Ciarán Cuffe (Dún Laoghaire, Green Party)
Link to this: Individually | In context

Question 50: To ask the Minister for Transport the reason for a shortfall of €101.3 million in capital spending within the 2006 transport budget; the specific projects that did not use up their spending target; when did he become aware that there would be a shortfall in spending in each case; the reason the spending was transferred to the roads budget; and when the need for such additional spending in the roads budget was made apparent. [41707/06]

John Deasy (Waterford, Fine Gael)
Link to this: Individually | In context

Question 52: To ask the Minister for Transport the reason unspent moneys allocated to be spent on public transport projects in 2006 will now be transferred to be spent on road projects; and if he will make a statement on the matter. [41779/06]

Martin Cullen (Waterford, Fianna Fail)
Link to this: Individually | In context

I propose to take Questions Nos. 50 and 52 together.

I have reassigned €101.3 million from the 2006 Transport 21 public transport allocation due to a projected underspend in this area. These funds have been transferred to the national roads budget for 2006 to allow an acceleration of their Transport 21 programme. The amount transferred will be recovered from the national road allocation over the course of Transport 21, as required. This demonstrates the value of the ten year capital envelope which permits the active management of the overall Transport 21 allocations throughout the year.

Various factors which were outside the control of the implementing agencies have led to the underspend in public transport. The Luas extensions to Cherrywood and the Docklands and the Iarnród Éireann Kildare Route project are at Railway Order stage. At the beginning of the year, it was anticipated that the Railway Order process in respect of these projects would have been concluded and that construction would have commenced, with a consequent drawdown of Exchequer funding. The Railway Order processes did not proceed as quickly as anticipated when the original allocations were made. In addition, the Cherrywood project is the subject of a judicial review.

However, preparations are continuing to bring these projects to construction at the earliest date. Subject to an enforceable Railway Order, construction will commence on the Kildare Route and Docklands projects early in 2007, while progress on Cherrywood must await the outcome of the judicial review. The rate of development of the Quality Bus Corridor programme by the local authorities has also been slower than planned. These factors have resulted in a reduction of €101.3 million in the public transport allocation.

The Department reviews progress on the investment programmes with its agencies on a monthly basis and the results of these reviews are used to update financial allocations on an ongoing basis. Funds were reassigned to the roads budget first in June and again in October 2006 and November 2006, based on regular monthly reviews of spending.

The roads programme for 2006 was implemented at a faster rate than anticipated. Good weather over the summer months accelerated construction so that completion dates for key phases of certain projects were brought forward. The funds available for reallocation from the public transport programme were transferred to the roads programme so that work could continue on an accelerated basis.

The allocation of the additional funding to the roads programme has allowed for accelerated construction work on certain schemes. In particular, the N8 Cashel to Mitchelstown scheme was able to move forward at a much faster construction rate that would have been possible without additional funding. In addition, land acquisition was accelerated on a number of motorway projects. The additional expenditure on land acquisition this year reduces the amount of land payments required on these projects in later years.