Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

60. To ask the Minister for Public Expenditure and Reform the extent to which issues are being considered which are most likely to have an impact on improving delivery on the national development plan, with particular reference to specific infrastructure which is now or is likely to become in the near future critical to progress; and if he will make a statement on the matter. [15401/24]

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

This question seeks to ascertain the extent to which the Minister has identified issues likely to impact or impede the rapid development of the various aspects of the national development plan.

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context

I thank the Deputy for his question. We have identified a number of constraints in delivery of the national development plan. To facilitate an exchange with the Deputy, I will pick two. First is the availability of the workers we need to translate spending plans into delivery of homes and projects and the labour and skills shortages in our economy. We are looking to address that through progress being made in the Department of further and higher education in relation to apprenticeship plans. While progress there will always take time, it is the best chance we have to ensure we have the workers we need to deliver the projects we need. The second issue, with which the Deputy will be familiar and which has been a real challenge, is the impact of inflation on the delivery of important projects. We made a number of changes to the level of capital we are making available to Departments in the coming years and to our public sector frameworks for contractors and professionals to deal with the risks created by inflation. With a little bit of good luck, I hope in the time ahead to begin to see those inflationary pressures decrease to a lower level than they have been at in recent years. Those two are important challenges in the delivery of the national development plan.

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

I thank the Minister for that reply. Are they the most important challenges or are there others in the wings that might have a similar impact? Is the Minister certain adequate progress has been made in dealing with the issues to which he referred?

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context

I would have to identity inflation as the biggest challenge we have faced, given the cost of raw materials we need to deliver homes has increased in the way it has, with a knock-on effect on many buildings our country expects us to deliver. That, by some way, has been the biggest challenge we will have had in recent years. While I am hopeful it will improve, we should not be naive in assuming improvement will happen quickly. It will take time to begin to see the cost of building projects stabilise. That is why we have made additional capital funding available across this year and the next two years. It is also why we have made changes, as I mentioned to the Deputy earlier, in how we agree the delivery of important projects with developers and service professionals like architects.

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

I ask the degree to which the Minister's Department, or any other Department, is in a position to drill down into the causes of inflation and where it most seriously impacts negatively on the work the Minister is trying to do? Are there positive signs it is being controlled? In line with the progress in other jurisdictions, will the Government do something similar?

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context

We are in a position to drill down into it. Unfortunately, the answer has been both simple and very difficult. The cost of inputs has gone up so much, including wood, steel and other things we needed in recent years to turn our money into projects the country wants. It has got far more expensive to build. In terms of indications that it is beginning to improve, at this point any evidence I have is anecdotal from talking to officials about delivery of projects. I have received anecdotal feedback that tendering processes are having more companies coming to participate in them. That is a good sign. How do we compare with what is happening in other jurisdictions? In truth, we compare favourably. We reason we do so is that we are in a position to invest more to offset the impact of some of these issues. The best example of this is where we are in housing, a big feature in the questions and answers we have had this evening. We are one of the few countries in Europe building more home this year than last.