Vol. 803 No. 2
6. Deputy Willie O'Dea asked the Minister for Transport, Tourism and Sport the investment, if any, that is planned for Irish Rail over the coming year in view of the recent announcements from the National Roads Authority; and if he will make a statement on the matter. [22970/13]
This question is about planned investment in Irish Rail in the light of recent announcements on roads investment. I assume the Deputy is referring to the recent signing of a public private partnership road contract. This is the first transport PPP since 2007 and provides a significant confidence boost and evidence of continuing recovery in the economy. In implementing the Government's medium-term capital framework, my Department and agencies will continue to explore and maximise the use of external funding sources where possible.
There is, however, currently no proposal for any PPP in the public transport area although the matter is being kept under review. Unfortunately, due to the economic difficulties, the PPP processes for the DART underground heavy rail project and the metro north light rail project had to be cancelled. Both projects, which are very expensive and required very significant Exchequer contributions, will be reviewed again in advance of the next capital programme.
With the reduced capital funding available to my Department the priority for public transport is to ensure that existing investment is protected and safety standards are maintained. Beyond this, all available funding will be targeted to support affordable, best value projects which complement and leverage existing infrastructure and contribute to economic recovery. This is why funding has been allocated for the Luas cross-city project which will allow the creation of a Luas network.
Iarnród Éireann is still receiving significant Exchequer support for investment in infrastructure in 2013. A total of €137 million is being provided this year, including approximately €90 million towards the railway safety programme. The remainder is being spent on projects which improve journey times and provide better facilities for passengers such as the upgrading or elimination of level-crossings, automation of ticketing systems and improved passenger information systems, upgrading the city centre signalling system, accessibility improvements at Charleville station and the opening of Oranmore and Hansfied stations.
I thank the Minister of State. Given that he mentioned Oranmore he might update us on the proposals for Crusheen rail stop on the western rail corridor. The Minister of State will be aware the intended plan was for a network that would include metro north as part of our rail infrastructure. I understand it is not possible in the current economic crisis to raise the kind of funding needed to develop metro north. Has any effort been made to consider possible alternatives that would connect the city centre with Dublin Airport? There was a proposal dating back some time from Iarnród Éireann to extend a spur from the DART to Dublin Airport and it was relatively inexpensive by comparison to the metro north project. Perhaps the Minister of State could update us on that project.
Until the next capital programme is being considered we will not look at alternatives in regard to the DART or metro north. I am aware of the proposal for a spur to Dublin Airport to which the Deputy referred. The viability of that being included in the next capital programme is something we will have to consider closer to the date but I can confirm to the Deputy that we are not examining that proposal in any way at present because we simply do not have the funds.
I refer to Crusheen. Discussions are ongoing in respect of a number of related issues with which the Deputy will be familiar. I am hopeful for progress in that regard in the near future.
We have just seen the prioritisation of even further investment for roads, with rail being sidelined once again. The service has been downgraded and the ultimate viability of rail has been diminished, with negative prospects for existing jobs and long-term sustainable transport solutions. Did the cost-benefit analysis and the final political decision for the NRA project take account of the negative impact of the projects on corresponding rail services in terms of diminished competitiveness of rail journey times and, thereby, on the long-term viability of those rail services? How were the relative priorities for overall transport investment decided? Was comparative cost effectiveness analysis carried out when NRA expenditure was being decided? How much of the investment planned in Iarnród Éireann is for essential ongoing maintenance and how much for infrastructural upgrades or new developments that would lead to service improvements?
I understand that during the impact assessment period in respect of these projects impact assessment on other services is analysed. However, I would not like the Deputy to conclude that rail services are diminishing in regard to the type of service offered. To reiterate, we simply do not have the money for capital investment but a great deal of other work is taking place and we have put a lot of money into railway safety and related enhancements.
Railway safety is possibly not fully descriptive of what really happens because a range of work is done under that heading.
We have improved speeds on a number of mainlines and one can, for example, travel from Dublin to Cork in a good time. The Dublin-Galway route has been considerably improved, as have other routes. Work has also been done to improve passenger experience, whether by offering Wi-Fi on trains-----
It never works.
It has worked for me.
