Mary Upton (Dublin South Central, Labour)
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Question 181: To ask the Minister for Finance if his attention has been drawn to the criticism by the ESRI of the National Development Plan 2007 to 2013 that the plan is doomed to repeat the failings of its predecessor and their warning that the construction industry cannot handle the scale of planned development over the next seven years; and if he will make a statement on the matter. [3869/07]

Michael D Higgins (Galway West, Labour)
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Question 191: To ask the Minister for Finance the specific measures he is taking to ensure that cost overruns experienced on previous National Development Plans, for example on the construction of the LUAS and the Port Tunnel, will not be repeated in the NDP 2007 to 2013; and if he will make a statement on the matter. [3871/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 181 and 191 together.

The level of capital investment included in the National Development Plan and its sectoral mix was decided by the Government on the basis of its assessment of investment needs. This assessment was particularly informed by the infrastructural deficits which Ireland faces and projections that the population could be in excess of 5m by 2021.

The Government is confident that the construction industry has the capacity to deliver the planned level of investment in a stable price environment. The reality is that the capacity of the industry has expanded greatly in recent years resulting in moderately increasing tender prices notwithstanding continued high levels of activity. In addition, the key implementing agencies such as the RPA and the NRA have also had major resource enhancements in recent years in order to equip them to better manage the major projects they are responsible for under the NDP.

As regards measures to prevent cost overruns, I would refer the Deputy to Chapter 12 of the Plan which sets out a robust Value for Money framework in relation to Plan expenditure. The key elements are:

All projects will be subject to project appraisal to ensure that NDP programme objectives and Value for Money are being achieved;

All capital projects over €30 million will require a full cost benefit analysis in line with the Department of Finance guidelines of February 2005;

An individual will be appointed as project manager to manage and monitor progress on all such major projects;

Progress on capital programmes and projects will be reported regularly to the Management Advisory Committees of all Departments and Boards of all implementing agencies concerned with the programmes and projects;

Departments and Agencies will carry out annual spot checks to ensure compliance with the Value for Money requirements under their capital sanctions and Department of Finance Capital Appraisal Guidelines and report the findings of such spot checks annually to the Department of Finance;

NDP programme evaluations and Value for Money and Policy Reviews will be published and submitted to the relevant Select Committees of the Oireachtas;

As provided for under the Budget and Estimates Reform proposals set out in Budget 2006, all Ministers will submit an Annual Output Statement with their Annual Estimates to the relevant Oireachtas Committee. This will detail target outputs for the Estimates and the following year's Statement will set out achievements against the target; and

Reforms to public procurement to promote cost certainty, Value for Money and cost effective delivery of projects.

I am confident that this framework will provide for efficient delivery of NDP programmes and projects.