Stephen Donnelly (Wicklow, Independent)
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Question 572: To ask the Minister for Transport, Tourism and Sport the decision criteria that were used by him in selecting infrastructure projects to recommend to the Department of Public Expenditure and Reform as part of the process leading to the publication of the Infrastructure and Capital Investment 2012-2016 plan; if he was instructed to make recommendations up to the total value for transport projects identified in the plan, or if he recommended additional projects which were not included in the plan; the criteria and analysis that were used to discriminate between different transport projects; if standardised or comparable cost-benefit analyses were used by him in assessing all transport projects as part of this process; and the criteria and analysis that were used to identify the Luas Broombridge project as a priority. [37119/11]

Leo Varadkar (Dublin West, Fine Gael)
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As requested by the Minister for Public Expenditure and Reform under the comprehensive spending review, my Department reviewed the planned transport capital programme under the National Recovery Plan (NRP) in accordance with funding parameters set by the Department of Public Expenditure and Reform in order to propose a revised programme for inclusion in a new capital programme for 2012-2016.

In preparing my submission I had input from all the agencies involved in delivering transport infrastructure.

My submission emphasised that my first policy priority, after providing for commitments, was to protect existing investment and maintain safety standards. The next policy priority was to support projects which would add value and maximise the return from existing infrastructure. Given the overall Exchequer funding position, affordability of new projects was a key factor. If a project cannot be afforded, the arguments pertaining to economic return are irrelevant.

Cost benefit analyses are carried out for projects as required under the Government's Capital Appraisal Guidelines. In the case of the major public transport projects in the Greater Dublin Area (GDA) these are independently reviewed by the National Transport Authority (NTA) and published on their website.

The two large public transport projects for the GDA, Metro North and Dart Underground were planned as PPP projects which in addition to requiring private funding also required large Exchequer contributions. In my review I concluded that these projects were not affordable during the new plan period. In addition to the uncertainties relating to the capital markets it was clear that Exchequer funds of the magnitude required would not be available unless at the expense of essential maintenance.

Luas BXD which will be fully Exchequer funded and constructed on a phased basis has been prioritised as it has a strong business case, is affordable and will create a Luas network through linking the two existing Luas lines, serve areas of the North city such as Grangegorman, Phibsborough and Cabra and integrate with rail services on the Maynooth and Dunboyne lines as well as Quality Bus Corridor cross city/city centre bus services. Luas BXD will result in up to 10 million extra trips on the Luas network, exploiting the value in the investment made to date in Luas infrastructure.