Fergus O'Dowd (Louth, Fine Gael)
Link to this: Individually | In context

Question 3: To ask the Minister for Transport the effect recent Government directions will have on the roll-out of Transport 21 transport infrastructure projects; the amount of financial resources he has provided to local government for transport infrastructure projects; and if he will make a statement on the matter. [14020/09]

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

Transport 21 continues to provide the strategic framework guiding the Government's investment in national roads and public transport up to 2015. However, in the light of the changed economic circumstances, it has been necessary to review NDP investment priorities across all Departments. To facilitate this review and in order to provide the Government with maximum discretion in making decisions on future funding allocations, all Departments in receipt of Exchequer capital funding were asked to ensure that no new contractual commitments, in respect of Exchequer capital investment, were entered into without advance approval from the Department of Finance. It is important to stress that this temporary arrangement only applies to new contracts. It will have no impact on existing contractual commitments involving expenditure for my Department of almost €2 billion in 2009.

The allocation of grants to local authorities for national roads is a matter for the NRA. My Department issued allocations to local authorities in February for regional and local roads. These comprised a total capital allocation of €495 million and a current allocation of €126 million. All existing Estimates provisions are subject to review as part of the preparations for the supplementary budget on 7 April.

Fergus O'Dowd (Louth, Fine Gael)
Link to this: Individually | In context

Is it not a fact, as a result of this circular letter, that local authority work is coming to a halt up and down the country? Is it not now the time to put thousands of people to work who have become unemployed due to the building collapse? They can be put to work improving our local roads, local bypasses, dangerous bridges and visibility at junctions. The Government can select small and medium-sized enterprises to do this work. The circular stated that all expenditure must equal total income, which means that the authorities cannot borrow unless they have the money in the first place, and that buying for the construction of purchased assets must be controlled. This is the key time to have these schemes operating in our local authorities up and down the country.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

I would not disagree with the Deputy that now is a key time for effecting road works. Between now and the middle of the summer is usually the best time of the year for this. The local authorities will know their final allocations and any changes to those allocations following the budget next Tuesday, so they will not have to wait too long. We are spending almost €2 billion on capital projects. Under this new system, the Minister for Finance has already sanctioned €143 million — at my request — for regional and local roads to ensure that local authorities could start their work for this time of the year.

There will be no undue delay after 7 April. I will not waste any time getting the information out to the local authorities about whatever money is in the local and regional roads budget or with the NRA for the national roads.

Fergus O'Dowd (Louth, Fine Gael)
Link to this: Individually | In context

This is a key area in which there is no activity. Up and down the country councillors are calling me and my colleagues to tell us that no work is being done on the roads. Significant works can be done locally and they are labour intensive. Thousands of people can be put back to work very quickly without much technology. There are hundreds of thousands of people unemployed and there is no opportunity for them to do the works.

Local authorities around the country have selected key local improvement schemes that make a significant difference to the local network and the local economy, but the Minister's full stop on local government expenditure on roads is entirely unacceptable. It does not make sense and it is an absolute disgrace at this time.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

If the local authorities are carrying out no work, then that is a cause for serious concern. They have already got——

Fergus O'Dowd (Louth, Fine Gael)
Link to this: Individually | In context

They are letting people go.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

—— €126 million in allocations, of which €14 million has been drawn down until the end of March. I do not know what they are hoarding the money for if they are not doing anything.

Fergus O'Dowd (Louth, Fine Gael)
Link to this: Individually | In context

Dozens of workers in local authorities have lost their jobs as a result of the Minister's direction.

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

The €126 million should be enough to keep them going until after 7 April.