national infrastructure question and whether we can expedite its delivery. Have any actions been taken to do precisely that? Will the Taoiseach clarify his remarks on the reform of the Stability and Growth Pact? It is not clear whether as a result of the loosening or reforms of the pact, the Government will invest more to address the infrastructure deficit.

Bertie Ahern (Dublin Central, Fianna Fail)
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Regarding the first issue raised by Deputy Rabbitte, there has been a review of the critical infrastructure Bill and an updated and reformed version of the legislation will be brought forward. A considerable amount of work was carried out by the Minister over the last six months which has improved it.

The Department of Finance is assessing the Stability and Growth Pact and will examine the various envelopes on the capital side to see whether there should be a change in that. At this stage, there has been no change. We are at 6% and I do not accept the argument made in Brussels that we cannot be 3% ahead because we are currently 2% ahead. If one looks back to the 1960s when some of these countries were building at 6%, Ireland was building at 0.6%. I do not think we can follow that and I believe we have won that argument.

We must now make an assessment for the next decade. It is important for us to keep at 6% for ten years up to 2020 because it is only then that we will get our infrastructure up to pace. We must maintain a high level of public expenditure for a sustained period of ten to 15 years to modernise our infrastructure. We won the argument after a battle over the Stability and Growth Pact that went on for several years. This and future Governments should remain at the current level if they can afford it because we need it to modernise our infrastructure. We now have the capacity to do so and the Department of Finance will have to decide on the matter. There is no reason we cannot go above that level.

Finian McGrath (Dublin North Central, Independent)
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Is the Cabinet sub-committee genuinely aware of the major housing crisis, particularly for the 50,000 on local authority waiting lists? This has a knock-on effect on more than 100,000 people. What progressive proposals does the Cabinet sub-committee have to deal with social and affordable housing? Is the Taoiseach aware of the major housing crisis and is the sub-committee aware of the reality that many young couples cannot afford to buy their own homes?

Bertie Ahern (Dublin Central, Fianna Fail)
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The Government is very aware that supply, which was the crucifying problem for many years, has reached 80,000 units and is double what anyone believed seven or eight years ago could be achieved. This is having a knock-on effect on affordable housing because supply and demand are becoming more evenly balanced, as are the changes that have been made with regard to stamp duty and other initiatives such as Part V. Although the effects are slow to come through, we are seeing much more now under Part V and the seven or eight other initiatives. The Government is investing much more in social housing. We are also witnessing a much higher proportion of first-time buyers in the affordable housing category and in the overall housing category. The changes made on the mortgage product, which allow loans of 95% of the purchase price of affordable housing, are very helpful to young people who wish to buy their own houses.