Finian McGrath (Dublin North Central, Independent)
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Question 331: To ask the Minister for Transport; Tourism and Sport the position regarding the metro north; if he will ensure same will go ahead due to the potential opportunity to create 4,000 jobs and supporting local joinery businesses; his views on the fact that if he fails to start the metro north, compensation will have to be paid to the bidders, which in this current economic climate is not viable. [21489/11]

Leo Varadkar (Dublin West, Fine Gael)
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The comprehensive review of capital expenditure which is being overseen by my colleague Mr Brendan Howlin, Minister for Public Expenditure and Reform is currently underway. This review is examining all capital programmes and projects, as regards their affordability, their overall economic impact and job creation potential. A major consideration will be the need to prioritise funding to protect investment made to date and to maintain high safety standards.

The Deputy can be assured that I am fully apprised of how beneficial Metro North can be, for businesses, communities and future development in the North Dublin Region. As you may be aware, I am a former member of Fingal County Council and represent part of the town of Swords, which would be served by Metro North. The benefits of this project are not at issue, the issue is our capacity to fund it.

Metro North will cost several billions depending on the funding model used. In order for Metro North to be built, it will require both private funding by means of a PPP and exchequer funding. With regard to exchequer funding, this will be almost €1 billion during the term of this Government.

The successful awarding of a major PPP contract involving private funding is challenging at any time but is particularly challenging in current circumstances where Ireland has been the subject of intervention by the IMF/EU. Until financial credibility is restored the international debt funding market will be reluctant to lend funds to finance projects in Ireland, the repayment of which is ultimately dependant on the state. It is also not clear whether the Exchequer will be able to contribute its share of the cost in any case. In order for Metro North to be included in the revised National Development Plan 2012 – 2016, both private finance and exchequer finance must be available. The decision made on Metro North, will be made by the Government in that context.

The issue of compensation should it arise, would be dealt with under the agreed procurement terms between the RPA and the Metro North bidders, the details of which are commercially sensitive.