Jim D'Arcy (Fine Gael)
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I welcome the Minister of State, Deputy Perry. The A5 and the Narrow Water Bridge projects are significant cross-Border infrastructural projects and are worthy of support on a number of fronts.

Last week, at the meeting of the Joint Committee on the Implementation of the Good Friday Agreement representatives from both sides of the Border in the north west, comprising the A5 working group, appeared before the committee and called for a further push to deliver the A5 upgrade. The project includes 86 km of dual carriageway from Aughnacloy in County Tyrone to Newbuildings outside Derry city. As the committee chairman, Deputy Joe McHugh, stated, there is no doubt that the long-standing dearth of modern transport infrastructure in the north west is seriously hindering development and the relatively high unemployment and poverty rates can be directly attributable to this lack of connectivity. Tight timelines are required to avoid any further slippages on the delivery of this critical piece of infrastructure.

With regard to the Narrow Water Bridge, unfortunately we ran out of time on the last occasion despite the great efforts of the Taoiseach and the Minister for Transport, Tourism and Sport, Deputy Leo Varadkar. We must renew our efforts to provide this unique piece of infrastructure, which will do so much for tourism in the south Down and north Louth area, including in villages and towns such as Carlingford and Omeath, Warrenpoint, Kilkeel and Newcastle. It has the support of people of all political opinions on both sides of the Border. The last meeting of the North-South Ministerial Council stated that the council supports the concept of the Narrow Water Bridge. I request that this be changed to "is committed to the Narrow Water Bridge" and that the council will agree to support a new funding application under INTERREG V. Furthermore, the criteria for applications for INTERREG V funding will be drawn up between September and December. Ireland, Scotland and the Northern Executive must ensure that the criteria are fit for the Narrow Water Bridge.

John Perry (Sligo-North Leitrim, Fine Gael)
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I am replying on behalf of my colleague, Deputy Varadkar, Minister for Transport, Tourism and Sport, and I thank Senator D'Arcy raising this important issue.

As the Senator is aware, Narrow Water Bridge is expected to be discussed at the plenary meeting of the North-South Ministerial Council on Friday, 4 July, in Dublin Castle. The improvement and maintenance of regional and local roads is the statutory responsibility of each local authority, in accordance with the provisions of section 13 of the Roads Act 1993. Works on those roads are funded from local authorities' own resources, supplemented by State road grants paid by the Minister's Department. The initial selection and prioritisation of works to be funded is also a matter for the local authority.

The Minister has confirmed many times, through parliamentary questions and in other fora, the Government's disappointment that the Narrow Water Bridge tender process resulted in a doubling of the initial costs budgeted for by the project partners for the construction of the bridge. Given the budgetary constraints that his Department is operating under, it could not take on full responsibility for the increased project cost and the significant risks involved in the project. While the Minister was willing to consider assisting with the shortfall, this was explicitly contingent on significant contributions from other parties, including the Northern Ireland Executive. These commitments were not forthcoming within the timescale required for the INTERREG IV A programme.

The Special EU Programmes Body, SEUPB, then decided to withdraw its funding for the project and to reallocate the funding to other eligible projects in the transport sector to ensure that the EU funds were not lost, which was the intelligent thing to do. The Minister looks forward to an announcement in conjunction with the SEUPB regarding the re-allocation of that EU funding to other transport projects on Friday morning. As to the possibility of the Narrow Water bridge qualifying for funding under the next INTERREG V, the Department of Public Expenditure and Reform is the lead Department liaising with the SEUPB regarding the INTERREG V funding process. The Minister understands that the SEUPB has now published a draft operational programme for public comment with a set of funding priorities.

As regards the possibility of grant funding from the Department for the project, the Minister has confirmed that his Department is not in a position to grant aid the project as he does not have the scale of resources required when the priority must be road maintenance and restoration as against new projects. No similar new road or bridge projects are going to construction anywhere in the State at present and some that are at a much more advanced stage than the Narrow Water Bridge have been stalled due to lack of finance. However, the situation might change should there be a substantial increase in the Department's capital budget in the future. The Minister's Department must work within the very constrained budget available to it.

As the Senator will be aware, the Northern Ireland High Court decided in March 2013 that an appropriate assessment of the impact of the A5 scheme on the River Foyle and the River Finn, which are special areas of conservation under the habitats directive, was needed and consequently quashed the Minister for Regional Development's approval for construction of two road sections of the route. Since that decision, the Northern Ireland authorities have been working on the preparation of the necessary environmental assessments and revised statutory orders and considerable progress has been made in getting the assessments and orders prepared and out for public consultation. The outcome of the public consultation process will have to be considered and factored into the decision on the need for a new public inquiry next year. The Government's comprehensive review of expenditure for the period 2015 to 2017 and the capital review for the period 2015 to 2019 have commenced. Those involved in these reviews will consider new ways of achieving Government objectives in the current tight fiscal climate, including the extent to which funding will be available for the maintenance and development of the road network. The Minister cannot say at this point what will be the outcome of process relating to the comprehensive and capital reviews. He has. however, drawn the attention of the Minister for Public Expenditure to the need to consider the position in respect of the A5.

Jim D'Arcy (Fine Gael)
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I thank the Minister of State for his very comprehensive reply. I am pleased that it has been confirmed that the matter is expected to be discussed at the plenary meeting of the North-South Ministerial Council on Friday, 4 July in Dublin Castle. I expect that the support expressed at the previous meeting will be upgraded to a commitment. I am pleased the Narrow Water bridge project remains in the mix for funding under INTERREG V. As stated earlier, we must ensure that the bridge project can meet the criteria laid down. People are aware of the Taoiseach's support for the project but very few are aware of the amount of support the Minister, Deputy Varadkar, has given to it. I am sure the Minister and his Department will continue to support it.

The project relating to the A5 is extremely important. I note with interest that the Minister for Transport, Tourism and Sport has again drawn the attention of the Minister for Public Expenditure and Reform to the need, in budgetary terms, to consider the position in respect of this project. I hope that no new public inquiry will be needed next year. We thought that such an inquiry might have been necessary in respect of the Narrow Water bridge project but that did not prove to be the case. I hope that the position in respect of the A5 will be similar and that all of the relevant questions will be answered in a satisfactory fashion in order that the project might proceed on time. I thank the Minister of State for coming before the House.

John Perry (Sligo-North Leitrim, Fine Gael)
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I thank Senator Jim D'Arcy for raising this very important issue. I will convey his very kind comments to the Minister, Deputy Varadkar. I have no doubt that the Taoiseach will be delighted by people's determination to see this project progressed. There is no harm in repeating that in the context of the possibility of the Narrow Water bridge project qualifying for funding under the next INTERREG V, the Department of Public Expenditure and Reform is the lead Department liaising with the SEUPB regarding the INTERREG V funding process. The Minister understands that the SEUPB has now published a draft operational programme for public comment with a set of funding priorities. I have no doubt the project will be discussed in the context of that process. It was, as already stated, contemplated under INTERREG IV and there is no doubt that it could be possible for it to be considered under INTERREG V.

The Northern Ireland Office is working to deal with the environmental concerns relating to the A5 project. The Senator and Deputy McHugh in the Lower House have consistently advocated this project. I have no doubt that the issue of INTERREG V funding will be discussed at the meeting of the North-South Ministerial Council in Dublin Castle. The Government secured a considerable amount of funding under the programme for the period 2014 to 2020. I have no doubt that the project in question will be considered in the context of the draft operational programme published by the SEUPB.