Dáil debates

Tuesday, 27 November 2018

Ceisteanna ar Sonraíodh Uain Dóibh - Priority Questions

National Development Plan

5:05 pm

Photo of Jonathan O'BrienJonathan O'Brien (Cork North Central, Sinn Fein)
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59. To ask the Minister for Public Expenditure and Reform if the allocations provided for in the National Development Plan have now been abandoned; and if he will make a statement on the matter. [48990/18]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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Public capital investment has a critical role to play in ensuring a whole of Government implementation of the new national planning framework. This is why the new national development plan was fully aligned with the national planning framework, all of which combined to deliver Project Ireland 2040.

Project Ireland 2040 moves beyond the approach of the past, which saw public capital investment spread very thinly and investment decisions which did not align with a spatial strategy. These practices contributed to some of the major issues that we face today as a country, particularly the predominance of Dublin alongside the challenges that face rural towns and communities.

The national development plan is therefore strictly aligned to the vision set out in the national planning framework and its ten national strategic outcomes, which were developed following extensive consultation over the course of 2017.

In adopting this approach, Project Ireland 2040 seeks to develop Cork, Galway, Limerick and Waterford as viable cities of scale which can act as alternatives and a counterbalance to the continued growth of Dublin and its surrounding region.

In doing so, these cities will act as drivers of growth for the wider region, including rural areas. The NDP, which was published in February, demonstrates the Government's commitment to meeting Ireland's infrastructure and investment requirements over the next ten years, through a total investment allocation of €116 billion over the period to 2027.

The NDP sets out gross voted capital expenditure allocations on a ministerial level for the period 2018 to 2022. In 2019, capital expenditure under the plan is set to increase by €1.5 billion, or 25% more than the 2018 allocation, which is a significant increase.

5:15 pm

Photo of Jonathan O'BrienJonathan O'Brien (Cork North Central, Sinn Fein)
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I recognise it is a significant increase, but I am asking a different question. As part of the NDP, a document was published which addressed each portfolio and what would be allocated over a number of years in order that we could track exactly where the money was spent. I am asking whether the plan has been abandoned or changed because the allocation for two of those portfolios was reduced from what was initially published. The Department of Transport, Tourism and Sport has seen a decrease of €28 million, while the allocation for the Department of Justice and Equality has been reduced by €21 million, although I am well aware there was an increase in the allocation for the Department of Housing, Planning and Local Government.

The figures which were published at the time were fluid, but is the overall figure static or can it change between Departments? Is it possible that the overall projected figure year on year could increase or decrease in any one year?

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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There was a change of €33 million in the total capital allocation for 2019. The overall capital allocation for Project Ireland 2040 rose by that amount, which is a change of 0.5%. Over the period 2019 to 2022, the period for which we have the clearest budgetary ceilings, there was an overall change of €290 million, which is a 0.3% change in an upward direction.

On the specific Departments and questions the Deputy raised, which were related to changes made in the Department of Transport, Tourism and Sport and the Department of Justice and Equality, a minor switch occurred where some capital funding was moved into current funding to meet current needs the Department had. On the overall figures, at this time I anticipate only a marginal change in the overall capital figures for 2019 to 2021, inclusive. At departmental level, changes are likely only if the Government commits to a significant new project that is not yet profiled or if there is a moderate switch between capital and current funding in any given year.

Photo of Jonathan O'BrienJonathan O'Brien (Cork North Central, Sinn Fein)
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The Minister is saying there will be no significant change to the Votes or the outlying figures from Department to Department, although there may be switches from capital into current in any given year, and that it will be consistent with what was published.

Over the next three years, there will be an increase of €290 million, or 0.3%. Will the Minister indicate where that €290 million will be allocated? Which Departments will see an increase? Is the figure of €290 million a net increase, that is, does some of it comprise savings or decreases which are likely in other portfolios?

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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The main reason for those changes is what is happening in the Department of Housing, Planning and Local Government. Of the total amount of increased allocation in that period, that Department accounts for well over €200 million and, therefore, it is the main reason for the increase in the figure over the next three year period. No other adjustments will be made in other Departments to fund it.