Dáil Éireann debate -
Tuesday, 25 Jun 2002

Vol. 553 No. 5

Adjournment Debate. - Roads Funding.

Mr. Connaughton

I congratulate the Minister on his elevation. I have information which suggests that the National Roads Authority will have to slash its 2002 roads budget by as much as 50% and up to 75% of the figure required by some county councils to move forward on their roads programme this year.

In the case of one county council, namely Galway, it was expected by the county council officials that the 2002 allocation would need to be €24 million to carry out the full remit under its jurisdiction on the projects in the county and city this year. Some weeks ago it appeared that it would get €12 million, but a few days ago it was informed this has been slashed to €6 million.

A bypass was due to be constructed at one of the biggest bottlenecks in the country at Loughrea, County Galway. However, it now appears that this will not be treated as a stand alone project. Based on a letter I received from the NRA this morning, this project is now to be treated as part of the overall N6 project from Ballinasloe to Oranmore. This is horrendous news for thousands of commuters inside and outside the county and it could be years before Loughrea is bypassed.

I am making a special case to the Minister and to the National Roads Authority that the Loughrea bypass should proceed even if compulsory purchase orders are necessary. This would mean the bypass would be built years before the completion of the N6 project given what seems to have happened to the overall allocation of funds.

I understand many other county councils are getting shocks at the moment. I call on the Minister to confirm to the House the commitments given by the last Government prior to the general election that expenditure on roads would be such that the programme would be completed on target by 2006.

It is difficult to understand why certain roads being designed by consultants at huge expense may now be "parked" for this year. These include the Galway city outer relief road, and the N17 and N18 roads may also be in serious trouble.

During the past two years many local committees have voiced concern that, in some cases, the size of a road being proposed by consultants was larger than necessary for the projected traffic over the next ten to 15 years and should be scaled back. I understand the National Roads Authority is considering some of those projects in light of this concern. This raises a serious question over consultancy fees. I assume the consultants entered into a deal with the councils and the NRA to design the road to the original specification and will have to be paid for any redesigning that is necessary.

The Minister and the NRA should openly explain what is happening. If the Government is remotely interested in regional development obviously a proper roads infrastructure is vital to ensure that towns far from Dublin are given the type of infrastructure that will create a counterbalance to the growth in Dublin. I want the Minister to outline what is happening to the funding to county councils this year.

Mr. Cullen

I am pleased to have the opportunity to address the House on this important issue.

To talk about severe cutbacks in the context of the national roads programme demonstrates a complete lack of knowledge concerning the growth in investment in the programme over the past five years. The irrefutable facts are as follows. Since 1997, a total of 60 major projects, covering approximately 400 km. of national roads, have been completed or are under way. During 2001 alone, 15 major projects with a combined length of 106 km. were opened to traffic. These included the M1 Dunleer-Dundalk motorway, the M50 southern cross route, the N15 Clar-Bamesmore Gap, the N20 Blackpool bypass, the N20 Croom bypass, the N20/21 Adare-Limerick and the N56 Mountcharles bypass.

Work is currently under way on 20 major projects involving over 200 km. of national roads, including nearly 130 km. of road upgrades to motorway or dual carriageway standard. These include such major projects as the Dublin port tunnel, the south eastern motorway and Kildare bypass – projects which have been in planning for some time and which we are delighted to have in construction. Work has also recently commenced on the Ashford-Rathnew bypass (N11) and Ballincollig bypass (N22).

Work on schemes in planning has also progressed well. Preferred route corridors have been identified for the five main interurban routes. Some of the projects on these routes will be delivered by public private partnerships. The NRA has made good progress on its PPP programme. Bids are being examined by the NRA for the Kilcock-Kinnegad project and the bidding process is under way for the Dundalk, Fermoy and Waterford bypasses.

The Exchequer provision for 2002 at €958 million is more than three times the 1997 level and nearly twice the 1999 level. Over the period 2000-02 the Exchequer provision for national road improvements of €2.458 billion is more than €260 million in excess of that provided for in the NDP. That is the key point that everyone seems to miss.

Mr. Connaughton

The Minister should deal with the question I put to him.

Mr. Cullen

By any standard, there is a significant programme of work under way. When taken with all of the projects completed since 1997, it represents a major upgrading of the national road network. Deputies will be aware of many parts of the country where the national road network has been improved beyond all recognition as a result of the priority accorded to investment in the network. The reality is that high investment in recent years has enabled a rapid acceleration of the national roads programme. Subject to overall economic and budgetary conditions, it is envisaged that the high levels of investment of recent years in the programme will be maintained. Unfortunately, the cost of the programme has risen at a faster rate than was anticipated at the time that the national development plan was prepared. This is attributable to a variety of factors. For example, inflation in the civil engineering sector averaged over 10% per annum in the 1999 to 2001 period. However, there are indications that construction cost inflation is now easing which will assist in securing a better level of output for the high levels of investment being made in the programme.

It should also be noted that we are currently in the third year of a major seven year programme which is flexible enough to accommodate changing circumstances, including overall economic and fiscal considerations. In any programme of this size, it is inevitable that there will be some slippage in the progress of individual projects due to project specific or general factors, such as the dispute in 2001 relating to access to land, the foot and mouth restrictions, higher costs than originally anticipated and the funding requirements of projects in construction.

The programme is progressing well and the Government is committed – as will be clear from what is a huge level of investment in the roads programme and the programme for Government – to the strong and accelerated promotion of the NDP national roads programme, including the advancement of the five major inter-urban routes. The pace and volume of the 2002 programme reflects this. The Department of Transport, with the Department of Finance and the NRA, will consider the future funding of the national roads programme and take account of its cost and the prevailing economic and budgetary conditions.

In this context, the proposed National Development Finance Agency will have an important role to play. Plans are advancing for the establishment of an agency to finance major infrastructural projects such as national roads and evaluate financing options for PPP projects. The NDFA will enable the Government to apply commercial standards in evaluating financial risks, costs and options associated with projects thereby ensuring the best financing package is availed of. This will assist in achieving value for money in the financing of projects and maximising the funding available for infrastructural projects of national importance.

It should also be acknowledged that increased investment in the national roads programme is just one element in the Government's approach to the achievement of more balanced regional development. In fact, the core of the NDP is to achieve this objective. Investment in national roads is being complemented by record investment in non-national roads, water services, public transport and broadband infrastructure. An Agreed Programme for Government clearly sets out what we will do in coming years. We are committed to building on the good progress already made with the implementation of the national development plan, particularly with regard to national roads.