Dáil debates

Tuesday, 18 October 2005

Ceisteanna — Questions.

Public-Private Partnerships.

3:00 pm

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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Question 9: To ask the Taoiseach when the interdepartmental team on infrastructure and public-private partnerships will next meet; the number of meetings of the team planned for the remainder of 2005; and if he will make a statement on the matter. [24231/05]

Photo of Pat RabbittePat Rabbitte (Dublin South West, Labour)
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Question 10: To ask the Taoiseach if he will report on the current work of the interdepartmental team on infrastructure and public-private partnerships; and if he will make a statement on the matter. [24376/05]

Photo of Trevor SargentTrevor Sargent (Dublin North, Green Party)
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Question 11: To ask the Taoiseach if he will report on the interdepartmental team on infrastructure and public-private partnerships; and if he will make a statement on the matter. [25208/05]

Photo of Joe HigginsJoe Higgins (Dublin West, Socialist Party)
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Question 12: To ask the Taoiseach the progress made by the interdepartmental team on infrastructure and public-private partnerships; and if he will make a statement on the matter. [25342/05]

Photo of Caoimhghín Ó CaoláinCaoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 13: To ask the Taoiseach the number of times the interdepartmental team on housing, infrastructure and public-private partnerships met in 2005; the planned meetings for the remainder of 2005; and if he will make a statement on the matter. [27682/05]

Photo of Bertie AhernBertie Ahern (Dublin Central, Fianna Fail)
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I propose to take Questions Nos. 9 to 13, inclusive, together.

The interdepartmental team on housing, infrastructure and PPPs has met eight times this year and is scheduled to meet again on Wednesday, 9 November. The team generally meets on a monthly basis and is scheduled to have one more meeting in the remainder of 2005. While the agenda for the November meeting has yet to be finalised, it will include updates on wider energy policy issues and on the national spatial strategy gateways study.

As Deputies are aware, the team monitors progress and reviews priorities under the various NDP infrastructure headings. It looks at options to secure better value for money outcomes and assesses the scope for the speedier delivery of outputs. The team produces an annual report which is laid before the House. This report provides an overview of progress during the previous year within the main policy frameworks and in the physical delivery of projects.

As I have told the House previously, the team serves a valuable role in progressing and resolving issues related to infrastructure planning and delivery and will continue to make an important contribution.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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There are only a few minutes left, so I will ask these questions directly. Last year in the budget the exemption threshold for stamp duty was set at €315,000. Recent statistics indicate that the average cost of a new house in Dublin is €346,000 and nationally, the price of a second-hand house is €332,000, both of which are above the stamp duty threshold. Is it the Taoiseach's belief that this should be adjusted?

The Minister for Education and Science recently announced a new raft of primary and post-primary schools to be built under the public private partnership system. Did the cross-departmental team on infrastructure and public private partnerships consider the further use of PPPs before the Minister's announcement, which was welcome for the schools in question? The Comptroller and Auditor General in his report stated the projected cost of final PPP deals was 8% to 13% higher than the projected cost of building and running schools using the conventional approach. Did the team consider this statement?

Does the Government share the Taoiseach's view in respect of supertrucks?

Photo of Bertie AhernBertie Ahern (Dublin Central, Fianna Fail)
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They should be kept out.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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Forty-two people have been killed by articulated trucks on the roads this year.

Photo of Rory O'HanlonRory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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The Deputy is moving beyond the scope of the questions.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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Dublin Port tunnel is a major piece of infrastructure.

Photo of Rory O'HanlonRory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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I accept that but the Deputy's question is well outside the scope of the questions.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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The problem is that the trucks cannot get inside, never mind outside, the tunnel.

Photo of Rory O'HanlonRory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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The Deputy will have to find another way of raising the matter.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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Is it the view of the Government that supertrucks should not be allowed here?

Photo of Rory O'HanlonRory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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The matter does not arise on this group of questions.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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Does the Taoiseach take into account comments by the chief of the Irish Road Haulage Association in respect of additional trucks, increased pollution, more costs and so forth? Is it true that €4.6 million has been spent solely on Luas smart cards which cannot be used under any other system?

