The National Development Plan 2000-2006, NDP, provided for public investment of £40.6 billion, or 51.6 billion, in 1999 prices. In 2001 prices, the cost of the NDP as published is estimated at £47.6 billion or 60.4 billion. This estimate is based on the increases in construction prices for 2000 and 2001 contained in Construction Industry Review 2000/Outlook 2001-2003, which was published recently by the Department of the Environment and Local Government, and on the actual increase in the consumer price index for 2000 and my Department's forecast for 2001.
An exercise similar to that used to estimate the cost of the total NDP at 2001 prices has been carried out in respect of 2002 based on projected average price increases, which shows that the cost of the NDP in 2002 prices would be of the order of £50 billion or 63.5 billion.
I accept that inflation in the construction sector has been in excess of that anticipated at the time the plan was prepared. However, there are clear indications of a significant easing of construction industry inflation on foot of the general economic slowdown. This will assist a better return in terms of output for plan investment in the infrastructure area. It should be borne in mind that the NDP is a seven year plan.
The Government is committed to the implementation of the NDP, particularly the infrastructure programme which is crucial to the future competitiveness of the economy and thus to Ireland's continued economic and social progress.