Denis Naughten
Question:74 Mr. Naughten asked the Minister for Transport the proposed completion dates for the interurban motorways; and if he will make a statement on the matter. [17067/03]
Ceisteanna – Questions (Resumed). Priority Questions. - Roads Projects.
The national development plan, NDP, together with the economic and social infrastructure operational programme, form the strategic policy context for the upgrading of the national road network in the period to 2006. The implementation of individual projects is a matter for the National Roads Authority, NRA, in conjunction with the relevant local authorities.
Good progress has been made in regard to the upgrading of the five interurban routes. Of the total of 31 projects on these routes, three have been completed, eight are under way and planning and design work is well advanced on the remaining 20 projects.
Preferred route corridors have been identified for all projects. The completion shortly of two further major projects on the M1 will provide a motorway-standard route from Dublin to just south of Dundalk. Work is under way, or about to start shortly, on the Kildare bypass, the south-eastern motorway, the Dublin Port tunnel, the Watergrasshill bypass, the Kilcock-Kinnegad motorway, the Monasterevin bypass and the Cashel bypass.
In addition, a substantial programme of work is under way and in planning on other national routes. Major projects under construction include the Glen of the Downs and Ashford-Rathnew bypasses on the N11 and the Ballincollig bypass on the N22. Other projects due to start this year or early next year include the Carrickmacross bypass and the Waterford city bypass. By any standards, this is a major programme of road improvements. Route by route the national road network is being upgraded.
Exchequer investment in the national roads programme has increased dramatically. Total Exchequer investment in the national roads programme over the period 2000-03 will amount to €3.823 billion. This is approximately 13% greater than the amount provided for in the NDP. Investment in the programme in 2003 has been maintained at a high level despite the more difficult economic and budgetary conditions.
The increased cost of the programme, however, has impacted on the pace and momentum of implementation. Delivery of some projects, including those on the major interurban routes will, therefore, take longer than originally anticipated. On the basis of a continuation of existing levels of funding the NRA estimates that full completion of the major interurban routes could extend to 2009-10. However, route completion dates will depend on the funding levels available in the years ahead, including from additional funding sources, and on construction and land acquisition costs.
Additional information.I will seek to ensure that the major interurban routes are completed to motorway, high-quality standard to the greatest extent possible by 2006, or as soon as possible thereafter.
In this context, my Department is currently seeking to agree with the Department of Finance a rolling multiannual funding framework for the national roads programme in order to provide a better basis for forward planning. Options for additional funding for the programme are also being considered by my Department and the NRA in conjunction with the recently established National Development Finance Agency. It will also be important for all involved in the implementation of the programme to continue to strengthen cost estimation and control procedures in order to ensure that we get maximum value for money for the high levels of investment in the programme.
I thank the Minister for his reply and pointing out the fact that it looks like the completion of the new motorways will be four years behind schedule.
Is it not the case that the costing for many of these projects has varied dramatically with the reality, from 58% over budget to 48% under budget in some cases? In light of that fact and that the issue of delivery is based on the availability of finance, has the Minister received any report yet from the National Development Finance Agency about the new methods for the capital programmes? Why is the Department not considering the alternative systems of design, build and operate or build only or operate only? Will the Minister and his Department consider collection of the tolls on these routes by the State, to be used for funding other development projects?
We have had discussions with the National Development Finance Agency about sources of additional funding and those discussions are continuing. I am very much in favour of design and build and fixed price contracts. As a result of my discussions with the NRA, it is now including greater use of design and build, lump sum, fixed price contracts than heretofore. I have asked the NRA to move as quickly as possible, in so far as contractual arrangements allow, to an exclusive use of design and build which, in effect, is a form of fixed price contract. I take the view it is better to pay up-front for the risk, once it is quantified, rather than holding on to the end and finding out that the risk was more expensive than one had thought.
With regard to State tolls, I am interested in the Deputy's comments and have listened carefully. The PPP is currently designed on the use of private tolling because it brings private sector funding into the system. If one were to move to State tolls, that source of private sector funding would not be available and the State would have to secure the toll income itself. I have not ruled that out – it is a matter of establishing whether the sums add up in that regard and whether, in the absence of private sector funding, one can make the arrangement work and pay. I have asked the NDFA and the Department to look, fairly urgently, at that prospect. Quite bluntly, I do not care whether the State or the private sector runs the tolls provided the building of the road is secured.
I have had some discussions with the National Pensions Reserve Fund. While that body is totally independent of Government, I have urged it to consider investment in infrastructure. That would be an independent decision for it to make on behalf of its future pensioners. I have pointed out the possible attractiveness of investing in some infrastructure, where there would possibly – I emphasise possibly – be a State toll available to the fund as income. Having put those thoughts to the fund, I am awaiting a final response from that body and from the National Development Finance Agency as to whether there is any scope in this area.
I will put a few very brief questions to the Minister, in light of his response. Is he saying the NRA will stall on the design currently taking place? Is it not the case that all the inter-urban routes have been virtually designed already so that there will be no impact on that? Finally, I draw the Minister's attention to a statement by Mr. Jim Power, chief executive of Friends First, that the constitutional change proposed in relation to land purchase and prices is an act of desperation on the part of the Government and that there have not been any positive developments from the Government as to how it will fund the projects to date.
The position with regard to funding is quite clear. In 1997, expenditure on motorways was about €300 million per year. Five years later, we were spending €600 million per year and this year we are spending €1.2 billion. The actual spend on motorways has doubled within three years. In the past, much of this was funded by European money, but the current expenditure is virtually all taxpayers' money. I take the point that we have not got the expected output and results for that expenditure. I hope I have made the necessary changes to tighten the situation very substantially.
In response to the Deputy's question as to whether the NRA is stalling, there is no question of that – it is forging ahead to roll out the network as quickly as possible. The issue of tolling is somewhat separate. Once it is clear that a particular road will be tolled – that is an NRA decision, not mine – the issue of whether it should be a private or public operation can then be addressed. Lest there should be confusion, there is currently no facility for State tolling, apart from the present temporary one at Drogheda by the NRA.