Written answers

Wednesday, 31 March 2021

Department of Public Expenditure and Reform

Project Ireland 2040

Photo of Jennifer WhitmoreJennifer Whitmore (Wicklow, Social Democrats)
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406. To ask the Minister for Public Expenditure and Reform the steps he will take to ensure that all projects funded under Project Ireland 2040 are properly assessed for their full, long-term and life-cycle climate impacts; the conclusion of the recent review considering climate impacts of existing projects; and the corrective measures he will take on projects whose emissions will breach the emission reduction targets. [16485/21]

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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My Department is responsible for setting the overall multi-annual capital expenditure ceilings for each Ministerial Vote Group as set out in the National Development Plan and Project Ireland 2040. My Department is also responsible for maintaining the national frameworks within which Departments operate to ensure appropriate accounting for and value for money in public expenditure such as the Public Spending Code. The Public Spending Code sets the value for money requirements and guidance for evaluating, planning and managing capital projects. Management and delivery of investment projects and public services within allocation and the national frameworks is a key responsibility of every Department and Minister as indeed will be meeting the ambitious climate targets envisaged in the Programme for Government and Climate Action and Low Carbon Development Bill.

The role of public investment in delivering on Ireland’s climate targets is being assessed as part of the ongoing review of the National Development Plan. Climate was an important consideration in the development of the current National Development Plan and is also in the ongoing appraisal of projects and programmes. However, in recognition of the need for systemic change, there will be an overarching focus on climate action throughout the new National Development Plan. It is intended that Departments will be required to assess their spending proposals/allocations against a range of environmental outcomes to ensure that their investment priorities are aligned with Ireland’s climate and environmental objectives. To complement this sectoral assessment of the National Development Plan, my Department is proposing that the whole of the National Development Plan is assessed against a suitable climate/environmental methodology which is line with international good practices.

It is important to note that the National Development Plan is not a vehicle through which investment proposals are approved. All project and programme proposals included in the Plan are subject to the detailed rigour of the Public Spending Code. The Public Spending Code is not static. It is updated regularly to reflect lessons learned and international good practice. My Department has an ongoing body of work to strengthen the Public Spending Code requirements and guidance to support public bodies in their evaluation, planning and management of capital projects. This includes strengthening the consideration of environmental and climate factors in project appraisal, planning and delivery. In particular, I anticipate altering the shadow cost of carbon that applies to all projects once the higher targets envisaged in the draft Climate Action Bill are adopted. This will ensure that the amount of emissions a project may give rise to is quantified and a value placed on those emissions that reflects the cost that society will have to bear to eliminate these emissions in the future. This in turn allows the appraisal to determine if this future burden outweighs any benefits the project may bring.

Photo of Jennifer WhitmoreJennifer Whitmore (Wicklow, Social Democrats)
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407. To ask the Minister for Public Expenditure and Reform if he will include climate policy and environmental expertise in the reformed Project Ireland 2040 delivery board to bring additional independent expert knowledge into the process; and the other areas of expertise that will be included. [16486/21]

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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As a matter of good governance, I will be appointing four new members to the Project Ireland 2040 Delivery Board to provide it with additional external expertise and to enhance the 'challenge function'. Applicants will be required to have experience in project delivery in either the public or private sectors with skills relevant to the themes underpinning the revised National Development Plan, including at least one of the following:

- Delivery of environmental projects or environmental components of investment;

- A detailed understanding of regional delivery and strategy; and

- The role of investment in supporting enterprise and business innovation.

They will be required to have familiarity with one or more of the following sectors: national roads, public transport including buses and light rail, water and wastewater, new and replacement hospital infrastructure, higher education, flooding, historic properties, and regeneration. In making these appointments I will also have regard to the desirability for gender balance on the Delivery Board.

It is intended that these external members will be appointed subject to a competitive process using the State Boards website.

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