The Minister of State was in a first class carriage.
I was never in one of those. He might tell me about them sometime. He might also tell me how often he takes the train.
I will when the Minister of State brings it to Crusheen.
Onboard facilities have improved dramatically. It is all about improving the passenger experience to attract more people to the network.
It takes two hours and 40 minutes to get to Wexford.
7. Deputy Pat Breen asked the Minister for Transport, Tourism and Sport if he will report on the current status of legislation to merge Shannon Airport and Shannon Development; and if he will make a statement on the matter. [22864/13]
63. Deputy Patrick O'Donovan asked the Minister for Transport, Tourism and Sport the current status of legislation to merge Shannon Airport and Shannon Development; and if he will make a statement on the matter. [22863/13]
I propose to take Questions Nos. 7 and 63 together. These relate to the merger of Shannon Airport and Shannon Development.
Work on the preparation of the heads of a Bill to provide for the merger of the Shannon Airport Authority, SAA, and a restructured Shannon Development is ongoing in my Department, in conjunction with the Department of Jobs, Enterprise and Innovation and with the assistance of the Attorney General's office. It is unlikely that work on the new legislation will be sufficiently advanced to facilitate its enactment prior to the summer recess and I am now looking to the autumn session to introduce the Bill to the House. It remains the position, however, that when the heads are finalised and approved by Government, I will refer them to the Joint Committee on the Environment, Transport, Culture and the Gaeltacht for consideration prior to drafting.
This has no material effect on the plans for the merger, preparations for which continue apace. The high level steering group of key Departments meets on a regular basis to oversee the implementation of the Government decisions in relation to Shannon Airport and Shannon Development. The Chairman of SAA and a representative of ICTU also serve on this group. Transition teams at senior management level are also in situ in both SAA and Shannon Development to identify and agree the necessary change processes and transitional measures to ensure the smooth implementation and management of the merger, while also ensuring that normal day-to-day business and operations carry on uninterrupted.
Staff transfers from Shannon Development to Fáilte Ireland, Enterprise Ireland and the IDA are scheduled to take place in June following conclusion of a facilitation process between management and union representatives in the company, along with relevant Departments, to address a number of staff issues, including the recent Labour Court recommendation on grading. The deadline for completion of that process is 23 May. In addition, the process to recruit a chief executive for the Shannon Airport Authority and the new Shannon entity is nearing completition and I expect an announcement will be made shortly.
I welcome the progress made to date on creating new opportunities and businesses in Shannon through the merger of the airport with Shannon Development. The Minister indicated it is unlikely that legislation would be enacted prior to the summer recess but that progress continues apace. I welcome that the heads of the Bill will be presented to the Joint Committee on the Environment, Transport, Culture and the Gaeltacht. I ask the Minister to confirm whether the heads are ready and indicate when he will be in a position to present them to the committee. I also welcome that the process of recruiting a chief executive officer for the new Shannon entity is nearing completion. When will that key appointment be made?
The heads of the Bill are not yet ready but I anticipate they will be ready to go to Cabinet and the committee before the summer recess, thus allowing drafting to be completed in time to publish the legislation by autumn and the Bill to be brought through the Houses during the autumn session. The appointment of a CEO is being handled by the board and chairman of the Shannon Airport Authority and I am informed that an announcement in that will be made shortly.
I am a former Aer Lingus worker and I am concerned about what goes on in Shannon but I am sure my colleagues in Shannon will agree with me that road safety and other issues take precedence at present. The Minister disallowed questions which we validly submitted on the investigation into the termination of fixed penalty points but he deigned to comment on the matter on the public airwaves.
That has nothing to do with Shannon Airport.
I would like the Minister to comment on the matter in this House. We sent him a letter over one month ago to raise our concerns about it.
Deputy Daly does not give a hoot about Shannon workers.
We have tabled questions on previous occasions but they have been disallowed. Is this what Fine Gael means by transparency in Government?
As an Aer Lingus worker with a full-time job as a politician, I hope Deputy Daly is not receiving remuneration from Aer Lingus, holding a post open or using the car park or other privileges. One job is enough for anyone. The report will be published by the Minister for Justice and Equality at 3.30 p.m. I ask Deputies to withhold judgment until they have had a chance to read it.
