Seanad debates
Thursday, 14 May 2015
Commencement Matters
Road Projects Status
10:30 am
Paul Bradford (Independent)
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I thank the Cathaoirleach for allowing me the opportunity to raise this important matter. I welcome the Minister, Deputy Paschal Donohoe, back to his alma mater. I am disappointed for once that the Minister for Foreign Affairs and Trade is not going to reply on my behalf because I will be expressing the view that the decision to annul, in the short term at least, the N20 project appeared to be a decision made by a Department of foreign affairs rather than a more national Department. People in the Cork and Limerick region are bemused, surprised but, above all, bitterly disappointed that the news in regard to the Cork-Limerick motorway currently appears so negative.
No one appreciates more than I the economic difficulties and, to some degree, the crisis still facing the country, and I know every euro and certainly every €1 billion must be spent with great caution. However, this project, which is urgently required from a regional balance point of view, a job creation point of view and a safety point of view, has been on the planning shelves for quite some time. It was back in 2011 when the Minister's predecessor, again due to the economic difficulties then facing the country and the new Government, took the decision to put the project into cold storage. As the economy begins to develop and grow, as the Government begins to work on projects such as the Action Plan for Jobs, as the Minister, Deputy Bruton, talks about regional development, as the prospect of building new industrial sites across the country improves and as regional growth strategies are being considered, it is urgent that this idea of a new Cork-Limerick motorway be put back on track, if the House will excuse the pun.
The two very large centres of population, Cork and Limerick, could be brought much closer together from a transport perspective if this project was delivered. This would be a major boost to the towns of Mallow, Buttevant, Charleville and Macroom, and places like Cork Airport would come back on the agenda very much strengthened. For those reasons and much more, this is something the Minister has to reflect deeply upon. I have to concede, and there is no point saying otherwise, that the Minister has to be cautious in the expenditure of moneys. However, it is a question of value for money and what is the long-term positive consequence of putting this project back on track.
We have seen, in the course of the past 12 to 18 months, how Dublin and the east coast region are again moving very much ahead of the country. While much of that is positive, from a housing or rent perspective, however, the Dublin and east coast imbalance must be addressed. If we look at regions like Cork, Limerick and Galway, and the towns in-between, and focus as much development as possible on those regions, not only is it good for each region but it is good for the east coast region as well.
I know the Minister will be meeting in the coming weeks with councillors and management in Limerick and Cork, and the various chambers of commerce in the region are also deeply concerned and disappointed. If we want to ensure that the economic "recovery", which is the buzzword at present, is balanced, regional, fair and of long-term sustainable value to the country, and not Celtic tiger-like, we must plan for the projects which are needed, will save lives, will improve access and will give our required balanced regional growth. I am disappointed with the decision the Minister took recently but every decision, I suppose, is up for review. As times change and as recovery continues, it is essential that we get a positive signal from the Minister on this matter. There is also, perhaps from a more parochial perspective of mine, the question of a new relief road for Mallow. While the major project would cost €1 billion, the relief road for Mallow would cost €14 million or €15 million. I would ask for the Minister's comments on that.
We need to reflect on the time for construction of some of these big projects. There have been fairly dramatic improvements over the past ten or 15 years but when I think of the Cork-Mallow road, it appeared futuristic when it was planned in the 1970s and started being constructed in the 1980s as a 20-mile stretch. From my personal perspective, I drove on the first stretch of that road in a school bus in leaving certificate year. By the time that short 20-mile stretch was officially opened, I had been twice elected to Dáil Éireann. We are very slow on the delivery of these projects. Obviously, because of slow development, the costs increase. When this project was mentioned, in 2010-2011, we were talking not about €1 billion but about €750 million. Apart from trying to get the green light, we must look not only at this road but at all motorway developments and at trying to expedite the development phases and the construction methodology because delays cost money.
