Dara Calleary (Mayo, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

34. To ask the Minister for Public Expenditure and Reform to bring forward the review of the capital plan to ensure that critical unmet infrastructure needs are addressed, in particular the need to increase the overall share of gross domestic product represented by investment expenditure; if he is considering additional non-Exchequer sources of funding for capital investment; and if he will make a statement on the matter. [13253/16]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I share the premise underlying the Deputy's question that following the right investment strategy is critical to securing economic progress and social development. The process leading up to the publication of the current plan sought to ensure that resources were focused where needed in order to drive economic recovery and meet social needs. This principle was also central to the strategy detailed in the programme for a partnership Government. In specific terms, the programme has proposed, subject to Oireachtas approval, an additional €4 billion in Exchequer capital investment up to 2021. This additional spending in transport, broadband, education and flood defences will be allocated on the basis of the outcome of the mid-term review of the capital plan by mid-2017 that was announced at the time of the publication of the capital plan, the commitment to which was confirmed in the Government's programme.

As always, to support traditional procurement, alternative means of funding necessary infrastructure will also continue to be explored. This is in line with many previously successful investment plans and will build on the success of such methods as public private partnerships, PPPs, and commercial State sector investments.

What is important, however, is that any such off-balance sheet funding arrangement be pursued in a manner that is sustainable in the long term and that the public finances can afford.

I look forward to hearing the views of the Deputy and his colleagues, in addition to those of all Members of the House, on capital investment priorities based on the opportunities provided in the reform of the budgetary process in regard to which the Government announced its proposals last week.

Dara Calleary (Mayo, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

The Minister is to commit an extra €4 billion to 2021 in the capital programme. Given the long lead-in time for many projects, as we all know, surely it would be appropriate to bring forward a review of the plan in the context of discussions under way in another part of Leinster House on the serious need for urgency in meeting housing commitments. With regard to the commitment in the programme for Government to establish 135,000 new jobs in the regions outside Dublin and the associated investment, the jobs are to be created by 2020. This will require a massive capital investment in broadband and the road network. An extra €500 million has been promised in this regard. Surely, therefore, in the context of all the commitments made and bearing in mind that the plan is nearly out of date in the context of the commitments in the programme for Government and the promise of an extra €4 billion, it is time to review the plan.

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Let us acknowledge that the overall plan involves a total quantum of over €40 billion. Approximately €27 billion is to be made available via Exchequer investment, while the rest is to be made available through various investment plans involving the commercial semi-State bodies. The Deputy is correct that the Government is examining how this figure can be increased, but it is part of a very large investment programme in the first place. The effect of the programme, to be implemented over time, would be to bring our investment, as a percentage of national income and capital, into line with that in other European countries and the investment we need to meet the needs of a growing economy and society.

On the Deputy’s point about the timing of the review of the capital plan, the review has been pencilled in to take place in 2017. However, I take on board his point about how that could be done in such a way as to result in greater confidence in future spending decisions.

Dara Calleary (Mayo, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

Let us not get carried away by the plan which has been described as lacking in ambition. In 2019 only half of what was spent in 2008 will have been spent. The roads budget, for instance, is purely for maintenance works. In the context of the commitments in the programme for Government and given the overall figure to which the Government has committed, would it not be appropriate and sensible – God forbid – to bring forward the review of the plan to update it in the context of the changed environment and, as the Minister said, the likely input not only from a budgetary committee but also the committee on enterprise and that dealing with the regions which is associated with the Department of Arts, Heritage and the Gaeltacht, the Department of Deputy Heather Humphreys. I was going to say the committee on the environment but that does not exist anymore. Responsibility for broadband is now within the remit of two Departments. Who will be a charge? Where will the capital programme for broadband be housed?

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I am all in favour of making sensible decisions. I take on board the Deputy’s point. He has said we should not get carried away with the investment, but, at the same time, we should acknowledge its scale. The investment programme, to be implemented, will over its lifetime bring investment in national infrastructure up to and in excess of €5 billion per year, which represents a very significant increase. The Deputy made reference to the previous level of investment, in respect of which he is correct, but a consequence of that level was that many national infrastructural needs were met.

The Deputy asked me whether I would consider changing the schedule of the capital review. It is due to take in place in 2017, which means that it is imminent. However, I take the Deputy’s point that we should find some way to signal to the country and the industries that will be involved in building this infrastructure what the level of additional investment will be and when it will materialise.

Jim Daly (Cork South West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I am moving to Other Questions.