John Paul Phelan (Fine Gael)

It was announced in July 2005 that the amending legislation before us would be introduced. The centre of expertise under the National Development Finance Agency will have specialist responsibility for procurement of PPP projects. Initially, its programme will comprise projects from the Departments of Justice, Equality and Law Reform, Education and Science and Health and Children. At the time of the announcement a number of people expressed doubts about whether the decision to transfer responsibility from Departments would meet with success.

The work of the National Development Finance Agency is far from transparent. It operates in the same manner as the National Roads Authority and several other agencies, whereby Senators often find it impossible to raise issues in the House. More transparency is needed in the operations of the NDFA.

I do not see the need for section 6 of the Bill under which it is proposed to double the membership of the board of the NDFA. I am not convinced by the Minister's argument. While I am aware of the commitment made under the social partnership agreement to include a representative from the trade union sector, I remain to be convinced of the necessity of providing two additional positions for Government appointees to State boards.

I also have concerns about potential conflicts of interest. The NDFA has become the sole gatekeeper for approving PPPs in key sectors. However, it also has a role in organising investments in projects and has been given authority to borrow up to €5 billion to do so. It is not in the public interest for the agency to act as both gatekeeper and agent for PPPs.

I welcome the Bill in broad terms. The need for a centre of expertise has been made clear by the activities of the NDFA and the Government and while I have some reservations, I will not be opposing the Bill.