I am pleased to introduce the Transport (Railway Infrastructure) Bill, 2001, to the House. I have already initiated the Bill in the Seanad where we had a useful and interesting discussion. Amendments agreed on Committee Stage have led to greater clarity in certain aspects of the Bill. The primary purpose of the Bill is to provide for: the establishment of an independent and commercial statutory State body, the Railway Procurement Agency; a single statutory railway order procedure for the approval of railway infrastructure projects, including light rail and metro; and the regulation of light rail services when operating on street.
As its title indicates, the main focus of the Bill is on railway infrastructure. Provision of high quality infrastructure to support a reliable and efficient public transport system is one of the greatest challenges facing us today. This is particularly true in the case of our urban centres where an increasing level of car ownership has resulted in a serious problem of congestion which, if unchecked, will threaten our future economic prosperity.
The national development plan sets out a public transport investment strategy for the period 2000-06 designed to achieve a radical transformation of the public transport system. Investment of £2.2 billion is provided for in the plan for public transport. This is an unprecedented level of funding which will enable significant advances to be made in the coming years.
I am pleased to report progress to date in delivering a number of public transport projects under the NDP. For example, since 1999, 275 additional buses have been acquired by Dublin Bus, 16 new DART carriages entered into service this year, 60 ARROW rail cars have been ordered with delivery commencing in 2003, and 148 new buses were acquired by Bus Éireann in 2000 – 40 for the greater Dublin area and the remainder for use in provincial cities, towns and for rural services. In addition, Dublin Bus has acquired 156 replacement buses in the past two years. I am pleased also to report that an improved rail service to Maynooth commenced in August last.
In addition, a railway safety programme is under way involving investment of £430 million by Iarnród Éireann in the period 1999 to 2003. To date in excess of 220 miles of track have been upgraded as part of this programme along with safety improvements to 189 level crossings, with work on some 50 further crossings to take place before the year end. Approximately 190 bridges have been renewed with work on a further 45 to be completed by end of year. This safety work will continue in 2002. I intend to publish a Bill later this year to provide for the establishment of a new regulatory framework for railway safety.
Turning to the light rail system for Dublin to which this Government has been committed, I am glad to report significant progress in the provision of the first phase of the Luas involving services from Tallaght to Connolly Station and from Sandyford to St. Stephen's Green. Almost all utilities and enabling works contracts have been awarded and many have now been completed. The main construction contract involving track laying and cabling has been awarded and work is progressing satisfactorily. The depot at the Red Cow has been completed. Some 40 trams have been ordered and the first will be delivered in the coming weeks. A competition for the award of the operator's contract for the first lines is progressing with a view to the preferred candidate being selected by the end of 2001. The construction of both lines remains on target for completion in 2003 with passenger services commencing shortly afterwards.
Commuters from Tallaght and Sandyford who will travel on Luas into the city centre will enjoy a quality and reliable service which will serve as an example of the standard that public transport can and must deliver for the future. Extensions of Luas and a metro are also badly needed to serve other parts of the city. The Dublin Transportation Office strategy document, A Platform for Change, sets out the measures that need to be taken to provide a public transport network to meet the demands of the coming years. The proposals in the document are being examined at present. As Members may be aware, the Government has already approved, in principle, the development of a metro system for Dublin. Immediately following this decision, I asked the light rail project office of CIE to commence the necessary preparatory work and report progress to me on a regular basis.
We are now on the brink of an era of reform in the public transport sector and that is why new structures are required to deliver quality public transport projects. The construction of the metro and the extension of the light rail network will require the focus and attention of an implementing body and that is why I propose, under the Bill, to establish the Railway Procurement Agency. In the meantime, in order to allow the preparatory work to continue, I have appointed an interim railway procurement agency to take a preliminary position on the procurement process pending enactment of this Bill.
The ongoing work on Luas of which I have spoken is being co-ordinated by the light rail project office of CIE. This office, suitably restructured and expanded, will form the starting point for the new agency. In line with the July 2000 Government decision on light rail, a franchise will be allocated for the operation of the Luas lines. I intend that the Railway Procurement Agency, when established, will be the contracting authority for this franchise. Appointment of the interim agency last July will ensure that there will be minimum delay in formally establishing the agency once the legislation is in place.
