Bernard Durkan (Kildare North, Fine Gael)
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571. To ask the Minister for Public Expenditure and Reform if he remains satisfied regarding the availability of adequate critical infrastructure such as road, rail, air and sea transport, ready access to high-speed reliable telecommunications, renewable energy and housing; if his Department continues to monitor the availability of such facilities and plan for the future accordingly; and if he will make a statement on the matter. [13620/16]

Paschal Donohoe (Dublin Central, Fine Gael)
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I strongly share the premise underlying the Deputy's question that getting our investment strategy right is very important to securing economic progress and social development. In the process leading up to the publication of the current capital plan: 'Building Recovery: Infrastructure and Capital Investment 2016-2021' the previous Government sought to ensure that resources were focused where needed in order to protect economic recovery and meet social needs.

Identifying the capital needs of an economy is undoubtedly a complex process. To come to a firm view on the scale and composition of infrastructural needs, over the short, medium and long term, a number of factors need to be considered and analysed, such as for example:

- the existing level and composition of public capital stock;

- the social and economic value of infrastructure;

- the scale of the infrastructural deficit;

- geographic considerations; and

- economic growth projections.

It is also very important that the investment is efficient. Assessing the efficiency of investment requires methodologies to identify projects and programmes with the most favourable cost-benefit ratios.

Investment plans must also be fiscally sustainable. As we know from our experiences in the period from 2008 onwards, the costs of a fiscal crisis are such that the funding of investment plans must be strictly consistent with the overarching parameters of budgetary policy.

Following final Government deliberations, the 2016-2021 plan was published last September with a commitment to conduct a mid-term review in mid 2017. This commitment has been confirmed in 'A Programme for a Partnership Government'.

This review will provide the Government with the opportunity to review capital spending plans and allocate the additional funding identified in the Programme for Government to priority areas.

In specific terms, the Programme for a Partnership Government has proposed, subject to Oireachtas approval, an additional €4billion in exchequer capital investment up to 2021. Following the mid-term review of the Capital Plan the Government will increase capital investment in transport, broadband, education, health and flood defences.

In the appendix attached to this reply, details are provided of investment plans in the specific areas referenced in the Deputy's question.

Appendix

Road, rail, air and sea transport:

The Exchequer transport capital allocation is largely framed by the recommendations and priorities set out in the published Strategic Investment Framework for Land Transport. These priorities are threefold: to maintain and renew the strategically important elements of the existing land transport system; to address urban congestion; and to improve the efficiency and safety of existing transport networks.

In recognition of the fact that medium and long-term planning of transport infrastructure is well developed, the €9.6 billion capital envelope for transport will be provided over seven years. This will include €6 billion for investment in the national, regional and local road network and €3.6 billion in Public Transport. A €28 million investment package for safety and security enhancements at the regional airports to ensure connectivity for balanced regional development is also included in the Capital Plan. The largest single project will be a new metro link in Dublin. Based on the outcome of the Fingal/North Dublin Transport Study, the National Transport Authority has recommended that a revised metro project be selected as the appropriate public transport project to address the transport needs of the Swords/Airport/City-Centre Corridor. It is planned that Metro North will be in operation by 2026/2027.

Access to high speed reliable telecommunications:

An initial allocation of €275m of Exchequer funding has been provided to the National Broadband Programme as part of the first six years of an envisaged 20 year contract. While it is expected that the network will be built between 2016 and 2020, the overall funding will be spread over 20 years and this envelope represents a proportion of that funding.

Another significant development in this context is the creation of the Connectivity Fund, which has been formed from the proceeds of the sale of the Government's shareholding in Aer Lingus. The Fund, which operates on a commercial basis, is available to provide support for commercial investment projects with a connectivity theme, including data and energy connectivity.

The Programme for a Partnership Government also commits to providing additional exchequer capital, if needed, to deliver on the commitment to bring next generation broadband to every house and business in the country by 2020.

Renewable energy:

The Government is committed to reducing carbon emissions and increasing our use of renewable energy. €444 million has been provided for investment in energy efficiency and renewable energy programmes from 2016 to 2021.

Housing:

Direct Exchequer investment in the area of social housing of nearly €3 billion has been provided. This will help deliver an additional 35,000 housing units by 2020. Around 18,000 of these additional housing units will come on stream between now and 2017 with the balance provided between 2018 and 2020. A further 75,000 households will have their housing needs met through leasing and renting in the private rental sector.

This is supported by PPP investment of €300m which is expected to deliver 1,500 social housing units. This investment is to be delivered in three bundles, each of approximately €100m with 500 units expected to be delivered through each. Details of Bundle 1 were announced last October and include:

- Ayrfield, Malahide Road (Dublin City) - 100 units

- Corkage Grange (South Dublin) - 100 units

- Scribblestown (Dublin City) - 100 units

- Dunleer, (Co. Louth) - 70-95 units

- Convent Lands (Wicklow) - 60-70 units

- Craddockstown, Naas (Kildare) - 75 units

Sites for Bundle 2 have been selected and are expected to be announced by the Department of Housing Planning and Local Government in the near future.