Vol. 537 No. 3
44 Mr. Durkan asked the Minister for the Environment and Local Government the degree to which the various targets set by his Department in the context of the national development plan have been to date achieved or are achievable within the timescale set; if he has plans to revise or review the programme; if he has satisfied himself that all EU support funds will be drawn down within the given period; and if he will make a statement on the matter. [16010/01]
94 Mr. Higgins (Mayo) asked the Minister for the Environment and Local Government the number of projects in the national development plan for which his Department is responsible which are not to proceed; and if he will make a statement on the matter. [14534/01]
195 Mr. Durkan asked the Minister for the Environment and Local Government if he has satisfied himself that the national roads development plan is on target for completion within the life of the plan; and if he will make a statement on the matter. [16299/01]
I propose to take Questions Nos. 44, 94 and 195 together.
The national development plan sets out a strategic framework for the development of economic and social infrastructure over the period 2000 to 2006 and provides for a total investment of approximately £24 billion, current prices, for such development. The national development plan has been further elaborated in the economic and social infrastructure operational programme and in the operational programmes for the Border, midlands and western and the southern and eastern regions. Of the total planned investment, approximately £19 billion is for infrastructure programmes coming within the remit of my Department, including – national roads £5.4 billion; non-national roads £1.9 billion; water and waste water £3.5 billion; housing £7.2 billion; waste management; £0.65 billion; urban and village development £0.13 billion.
Work is now well under way in my Department, local authorities and the National Roads Authority on the detailed programming of the work required and in the planning, design and implementation of individual infrastructure projects. Expenditure on these programmes in 2000 amounted to £1.75 billion, which is in line with NDP targets.
Total EU funding for infrastructure, including projects under the remit of my Department and others, over the period 2000-2006 is £1.47 billion or 6% of the total planned investment. I am satisfied that all EU funding will be fully drawn down over the plan period.
Implementation of the infrastructure investment programmes provided for in the NDP and its associated operational programmes is being actively pursued at all levels with a view to the timely completion of all NDP programmes. Implementation will be subject to full mid-term review in 2003 and is being closely monitored.
Every effort is being made to ensure the efficient and effective delivery of improved infrastructure throughout the country. As part of the effort, a broad-ranging package of measures is being pursued under the direction of the Cabinet committee on infrastructure development to support the process of implementation. These include the promotion of public private partnerships, new procedures for improved management of projects, improved arrangements for dealing with archaeological requirements, a communications strategy to gain maximum support for the NDP programmes, measures to increase the capacity of the construction industry, and the transfer of certain project approval functions to An Bord Pleanála.
I am satisfied a good start has been made on the implementation of the NDP infrastructure programmes and that progress will continue towards achieving the ambitious objectives set out in the national development plan.
I am pleased the Minister has reassured us he is satisfied. Will he explain his satisfaction further? Is he seriously suggesting that the entire plan as envisaged will be delivered within a five-year period? Is he also suggesting that the success to date in getting through the preliminaries, prior to carrying out the works, is vastly in arrears in terms of time and meeting the schedule? Given that most of what he has done and said on the programme is purely propaganda and that there is little hope of delivery all he is hoping to do is to wait until after the next general election to explain why he did not deliver on time.
What are Deputies thinking of on that side?
Except that I know the Deputy is trying to make political points I would say that he reflects the Fine Gael line, that is totally out of touch with what is going on. All Fine Gael has to do is open its eyes but the Deputy does not seem able to do that. I reject totally everything the Deputy has said about the plan not being delivered and that it is way behind. That is not the case. It is well advanced in some areas. Last year the total overall expenditure on national roads improvement amounted to £481 million under the national development plan – 17% more than forecast. Projected 2001 expenditure is £620 million plus £40 million on maintenance. Some 20 projects are expected to open to traffic this year and work is due to start on 23 more projects. Progress is being maintained or accelerated. Planning of the—
The Minister should conclude.
I am sure the Deputy would like to hear more so that he does not make such unfortunate and out of touch statements in the future.
The Deputy should take a trip around the country.
One of the objectives of the plan is to have motorway or dual carriageway standard roads – Dublin-Cork, Dublin-Galway, Dublin-Limerick, Dublin-Belfast – by 2006. Can the Minister say for certain that there will be motorway standard roads as promised in the national development plan to all of these points by 2006?
As indicated we will have motorway or dual carriageway standard on the five major inter urban routes and they will be completed by 2006. The Waterford road which was added following publication of the national development plan will be completed by 2007.
Is that for certain?
That is the situation and I confirm it.
When we look around us and see the delay in projects we begin to think of the cost in terms of land, labour and materials.
As one of the Deputy's colleagues is anxious to ask a supplementary question I call on her to be brief.
One of the explanations suggested by the CIF and others is that the local authorities which are responsible for much of the spending are not geared up for it. They lack the skills, experience and project management teams to deliver these projects on such a scale. Has the Minister considered giving them the resources to do this work? It would be similar to the way in which the Taoiseach's projects such as Campus Ireland and the digital media district have been given project management teams.
Part of the consideration of the delivery of the national development plan was to ensure agencies such as the National Roads Authority and the local authorities were given sufficient funding to enable them to deliver. This will be used to streamline processes and put in place new management techniques, new systems of project management. All this has been and will continue to be done. Local authorities are now receiving approximately £200 million more in discretionary funding than in 1997. The National Roads Authority, An Bord Pleanála and local authorities have been given increased staff. There are project management teams in the local authorities throughout the country to try to ensure projects are delivered. In some cases methods of delivery and consideration of major contracts have been streamlined. A whole range of measures have been put in place. A Cabinet sub-committee on infrastructure meets on a regular basis. All projects across all Departments are regularly reviewed where they are not under direct departmental control. For example, the NRA, CIE etc. are asked to account for their stewardship and any difficulties or roadblocks are discussed and solutions to problems found.
I agree with the Minister that the national development plan is ambitious and I am glad that he is optimistic that it will be delivered by 2006. The costings were based on 1999 prices. We are now in 2001 and final completion will be in 2006 with a mid-term review in 2003. I understand the inflation rate in construction is about 12.5% to 13%. What impact will this have on the NDP?
The Deputy is correct that the construction inflation rate is about 12.5%. This could have major implications for the timely and cost effective delivery of the infrastructure development programme which measures are being taken to facilitate. The prices quoted have always been 1999 prices. Anyone familiar with the system of financing multi-annual Government programmes is aware that an annual multiplier for inflation is taken into account.
We have also looked at what is causing the increase in inflation. One of the major causes is the lack of capacity in the construction industry. Measures are being taken to facilitate its expansion through the greater use of PPPs and the attraction of foreign contractors. For example, the Waterford bypass and Kilcock-Kinnegad projects attracted interest from a significant number of foreign contractors. We would like to try to control cost inflation for which there is a certain amount allowed within projections.
I am really concerned about the Minister's condition because he obviously thinks the Opposition will be affected in the same way. Based on construction cost increases in the past five years, particularly in the housing area, and comparing these with the programme he has set out, he will only be able to achieve half of the works involved. He has told the House that he realistically aspires to complete the programme but is he really serious when he asks the House to believe this? What is his most optimistic version of this scenario?
It is my intention and that of the Government to have the national development plan, as published, fully implemented in the timescale we have outlined. We have started a number of the programmes relating to water services, non-national roads and national roads on which we have expended 17% more. We are meeting and intend to continue to meet all the targets set.
He hopes against hope.
Written Answers follow Adjournment Debate.
