I welcome the Minister for Transport, Tourism and Sport, Deputy Leo Varadkar, and his officials. Dáil Éireann has ordered that the following Revised Estimate for public services be referred to the select sub-committee for consideration: Vote 31 - Department of Transport, Tourism and Sport. The purpose of the meeting is to consider the Revised Estimate and the supplementary performance information on the outputs and impacts of programme expenditure. Is the draft timetable agreed to? Agreed. It is my intention to conclude our deliberations by 11.45 a.m., at which time the room is required for another meeting. If members would oblige me by indicating in their opening statements the particular subheads they wish to address, we will focus on these in our discussion. I now invite the Minister to make his opening statement.
Vote 31 - Department of Transport, Tourism and Sport (Revised)
I thank the members of the select sub-committee for allowing me this opportunity to present the 2012 Revised Estimate for the Department of Transport, Tourism and Sport for their consideration. I am joined by Mr. Fintan Towey, the Department's finance officer; Mr. Dominic Mullaney, principal officer in the roads division; Mr. Dermot McCarthy, assistant secretary in charge of land transport; and Ms Doreen Keaney, principal officer in the public transport investment section.
The gross expenditure provision for my Department in 2012 is €2.041 billion, comprising €1.245 billion for capital projects and €796 million for current spending. I will now set out details of the expenditure programmes falling under the responsibility of my Department.
In regard to civil aviation, I am providing for gross expenditure for the aviation programme in 2012 of €32.581 million, made up of €6.508 million for capital expenditure and €26.073 million for current expenditure. I recently announced the Government's decision to separate Shannon Airport from the Dublin Airport Authority and bring it together with Shannon Development to form a new entity with a commercial mandate in public ownership. This decision represents a new beginning for the region, involving a drive to develop a world-class aviation industry in Shannon and a restructuring of tourism and enterprise support agencies in the region to support this goal. It should be noted that none of the three State airports - Dublin, Shannon and Cork - receives Exchequer funding and, therefore, no provision is made for them in the Estimates. Only regional airports receive Government funding.
With the agreement of the Government, I have set down a very clear policy on future Exchequer support for the regional airports in the coming years. In 2012 the Estimate provision of €16 million reflects a reduction of 19% on the 2011 allocation. The number of airports being supported has been reduced. The current expenditure comprises direct subvention to Donegal, Knock, Kerry and Waterford airports to cover operational losses and indirectly through the funding of public service obligation, PSO, air services linking the airports at Donegal and Kerry with Dublin. I have made it clear to the four regional airports in receipt of Exchequer support that they must work towards achieving viability as Government funding is on a downward trajectory.
I will turn now to land transport which comprises roads, railways and buses. I am providing for gross expenditure on land transport of €1.703 billion, which includes €1.165 billion for capital expenditure and €583 million for current expenditure. The public transport investment programme provides funding for the development of public transport infrastructure and the improvement of railway safety. The €257 million provided this year for investment in public transport will maintain safety standards and seek to derive maximum value from the significant investment in public transport in recent years.
Spending is in three main areas, the first of which is public transport projects which are managed by my Department. The provision of €16 million for this year includes funding for bus, rail and port accessibility projects, as well as for traffic management in the regional cities. The second area of expenditure is public transport safety and development, for which the provision of €111 million covers primarily the railway safety programme and rail projects outside the greater Dublin area. The third area of expenditure is public transport infrastructure. Some €130 million is provided for the National Transport Authority which includes funding for projects in the greater Dublin area such as Luas, bus and rail projects, traffic management and bus priority measures, as well as cycling and walking initiatives.
Let me outline the main developments in 2012. Preparatory work has begun on the Luas Broombridge, BXD, line which will link the existing Luas red and green lines in the city centre and a new line that will extend through the city centre to Cabra, Broombridge, linking with the Maynooth line. The business case for the Luas BXD line is strong. Subject to the granting of the railway order this year, essential pre-construction works could begin in 2013, with the main works scheduled to begin in 2015. Funding is also being provided for traffic management projects, including quality bus corridors, QBCs, in the regional cities. Earlier in the year I announced a programme of works amounting to €14 million for Cork, Limerick, Galway and Waterford in 2012. We will set aside specific funds for an agreed programme of works in each these cities on an annual basis up to 2016.
Of course, some of the most significant recent investments in public transport have not been in physical infrastructure but in technology to enhance the customer experience and, therefore, increase the attractiveness of public transport as a commuting option. I am very pleased with the initial impact of the Leap card and real time passenger information provided on electronic signs telling passengers when trains and buses will arrive. This has been a great success in Dublin and a pilot scheme has been launched in Cork and will be extended to other cities later this year.
