Tommy Broughan (Dublin North East, Labour)
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Question 34: To ask the Minister for Transport if the T21 programme is now in crisis, with major delays to critical projects including the Dublin Rail Interconnector, Phase 2 of Western Rail Corridor; Metro West; the Luas Interconnector and the full Navan Rail line; if he will confirm his commitment to the necessary current and capital funding in Budget 2011 for these public transport infrastructure projects; and if he will make a statement on the matter. [27040/10]

Noel Dempsey (Meath West, Fianna Fail)
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Substantial progress has been made on Transport 21 since 2006. The five major inter-urban motorways and the M50 upgrade will be completed this year. The Irish Rail fleet has been renewed. The Cork to Midleton line and the first phase of the western rail corridor have opened and the first phase of the Navan line will open later this year. The Kildare railway line has been upgraded and a number of new Dublin suburban stations have opened. The Luas docklands extension opened last December and Cherrywood and City West are well advanced. More than 500 buses have been purchased.

The Transport 21 investment framework runs until 2015. While not all of the projects originally identified in Transport 21 will be completed by 2015, no projects have been cancelled and Transport 21 continues to provide the strategic framework for capital spending on transport infrastructure into the future. The capital funding allocation for my Department for 2011 will be determined as part of the 2011 budget process.

Tommy Broughan (Dublin North East, Labour)
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Some days ago, serious concerns were expressed by the Irish Congress of Trade Unions, IBEC and representatives of the construction industry on the future of Transport 21 and key transport infrastructure projects. Does the Minister share their concern that funding simply will not be available from 2011 onwards?

During the last minutes of the Minister's last Question Time, he was very upset about a reported delay of three years that is to affect the interconnector. He had met the board of CIE that morning. Has he found out why the 3.5 year timetable for the interconnector has drifted to 5.5 years, thus postponing the completion date until 2018? What is happening in this regard? Is the Minister convinced Irish Rail has the capacity to deliver the interconnector, which is to be a major development for rail transport in the eastern region?

With regard to metro north, when does the Minister expect the tranche of €500 million from the European Investment Bank? Assuming metro north gets the green light in the next couple of months, as most expect, major funding will have to be provided for the preparatory works late in 2010 and throughout 2011. Has the Minister any estimates on this and what has he done about it?

What is happening with regard to phases 2 and 3 of the western rail corridor and the completion of the Navan line? Are they being put on the long finger?

With regard to capital spending under the transport Vote, the Minister secured €3.1 billion in 2008, €2.4 billion in 2009 and €2 billion this year. In 2008, 67% of the allocation was spent on roads. In 2009, it was 72% and it is to be 68% this year. Next year the roads programme, including the construction of the interurban routes, is coming to an end. We expected at this point to be able to direct the major funding towards public transport provision. Is it now the case that the money will simply not be available?

Has the Minister had lengthy discussions with the Minister for Finance about the necessity to maintain a major transport capital budget? We are told by the ESRI that if we spend €1 billion on infrastructure, it leads to an increase in GNP in the order of €0.5 billion. The cost benefit is quite clear. We should make the investment. How far has the Minister got in this regard and what can he tell us about these projects?

Noel Dempsey (Meath West, Fianna Fail)
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As the Deputy will no doubt be aware, to be able to spend money one has to have it. One has to make it and be in a position to borrow it. The Government's strategy over the past couple of years was to try to ensure we would be in such a position. We certainly do not have as much money now as we had two, three or four years ago. Within these constraints, we are spending this year €6.5 billion on capital infrastructure projects, a little over €2 billion of which is on transport projects. The budgetary process will determine what we spend on them next year.

I have laid out my priorities on transport. The two major projects I want to see advanced are the interconnector and the metro, which will take six years to complete rather than the three and a half years we talked about. Money is and will be required for both projects from this year on.

Ironically, the fact that the interconnector and metro will take longer than expected to complete, for environmental and design reasons, will ensure that the next phases of the western rail corridor and the Navan line will proceed on time and perhaps a little ahead of time. It is an ill wind than blows no good.

I constantly stress the importance of capital investment, the capital programme and the transport programme to my colleagues. Deputy Broughan is quite right in his reference to the spread of expenditure. Next year will see the last of the payments. While the motorway schemes will be completed in 2010, some payments pertaining to them will come out of the 2011 budget. From then on and given the coming on line of the metro and interconnector and the continuation of the electrification of the Kildare line, the pendulum will swing back in favour of public transport rather than roads. That will continue until 2015.

Tommy Broughan (Dublin North East, Labour)
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I noticed in the 2010 Estimates that a payment of approximately €66 million is being made in respect of PPPs. The Minister's civil servants told us when considering the Estimates that it is expected the payment will rise to approximately €600 million per annum as the big projects are developed over the years until 2015. Given that PPPs will be involved in some of the major public transport projects informed by the Minister's policy, what impact will this have on the budgetary position for 2011? Journalists talk about costs of €3 billion to €5 billion for metro north. Must this be the annual impact or will the costs be spread over 20, 30 or 40 years?

Noel Dempsey (Meath West, Fianna Fail)
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The repayments will be spread over a number of years. Some of the earlier projects had a repayment lifetime of 25 years while those for some of the later projects can be up to 40, 45 or even 50 years. We obtained approximately €2 billion from private sector investment in the roads system. It must be repaid over time. The discussion that will arise, certainly over the coming years, will concern whether it will be part of the normal Estimates process in the Vote of the Department of Transport or whether we should devise a mechanism whereby the money would be paid from the central Exchequer. This has not yet been decided. Either way, the money must be repaid. If it is to be paid by the Department of Transport, in the way repayments are made by the Departments of Education and Skills, and Health and Children, it must be provided for in the Estimates each year.