Mick Wallace (Wexford, Independent)
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Question 14: To ask the Minister for Public Expenditure and Reform in view of the shortage of Exchequer funds at present the reason that he has not intervened to prevent unnecessary expenditure on the planning stages of projects which are unlikely to be completed during the life of this Government; and if he will make a statement on the matter. [35203/11]

Brendan Howlin (Wexford, Labour)
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The Deputy will be aware that we have had to significantly scale back and reprioritise public expenditure in order to meet the pressing need to restore our finances to a sustainable path. As part of this, we undertook a major review of our capital programme. We have had to focus on what we must do rather than what we would wish to do. This has involved looking at projects in which we have already made considerable investment and evaluating whether it would be more cost effective to proceed or defer them until a later stage. We intend that projects deferred will ultimately be delivered when public finances have been restored.

It is important to ensure that capital programmes and projects are properly managed and rolled out. This requires that public works are appropriately planned and delivered. The guidelines for the appraisal and management of capital expenditure proposals in the public sector set out the steps that Departments and agencies need to take in planning for their capital projects. Departments must ensure that they undertake proper appraisal and planning and that costs in this regard are appropriately controlled.

Last week, the Government announced the new capital envelopes for Departments for the period 2012-2016. Departments are now engaged in reformulating their project delivery schedules and project planning processes in accordance with their new financial allocations. In this context, Departments are also carefully considering the range and scope of planning that are appropriate and justifiable to meet our likely infrastructure needs over the five year horizon and beyond. Obviously, we must think beyond the five year horizon.

Mick Wallace (Wexford, Independent)
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I understand that certain projects are no longer feasible and that it makes no sense for Government to go ahead with them. One of those projects is the New Ross bypass which it was estimated would cost €350 million. It has been pretty obvious for some months that projects like this would not go ahead during the lifetime of this Government. The Minister, Deputy Varadkar, made that quite clear. I do not, therefore, understand the reason the Government allowed further money to be spent on the New Ross bypass, which might never be built.

I contacted Wexford County Council and New Ross Town Council and was told that money was spent on this project this week, which amazes me. If the Government had acted quickly enough the purchase of land for a bypass which we cannot afford to build could have been averted.

Brendan Howlin (Wexford, Labour)
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I do not agree with the Deputy that because we cannot afford it now it will never be built. We have often been criticised in the past for not taking a long-term view of things. By the time the M50 was built, it was too small. While I am critical of the previous Government it did engage in some strategic thinking. The motorway system was a good investment. We need to complete parts of it. For example, in relation to the M11, it makes no sense to build it 80% of the way and to leave the remaining section to Rosslare-Europort unbuilt. While we will not be able to afford to do that in the foreseeable future - as I have told people directly - the dilemma is do we then allow people to build on the corridor required to complete it resulting in our having to in ten years time commence replanning and re-routing? These are real dilemmas.

Similarly, the New Ross bypass is a worthy project but we might have to rethink the scale of it. The Deputy made valid points during our debate yesterday on the public capital programme. We need to tease out these issues in detail. We cannot shut down long-term planning and confine our horizon to the next difficult five years. This country will recover and will be in a position to invest again. We should not foreclose on the opportunities to invest in infrastructure be it roads, schools and so on. Public transport plans such as Metro North are feasible in the longer term. They are just not affordable now.

Mick Wallace (Wexford, Independent)
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The Minister, Deputy Varadkar, made the sensible decision of not purchasing the land for the Oilgate project. However, money was spent in the past few weeks on the purchase of land in New Ross at a time when money is scarce. While there have been many good roads built in this country, we got carried away with ourselves and some of it is over the top.

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
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Thank you, Deputy.

Mick Wallace (Wexford, Independent)
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I believe that a relief bridge in New Ross at a cost of €35 million is a more likely outcome in the future than is a €350 million bypass.

Brendan Howlin (Wexford, Labour)
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The Deputy may be correct. A number of Fine Gael councillors from the area might agree with him.