Dáil debates

Thursday, 13 April 2017

Ceisteanna - Questions - Priority Questions

Capital Expenditure Programme

3:50 pm

Photo of Catherine MartinCatherine Martin (Dublin Rathdown, Green Party)
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5. To ask the Minister for Public Expenditure and Reform the way the fiscal and policy context section of the capital development plan incorporates environmental sustainability in addition to fiscal sustainability as an underlying policy goal; and if he will make a statement on the matter. [19114/17]

Photo of Catherine MartinCatherine Martin (Dublin Rathdown, Green Party)
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This question relates to the capital plan 2016-21 and its use of the word "sustainability". It is often the case that despite the prolific use of the word "sustainability" throughout the document and particularly in the fiscal and policy context section, it seems to primarily and solely incorporate what could be termed fiscal sustainability rather than a wider definition which might include concepts such as environmental sustainability. Will the Minister outline for the House what role he believes environmental sustainability plays in the provision of capital expenditure as an underlying base concept and not just a discrete section of the capital plan?

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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The fiscal and policy context section of the capital plan, Building on Recovery, sets out the objectives of State investment in infrastructure. It emphasises the Government's commitment, through the capital plan, of supporting strong and sustainable economic growth and raising welfare and living standards for all. Promoting environmental sustainability is, of course, integral to achieving and maintaining sustainable economic growth.

The incorporation of environmental sustainability as a key encompassing policy goal in the capital plan is demonstrated throughout the plan document and through progress made in the implementation of key elements of the plan itself, as well as through other important policy and legislative developments focused on environmental sustainability.

It is important to stress, however, that there is a detailed governance framework already embedded in the allocation of capital resources through which significant investment decisions must be aligned with all Government policy, including environmental policy. For example, when the plan sets out the budget management framework, it explicitly states that all Departments are responsible for ensuring projects meet appropriate regulatory requirements, including environmental impact assessments.

In addition, when outlining the drivers of long-term public investment requirements, the plan highlights environmental concerns such as developments in climate change and the need to meet EU emissions targets that require intervention in the areas of energy efficiency and renewable energy, as well as the need for investments in flood protection. Moreover, the area of environment and climate is allocated 7% of available capital resources in the plan, which amounts to €870 million over the course of the plan.

Photo of Catherine MartinCatherine Martin (Dublin Rathdown, Green Party)
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While I appreciate that the capital plan features a number of measures to tackle climate change and deal with environmental sustainability, regrettably, environment is still considered a "selected driver" of long-term public investment requirements. The importance of climate change within the Government's capital plan is currently considered as only requiring intervention in respect of energy efficiency, renewable energy and flood prevention, despite the fact that both the Climate Change Advisory Council set up under the Climate Action and Low Carbon Development Act 2015 and the Environmental Protection Agency, EPA, have advised that what is needed is "a major societal and economic transformation".

The Environmental Protection Agency today delivered the catastrophic news that we will fail to meet our 20% cut in greenhouse gas emissions by 2020 and that we are completely off target for our low-carbon transition by 2050 set out in the climate change Act. While this is first and foremost an environmental disaster, it also has the potential to be an economic one which would have a major impact on our fiscal sustainability. How is the Minister's Department preparing for the possibility of up to more than €5 billion in fines if we do not hit our emissions targets, a possibility which seems all the more real after today's news? Failure to meet these targets will have a serious impact on the economy and must be accounted for in the public purse. Where will the Minister find this money?

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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I am making clear in all the engagement I have with other Government Departments that a vital consideration in any decisions we make is the contribution that public investment can make towards delivering our climate objectives. I have referred to this in the criteria that have been published to other Departments that indicate the way in which we will evaluate their proposals, and I continue to make this point in Cabinet sub-committees and Cabinet itself. This will be a very important element in decisions we make and is one of the reasons I believe investment in public transport, for example, is so important. Unless we provide fast, high-capacity public transport investment, the challenge the Deputy has described, with which I agree, will not be met by Ireland and our challenges will be even bigger. The kinds of considerations to which she refers form a very big part of how we will analyse any proposals to spend additional funding in the country in capital areas.

Photo of Catherine MartinCatherine Martin (Dublin Rathdown, Green Party)
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With respect, the report today from the EPA would suggest there is a huge gulf between the Government's words and the Government's action when it comes to climate change. It appears to me that the Government has reached a crossroads. It can accept the fact that, without a major turnaround in policy, we will not meet our emissions targets, which needless to say, for the sake of our children and grandchildren, is a road which should never be travelled, but in which case, for prudent fiscal responsibility and sustainability, the Minister's Department needs to provide a comprehensive plan as to how he will account for the money for significant fines imposed on the State for not meeting these targets. Alternatively, the Government needs a paradigm shift in how it thinks about sustainability. Environmental sustainability must not be confined only to the Department of the Minister, Deputy Naughten. Our public expenditure needs to be on sustainable infrastructure, for example, on the six cycleways proposed for Dublin instead of 1,500 km of roads, as IBEC has proposed. We are on a continuous upward trajectory on emissions, when we really need to be going in the opposite direction. Which will it be? Will we hit our targets or will we not? Does the Minister have an expenditure plan for either scenario?

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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I hope the considerations the Deputy has outlined, which I agree with, will be maintained across the coming period when many demands will be placed upon the Government for expenditure in different areas. As I referred to earlier when answering questions from Deputy Calleary, if one considers where we will be next year, while we do have resources available to make new investment choices, there are a huge number of demands in that regard. We face demands regarding the future development of our public pay bill, the position of taxation in our country and investment in education, which the Deputy correctly raised. The need to invest in our environment is another of those demands and it is one I want to meet. It is not just the prerogative of the Green Party to make sure we have an environment in the future that is good, safe and clean for those that will come after us, but also it is an agenda to which I am also committed. We have put support in place for that through prudent programmes such as the renewable heat initiative, incentives for the use of electric cars and investment in public transport. These are the kinds of choices with which I want to continue in the coming years.