asked the Minister for the Environment if he has noted a recent proposal by the Policy Director of the Confederation of Irish Industries in which he advocated a greater role for the private sector in the provision of public infrastructure; and, if so, if he will comment on the proposal.
Ceisteanna—Questions. Oral Answers. - Public Infrastructure Proposal.
4.
I have seen details of the proposal referred to. The Government have already stated that they are prepared to consider a greater role for the private sector in the provision of public infrastructure and indeed have taken action in a number of areas to facilitate this. The position in relation to programmes of my Department is as follows.
As regards road improvement projects, the Government clearly indicated in the national plan Building on Reality and in the Planning and Policy Framework for Roads published on 29 January that it was interested in pursuing the potential for private sector investment. Deputies will, no doubt, be aware that the Ringsend bridge was the first road project to be financed by the private sector. A proposal for the construction of a major toll road linking the Navan road and the Lucan road is generally acceptable to the Government. In accordance with the commitment given in the national plan, my Department will shortly be making available to interested parties details of other potentially suitable projects for toll roads.
In the area of sanitary services, joint venture arrangements between local authorities and the private sector have operated in the case of a number of major projects, with funding being shared by the local authorities and the relevant industries. In rural areas, the scheme of State grants and the provision of headworks by local authorities facilitate the provision by the private sector of piped water supplies which would otherwise fall to be provided as public supplies.
As regards joint venture housing schemes my Department wrote to housing authorities at the beginning of 1982 asking them to undertake these schemes as a means of encouraging people to buy private houses. The national economic plan also emphasised the importance which the Government attach to the concept of joint venture housing. The plan introduced the new £5,000 grant to enable tenants and tenant purchasers with certain residency qualifications to provide housing for themselves in the private sector and thus make available additional local authority houses for letting to persons who are unable to provide accommodation from their own resources. The £5,000 grant does not apply to applicants on local authority approved waiting lists for houses. However, it is intended to extend to such persons and to tenants or sub-tenants of local authority houses, who are purchasing joint venture houses but do not qualify for the £5,000 grant, a subsidy on the lines of that presently payable in respect of developed private sites. The subsidy will consist of a contribution of one third of the loan charges incurred on the acquisition of a joint venture housing site, subject to a capital cost limit of £3,000 per site. Local authorities will shortly be notified of the details of this revision to the joint venture scheme and will be asked to ensure that the full benefit of the subsidy is passed on to the relevant categories of purchaser at the time of sale.
As regards the proposal for a part equity house purchase scheme, special incentives already exist under the Housing Finance Agency scheme to enable low income purchasers to obtain the full ownership of their homes with income related repayments. As indicated in the national plan, the scope for the provision by financial institutions of accommodation that could be rented or occupied on some form of tenure such as co-ownership-equity sharing is at present being examined.
A Deputy
We have not a single Minister in the House.
Would the Minister agree that practically no progress would appear to have been made over the last 12 months since I asked a similar question prompted by publication of a report from the federation? They were critical then and appear to be critical now. It appears from the Minister's reply now that the joint venture site subsidy is practically the only new element introduced.
No, indeed. As I indicated, there are plans for a joint venture road in the Lucan area, which will cost about £22 million. There are a number of proposals which will very shortly be put to interested parties in the industry, so that they can examine them to see if they are viable. It will be up to the industry to take those up or not. The additional site plans for joint venture housing is a positive response and an encouragement to joint venture housing.
Would the Minister not agree that if we are unable to induce additional cash there will be a real problem as regards development? Would the Minister not agree that sufficient is not being done to attract private cash into this joint venture development?
When the Deputy sees the list of proposals he will agree that something is being done. If the industry comes forward with proposals we will respond to them. We are open to ideas if proposals are put forward. We are putting forward proposals the industry may or may not want to take up, which is a reasonable approach.
When is it likely that a contract will be signed for the proposed new bridge and roadway from Lucan to Blanchardstown-Castleknock?
That is a separate question.
If you think it is, a Ceann Comhairle——
I am ruling that it is.
The Minister was asked if he would indicate what measures the Government were taking to attract private investment into the provision of public infrastructure. The only one mentioned so far is that proposed road. I am asking the Minister when it is likely that that road will be commenced.
I am not trying to hide away from anything there. I would hope that it would be started by the end of 1986.
That is what I wanted. I thank the Minister. On the question of attracting private investment for the provision of public infrastructure, is it not true to say that it will be 1986, 1987, 1988 or years after before we see any of this work under way on the ground because difficult land acquisition proceedings are involved in nearly all of the cases mentioned. Extensive design work will be required which will involve extensive delays. Therefore, would he agree that we can foresee very little new employment in the construction sector of our economy arising from private investment in infrastructure if one is to take the present Government's policies at face value?
The important thing is that we are doing it. There is always a lead-in time in regard to any contract, which is at present the case with regard to the western parkway, in respect of which a lot of work has been done.
There will be no jobs in it for two years or more.
The important thing is that there will be jobs. It is a really positive development, the first big development by private enterprise. That is what we should be thinking about and talking about. There will be jobs created there.
What will the building industry do while they await such things?
Unfortunately, the building industry got their answer in the budget.