The light rail project office has already commenced initial feasibility work for the procurement of the metro. I will bring specific proposals on the metro development to Government in the coming weeks with a view to commencing the procurement process before the end of the year.
As always, money will play a vital role in determining the priorities for the construction of projects. The magnitude of the public transport infrastructure projects identified and the costings means that the Exchequer alone will not be in a position to provide all of the funding required. We must look at new ways of financing large infrastructural projects as outlined in the national development plan and the DTO strategy. In this regard, the proper application of public-private partnerships, PPPs, offers huge potential benefits to the State in meeting this investment gap. The emphasis in any PPP should be on genuine collaboration between the private and public sectors, combining traditional public sector values with the perceived efficiencies of the private sector in order to deliver high quality public capital infrastructure and services. Advantages of PPPs, such as value for money, optimum risk allocation, the inherent focus on services and accelerated delivery of projects, have considerable appeal for major transport projects. The Bill gives the Railway Procurement Agency all the necessary powers to apply the most appropriate procurement process, including PPP, in the delivery of its projects.
In Ireland, the success of the overall PPP programme must also be closely linked to our social partnership model. This system of delivering stability through consensus on major economic, social and other issues is one of the main reasons for our recent economic success. Successful PPPs must also be built on the development and maintenance of trust between key stakeholders and shared objectives for the delivery to the public of quality public transport. In this context, I welcome the input of the wide group of social partners represented on the public transport partnership forum to transport policy generally and the preparation of the Bill.
The work done by the public-private advisory group on PPPs in developing a framework for public-private partnerships is also extremely important. The advisory group includes representatives of the social partners in addition to departmental PPP units. I am pleased to note that this framework has been agreed by all parties and will be formally launched by the Minister for Finance on 1 November. It represents an important step in clarifying guidelines for participation of the public and private sectors in PPP arrangements. In addition, it will ensure there is a coherent and consistent approach across the public service in advancing Ireland's PPP programme. The advisory group will also monitor and review implementation and adherence to the framework. The Railway Procurement Agency will be required to conform with these guidelines.
I welcome the support the ICTU has given to the Bill. In its recently published document, The Route to Success, it recognises the need for the creation of a railway procurement agency with the remit to procure an operator for Luas and ensure the development of the metro in Dublin through PPP. In order to advance the application of PPP for construction of the metro my Department recently undertook a market consultation exercise on the procurement of the metro. The response to the consultation has been positive, with a significant level of response from major companies both in Ireland and across the world. An analysis of the responses has taken place and will assist with the preparation of procurement documentation.
This consultation will lead to what will be a key factor in the success of PPPs in transport, the development of a PPP public transport model appropriate to Ireland and which has the potential to contribute to the delivery of high quality public services. My Department undertook a consultation process on the proposals contained in the general scheme of the Bill and the views of the parties which responded have been taken into consideration in its drafting.
The Bill is separated into five main parts. Part 1 contains standard sections covering the short title, interpretations, repeals, continuations and so forth. Part 2 deals with the establishment of the Railway Procurement Agency. Part 3 details the statutory approval procedures for any new railway infrastructural project. Part 4 deals with the on-street regulation of light railways and Part 5 contains various miscellaneous provisions.
Part 1 contains many standard provisions in relation to the short title of the Bill, the interpretation of words and phrases used and procedures under the Bill for laying orders and regulations before the Houses of the Oireachtas. In particular, section 3 provides for the repeal of sections 2 to 11 of the Transport Act, 1963, and the Transport (Dublin Light Rail) Act, 1996, which deal with the approval process for heavy and light rail projects respectively. However, many of the provisions of the 1996 Act will be re-enacted in Part 3 of the Bill. It is proposed that a single statutory approval mechanism will be introduced for heavy rail and light rail, central to which is a mandatory public inquiry prior to the granting of a railway order.
Part 2, sections 8 to 35, contains sections directly related to the establishment of the Railway Procurement Agency and are similar to many found in other legislation establishing commercial State bodies. There are provisions dealing with the establishment of subsidiaries, annual reports and accounts and the format of such accounts as well as the appointment of the board, the chief executive and staff of the agency. The agency will be required to account for its activi ties if called before a committee of one or both Houses of the Oireachtas.