The Minister commented on it.
I am happy to repeat what I said earlier today. The report gives me confidence that the penalty point system has integrity. It has been hugely successful in terms of freeing up Garda time and changing Garda behaviour. The report found that a small number of gardaí may not have used their discretionary powers appropriately but that is a matter for the Minister for Justice and Equality and the Garda Commissioner to discuss after the report is published this afternoon. It is not appropriate for me to speak about Garda matters.
It is difficult to understand how the Minister can have confidence in an internal report when the whistleblowers who helped to bring the matter to light were never interviewed.
That is not relevant to the original question.
Perhaps the Minister would like to order a serious and independent investigation.
The Deputy should ask relevant questions.
We have concrete evidence of these practices from within the Houses of the Oireachtas. Unfortunately, I am guilty but I admitted that. Will people like Deputies Doyle and Troy now come forward?
The Deputy is out of order.
Perhaps Senator Kelly might also come forward.
On a point of order, this has nothing to do with Shannon Airport. The Deputy is abusing privilege. This is unacceptable.
We are moving on. Please resume your seat.
He does not give a hoot about Shannon Airport.
Shannon Airport is important and it is regrettable we have not had the opportunity to discuss it.
He was not so reluctant this morning.
The Deputies' questions concerned Garda matters, which are the responsibility of the Minister for Justice and Equality.
They are matters of road safety.
They are not for me to answer in the first instance.
Pontius Pilate comes to mind. He is washing his hands of road safety issues.
I did not disallow any questions. Neither I nor any other Minister has the power to disallow questions. They were disallowed by the Ceann Comhairle.
8. Deputy Joan Collins asked the Minister for Transport, Tourism and Sport if it is his intention to intervene in the developing dispute between Bus Éireann staff and management; and if he will make a statement on the matter. [22948/13]
18. Deputy Bernard J. Durkan asked the Minister for Transport, Tourism and Sport the extent to which he continues to monitor developments in the public transport sector with particular reference to the possibility of industrial action affecting bus services; if he and or his Department continue to have dialogue with key representatives on the issue; the extent, if any to which progress has been achieved with a view to averting industrial action and hardship and inconvenience for commuters; and if he will make a statement on the matter. [22952/13]
27. Deputy Pat Breen asked the Minister for Transport, Tourism and Sport if he will provide an update on the situation at Bus Éireann; and if he will make a statement on the matter. [22865/13]
87. Deputy Anthony Lawlor asked the Minister for Transport, Tourism and Sport if he will provide an update on the current situation in Bus Éireann; and if he will make a statement on the matter. [22768/13]
I propose to take Question Nos. 8, 18, 27 and 87 together. These relate to the industrial relations dispute at Bus Éireann.
Deputies will be aware that the company and trade unions are in talks at the Labour Relations Commission following from last February's Labour Court recommendation on addressing the company's difficult financial position. It has incurred accumulated losses of €27 million in the last five years, an unsustainable position which places the viability of the company at risk. The Labour Court recommendation on changes to terms and conditions would deliver annual savings of €4.8 million in a full year. In the absence of the necessary savings from changes to terms and conditions and ongoing intercity service changes, Bus Éireann faces annual losses of more than €11 million, which are simply not sustainable.
It is important to emphasise that the issues arising had been explored through the full industrial relations machinery of the State, culminating in a Labour Court recommendation which recognised that the savings had to be made in order to protect the continued employment of the staff. According to the Labour Court and the trades union's own independent financial assessors, Bus Éireann is in a precarious financial situation and the very viability of the company is under threat.
Under the company's business recovery plan and the Labour Court recommendation, there would be no reductions to core pay or employment levels. I acknowledge that the position is extremely difficult for both sides and there is no easy solution to the problem. I am sure Deputies share my hope that the current negotiations at the Labour Relations Commission, which are likely to continue tonight, will result in an agreement that will deliver the level of savings that was identified as necessary by the Labour Court in its independent recommendation.
The future of Bus Éireann must be secured for the benefit of its employees and members of the public who depend on its services. The company runs commercial Expressway services, which are currently loss-making and which the State is legally precluded from supporting. The viability of these services can only be secured if these savings are achieved. I extend my best wishes to those involved in the discussions at the Labour Relations Commission.
