Dáil debates

Thursday, 2 April 2009

4:00 pm

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Question 9: To ask the Minister for Transport the amount of money that has been spent on enabling works for all proposed rail projects; if the Department of Finance has been in contact with him regarding the metro north project; when he expects Government commitment for the metro north project; and if he will make a statement on the matter. [13763/09]

Photo of Noel DempseyNoel Dempsey (Meath West, Fianna Fail)
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Enabling works on rail projects, such as ground clearance and utility diversions, generally follow the granting of a railway order and are incorporated into the overall cost of projects. No Exchequer funds are currently being spent on enabling works in respect of rail projects, other than metro north, which have not yet secured an enforceable railway order and are, as a consequence, not yet at construction. However, planning and design work, which is at various stages of development on such projects, is ongoing.

The Government approved the funding structure for the metro north PPP last year, including an Exchequer provision for advance works ahead of the main PPP contract and a capital contribution during construction. Since that Government decision, approximately €8 million has been spent by the RPA in respect of enabling works at the Ballymun Interchange on the M50 and at the Mater Hospital site. The works at the Mater site are associated with the interface between metro north and the planned new hospital at the Mater. In the absence of the enabling works at the Mater site, it would not have been possible to provide a station at the location as planned, given that the works being undertaken to deliver the new adult hospital. The works on the M50 were undertaken as part of the current works to widen the M50 to avoid further disruption at a later date with works on metro north. The carrying out of other enabling works, such as utility diversions, is dependent on the granting of a railway order by An Bórd Pleanála.

The oral hearing before An Bórd Pleanála on the railway order application for metro north commenced yesterday and the board has indicated its anticipated decision on this application to be before 4 September this year. In these circumstances, it is most unlikely that enabling works will commence in the current year. However, both the RPA and my Department will keep the matter under review.

It is my intention to brief the Government after the decision on the railway order is made and prior to the main enabling works commencing. My Department will also continue to be in regular contact with the Department of Finance on metro north and other Transport 21 projects. I understand from the RPA that tenders for the metro north PPP were submitted by the four bidding consortia in February this year and these are currently being evaluated by the RPA. It is anticipated that the tender process will be completed during 2010. In accordance with the requirements of the Government decision on Transport 21, metro north will be submitted to Government for a final decision at that stage.

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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Is the Minister saying that metro north will proceed at the end of this process? The 7,000 construction jobs will be very important, as will the economic benefit to the country, particularly the greater Dublin area, Fingal and beyond. The cost is the key question. While everyone supports the project, the cost of the project must be identified as quickly as possible. We were told we could not know what this would cost because of the secrecy of the ongoing process. Does it make sense for the Comptroller and Auditor General, or some such body, to verify that the costs are in line and that the project represents good value for money? We have no doubt that metro north is important for the development of the country, the airport and Fingal but it is important that there is an accountable process, independent of the Government, to verify that costs are fair and proper.

Photo of Noel DempseyNoel Dempsey (Meath West, Fianna Fail)
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There are a number of reasons why costs are not disclosed in advance. One is to ensure that estimated costs do not become the floor rather than the ceiling, as happened in so many projects.

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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I accept that.

Photo of Noel DempseyNoel Dempsey (Meath West, Fianna Fail)
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Once we have the railway order, the preferred tenderers will be asked to submit the final tender once they know the route and the works involved. Once that is submitted a full capital appraisal will be undertaken, independently of my Department, by the Department of Finance.

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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Will that be published?

Photo of Noel DempseyNoel Dempsey (Meath West, Fianna Fail)
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That will take place at the final stage and the overall cost will be published. A number of assessments have been done on the rate of return from metro north and all proved positive. Either the current Oireachtas joint committee or the previous one carried out an appraisal of the cost-benefit analysis and professed itself satisfied with the good rate of return and recommended that the project go to the next stage. If it represents good value for money it will go ahead.

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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With the indulgence of the Leas-Cheann Comhairle, I wish to report a note from the wonderful Labour Party staff to the effect that the IDA and an investor have agreed terms for the takeover of SR Technics. The new owners will need two weeks for due diligence, during which SR Technics will be required to pay staff, which they are refusing to do at present. I renew my call for the Minister to help to save these jobs, which are on a knife-edge. This needs diligent action.

I have had differences with the Minister this morning and yesterday but I commend him on holding the line on this major project, metro north. It will be a case of "build it and they will come". It is a great project and in the years after 2015 the costs will run to €150 million per year. It is within our grasp.

Regarding the broader transport capital budget, we saw a range of project cancellations last week. Our media colleagues tell us that the Departments of Transport and Education and Science have the highest level of committed and non-contracted money. Is that the case? Of the €3.5 billion, will a significant portion be cut away by the Minister for Finance?

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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The Deputy cannot pre-empt the budget or the budget debate.

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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What is committed and non-contracted? What is the Minister doing about it?

Photo of Noel DempseyNoel Dempsey (Meath West, Fianna Fail)
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I do not know what they mean. I have put figures in the public domain previously.

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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The money is not down for spending yet. Contracts have not been signed.

Photo of Noel DempseyNoel Dempsey (Meath West, Fianna Fail)
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While it has nothing to do with the question, some €1.44 billion is contractually committed out of a total of approximately €1.9 billion. Of a further €500-600 million for local authorities, some €126 million has been committed, accounting for another €300 million. The bulk of the national roads funding is committed, all except the €50 million. We did not cancel any of the projects listed in the newspaper reports but, in line with the question tabled by Deputy O'Dowd on local roads, the Department was told it would need specific sanction and none would be granted until after the capital and current expenditure would be decided in the budget.