Pat Breen (Clare, Fine Gael)
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Question 6: To ask the Minister for Education and Science when his Department will allow the Grangegorman development, bringing together the Dublin Institute of Technology onto one campus, to proceed in order that a planning application under the SDZ procedure can be advanced by the relevant authority. [19304/09]

Ruairi Quinn (Dublin South East, Labour)
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On a point of order, is this question being taken with Question No. 23?

Batt O'Keeffe (Cork North West, Fianna Fail)
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Strangely, it is not. It is a separate entity so the Deputy is on his own.

Ruairi Quinn (Dublin South East, Labour)
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We could play the advantage rule, namely, I go first.

Batt O'Keeffe (Cork North West, Fianna Fail)
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The Grangegorman Development Agency was established in May 2006. Since its establishment the agency has worked on the preparation of a strategic plan and budget for the proposed development of the Grangegorman site. The strategic plan is required in order to inform the Government of the options and the associated costs of moving the Dublin Institute of Technology campus to the Grangegorman site as well as making recommendations on site provision for the relevant health facilities.

The agency completed the drafting of the strategic plan and budget in October 2008 and forwarded it to my Department for approval as provided in section 12(h) of the Act. Copies of the plan and budget were also forwarded to the Minister for Health and Children for her consideration. The Grangegorman Development Agency has provided my Department with a clear indication of the overall costs for the development of the Grangegorman site. This has allowed my Department the opportunity to consider fully the costs involved in utilising the majority of the Grangegorman campus to provide for the needs of DIT.

Following receipt of the strategic plan, my officials, in consultation with the Higher Education Authority, commenced an assessment of the proposals. My Department also sought the advice of the National Development Finance Agency on the funding portion of the draft cost-benefit analysis from the Dublin Institute of Technology and the draft strategic plan. In March 2009 the agency submitted a revised master plan and budget. The revised plan takes account of the reduced prices that have materialised in the construction sector by updating construction prices to January 2009 values. The agency also reduced enabling infrastructure costs and revised the estimated value of DIT property portfolio to reflect current market trends. The revised plan proposes to deliver the complete project in phases.

Ruairi Quinn (Dublin South East, Labour)
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The Minister gave an undertaking at committee last week that it was his intention to visit the site. He might confirm that this is still his intention.

Batt O'Keeffe (Cork North West, Fianna Fail)
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Yes, I will do that in the coming days.

Ruairi Quinn (Dublin South East, Labour)
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He could combine it with the by-election. Senator Ivana Bacik will give him a tour of the site.

It is a very worthwhile project, for many reasons. The Minister is already committed to spending money in the DIT area for maintenance, repair and upkeep, and to all intents and purposes that is wasted, dead money because the buildings are in many cases old and not appropriate.

Brian Hayes (Dublin South West, Fine Gael)
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That is correct.

Ruairi Quinn (Dublin South East, Labour)
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This cannot be compared with a new project that would go on a greenfield site, which is additionality; this is a logical rationalisation. I urge the Minister to find a way in which this could be done. I believe the Minister of State, Deputy Haughey, would be very happy to see a major educational institution established on the north side of Dublin city.

Batt O'Keeffe (Cork North West, Fianna Fail)
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Obviously, the rationalisation of the various entities of DIT is desirable. The Deputy might be interested to know that the most recent proposal outlines the overall cost to deliver all of the elements of DIT and HSE services on the Grangegorman site at €1.4 billion, so it is a sizeable bill.

Ruairi Quinn (Dublin South East, Labour)
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That is over an extended period. If one considers the rent they are paying, their maintenance and all the other existing costs, it is nearly a win-win situation.

Batt O'Keeffe (Cork North West, Fianna Fail)
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The first tranche is to cost €610 million, which will be part funded from the sale of the DIT properties and from the HSE capital budget. A total of €195 million is being sought from the Department in capital funding. The second tranche is to be provided if and when required and the total cost of that second tranche is estimated at €848 million, the majority of which is to be self-funded. All costs quoted are as of January 2009, VAT inclusive.

Ruairi Quinn (Dublin South East, Labour)
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What is the timescale?

Batt O'Keeffe (Cork North West, Fianna Fail)
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We got the revised plan and estimates in March 2009 and they are with the Department at present. As the Deputy knows, a report will be made to Government arising from that. The Taoiseach will also visit the site. We want to be fully informed so the Cabinet can make an appropriate decision.

Ruairi Quinn (Dublin South East, Labour)
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If the Minister gives the go-ahead in principle, with whatever caveats he wants in regard to public moneys, there are items that could be done through the private sector, for example, student accommodation and many other developments on the site. It will unlock other sources of revenue but it depends critically on the Minister bringing a positive recommendation to Cabinet.

Batt O'Keeffe (Cork North West, Fianna Fail)
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It is fair to say we are considering all sources of funding. If the new infrastructural fund comes into being, we would look at that as being an area which could be used appropriately in regard to funding developments such as this.

Ruairi Quinn (Dublin South East, Labour)
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It all comes down to the Minister.

Batt O'Keeffe (Cork North West, Fianna Fail)
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I will certainly visit the site to see the overall strategic plan and to be as informed as I can be in order to ensure whatever recommendations I make to Cabinet are based on full background information.

Brian Hayes (Dublin South West, Fine Gael)
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I put down this question through my colleague Deputy Breen because I wanted to establish that there is cross-party support for this infrastructural project. It is good for the community, the DIT and business links, and is the kind of project we need right now to help the economy get out of the hole it is in. My understanding is that before the strategic development zone application is made to Dublin City Council, it requires the Minister's Department to give the green light in principle to the proposal.

When does the Minister think the Department, following Cabinet discussion, will be in a position to allow the proposal go to Dublin City Council? Otherwise, the project will not get off first base.

Batt O'Keeffe (Cork North West, Fianna Fail)
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I do not want to be tied to a time limit. I will visit the site within the next couple of weeks and will then discuss the strategic plan with my officials and the costs involved. It is a good time to be involved in construction and it is the desire of Government to put strategic projects in place so that we can sustain and increase construction jobs. We will examine the feasibility of the plan to see how it can be achieved and consider what form of funding would be appropriate for it.