I hope the discussions will deliver a positive outcome for the workers at Bus Éireann, whom I commend on their determination and willingness to take industrial action to protect their pay and conditions. We are familiar with the line that core pay is not being touched. Allowances, overtime and other forms of remuneration for workers are under attack in the cost-cutting plan. The workers, who are not especially well paid, are right to fight and resist this attack on their pay and conditions because they are not responsible for the problems in Bus Éireann. Responsibility for the company's losses lies with management and the Government which substantially reduced the subvention to Bus Éireann. Ireland provides among the lowest levels of subvention in Europe to its public transport service. Bus Éireann should not be operated purely on the basis of profitability given that it provides a public transport service on routes and to areas where it is not possible to make a profit. I ask the Minister of State to ensure workers at the company do not become the fall guys for the lack of proper subsidy and subvention to our public transport service.
I thank the Deputy and I am sure his views are held sincerely. I, too, acknowledge the excellent workers in Bus Éireann. Friends of mine of many years work in the company and do a fantastic job. We want to ensure the 2,500 jobs in Bus Éireann are protected at this critical point. Staff costs at the company have increased in recent years.
Bus Éireann operates three different types of service. The school bus service is operated on a cost recovery basis. The public service obligation, PSO, services are subsidised by the State on the basis that they are badly needed in areas which would not otherwise have a service. As the Expressway services are subject to competition, the State is legally precluded from subsidising them and could not throw money at them, even if it had additional funding available.
I accept that management has a significant role to play in the ongoing discussions. I have deliberately chosen not to discuss the detail of the negotiations as it would not be fair or appropriate to do so. It is imperative that both sides pull together in the coming hours and days to ensure an agreement is reached to secure the 2,500 jobs in the company. This is of critical importance to the company's customers who benefit from the fantastic service provided by Bus Éireann.
It has been reported that an attack on a Dublin Bus driver in Parnell Square yesterday was racist in nature. A number of attacks on ordinary bus drivers have been taken place, not all of them racist, and they must be condemned by all Members of the House. The bus drivers in Dublin Bus and Bus Éireann who must take such risks are having cuts in pay imposed on them. In the case of the latter, it is proposed to cut their core pay by between €3,000 and €4,000 per annum.
Has the chairman of Bus Éireann been summoned to Dublin? Has he been asked to explain his absence from his country? Has the board of the company met to discuss what is taking place? We have an absentee chairperson or technological manager who appears to work remotely from a computer. It is a disgrace that he has not had the courtesy to return to the country during a time of crisis in the national transport service.
I share the Deputy's abhorrence at attacks on bus drivers. This is disgraceful behaviour and those who carry out such attacks should be brought to justice.
On the contributions that are being asked of staff, I have deliberately decided not to discuss the figures at this time. I did not have a problem discussing the issue previously and will do so again once the negotiations have concluded. However, as the Minister of State with responsibility for public transport, it would not be appropriate to discuss these figures while discussions are ongoing.
On the chairmanship of Bus Éireann, while the employment of the person in question has changed, he remains in constant contact and has attended numerous meetings. The role of chairman will be reviewed in due course, as necessary.
I acknowledge the work being done by the Labour Relations Commission in addressing the Bus Éireann issue and other issues.
During the strike by Bus Éireann drivers on Monday, I noted that a significant number of private operators took up the slack in my home town of Naas. Bus Éireann needs to be cognisant that a large number of private operators are willing to take up the slack if and when the company's workers do not operate routes. I hope the ongoing talks will be successful and the issue will be resolved quickly.
I welcome the Deputy's support for the process of negotiation under way in the Labour Relations Commission. I also acknowledge that the commission is engaged in separate discussions on a different matter. We should appreciate its willingness to deal with both issues at the same time.
I thank the private bus operators for the contribution they made during the strike. Bus Éireann services are up and running again and I hope full services will resume in the coming days. I also hope the negotiations under way at the Labour Relations Commission will reach a successful conclusion.
