Written answers

Tuesday, 31 May 2016

Department of Public Expenditure and Reform

Strategic Infrastructure Provision

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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44. To ask the Minister for Public Expenditure and Reform if he has examined strategic expenditure to address infrastructural deficiencies in areas such as housing, health, transport, communications and education with a view to identifying how best to address these issues while meeting off-Government balance sheet requirements; and if he will make a statement on the matter. [12992/16]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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A strategic review of infrastructural requirements was undertaken by my Department as part of last year's capital review. This culminated in the publication in 2015 of 'Building on Recovery: Infrastructure and Capital Investment 2016-2021', which outlines a €42bn framework for infrastructural investment across Ireland. The Plan prioritises spending on what were considered to be the areas of greatest need as the economy continues its strong recovery.

As always, to support traditional procurement, alternative means of funding were also explored which included 'off-balance sheet' methods allowed for under the fiscal rules. To support the €27bn Exchequer and €14.5bn commercial State sector investment elements of the plan, a new third phase of Public Private Partnerships (PPPs) to a value of €500m was announced as part of the capital plan. The projects chosen for this PPP investment were specifically targeted at addressing priority needs in three areas - education, health and justice - while Phase 2 of the PPP programme announced in Budget 2015 targeted social housing.

The Programme for a Partnership Government commits to a review of Government priorities within the capital plan in the context of the mid term review to be undertaken by mid 2017. The programme also provides for the Government to propose Oireachtas approval for a cumulative, additional €4billion in exchequer capital investment up to 2021, in the areas of transport, broadband, education, health and flood defences, to accelerate delivery of infrastructure requirements. In undertaking the mid-term review of the Capital Plan, my Department will work closely with line Departments to identify the potential for reprioritisation of existing resources and also potential areas to benefit from any additional funding available. The Government will continue to consider the potential for alternative financing mechanisms including off balance sheet PPPs.

The proposed Budgetary Reform Process which I announced with the Minister for Finance last week, also has a very important role to play in contributing to the assessment of capital investment priorities.

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