Michael D'Arcy (Wexford, Fine Gael) | Oireachtas source

The Programme for a Partnership Government committed to additional capital investment over the period of the capital plan to 2021, to be allocated on the basis of the outcome of a review of that plan. This review is ongoing. The process will guide and inform the decision by the Government on revised capital allocations made to Departments at budget time in October. The review is also an important input to the long-term ten-year capital plan, intended to be finalised before the end of the year. Submissions on the review and the additional funding available for allocation were sought from Departments in January 2017 and are currently under review by my Department.

With regard to conducting the review of the capital plan, it is a matter for each Department in the first instance to identify its sectoral priorities and projects in its submission for any additional funding under the review. The recommendations made by each Department will play an important role in ensuring that the additional funding is aligned with priorities, in terms of overall economic and social returns from increased capital investment, for example. A public consultation process was also held in April to ascertain the views of the public and key stakeholders on what our national infrastructural priorities should be. This consultation also sought views on infrastructure investment priorities beyond the period of the capital plan. This will also help to formulate the longer-term ten-year plan.

The assessment of the Department of Public Expenditure and Reform of the submissions received as part of the review will be based on relevant evidence and research, such as on infrastructural capacity and demand analysis carried out by the Irish Government Economic and Evaluation Service. The Department is liaising closely with the Department of Housing, Planning, Community and Local Government in order to ensure close alignment with the emerging teams of the new national planning framework, due this year.Alongside the capital review, a public investment management assessment, PIMA, is being carried out by the International Monetary Fund, IMF, this month. It will evaluates the design and effectiveness of the institutions which shape decision-making at the three key stages of the public investment cycle, namely, planning investment, the allocation of investment to the right sectors and implementing investment. The IMF's assessment will contribute to the analysis of the systems in place, the planning allocation and delivering on future infrastructure priorities in the context of the ten-year plan. All of this work being carried out by the Department of Public Expenditure and Reform will ensure additional capital measures available will be targeted at priority capital infrastructure required to support Ireland’s medium-term growth potential and underpin social cohesion. It is expected the review process will be completed in quarter three of 2017 to enable the Government to make the final decisions in due course on how the remaining capital should be allocated