Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context

Question 77: To ask the Minister for Finance if the national development plan will be delivered in full, on time and within budget; and if he will make a statement on the matter. [22280/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

The national development plan, NDP, is a high level strategic framework and financial investment plan. It sets out indicative financial allocations for the investment priorities which will consolidate and enhance our economic competitiveness and provide a better quality of life for everyone in this country.

The plan brings together different sectoral investment policies into one overall investment framework, thereby promoting optimal co-ordination and alignment between sectoral policies. The plan emphasises the importance Government attaches to several horizontal themes such as promoting all-island co-operation, enhancing environmental sustainability, promoting more balanced regional development and supporting the development of the rural economy.

The plan provides a financial framework within which Departments and agencies can plan and deliver the implementation of public investment. Together with the robust value for money regime put in place by the Government, this will support the delivery of NDP-financed projects within budget and on time. It is worth noting that the majority of major roads projects in recent years are coming in on time and within budget.

The Government remains committed to the progressive delivery of the investment priorities to be financed under the NDP up to the end of 2013. This commitment is evidenced by the allocations made available from the Exchequer both in 2007 and in 2008 and the outputs clearly visible throughout the country, whether in terms of new roads, new public transport infrastructure, new schools, new water services and the very considerable delivery of public investment financed by the Exchequer.

The preparation of a progress report on NDP investment in 2007 is well advanced and will be laid before the Oireachtas in due course, where it will be subject to debate. The report will set out not only the financial outturns for each of the NDP's 88 investment sub-programmes but the actual outputs financed under the NDP and how they have contributed to supporting the NDP's horizontal objectives.

This investment will help to position the Irish economy to take advantage of a future upswing in the global economy and will help improve the quality of life in this country.

Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context

Is the Minister committed to the multi-annual Exchequer contribution set at €9.1 billion for 2009 and also for 2010?

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

The allocation for a particular year, as the plan indicated, is always subject to our obligations to the European Central Bank under the Maastricht arrangements. It is also subject to the prevailing budgetary position so, in devising the Estimates for this year for capital next year, sovereignty lies with the process this year.

Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context

People will be disappointed the Minister is unable to commit to the multi-annual framework, which contained these figures and was set out and published after the last budget. Does the Minister agree that one of the preconditions set out on page 16 of the national development plan was that the Government would maintain the growth in day-to-day spending in line with economic growth? The Minister and his predecessors have manifestly failed to do this. They have allowed spending in the past two years to grow 65% faster than was set out as a precondition in the NDP and this has cost €4 billion. Does the Minister accept the Government has undermined its ability to deliver the NDP by building huge current spending programmes on the back of property taxes that were plainly unsustainable?

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

I do not accept that but I do accept that I have an obligation, as Minister for Finance, to ensure current spending is kept under tight control and that priority is given to investments outlined in the national development plan.

Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context

That is something the Government has failed to do in the past two years, despite it having been set as a precondition for the delivery of the NDP.

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

The relevant quantum of investment took place in the NDP in the past two years. As Minister for Finance I will review this, examine the position this year in the mid-term review and bring forward proposals for the Government in the autumn.

Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context

Why did the Government set out in its manifesto that it would deliver the NDP in full and on time when the Minister now tells us it is subject to review and the fact the Government has failed to maintain current spending in line with economic growth means it is now vulnerable to revision? Why did the Government say something in its manifesto that it has failed to provide the capacity to deliver?

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

I understand my predecessor pointed out that the manifesto was subject to current budget constraints and considerations, as any manifesto should be.

Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context

The manifesto made a commitment but the Government has undermined its ability to deliver it through its actions in expanding current spending. The Government did not make the NDP its priority; winning the last election was its priority. The Government spent money it did not have and that the economy could not provide and now delivery of the NDP has been compromised.

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

Delivery of the NDP remains the priority of the Government in the context of public finances.

Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context

It is a priority the Government can no longer deliver.

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

We can debate this in future but it is clear that in the past two years all the commitments in the NDP have been met.

Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context

That is not clear to me.

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

It is evidenced in the substantial expenditure we have seen in improving our roads network, for example, which is taking place ahead of schedule this year due to the fine weather we have had. I have no doubt the other investments will also be progressed in the NDP.

Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context

The Minister does not sound sure and has left quite a bit of doubt around the matter.