Dara Calleary (Mayo, Fianna Fail)
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9. To ask the Minister for Public Expenditure and Reform the arrangements for the 2017 review of capital spending; the intended process; the intended weighting that will be attached to elements of the review such as regional development, equality of access to capital services and so on; the planned level of and timeframe for consultation; and if he will make a statement on the matter. [31005/16]

Dara Calleary (Mayo, Fianna Fail)
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The current capital plan, which was published in 2015, lacked any ambition and did not reflect the urgency required to tackle the country's growing infrastructure needs.

The Minister has committed to a review of that plan and a review of capital spending in early 2017. I want to discuss with him how this review will proceed and whether the final outcome will be a plan that stands up to scrutiny for a country that wants to take its place in the 21st century.

Paschal Donohoe (Dublin Central, Fine Gael)
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While the final details of the proposed approach are currently being examined, I am happy to set out for the Deputy the main current elements of the proposed review of the capital plan. As is normal in respect of a multi-annual capital programme, a commitment was made to conduct a mid-term review in 2017 in order to take stock of progress and provide the Government with an opportunity to reaffirm priorities.

As the Deputy will be aware, A Programme for a Partnership Government committed to seeking Oireachtas approval for additional capital investment of €4 billion over the period of the plan. This was further increased to €5.14 billion in the summer economic statement. The priority areas which were identified by Government to benefit from this increased funding included transport, broadband, health, education and flood defences. Due to the obvious need for additional investment in housing, the Government also agreed earlier this year that €2.2 billion of the additional capital should be allocated to the Government's initiatives aimed at tackling the housing crisis while in budget 2017, the Government also allocated additional capital funding for 2017 with further consequences for 2018 and 2019.

In respect of the process about which the Deputy asked, it is my intention that the outcome of the review will be ready in time for publication as part of the 2017 mid-year expenditure report and be available to Government in time to shape the discussion on final capital allocations for 2018 to 2021 in the context of budget 2018. We are commencing this review by seeking submissions from all Government Departments. I am also considering the possibility of wider consultation but I want to ensure that there is an opportunity to use that consultation to influence this process so we conclude it in a timely fashion.

Additional information not given on the floor of the House.

As part of this review, work will commence on a much more fundamental review of Ireland's long term infrastructural requirements to include a benchmarking of our existing infrastructure by reference to that of other comparable countries, an assessment of our likely infrastructural needs over a much longer term than the current capital plan and consideration of how best these needs can be met. 

Dara Calleary (Mayo, Fianna Fail)
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This is the last chance saloon for many capital projects such as those in broadband and roads. When you look at the 2015 capital plan, you can see that €4.4 billion of the €6 billion envisaged for roads went predominantly towards maintaining the existing network so we are not getting any sense of expanding the existing road network. Will the Minister confine the review to current capital spending envelopes or is he going to look at alternative sources of financing? In September, the President of the European Commission, Jean-Claude Juncker, raised the prospect of allowing greater flexibility around rules for capital spending to assist Europe. This is in the context of the challenge this country faces from Brexit. As I said previously, we are on the front line with regard to Brexit and we need to up our game with regard with infrastructure to respond to that. Will the Minister look at increased investment from the European Investment Fund or the European Investment Bank that we can draw down on an "off the books" basis to address our infrastructural issues in a proper and cohesive manner?

Paschal Donohoe (Dublin Central, Fine Gael)
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The Deputy asked me whether I would consider alternative capital funding sources for capital projects and within that, the relationship we might have with the European Investment Bank. This is an issue I want to consider in terms of our capital review. It will need to look at not just the capital projects that may or may not be progressed but current sources of capital funding and potential sources of such funding in the future. I agree with the Deputy and I believe our relationship with the European Investment Bank and options this could provide in the future need to be looked at again. For example, Luas cross city would not be within a year of being completed nor would the Alexandra Basin project in Dublin Port be underway without the work of the European Investment Bank. I would like to see further opportunities open to us to deliver further funding for further projects.

Dara Calleary (Mayo, Fianna Fail)
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What will be the element in the review in respect of the delivery of projects? The Minister mentioned the Luas cross city and the Alexandra Basin projects. We do not have a good record of delivering large-scale infrastructure projects on time and on budget. In the context of what will be a limited capital plan, what extra elements will the Minister introduce to ensure delivery on time, on budget and on a cross-island basis so that it will not just be here in the city but the regions will get a chance to benefit from an infrastructural investment programme arising from this capital review? What weighting will be given not just to regional plans but to communities within the city that are not getting their fair share? A draft report of the inner city group was leaked to the newspapers today which identifies a shortage of community funding. There are capital needs within this city as well that need to be prioritised within this review.

Paschal Donohoe (Dublin Central, Fine Gael)
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The answer to the question of how we can better deal with delivering projects on time and in line with their original expectations is the fact that we have a strengthened public service spending code and an entire Department in the form of the Department of Public Expenditure and Reform that is focused on this area. The creation of Transport Infrastructure Ireland, which merged the Rail Procurement Agency and the National Roads Authority, is a significant development in how we deliver big projects better in the future. Its track record in respect of Luas cross city and the delivery of public private partnerships for new roads is a positive and good one. Regional balance will inform this capital programme, as was the case with the previous one. The country's response to Brexit cannot be a Dublin response. It must be a national response and regional consideration is vital in that.