Joan Burton (Dublin West, Labour)
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Question 16: To ask the Minister for Transport if he has reviewed the National Consumer Agency's submission objecting to the proposed increase in tolls to come into effect when barrier-free tolling is introduced on the M50 in August 2008; the exact amount it will cost the State to buy NTR out of the West Link toll contract; the way the VAT portion of this cost was financed by his Department; and if he will make a statement on the matter. [32781/07]

Noel Dempsey (Meath West, Fianna Fail)
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As Minister for Transport I have responsibility for overall policy and funding in relation to the national roads programme element of Transport 21. The implementation of individual national road projects, including the M50, is a matter for the National Roads Authority (NRA) under the Roads Act, 1993 in conjunction with the local authorities concerned.

In addition, issues relating to tolls on national roads are in the first instance a matter for the NRA. The statutory power to levy tolls on national roads, to make toll by-laws and to enter into toll agreements with private investors in respect of national roads, is vested in the NRA under Part V of the Roads Act 1993 (as amended by the Planning and Development Act 2000 and the Roads Act 2007).

Section 57 of the Roads Act 1993 (as amended by Section 271 of the Planning and Development Act 2000) provides that the NRA may make a Draft Toll Scheme in respect of a national road and Section 58 (as amended by Section 272 of the Planning & Development Act 2000) states that objections to the draft toll scheme may be made in writing to the road authority, which in the case of a national road is the NRA.

I understand that a number of objections have been lodged to the Draft Toll Scheme for the M50, on foot of which there is to be an Oral Hearing in accordance with the requirements of Section 58 of the Roads Act 1993, commencing on Wednesday, 12th December 2007, and that the NRA have appointed Mr. Maurice O'Connell to hold this Oral Hearing.

In relation to the buy-out of the West-Link toll concession, the cost of compensating NTR was a matter for determination between the NRA and NTR in line with the 1987 West-Link Agreement. On that basis, NTR will receive annual payments of €50 million, plus CPI, for each of the years 2008-2020, in other words a sum of the order of €600 million.

The VAT payment arising from the buy-out was almost €121.9 million, the cost of which was met by my Department in July 2007. In order to meet this cost, a Supplementary Estimate of €60 million will be sought on the 11th of December 2007. The remainder of the payment is being offset by savings in the Transport Vote in 2007.