Dáil debates

Tuesday, 19 July 2016

6:40 pm

Photo of Donnchadh Ó LaoghaireDonnchadh Ó Laoghaire (Cork South Central, Sinn Fein)
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Gabhaim mo bhuíochas leis an Aire as bheith anseo. The Minister will no doubt be aware of the importance of the N28. It is one of the most strategically important roads in the State. In terms of outlay in comparison to potential economic return, it may well be the best value for money. This has been on the cards for some time now. The road will link the Bloomfield interchange and Ringaskiddy at motorway standards. Needless to say, the economic case for the motorway is extremely strong, particularly in the context of the crucial strategic employment area that is Ringaskiddy, the rapidly growing town of Carrigaline and the strategy which both Government and council have developed for the Cork Harbour area, including the National Maritime College of Ireland which the Minister discussed with Deputies last week.

Cork Chamber helpfully commissioned a report, Cork to the World, in 2010 by Indecon on the economic case for the N28. If the Minister has not read it, I can tell him it is well worth reading. I will ensure a copy is left in his pigeonhole for his attention. To give a brief outline, the assessment indicates that the N28 upgrade would provide a catalyst for realising massively enhanced foreign direct investment, involving an estimated 1,100 additional high value jobs and related additional employment incomes of €97.1 million in annual terms or €1.4 billion in present value terms over a 25-year period. That is a substantial amount and crucially important to Cork's industrial future.

There are also the potential implications if the road is not delivered in a relatively short period. The Indecon report states that the estimated loss in trade that would result from a failure to provide the required port capacity - which is the Port of Cork redevelopment that is linked to the N28, to which I will return - is €3.8 billion per annum or just below 22.4% relative to projected 2030 trade. This is the equivalent of a loss of €59.4 billion when measured in present value terms over a 25-year period. Mar sin, muna chuirtear an N28 ar fáil, caillfear trádáil agus tionscnaimh.

The development of the Port of Cork, one of the most important maritime developments in the State and crucially important to Cork's industrial future, is closely tied to the N28. Phase 3 of that development, which involves roll on-roll off traffic, will not happen unless the N28 upgrade is delivered, and nor, incidentally, should it happen, as it would be an entirely unreasonable imposition on residents. The delivery of the N28 is vitally important to the local community. Residents of Shanbally and Ringaskiddy have had to suffer heavy freight travelling through their villages daily for far too long. In addition, this has the potential to assist with extremely heavy traffic in Carrigaline.

This matter is being discussed once again following a report given to Cork County Council following a meeting between Transport Infrastructure Ireland and a delegation from the council. The report was received with great disappointment by councillors. It confirmed that a number of projects for Cork would not happen within five years due to lack of funding.

It stated that a contractor for Dunkettle would not be appointed until late 2018 and, despite its being the top priority for Cork, work would not begin until at least 2019 or 2020. The M22 and the M28 will begin only after Dunkettle is delivered, and this will not be until 2021 at the earliest. The N28 hinges hugely on Dunkettle. If we are serious about regional development outside Dublin, the delivery of the N28 is absolutely key. Cork has waited long enough and it needs to be expedited.

6:50 pm

Photo of Shane RossShane Ross (Dublin Rathdown, Independent)
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I thank Deputy Ó Laoghaire for the opportunity to address this issue . As Minister for Transport, I have responsibility for overall policy and funding in relation to the national roads programme. The construction, improvement and maintenance of individual national roads, such as the N28 Cork to Ringaskiddy scheme, is a matter for Transport Infrastructure Ireland, TII, under the Roads Acts 1993 to 2015 in conjunction with the local authorities concerned. Within its capital budget, the assessment and prioritisation of individual national road projects are matters for TII in accordance with section 19 of the Roads Act.

The N28 is the national primary road that links Cork city to Ringaskiddy. The existing N28 is approximately 12 km long and is a single carriageway except for a dual-carriageway section at the approach to the Bloomfield interchange, the junction with the N40. The combination of traffic levels and the road layout results in delays for the current users of the N28. This affects both local traffic and long-distance through traffic.

Ireland has just under 100,000 km of road in its network, and the maintenance and improvement of national, regional and local roads place a substantial financial burden on local authorities and on the Exchequer. Because of the national financial position, there have been very large reductions in Exchequer funding available for roads expenditure over the past number of years. For this reason, the focus has had to be on maintenance and renewal rather than major new improvement schemes.

The capital plan, published in September 2015, outlined proposed transport investment priorities to 2022. I understand that the transport element of the plan was framed by the conclusions reached in my Department's strategic investment framework for land transport. This report highlighted the importance of maintenance and renewal of transport infrastructure together with targeted investments to address particular bottlenecks and critical safety issues. The capital plan provides €6 billion for investment in the roads network in the period to 2022, with €4.4 billion earmarked for the maintenance and strengthening of the existing extensive network throughout the country and €1.6 billion for new projects. Allowing for the commitments relating to the PPP projects, the balance available for new projects within the available capital envelope was limited. Given the funding limits, the decision made by my predecessor was to provide for a mix of projects across the country to address particular constraints, including bottlenecks and port connectivity. While it will not be possible to address all the demands for improvement schemes over the capital plan period, the plan does provide for a number of important projects in the Cork area which are scheduled to commence construction within the plan period, including the upgrading of the Dunkettle roundabout, works on the N22 road between Ballyvourney and Macroom and works on the N28 Cork to Ringaskiddy road, subject to appropriate planning consent.