The functions of the agency are set out in section 11. They will relate to the procurement of metro and light rail. The possibility of extending the remit of the agency to all railway infrastructure will be considered in the context of possible future legislation relating to the regulation of the public transport market generally. It is proposed in section 11 that the agency may enter into agreements with other bodies to finance such projects by means of concession, joint venture, public-private partnership or any other means and to acquire and facilitate the development of land close to a railway where such acquisition and development will contribute to the economic viability of the railway.
Provisions in relation to the composition of the agency, its chief executive and staff are dealt with in sections 20 to 29. These provisions follow recent examples of legislation establishing new State bodies. Section 24 allows the agency to appoint staff and provides for the transfer of staff of the CIE light rail project office to the agency. Sections 33 to 35 provide a mechanism for the transfer of property, rights and liabilities, and the continuation of any pending legal proceedings in relation to the Dublin light railway project, from CIE to the agency.
Part 3, sections 36 to 53, deals with the statutory approval procedure for applications for railway orders to construct, operate and maintain railway infrastructure. It applies provisions similar to those contained in the Transport (Dublin Light Rail) Act, 1996, which makes the holding of a public inquiry mandatory for all such applications. I am satisfied that these arrangements have worked well for Luas and should be maintained. In that regard, I pay tribute to Judge O'Leary and those who helped him on that project.
Railway developments, as authorised by the Minister and as specified in a railway order, are to be exempted development in the context of the Planning and Development Act, 2000. However, the interests of planning authorities and the public are protected by other provisions in the Bill which require statutory consultation with the planning authorities and any person directly affected by the proposed railway works. Furthermore, any application for a railway order must be accompanied by an environmental impact statement.
Before making a decision on whether to grant a railway order section 43 obliges the Minister to consider the application and accompanying documentation, the report of the public inquiry and any submissions made by any person or planning authority. Where the Minister is of the opinion that an application for a railway should be granted, he or she will make an order subject to such conditions, restrictions, requirements or other terms as he or she sees fit. A railway order cannot come into operation until a two month period for application for judicial review has expired or on the determination or withdrawal of such judicial review.
Part 4 of the Bill, sections 54 to 62, deals with the on-street regulation of light railways. Although the Transport (Dublin Light Rail) Act, 1996, made general legal provision for the construction and operation of light railways, it did not deal with the specific legal aspects of its day-to-day operation and, in particular, its operation on-street. The regulation of traffic is the responsibility of the Minister for the Environment and Local Government and governed by the Road Traffic Acts. As these Acts apply only to "mechanically propelled vehicles," the definition of which specifically excludes trams, the Bill extends certain necessary provisions of these Acts to ensure they cover light rail vehicles. Among the safety matters covered in this part are speed limits and qualifications and competencies required by a driver of a light rail vehicle.
The final part of the Bill, Part 5, sections 63 to 71, contains miscellaneous provisions such as the creation of penalties for trespass on a railway or unlawful use of a railway. In addition, the Minister or the agency may make by-laws in relation to railways under section 65. Provision is also made for CIE, with the consent of the Minister of the day and the Minister for Finance, to set up one or more subsidiary companies under the Companies Act.
Section 71 amends the Transport (Re-Organisation of CIE) Act, 1986, to allow for an increase in the number of board members of the three CIE subsidiaries Iarnród Éireann, Dublin Bus and Bus Éireann. This has the effect of increasing the maximum number of directors and removes the requirement to have a majority of directors common to both Iarnród Éireann and Bus Éireann. This is designed to give each of the bodies a stronger strategic focus and in the case of larnród Éireann is consistent with the recommendations in the report of the three wise men, The Way Forward, published last July.
This Bill plays an important role in providing a structure under which railway infrastructure can be developed. Once this agency is in place we will begin to see real progress in having a metro and future extensions of the light rail system to parts of the city where demand will increase in the coming years. In parallel, the focus of the agency will be on ensuring that Luas operates within schedule. All the indications are that this is happening. The Luas vehicles are already arriving and in two years' time, a light rail service will begin operating from Sandyford and Tallaght to the city centre.
While I want debate on this Bill, I hope it will have an early passage into law. I say that without at all cutting across the democratic process, which is, that any Member who wants to is entitled to speak on any Bill. I commend this Bill to the House.
