Tommy Broughan (Dublin North East, Labour)
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Metro North is the long proposed, 18.8km part-underground system from Dublin city centre to Swords via Dublin Airport and it is critical for developing fixed-line connectivity in the greater Dublin area and the important, growing urban region of Swords. Therefore, at the start of the 31st Dáil, it is crucial to reiterate the Labour Party's and this Government's commitment to delivering this wonderful commuter rail project. It is the case that the vast bulk of the projected €34 billion Transport 21 expenditure has been spent on road projects to date, with very little on public and commuter transport.

Metro North is an exciting and much welcome development for my constituency, as it is for the Minister's, and for the whole of the Dublin and mid-Leinster region. It will also form part of a crucial new commercial corridor across Dublin's northside. Fingal County Council, in evaluating and supporting the project, has already published an impressive document,An Economic Development Strategy for the Metro North Economic Corridor, with a comprehensive plan for the economic and social development of all the Metro North area. Many business leaders in Dublin and Leinster have also been supportive of the project because of the infrastructural enhancements it will provide and its positive economic impacts. In addition, I understand that the cost benefit analyses of Metro North that were undertaken by the RPA and all five of the original bidders were very positive. The Government will shortly produce a jobs budget. In addition to enabling jobs in 2011 and 2012, Metro North will provide a desperately needed 7,000 construction jobs each year and up to 14,000 jobs in the wider economy. In general, previous research by the ESRI stated that in the long run GNP increases by €0.4 billion for every €1 billion spent on infrastructure.

Again, I congratulate Mr. Frank Allen, the chief executive of the Railway Procurement Agency for his and his staff's ongoing successful management of this project which culminated in the granting of permission for Metro North by An Bord Pleanála last October. An Bord Pleanála's railway order for Metro North did not accept proposals for a depot and ancillary facilities at Belinstown and a proposed line and stop at Lissenhall and these will necessitate a further planning application. In its judgment, however, An Bord Pleanála outlined a comprehensive series of proposals to accompany the Metro North project in order to address the serious concerns of local residents and small business people on the route. These included many proposed environmental and mitigation measures.

The planning permission for the key components of the project are in place and I understand there are two final bidders for Metro North, namely,Celtic Metro Group and the Metro Express consortia. A final decision on the successful bidder is to be made in April. Both final bidders have strong Irish-connected companies which should provide a significant boost to the Irish construction sector. The European Investment Bank has already approved loans of up to €500 million for the construction of Metro North. I ask the Minister to provide an update on the final bid process and on the status of the EIB loans.

Doubts have been raised over Metro North, given the current disastrous banking and economic crisis and the hysteria we faced before the recent general election. However, I believe it is essential to proceed with the project for transport connectivity and to maximise economic growth in the years ahead. When the permission was granted by An Bord Pleanála last October it was reported that €140 million had already been spent on the project and that enabling works for Metro North would cost a net €80 million in 2011, which I understand is covered in the Minister's transport budget.

I also understand that the first implementation payment would not incur until late 2012 or early 2013 at the earliest. As this is a public-private partnership project, the cost to the public purse following the initial implementation payments will be spread over several decades. Recently completed motorways and roads have repayment periods stretching to 2052.

I was informed by the former Minister, Noel Dempsey, that if all the Transport 21 road projects, the metro and the interconnector were delivered, repayments would eventually amount to a €600 million tranche each year in the transport capital budget. The suggested CPO costs that have been widely commented upon in the media for the development of the metro were significantly inflated in the pre-election hysteria.

An exceptionally strong case remains for strongly adhering with all the preparations to build Metro North and to ensure the current tendering and construction timetables are also adhered to. I urge the Minister and the Government to give total and unqualified support to metro north.

Leo Varadkar (Dublin West, Fine Gael)
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I thank Deputy Broughan for giving me the opportunity to deal with the issue this afternoon. As the Deputy is aware Metro North was included in Transport 21 as a key element of an integrated public transport strategy for Dublin. It is the spine of an integrated network connecting the proposed DART underground, existing suburban rail lines, existing and future Luas lines, the proposed metro west, Dublin Airport and the bus network. The 2011 programme for Government makes clear that this Government specifically supports the expansion in range and frequency of high capacity commuter services, subject to cost-benefit analysis and the availability of both Exchequer and private finance. I am therefore examining the major projects in my Department's capital budget which arise from the previous Government's national recovery plan to establish which can proceed. I am now reviewing Metro North, including the updated business case. This review will have regard to the overall cost and benefits, including the contribution in the short, medium and long term to transport objectives, its impact on investment and development in the corridor, as well as its employment creation potential.

Notwithstanding short-term disruption to the city, metro is exactly the kind of transport infrastructure I would like to see in our capital city linking our suburban towns, airport, universities and major hospitals. To proceed, however, we must be sure of the availability of several billion euro in private money under a PPP agreement, up-front Exchequer funding of well over a billion euro during the course of this Government and the State's capacity to repay the PPP contractor considerable sums of money every year for the next 30 years. I must of course also have regard to other projects in the context of overall priorities and the funding allocation. Once this review is complete I will bring the matter before the Cabinet infrastructure sub-committee so that a clear decision can be made as to whether this project will proceed in the immediate future or be postponed.

The programme for Government also proposes the drafting of a new national development plan covering the seven years from 2012 to 2019. The plan will be based on a comprehensive study of Ireland's public investment priorities over that period, with a particular emphasis on job creation and taking into account the realities of funding availability.

I acknowledge the work undertaken over a number of years in bringing Metro North to the current position. The procurement of Metro North as a PPP project, which commenced in 2008, is ongoing. In June 2009, the Railway Procurement Agency shortlisted two consortia, Celtic Metro Group and Metro Express, to proceed to the final stage of the PPP procurement process. A railway order has been secured and work is well under way for the main planning application for the depot, as mentioned by Deputy Broughan. The European Investment Bank has committed to supporting the project with a loan of up to €500 million.

I also know significant work and consultation have taken place with local authorities and business interests on planning, development and how to undertake the works while keeping the city open for business. In my review I want to assure the Deputy that I will have full regard to the benefits of Metro North, especially that it will carry in excess of 36 million passengers annually at peak; shorten the journey time from Swords in my constituency to the city centre considerably; link universities, hospitals, key retail and employment centres in the city centre, as well as Dublin Airport; generate approximately 4,000 direct jobs and thousands of spin-off jobs; connect with Connolly to Maynooth line and Luas lines to Dundrum and Cherrywood; and act as a catalyst for significant inward investment in the Metro North economic corridor stretching from Ballymun to north of Swords, including Dublin Airport.