Tom Parlon (Laois-Offaly, Progressive Democrats)

With regard to the matter the Senator raised, I welcome the opportunity to inform the House of the progress being made in the implementation of the national roads programme and the ongoing priority being accorded to maximising the return on the major investment in the programme.

Exchequer investment in the national roads development programme provided for in the NDP is at an all time high. More than €1.4 billion will be invested in 2005 and the capital investment framework provides for a further investment of €7.7 billion over the period 2006-09. The high quality road network we are putting in place is contributing significantly to supporting our national competitiveness, job creation, and more balanced regional development.

The benefits of the development programme are evident throughout the country in the elimination of major traffic bottlenecks leading to shorter journey times and greater journey time certainty. Road users are enjoying major journey time savings on the Ml, the N7 and N8 due to the Kildare, Monasterevin, Cashel and Limerick bypasses and elsewhere on the road network. Since 2000, a total of 48 projects with a combined length of 341 km have been completed. Work is under way on a further 21 projects amounting to 201 km in length and is due to start this year on 17 more projects. The removal of major bottlenecks such as those at Kildare, Cashel, Youghal, Ballincollig, Loughrea, Ennis, Mullingar, Sligo and others have been prioritised.

These figures indicate that despite the increase in the cost of the ambitious national roads programme mandated in the national development plan, good progress is being made in the implementation of the upgrade programme. The reasons for the increase in the cost of the NDP have been documented in a number of reports on the programme, most recently in a 2004 report by the Comptroller and Auditor General. This report concluded that the main reasons for the increase in costs were construction cost inflation which accounts for more than 40% of the increase, initial cost underestimation, changes in the scope of projects and the additional cost of land acquisition.

It will also be clear from the Comptroller and Auditor General's report that the National Roads Authority has implemented a range of measures to improve cost estimation and control in recent years. These include the appointment of a cost estimation specialist; greater use of design and build, lump sum, fixed price contracts offering cost efficiencies, greater certainty of outturn costs and reduced scope for claims; standardisation of designs for high cost items such as bridges and other structures; buy-out of the price variation clause and risk where this gives good value; and greater use of public private partnerships which leverage private sector investment in the programme, incentivise private sector innovation and limit the risk exposure of the Exchequer by transferring risk, including construction risk, to the private sector.

The various measures taken by the NRA to date are acknowledged by the Comptroller and Auditor General in his report and in other evaluations of the roads programme. These evaluations acknowledged that the national roads investment programme is, in general, well managed.

The beneficial impact of the measures taken to strengthen cost estimation and control is evident in the fact that virtually all major projects under construction now, particularly those being constructed under design and build contracts, are within budget and on time. Many projects have already been delivered within budget and ahead of schedule. They include the Kildare, Monasterevin, Cashel and Ballincollig bypasses. All major road projects are subject to appraisal and detailed cost benefit analyses in accordance with Department of Finance guidelines on the appraisal of capital projects.

A high priority will continue to be accorded to strengthening the arrangements in place for programme and project implementation and cost estimation and control. It is important that all involved in the implementation of the programme — the Department of Transport, the National Roads Authority, local authorities, consultants and contractors — maintain a clear focus on and commitment to maximising value for money in the implementation of the programme.