In April this year, Cork County Council, in partnership with TII, launched a public consultation on the next stage of the M28 Cork to Ringaskiddy motorway scheme. The preferred route alignment and junction strategy for the scheme provides for 10.9 km of motorway standard dual carriageway from Bloomfield to Barnahely and 1.6 km of single carriageway from Barnahely to east of Ringaskiddy. TlI has reported that the outcome of the public consultation was positive. I understand the business case in respect of the project is being finalised for submission to my Department and the Department of Public Expenditure and Reform.

The transport element of the capital plan is based on a gradual build-up in capital funding for the road network from the current relatively low base towards the levels needed to support maintenance and improvement works. Funding will continue to be tight in 2017, with a step up in 2018 and 2019 and then a significant ramp up from 2020. As Minister I have to work within the capital budgets included in the plan, and TII, in planning the construction schedule for individual projects, also has to take account of the annual budgets available.

As I have indicated previously, we are all conscious that the recovery of the economy is generating spending pressures across the Government system, including capital investment needs. As part of the programme for a partnership Government there is an increased emphasis on the need for spending on public services, but the Government still has to operate within the EU fiscal rules and this does constrain options. There will be a mid-term review of the capital plan and this will provide an opportunity to assess progress and consider what scope there is for increased levels of investment depending on economic growth.

Photo of Donnchadh Ó LaoghaireDonnchadh Ó Laoghaire (Cork South Central, Sinn Fein)
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The part of the Minister's response that jumps out at me the most is the reference to the 12 km of the N28. The investment involved would result in 1,100 high-end jobs, but there will be a potential loss of €59.4 billion in present value terms over 25 years if it is not developed quickly enough. The value for money in this project is enormous. If the Government is serious about balanced regional development and attracting major multinational employers outside the Dublin region then projects such as this need to be prioritised.

The Minister mentioned two self-imposed constraints on the Government. The first is the fiscal compact, and we made an argument at the time of the referendum about the implications that would have for capital spending. Even within these restrictions, however, the Government's proposed capital plan is under-strength and unambitious. For some time, the State has been below the OECD average for spending on capital infrastructure, and that state of affairs continues. This project has been long-fingered for too long. Massive amounts of freight travel through the surrounding villages, which is having a detrimental impact on the communities there, and it will be a serious loss for Cork, Ringaskiddy, Carrigaline and the whole harbour area, not to mention the southern part of this country, if this is not delivered soon. A starting date in 2021 is far too late, and by then Cork and the region will already have lost out on billions.

Incidentally, the Minister mispronounced my name. I am Deputy Ó Laoghaire.

Photo of Shane RossShane Ross (Dublin Rathdown, Independent)
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I apologise for that. I did not mean to do so.

I understand what the Deputy is saying, but I come across people putting similar cases for their own areas every day. I am utterly sympathetic to the needs of the Cork area, particularly its need for jobs, but we are working within very serious financial constraints. We would prefer not to be working within financial constraints, and this is a particularly expensive project, as are all roads of this sort. We have to prioritise them, as there is very little money for them before 2019, 2020 and 2021. It would be wrong of me to come to the House today and promise that it will be prioritised or brought forward. In any case, the scheme does not yet have the necessary approvals, though some others in the area do have them. In April this year TII, in conjunction with Cork County Council, held a public consultation into the proposed route and the business case in respect of the project is being finalised for submission to my Department and the Department of Public Expenditure and Reform. Those procedures have to be completed.

While I am sympathetic, the Deputy has to realise that we have a fundamental problem with the roads in this country. The 99,000 km of roads are a huge albatross around our neck, as they have to be maintained. This is massively expensive, and much more money is spent on maintenance than on actual building projects. If the Deputy or other Deputies would like to stop the maintenance and start building, they should say so, but this is a problem that we aim to ameliorate in 2019, 2020 and 2021, when we have great hopes for growth.

We hope to be able to indulge ourselves in capital expenditure of this sort, which is absolutely necessary, but I cannot hold out any promise. I cannot say that if matters improve I shall push for roads and other projects of this sort to be prioritised and brought forward. In the meantime, I will do everything I can to hasten-----

7:00 pm

Photo of Pat GallagherPat Gallagher (Donegal, Fianna Fail)
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Minister, excuse me, I do not make the order. I only implement what the House has agreed-----

Photo of Shane RossShane Ross (Dublin Rathdown, Independent)
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I am sorry.

Photo of Pat GallagherPat Gallagher (Donegal, Fianna Fail)
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-----and I have been lenient with you.

Photo of Shane RossShane Ross (Dublin Rathdown, Independent)
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Yes.