Brian Hayes (Dublin South West, Fine Gael)
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Question 24: To ask the Minister for Finance his estimate of the trend in the price index of undertaking work within the capital programme since 2006; his estimate for 2009; his forecast for 2010; and if he has had discussions with the board and or the management of Anglo Irish Bank regarding the assessment of options for the future of the bank. [44813/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Data received from the Department of Environment, Heritage and Local Government shows that by end 2009, construction tender prices are expected to be about 20 percent lower than in 2006. According to this information, total construction inflation was 6.2 percent for 2006; 2 percent for 2007; minus 8.2 percent for 2008 and minus 9.6 percent for the current year.

Again, based on consultation with the Department of Environment, Heritage and Local Government, the scope for further reductions in tender prices in 2010 appears limited.

Government Departments are also reporting their success in achieving greater value for money. For example, the Department of Education and Science has noted that tender prices for investment under the schools building programme are up to 30 percent lower than at the peak of the market.

It is clear then that there is a much enhanced environment for value for money and that a high level of important public capital infrastructure can be procured from a lower level of resources than was previously the case.

With regard to the Deputy's question on Anglo Irish Bank, on 30 November last the bank submitted its Restructuring Plan to the European Commission. This was a condition for State aid approval of the bank's recapitalisation earlier this year. The submission of the plan marks the beginning of a detailed and comprehensive evaluation of the plan in advance of any final decision by the Commission on the plan. This will require extensive consultation and dialogue between the Commission, the Irish authorities and the bank. I am committed to working closely with the Commission and the bank on the assessment of the plan to achieve the best possible outcome for the State from this process.