In the case of the Cork-Limerick route, to save lives, save money and bring real growth to the region, Cork, Limerick and all the towns in between, I hope the Minister will try to reflect positively not on what I am saying but on what everybody in the region, including all the politicians across all the parties, are saying. I am not expecting a U-turn from the Minister today but I ask him to reflect deeply on this serious decision for the southern part of the country.
Paschal Donohoe (Dublin Central, Fine Gael)
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I thank Senator Bradford for raising this issue. I noted his point regarding whether the Minister for Foreign Affairs and Trade should be taking this. Something I do, out of respect to Senators and the House, is take virtually all of the Commencement Matters relating to my Department because it is important to do so. The issue the Senator is raising is an example of that. I am very much aware of the importance of this issue to everybody who lives, works and represents the different counties and constituencies that could be affected by this road in the future.
As the Senator will be aware, I have responsibility for overall policy and funding in relation to the national roads programme. The responsibility for the construction, improvement and maintenance of individual national roads resides with the National Roads Authority and the local authorities in each county.
Ireland has just under 100,000 km of road in its network and the maintenance of those roads places a substantial financial burden on local authorities and on the Exchequer. My overwhelming priority is to ensure that we have the resources and the plans to maintain and keep safe the roads that we have built.
Given the national financial position, there have been large reductions in the Exchequer funding available for roads expenditure over recent years. In 2008, we were investing €2.3 billion in roads. This year, the funding is approximately €730 million. The challenge I face is that the funds available to my Department at present do not match the amount of work that needs to be undertaken. For this reason, only a small number of road improvement projects, including PPP projects in the Government's 2012 infrastructure stimulus programme, are being progressed to construction stage. The challenge, therefore, for the NRA and road authorities is to manage the existing network as safely as possible with the resources available to them.
My predecessor had to decide in 2011 that the M20 scheme should be withdrawn from An Bord Pleanála because budgetary constraints meant that there was no prospect of the scheme going to construction within a reasonable period of time and approval of the then plan by the board would have triggered land acquisition costs of the order of between €90 million and €100 million. When the NRA raised the possibility of restarting planning on a Cork to Limerick motorway, I was conscious that capital funding is still very constrained presenting real difficulties in relation to the scale of the M20 - an 80 km road with a projected cost of €800 million. I was also conscious of the continuing need to prioritise expenditure on maintenance and renewal, not only for roads but also for public transport.
Unfortunately, the financial realities are that capital funding will continue to be tight for the next number of years, limiting the scope for progressing additional new projects over and above the PPP programmes already in place. Allowing for the current funding position, I have had to conclude that I am not in a position to review the 2011 decision at this point. Over time, it is my objective to restore capital funding for the transport sector to ensure that land transport infrastructure is maintained and renewed to support economic and social development.
While I have, I hope, stabilised the funding position, the scope for any new improvement projects depends on the availability of additional capital funding in the future. Once the new capital plan is published, I will assess what can be done to address particular bottlenecks.
I accept there are demands from other sectors and the difficult task of deciding between competing demands falls to the Minister for Public Expenditure and Reform. As regards the current position in relation to the N20, I understand the NRA has provided funding totalling over €8.9 million for safety and minor improvement works at various locations on the N20 route over the past five years. This year's national road grant allocations to Cork County Council also include a provision of €1.75 million for major road improvement works on the N20 at Buttevant. The authority has confirmed that it will continue to provide the maximum possible level of funding for the route having regard to funding constraints for national roads generally and the many competing demands for resources. I would emphasise that I expect the NRA to use safety assessment and pavement management systems to best effect to direct resources to where they are most needed.
Paul Bradford (Independent)
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I thank the Minister for the comprehensive reply. While he has not given me any information of which I was unaware, I note his point that "capital funding is still very constrained presenting real difficulties in relation to" projects such as this. Knowing his deep interest in politics and economics, this restrained nature of our capital funding is something upon which we must reflect. The choice the Minister and his Cabinet colleagues will have to make in the near future will be about future planning for this country and whether we invest in short-term - I hate to use the word - "auction-style" politics or in profound deep meaningful capital projects.