Does the Minister of State accept that payroll costs at Bus Éireann have been slashed by €15 million since 2009? Does he agree that payments for overtime and driving throughout the night form part of the core wages Bus Éireann workers bring home to their families? I expect he will agree that they cannot afford to lose approximately €3,000 per annum under the deal that was placed before them. Does the Minister of State accept that an independent report commissioned by Deloitte on behalf of the Department indicates that Bus Éireann is an extremely efficient operation?
Does he further agree that the root of this problem lies in the fact that an inadequate level of subvention is being provided? On Leaders' Questions yesterday, the Taoiseach provided a reply which his office subsequently corrected by e-mail. The Taoiseach originally stated that the Department gave Bus Éireann its highest ever subvention, but the e-mail I received in the interim indicates that this is not the case. Does the Minister of State agree that it is obscene that we are paying out millions in taxpayers' money to public private partnerships each year as a result of the fact that roads are not being used? This is at a time when, as he stated earlier, he is prevented from investing in buses that are being used? I have no difficulty with those who operate private buses as long as they pay union rates to employees and allow unions to be recognised.
Last year we paid Bus Éireann its fifth highest subvention ever. The Deputy raised the issue of staff. As stated previously, I have a number of friends who work for Bus Éireann and I know the company quite well. Its average staff cost per employee in 2007 was €46,653. Instead of decreasing, this figure rose to €51,603 in 2012. I wish to place on record a few facts. I am very supportive of Bus Éireann which does a great deal of work throughout the country. Its impact across the network outside of the key conurbation of Dublin is huge. The role the company plays should never be underestimated. As stated on previous occasions, there are three different categories which apply here, namely, cost recovery in respect of school transport, the PSO requirement - as stated in reply to an earlier question, this will have to be reconsidered in the context of routes and areas - and the Expressway service. Given the competition which exists, there is no doubt the company has encountered some difficulties in respect of the Expressway service in the recent past. Bus Éireann has lost a considerable amount of money - €27 million - during the past five years. The projected loss for this year is €11 million.
I have spoken to many union representatives and they accept that this cannot continue because the position is not sustainable. I agree that changes will have to be made at management level and that savings are obviously going to be obtained from staff. There is going to have to be a combined effort and it will only be by means of this that we will be able to protect the company. As Minister of State with responsibility for public transport, my ultimate ambition is to protect Bus Éireann and the three core services it provides. I must also protect the public, particularly as the company provides such an extensive and badly needed service. A total of 2,500 people work for Bus Éireann, and their futures depend on the discussions which are taking place today. I sincerely hope the House will support the outcome of those discussions. The Labour Court, which made the original recommendations, is an independent body. The company sought a great deal more in savings, but the amount recommended by the Labour Court is €4.8 million. That is the quantum which will have to be achieved to ensure Bus Éireann will be able to survive and continue to operate with all of its 2,500 employees on board. We are working collectively to try to achieve that goal.
The workers are just as concerned as the Minister of State and everyone else about their jobs and the viability of the company. However, they are not in a position to take a hit of in the region of €3,000 each per year. The figure of €51,000 to which the Minister of State referred relates to all employee costs and contemplates the salaries of executives who are on much higher levels of pay. It is those executives who, along with the Government, are supposed to bear responsibility for any problems which arise within the company. Will the Minister of State acknowledge that there is a difficulty with regard to the low level of subvention relating to the company? As a proportion of its total revenue, Bus Éireann receives a subvention of 12%. In comparison, the bus company in Switzerland receives a subvention of 51%, that in the Netherlands receives 49% and that in Belgium receives 78%. I put it to the Minister of State that the pathetically low level of subvention being provided in respect of a company which provides a public service and which is not just a profit-oriented entity is obviously forcing attacks on the pay and conditions of ordinary workers. In addition, it is driving the public bus services in their entirety towards privatisation, which I suspect is the real agenda.
As Minister of State with responsibility for public transport, I assure the Deputy that under no circumstances is there a privatisation agenda. I do not know if he missed what I said earlier but last year Bus Éireann was provided with its fifth highest subvention ever. I have already outlined the position in respect of staff and I have no intention of discussing the quantum because to do so would be to cross the line regarding negotiations. The House will respect that, in view of my role, it would not be appropriate for me to do so today. I had no problem discussing that matter previously and I will have no difficulty talking about it at a later date.
