Charlie McCreevy (Kildare North, Fianna Fail)

I am delighted to have the opportunity to present the National Development Finance Agency Bill, 2002 to the Seanad today.

The proposed National Development Finance Agency, NDFA, will assist in providing cost effective finance for priority infrastructure projects. It is a clear indication of the Government's commitment to the ongoing development of this country that the establishment of NDFA has been afforded top priority and that the legislation to give it statutory effect has been developed accordingly.

I will begin by sketching out the background to the establishment of the agency. In January this year I wrote to all Ministers asking them to bring forward public private partnership, PPP, projects as a matter of priority, to tackle our infrastructure deficit in a way that offers value for money for the taxpayer. At the same time, I approached the chief executive of the National Treasury Management Agency to ask what contribution that body could make to the PPP programme, given its acknowledged expertise in the financial markets. A third development at that time was the clear lesson emerging from the early pilot PPP projects concerning the need for specific financial expertise and advice to assist State authorities to obtain the best financing packages for infrastructure projects. This need applies not just for PPPs but for all major public investment projects.

The proposed National Development Finance Agency will meet this need. It will help to maximise value for money for the taxpayer, through the identification of the best financing packages and the application of commercial standards in terms of evaluating financial risks and costs for each project. NDFA will work through the NTMA. That agency will assign experts with relevant experience, for example in corporate finance and risk assessment, to carryout the necessary tasks.

In relation to the provision of advice, PPP projects and major infrastructure projects are complex, requiring expert technical, legal and financial advice. A centrally resourced expert advisory service to all State authorities will be more economic than employing experts in each of these areas in every procuring authority, including the local authorities. This role will be filled by NDFA in respect of financial advice. In this way, significant cost savings may be achieved over time.