If one looks at the capital project about which we speak, it will bring benefits for generations to come. Not only will it create jobs and enhance the environment, it will save lives. The Minister mentioned, for instance, the short-term expenditure of almost €10 million on safety and minor improvement works and that will have to continue year after year until this major project is considered. I ask the Minister to think big. Within the Department and in the debates, arguments and engagement with the Minister for Public Expenditure and Reform, the Minister will have to make the case that capital development and capital infrastructure is vital for the future long-term enhancement of this country. It is a question of the difference between a short-term perspective and a long-term perspective, between the politics we have had for generations and a new politics, and between investing in the future and simply looking to the next election.
I hope the Minister will have a meaningful exchange with his colleague, the Minister for Public Expenditure and Reform, on this project and other projects for which capital funding into the future is hugely important. I ask the Minister to look to the future and try to get projects such as the completion of the M20 up and running. The future development of this country depends on such projects, as opposed to short-term developments such as the repair of a bend on the road or the provision of safety measures. I hope that 20 or 25 years from now, we will be looking back at decisions that were taken in the interests of the long-term good of the country, rather than with short-term considerations in mind. We need urgent action on this very important long-term requirement, which should be prioritised by the Minister, Deputy Howlin. The full support of the Minister is needed to try to get action and funding from the Minister, Deputy Howlin. I thank the Cathaoirleach for giving me a little leeway in raising this important subject.
Paschal Donohoe (Dublin Central, Fine Gael)
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I thank Senator Bradford for his concluding comments. I fully accept and agree with his point about the need to plan for the long term. I am constantly aware of the need to balance the short-term pressures of today with the pressures and opportunities that are to come. As the Senator accurately said, those pressures and opportunities stretch well beyond electoral cycles and Dáil and Seanad terms. I put it to the Senator that we need to work on two challenges within this framework. The first challenge on which we need to work is very much an overall or general challenge for our country. It relates to the total amount of capital funding that is available for us to spend on all kinds of different projects, including those aimed at meeting the need that exists in areas such as education, housing and transport, for which I am responsible. We need to work on two variables within that. First, we need to focus on how we can increase the capacity of the economy and make choices within the economy to make sure we have enough money to spend. Second, we need to look at the expenditure constraints and rules we face in the first place. I do not want us to get to a point at which the funding that becomes available to our country is invested only in things that are affordable in the short run, such as the introduction of tax cuts or changes or the construction of infrastructure for which in the long run there is no sustainable need or which we cannot afford to maintain. We have to make progress in that area, and we are beginning to do so.
The second challenge with which we need to contend is the debate on how the country can make progress overall. I have responsibility for putting forward the case for transport in that context, and this project is a good example. I know the Senator is disappointed with the answer I have given. I can accept the reasons for his disappointment. He made the point in his opening contribution that I need to be very careful with the money that is available to me. It is for that reason that I am now justifying a decision the Senator does not like. I am working hard to come up with a plan that will make a strong case for rebuilding expenditure on our roads and our public transport network. In fact, I was engaged in that work this morning.
During the Celtic tiger period, this country substantially increased the amount of funding it was investing in transport infrastructure, to between 1.3% and 1.4% of our national income. The current figure is 0.5%. Our 50-year average as a country is 1%. We have to build our national average back up. If we do not, we will be locked into a cycle in which the kinds of problems about which the Senator has spoken, generally and in relation to this road, will continue to develop. I am working on that with my colleagues in the Department of Public Expenditure and Reform. I accept that they are trying to manage other competing demands. I am trying to put forward the overall case, which is that certain projects are justified purely on the basis of a cost-benefit analysis. If we add to that analysis a consideration of the economic development and road safety benefits of those projects, the case for the construction of these roads is significantly enhanced.
I thank the Senator for raising this case with me this morning. Of course I will reflect on it. I know there is a need for this project. I am sure the Senator did not expect me to come in and tell him the road is going ahead. I am not in any way taking his point in a flippant manner. I know people want this road project to go ahead, but I am not in a position today to say it can go ahead in its entirety, with the cost that is entailed.