Dáil debates

Wednesday, 20 April 2011

10:30 am

Photo of Dessie EllisDessie Ellis (Dublin North West, Sinn Fein)
Link to this: Individually | In context

Question 22: To ask the Minister for Transport; Tourism and Sport the criteria being used by him to evaluate and compare proposed major transport projects under the terms of the comprehensive spending review, specifically the Metro North, DART underground and LUAS interconnector projects; and his views on whether his suggestion to privatise the construction of the Metro North project will be a part of that evaluation. [8816/11]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
Link to this: Individually | In context

This is the first time I have taken priority questions, too.

Photo of Timmy DooleyTimmy Dooley (Clare, Fianna Fail)
Link to this: Individually | In context

We are on a learning curve.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
Link to this: Individually | In context

Yes, we are.

The National Transport Authority is responsible for the implementation of infrastructural projects and traffic management in the greater Dublin area. With regard to transport policy in the greater Dublin area, the major projects, metro north, DART underground and Luas BXD, the cross city line, were all included in Transport 21 as key elements of an integrated transport network for Dublin. All of the projects perform well in cost benefit analyses which have been published in redacted form on the NTA website and are the type of projects essential to the long-term economic well being of a capital city. However, all are costly and the new financial reality dictates that all three projects cannot proceed at the same time. The previous Government recognised this fact when, following the publication of the national recovery plan, it prioritised metro north and postponed all of the other projects beyond 2014.

Furthermore metro north and DART underground were planned as public private partnership projects. Owing to Ireland's sovereign debt situation there is uncertainty about the availability of private funds for major projects dependent on Exchequer funding. However, I emphasise that careful consideration will be given to the merits and affordability of each of these projects in the capital investment review. There will also be consideration of a fourth option, a DART extension to the airport and Swords. They will also be assessed and rated according to their contribution to economic and transport objectives, including employment potential. Notwithstanding funding difficulties, I will seek to ensure that at least one of these projects will proceed. I will examine all realistic options for delivery, including on an incremental, phased basis, if possible, with the involvement of private funding.

Photo of Dessie EllisDessie Ellis (Dublin North West, Sinn Fein)
Link to this: Individually | In context

These are three main projects for the Dublin area and they are vital. I am glad to hear the Minister is looking at one of them but I hope over a short period we could deliver them all. Metro north, for example, was to be a public private partnership, PPP. Sinn Féin would prefer to see the State funding these projects but if that is not possible, a PPP is an option. I have attended more meetings about metro north than any other issue. Does the Minister intend to replace Transport 21? Will that be part of the review? Can I get a commitment that the State will fund whichever one of the projects is chosen?

During the election, the Minister indicated he favoured proceeding with metro north, although there were mixed messages from other Deputies. It is vital infrastructure to allow for access to our main airport and would create huge employment, with about 4,000 people working on the project and ancillary employment along the route. This is a vital project. Perhaps the Minister will give an indication which project stands the greatest chance at present. This is important and should be funded by the State.

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
Link to this: Individually | In context

These are priority questions. There is only six minutes per question and there is only one minute and 50 seconds left.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
Link to this: Individually | In context

I agree absolutely that these are important projects and I would love to see all of them going ahead so I could see my city, Dublin, looking like any other European city, with an integrated, modern transport system. These projects, however, all cost a lot of money and the reason metro north and DART underground were envisaged as PPPs is that even during the boom, no one thought it would be possible for the Exchequer to spend the billions of euro needed to pay for them. The two projects, if they are to proceed, can only do so as PPPs. If we did not have the funds for them during the boom out of taxpayers' money, we definitely do not have the money now.

It would be possible for BXD or a DART extension to go ahead with Exchequer funds because they are much less expensive than the other two projects but no decision has been made yet on which will be favoured by the Government. That is not a political answer; that is the truth. We must look at what is available in the capital envelope and decide which project can proceed.

The real issue with PPPs is that they are a complex and expensive system for the State to borrow money. It is the case, however, that virtually no bank or financial institution in the world is currently willing to lend the State money. That is why the PPP projects for roads are facing difficulties. Three PPP road projects were supposed to go ahead this year and we are still hoping to conclude one or two of them but that looks difficult now. That means going back to the old fashioned system of funding infrastructure directly from the Exchequer but, as the Deputy is aware, the Exchequer does not have much money at present.

Photo of Dessie EllisDessie Ellis (Dublin North West, Sinn Fein)
Link to this: Individually | In context

Can I ask a supplementary question?

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
Link to this: Individually | In context

I am sorry, we have run out of time. These questions are priority questions. Six minutes are allowed for each question, with two minutes for the Minister to answer and four minutes for supplementaries. That is why it is important Deputies when asking a supplementary question are to the point, so they can get a reply from the Minister. I am constrained by Standing Orders.

Photo of Dessie EllisDessie Ellis (Dublin North West, Sinn Fein)
Link to this: Individually | In context

It did not seem like four minutes when I was speaking. It seemed much less.

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
Link to this: Individually | In context

I appreciate that but we must move on. I explain that for those Deputies who might not have experience of priority questions.