There are some restrictions here which lie outside the control of Bus Éireann. In particular, there are certain rules on competition, State aid, etc. which must be adhered to in the context of the Expressway service. We are working closely with the company to ensure the services it is developing for its customers will be sustainable into the future. Creating such sustainability is my ultimate objective.
Why are the subventions available elsewhere in Europe much larger than those given to Bus Éireann?
I have already stated that the company received its fifth largest subvention ever last year.
That is still a fraction of what is available throughout the rest of Europe.
There are some issues with which Bus Éireann must deal. There is a reason that savings, which are outlined in the Labour Court recommendation, must be delivered. I sincerely wish all those involved the best of luck in their endeavours today.
9. Deputy Brian Stanley asked the Minister for Transport, Tourism and Sport his plans to upgrade the Castlebar to Westport N5 road. [22896/13]
43. Deputy Paul J. Connaughton asked the Minister for Transport, Tourism and Sport in view of the recent contract signing for the N11-Newlands Cross public private partnership, if he will provide an update on the M17-M18 Gort to Tuam road project, County Galway; and if he will make a statement on the matter. [22683/13]
51. Deputy Martin Ferris asked the Minister for Transport, Tourism and Sport in view of the success of statewide road safety, his plans to focus to specific road safety blackspots such as the Castlebaldwin to Cloonamahon stretch of the N4 which has been the scene of the loss of 30 lives in recent memory. [22893/13]
86. Deputy Michael Creed asked the Minister for Transport, Tourism and Sport the position regarding the Macroom town bypass, County Cork; and if he will make a statement on the matter. [22668/13]
91. Deputy Anthony Lawlor asked the Minister for Transport, Tourism and Sport in view of the recent contract signing for the N11-Newlands Cross public private partnership, if he will provide an update on the roads building programme; and if he will make a statement on the matter. [22767/13]
93. Deputy Seán Kyne asked the Minister for Transport, Tourism and Sport if he will provide an update on the Galway city outer bypass with regard to an IROPI application which is necessary to progress this much-needed infrastructure project for Galway and the west. [22950/13]
I propose to take Questions Nos. 9, 43, 51, 86, 91 and 93 together.
As Minister for Transport, Tourism and Sport, I have responsibility for overall policy and funding in respect of the national roads programme. The planning, design and implementation of individual road projects is a matter for the National Roads Authority, NRA, under the Roads Acts 1993 to 2007 in conjunction with the local authorities concerned. In the current economic circumstances, the capital allocations to the NRA have been reduced significantly and this has meant that a range of worthwhile improvement projects have been deferred. The primary focus for direct Exchequer spending is the maintenance of the existing network, and this will continue to be the case for some years.
The Government's stimulus package of July 2012 envisages €1.4 billion in private investment for infrastructure projects, including roads, as a way of stimulating economic growth and creating employment. These projects must be off-balance sheet and, therefore, must be done by way of public private partnership, PPP. This requires that the projects must be of a particular scale. The M17-M18 PPP scheme is one of the priority projects identified for inclusion in the first phase of the programme. The NRA is responsible for implementation of the project, and following the contract signing for the N11 Newlands Cross PPP, the NRA is in discussion with the preferred bidder for the M17-M18 project with a view to progressing it. The other two projects which are highlighted within the stimulus programme are the M11 Gorey to Enniscorthy project and the N25 New Ross bypass project.
When the stimulus programme was announced, it was indicated that as the first phase projects progressed and as funding permitted, a second phase would be considered. In this regard, particular prominence was attached to the Galway city outer bypass project. As the Deputies will be aware, this has been the subject of legal challenge and the European Court has only recently delivered its judgment in the case. The matter has been referred back to the Irish Supreme Court. The NRA and the local authority are currently examining the implications of the European Court's decision and the most appropriate response.
