Bernard Durkan (Kildare North, Fine Gael)
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14. To ask the Minister for Public Expenditure and Reform the extent to which he expects to be in a position to make adequate provision for vital infrastructural projects over the next four years with particular reference to housing, road and rail networks, communications, educational and health services and if he will make a statement on the matter. [26239/17]

Bernard Durkan (Kildare North, Fine Gael)
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This is the reverse side of the argument. Could the Minister tell us the degree to which he hopes to be in a position to provide the necessary funding for vital infrastructural projects listed in the question.

Paschal Donohoe (Dublin Central, Fine Gael)
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There is a plan in place to respond to many of the different needs referred to by Deputy Durkan. As set out in the Estimates 2017, it is projected that capital expenditure will increase by almost 75% between 2016 and 2021 but as I have acknowledged in responses to earlier questions, we know there is a need to find new ways to invest in capital infrastructure in our schools, hospitals and roads. The Government is currently engaged in a number of different options to see how we could achieve that.

Additional information not given on the floor of the House

The six-year capital plan published in 2015 set out Exchequer capital spend of €27 billion and, including the wider semi-State sector and PPPs, total State-backed capital investment of €42 billion. It is estimated that the plan will support more than 45,000 construction-related jobs. As the Deputy may be aware, there are a number of major projects included in the plan, such as, for example, the Luas cross city project, metro north, the Dunkettle interchange, the new children's hospital and schools building. This Government is strongly committed to increasing public funding for capital investment in Ireland over the next four years and beyond in order to meet key infrastructural requirements to sustain economic growth and social progress.

Alongside this increase in capital spending, it will also be important for the construction sector to build its capacity to undertake additional projects. For example, even at current levels of increased spending, the Society of Chartered Surveyors Ireland reports construction inflation of the order of 30% between 2011 and 2017.

The programme for a partnership Government committed to additional capital investment over the period of the capital plan to 2021 to be allocated in such areas as housing, road and rail networks, communications, educational and health services on the basis of the outcome of the ongoing review of the capital plan. 

In this context, in the summer economic statement 2016, the Government committed to an additional €5.14 billion Exchequer capital investment over the period from 2017 to 2021. Following the decision to commit €2.2 billion of this amount in support of the Government's action plan on housing and homelessness and other public capital commitments made in Estimates 2017, there is approximately €2.6 billion in uncommitted additional capital funding over the period 2018 to 2021 which will be allocated following the completion of the review of the capital plan.

The analysis being carried out as part of the review include an infrastructure capacity and demand analysis which will help inform decisions by Government in due course on the required levels of investment for the provision of critical infrastructure across the different sectors of the economy. I expect that the approach I have set out in relation to the review of the capital plan will help ensure that our national public infrastructure is maintained and enhanced over the remaining period of the capital plan to 2021 and beyond. 

As set out in the Estimates 2017, it is projected that Exchequer capital expenditure will increase by almost 75% between 2016 and 2021.  The Government is, therefore, ensuring that our continued strong economic performance is reflected in increased capital expenditure over the coming period.

Bernard Durkan (Kildare North, Fine Gael)
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What is the extent to which the Minister has been able to study the urgency of the requirements in some cases as opposed to others? For example, the housing situation is extremely urgent. In two or three years' time, it will not be as urgent because the market will have caught up and supply will have improved but the current situation is urgent. A similar situation pertains to road transport, hospitals and schools.

5 o’clock

There is an urgency now which is due to the situation whereby it was not possible to arrange for expenditure of the necessary nature in the past six, seven or eight years, simply because there was no money. To what extent does the Minister see himself in a position to address those issues as they arise?

Paschal Donohoe (Dublin Central, Fine Gael)
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It is going to be challenging, because we have many different competing demands. We are working hard to see how we can identify new funding. We have already made progress on this by the identification of a further €2 billion between now and 2021 and 2022 and we are engaged in other pieces of work, for example, with the European Investment Bank, to see if there are additional ways of funding the infrastructure to which the Deputy refers.