Dáil debates

Wednesday, 28 June 2017

Ceisteanna - Questions (Resumed) - Priority Questions

European Fund for Strategic Investments

3:45 pm

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail)
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22. To ask the Minister for Transport, Tourism and Sport if his Department and transport agencies under its aegis are promoting the use of the European Fund for Strategic Investments, EFSI, in terms of background work on identifying public infrastructure projects that may meet the criteria for project selection in terms of additionality and revenue generation and may attract private co-financing investment; and if he will make a statement on the matter. [30503/17]

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail)
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I compliment and congratulate the newly appointed Minister of State at the Department of Transport, Tourism and Sport, Deputy Griffin. I look forward to working with him in the months and years ahead. I ask the Minister for Transport, Tourism and Sport what level of engagement his Department and the transport agencies under his remit have or are engaged in to promote the use of the European Fund for Strategic Investments in terms of background work on identifying public infrastructure projects that may meet the criteria for project selection in terms of additionality and revenue generation to attract private co-financing investment, and if he will make a statement on the matter.

Photo of Shane RossShane Ross (Dublin Rathdown, Independent)
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I join the Deputy in publicly congratulating Deputy Griffin on joining me at the Department of Transport, Tourism and Sport. I am delighted at his appointment. I also thank Deputy Patrick O'Donovan for the work he did in the Department and congratulate him on his new role.

The European Fund for Strategic Investments is one of a number of European Investment Bank, EIB, and other financing options available to transport project promoters. There has been ongoing liaison with agencies under my remit on EU co-funding and financing options, including the EIB. My Department, in conjunction with the EIB, the European Commission and the Innovation Network Executive Agency, hosted an information day on 30 May 2017 for project promoters on funding opportunities from the Connecting Europe Facility and on EIB financing options, including EFSI. This follows a similar information session in 2015 that was also hosted by my Department. The objective of these information sessions was to raise awareness of EU co-funding and financing options for project promoters and to facilitate one to one discussions between the EU institutions and the project promoters.

The potential of Exchequer-funded projects to participate in EU co-funding and financing is subject to the spending constraints of the public finances. However, as part of its work on a mid-term review of the capital plan, the Department of Public Expenditure and Reform has set up a high-level group to provide the Minister for Public Expenditure and Reform with an evidence-based analysis and recommendations on the future role of using public private partnerships, PPPs, as a procurement option in the delivery of capital infrastructure compared with traditional procurement methods. This will include an assessment of risks arising from traditional as compared with PPP procurement of large capital projects. Decisions on the financing aspects of public transport projects will take account of the outcome of this work.

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail)
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The Minister would have to agree that there is a huge deficit in investment in our transport infrastructure and the consequences of that are quite serious in terms of the deficit in our road, rail and public transport systems.

4 o’clock

Whenever we have raised the issue of the need for additional funding, the Minister has always stated the current capital plan is adequately funded and that new projects must be reviewed as part of the review of the new capital plan. Last week I was part of a party delegation in Brussels meeting with the European Commission's Directorate General on Mobility and Transport. What was patently clear was that the Government is not making applications for potential EU funding. The Commission wants the Department of Transport, Tourism and Sport and agencies under the auspices of that Department to put forward transport infrastructure projects to avail of the funding under the Juncker plan. Why has the Minister not been doing this? Will he publish his Department's submission to the review of the capital plan?

3:55 pm

Photo of Shane RossShane Ross (Dublin Rathdown, Independent)
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The Deputy is correct about the deficit. We would like to have an enormous amount of additional money for infrastructure. That is absolutely true. We are exploring and have sent out many signs to Europe that we are interested. We have drawn down from the EIB more than €523 million in transport financing in Ireland in the 2014-2017 period. This includes €143 million for the Gort to Tuam motorway, €21 million for the New Ross bypass, €100 million for the Dublin Port development, €150 million for the Dublin Luas cross-city project and €109 million for the M11 from Gorey to Enniscorthy, which amounts to €523 million. The Deputy referred to the European Fund for Strategic Investments, EFSI, and I note a project involving the Irish Continental Group has used €75 million in EFSI funding and a total investment of €154 million was approved on 1 June 2017. This project involves the construction of a cruise ferry, and is a very useful one.

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail)
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Is the Minister saying his Department has made an application and has been successful in accessing funding under the EFSI? Our information is that no application has been made, despite the fact that €500 billion is available at extraordinarily low interest rates. Once a project meets the necessary criterion, that is, is able to attract private funding, we as a country can avail of that. Metro north was shelved, the DART underground was shelved and the M50 and M20 need to be upgraded, as does the M4 motorway in my own constituency. All of these critical infrastructure projects have been delayed or postponed for the want of funding, and at the same time the European Commission told us last week that applications are not forthcoming from this Government. Why is that? Will the Minister publish his submission to the review of the capital plan? The previous Taoiseach said there should be no reason not to make public that submission.

Photo of Shane RossShane Ross (Dublin Rathdown, Independent)
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I spelled out some figures on projects which have been successfully drawn down. The Deputy must realise that all borrowing must comply with Government borrowing procedures and in turn the State must comply with the EU fiscal rules. There has been a great deal of interaction with the EFSI, as I explained in my earlier reply. In 2015 the Department arranged, as part of an event, for a number of bilateral introduction meetings between the EIB, the Innovation and Networks Executive Agency, INEA, and transport companies and agencies. A similar information session was arranged on 30 May 2017. The Deputy asked why the EFSI take-up is so low for transport project promoters. That is a fair question. I can only answer that the introductions have been made, one-to-one meetings have been held and the take-up is somewhat low. Anecdotal feedback to the question the Deputy has asked suggests that EFSI take-up is low due to a number of factors, including Exchequer co-funding limitations, and the fact that there are more attractive loans available from the EIB and other financial institutions in other places.

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail)
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Is the Minister going to publish the review of the capital plan?

Photo of Shane RossShane Ross (Dublin Rathdown, Independent)
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I am not going to publish it in the next fortnight but I will consider publishing it shortly.

Photo of Declan BreathnachDeclan Breathnach (Louth, Fianna Fail)
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Perhaps the Minister will communicate with Deputy Troy directly.

Photo of Shane RossShane Ross (Dublin Rathdown, Independent)
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I will do that.