Photo of Rory O'HanlonRory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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The Deputy's questions do not arise on this group of questions and should be addressed directly to the line Minister.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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The cross-departmental team on infrastructure and public-private partnerships, which was involved in the Luas project, should have taken into account a fundamental issue, namely, the use of smart cards on the Luas system on which a sum of €4.6 million of our money was spent. I want to know whether the cross-departmental team ever considered this issue.

Photo of Rory O'HanlonRory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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The Deputy is taking up the time of the House in moving beyond the scope of the questions. I ask the Taoiseach to reply to the relevant questions.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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I am not sure what point the Ceann Comhairle is coming from but these issues are directly related to the cross-departmental team function.

Photo of Rory O'HanlonRory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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The point I am coming from is that the Taoiseach is taking five questions together and the supplementary questions——

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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I am not responsible for that.

Photo of Rory O'HanlonRory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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Yes, but the Deputy is responsible for his supplementary questions which should be specifically related to the questions in the group.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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I am more entitled to ask questions than any other party leader who has tabled questions. I have asked five questions and will probably not get answers to any of them.

Photo of Rory O'HanlonRory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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Questions on Departments should be addressed directly to the relevant line Minister.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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The thrust of my questions related to cross-departmental teams on infrastructure and public-private partnerships.

Photo of Bertie AhernBertie Ahern (Dublin Central, Fianna Fail)
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I will try to answer the Deputy's questions quickly. On the last issue, it is policy to try to have interchangeability in transport. The aim is to move to having one card which can be used on everything. That is what we are trying to do.

In relation to stamp duty, thankfully this year the attractions of the stamp duty exemption, particularly for new house owners, has led to more young people, particularly first-time mortgagees, choosing to buy second-hand houses. This has had the corresponding effect that in some areas second-hand house prices have gone up because demand for them has gone up. The question as to whether any changes will be introduced is a matter for the Minister for Finance every year. He made significant changes last year so I do not think it will be a priority this year. We have not had any discussion on the issue.

On the issue of infrastructure for trucks and so on, many countries ban the trucks to which the Deputy referred. They are part of an effort by hauliers in these countries to have fewer people working for them and bigger trucks. That is what this is about and the state of the roads will get a hammering if they can have their supertrucks. Supertrucks are not necessary in this country and there is no pressure to bring them in other than from people who want to improve their own profitability on the roads. The Deputy asked another specific question.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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Did the cross-departmental team consider the new public-private partnerships for schools in the context of the Comptroller and Auditor General's report?

Photo of Bertie AhernBertie Ahern (Dublin Central, Fianna Fail)
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Yes, we had a lot of discussion on this issue. The new initiative is aimed at accelerating delivery of PPPs for key infrastructural projects in central Government areas. The new centre of expertise will be located in the National Development Finance Agency. Its role will be expanded to include the procurement function on behalf of Departments in addition to its existing role as adviser to Departments on PPPs. The agency has commenced this new activity on an interim basis pending the introduction of enabling legislation.

The centre will provide the skills and capacity to support the procurement of key infrastructure in Departments. It will concentrate initially on three: the Departments of Education and Science, Health and Children, and Justice, Equality and Law Reform.

The recent example Deputy Kenny mentioned is the 23 new post-primary schools and the four primary schools under public-private partnership. There are many issues in this. They will be taken in bundles of five or six and can be done speedily. There are issues of maintenance and efficiencies. In many of these cases the schools are for 800 or 1,000 pupils in growing new areas. The PPP system is seen as being speedy and efficient and giving value.

There is an added cost. I have stated on many occasions there is no doubt that in the normal course of events the cheapest way to borrow money is for the State to do it. That will always be the way, except where the State is not in a position to borrow money at all. However, there are several areas, particularly with big projects where private sector involvement enables us to get them done efficiently and one can get quality of design and procurement procedures. The private sector has taken a number of these projects and is building them. There is not an argument for doing this everywhere but in projects like these there is an argument.