To ensure there might be projects suitable for inclusion in future phases of the PPP programme in the medium term, the NRA has decided to take a number of projects through the planning process to develop a pipeline of potential future projects. In this regard, I understand the NRA intends to submit to the N5 Westport to Turlough project and the N5 Colloney to Castlebaldwin project to An Bord Pleanála later in the year. The Macroom bypass project was approved by An Bord Pleanála in April 2011. However, a judicial review against the approval of the scheme was heard and rejected by the High Court. I understand the applicant has sought leave to appeal against the High Court’s decision. A determination on whether leave to appeal will be granted is due to be made in July. Depending on the outcome of the latter, this is a project which the NRA may give consideration to including in a future round of PPP projects.
I thank the Minister for his reply. He stated that the National Roads Authority, NRA, was considering a public-private partnership, PPP, for the N5, but it is important that we consider all alternatives. The Minister outlined the number of capital projects, but it has been reported that he would consider other main projects if there was extra money. The N4 and N5 are important. The north west is one of the areas with the least in terms of road structures and has been neglected. Some newspapers have reported that the Department might have money available for capital projects, including road projects. There is a major problem in County Sligo, where one stretch of road has seen 30 deaths. This is another urgent consideration.
I thank the Deputy for his intervention. If money from any source is available this year, the priority must be road maintenance. Some of the country's roads are in a bad way and need money to be repaired. It is important to make a distinction between Exchequer money and PPP money. By and large, the latter comes from the private sector - for example, banks, bondholders and other groups that enter 30-year contracts to build and maintain roads and lease them back to the State. It is a different way of procuring roads.
We want a pipeline of PPPs ready. The pipeline was blocked for four years because of the financial crisis but has started to trickle again. For example, the Newlands Cross and N11 projects have been signed off and will go ahead. If we can move ahead with the Gort-Tuam project, which is the next one on the list, and the Enniscorthy and New Ross roads, we want another few projects in the pipeline to enter the system. The irony is that the projects must be large, amounting to hundreds of millions of euro. There are better projects that are much cheaper, but they cannot be pursued because they would need to be done using Exchequer funding.
I thank the Minister for his response. I am a long-time supporter of the Galway city outer bypass, which has been tied up in court for a number of years. Last month, the European Court of Justice ruled on it and the matter has reverted to the Supreme Court. Will the Minister reiterate his and the Government's support for the bypass? Will he comment on the imperative reasons of overriding public interest, IROPI, process and whether it can or should be pursued prior to a decision by the Supreme Court?
I am happy to reiterate the Government's commitment to the Galway city outer bypass, which has a benefit-to-cost ratio, BCR, of 6:1. Of all of the projects on the books, this one has the highest BCR. It makes a great deal of sense. Anyone who knows Galway knows that this project needs to be progressed once we overcome the planning permission issues. The former Minister, Mr. Noel Dempsey, took a decision to suspend planning works on the project. I intend to lift that ban so that the NRA can develop a new planning permission should it need to do so.
I thank the Minister for his reply. Since the announcement of the stimulus plan, we have waited for the N11-Newlands Cross project to get the go-ahead. That has now happened.
The Minister stated that negotiations are under way with the preferred bidder on the M17-M18 project. How far along are they and when does the Minister expect them to conclude? It is a key infrastructural project for Galway and the west. Not only would it create construction jobs; it would also create jobs in the entire region, which is starved of them currently. When will we see contracts signed?
I am loth to put a date on it. In respect of the N11-Newlands Cross project, I kept predicting that it would happen in a few months' time, but it did not. On the day it happened, I did not believe that it actually would. In fact, I had a €5 bet with my Secretary General, which he won on the day. I do not want to apply a timeframe. The NRA is handling this commercial discussion on behalf of the Government. It has asked the preferred bidder whether the latter will stand over the price quoted some years ago. If so, it will be a step forward. If not, the second bidder must be approached. This is how matters stand. As much as my involvement permits, I want the project to happen as quickly as possible.
I welcome the announcement on the commencement of the Newlands Cross project. Another strategic interchange can be found at Osberstown on the M7, which is vital in light of Kerry Group's jobs announcement. Will the Minister indicate whether funding will be made available for this interchange?
I am sorry, but I cannot at this stage. However, I would be happy to reply to the Deputy's query by correspondence. Suffice it to say that the road infrastructure will be in place for the Kerry Group jobs that have been announced so far.