The provision of transport services under the public service obligation by the CIE companies is subject to contract between these companies and the National Transport Authority. This year €242 million has been allocated for public service obligation, PSO, services. With a 9% cut in 2012 on the 2011 provision of annual subvention to CIE, the public transport companies have to find ways of delivering these savings in whatever way is least detrimental to services. It is my policy that cost reductions should take precedence over fare increases and service reductions, but fare increases and service reductions will be inevitable, if costs cannot be reduced sufficiently. Every year it is going to be a struggle to deliver the reduction in the PSO budget, while maintaining services at current levels. Persuading people to travel smarter is a key element of the Government's transport policy, helping people to make smarter choices about their personal travel habits - choosing to walk, cycle or take public transport rather than taking the car for every journey. A sustained shift to more active travel modes will contribute to our national competitiveness and well-being. Increased cycling and walking improves the health and fitness of the workforce. A less congested road network eases the movement of goods and people. Towns which are not blocked with traffic are more attractive places in which to live, work and do business.
My Department has taken a two pronged approach to promoting active travel, first, by improving cycling and walking infrastructure around the country, making it safer and more attractive to walk and cycle and, second, by persuading people not to take their cars. The National Transport Authority is working in co-operation with my Department to fund a rolling nationwide investment programme for smarter travel infrastructure. Funds are being made available to local authorities under a range of strategic programmes to develop infrastructure in cities, towns and villages to support sustainable transport such as cycle tracks, bike lanes and improved pedestrian facilities. We then need to encourage people to use these facilities. We do this in many ways, in particular through support of the smarter travel workplaces programme, the green schools initiative and the promotion of cycling though the annual bike week. In recognition of the fact that locally delivered smarter travel projects which tend to be labour intensive can provide a more immediate job creation impact than some of the larger infrastructural projects, €1.47 million has been allocated this year to traffic management and smarter travel projects. This is to create safer road junctions, better footpaths, improved bus networks and rail stations and support new cycle schemes. Both the National Transport Authority and the National Sustainable Travel Office will be involved in overseeing the funding of projects from the jobs' initiative programme.
With regard to the roads programme, following the completion of the major inter-urban motorways, there will be little in the way of large projects in the next few years. Funding for capital expenditure of €885 million will be provided for national, regional and local and roads during 2012. This represents a €125 million reduction in funding from 2011, including an 11% reduction for national roads and a 15% reduction for local and regional roads. Some important bypasses have commenced construction and it is hoped to award a design-build contract for the Ballaghaderreen bypass before the end of the year. The NRA continues to seek to complete the contract award of the PPPs scheme which provides for the upgrade of Newlands Cross and the section of the N11 between Arklow and Rathnew. Beyond these and some improvement schemes, there are no major new starts planned for the next few years. They are simply not affordable. Instead, the emphasis will be on focusing available moneys on maintenance, rehabilitation and safety works. Innovative technology will be used to predict where and when roads will require maintenance, respond to incidents or accidents on the motorway network, provide real-time information for motorists, identify accident prone locations and deal with them efficiently and cost effectively.
I have provided more than €18 million for the Road Safety Authority and the Medical Bureau of Road Safety in the 2012 Estimates. We continue to make strides in making the roads ever safer. In 2011 we had the fewest number of fatalities, 186, since records began in 1959. This represents the sixth successive year that the number of deaths on the roads has reduced. A number of factors have contributed to these improvements, including better vehicle standards, improved roads, targeted legislation such as the lower drink driving limits, better enforcement by the Garda, more responsible driver behaviour and more concentrated road safety initiatives introduced by the Road Safety Authority. New data published by the European Commission recently show that Ireland is now fifth of European countries in terms of its road safety performance. We have moved ahead of Germany and closed the gap on the other leading countries. In Ireland, our figures are 42 deaths per 1 million of population against an EU average of 62. I am glad to report that the downward trend has continued in 2012 and, as of last Friday, the number of fatalities was 65, down by four on the equivalent date in 2011. Of course, there are still far too many deaths and we will continue to do all in our power to ensure the roads are as safe as we can make them for all users. Work is proceeding on the development of a new road safety strategy for the period 2013 to 2020 which will be finalised later this year.
In respect of maritime transport and safety, I am providing in 2012 for gross expenditure of €79.926 million, comprising capital expenditure of €18.515 million and current expenditure of €64.411 million. My Department's maritime safety policy division is the State's regulatory authority for maritime safety. The main focus is on accident prevention through an appropriate combination of regulation, a heightening of safety awareness and enforcement. As an island state, the maritime environment and industry are of strategic, economic, social and environmental importance. Therefore, safety, security and pollution prevention continue to be at the heart of Ireland's maritime strategy. We are continuing our efforts to ensure a best practice safety, security and pollution control regime to minimise the numbers of deaths, accidents and pollution incidents in the sector.
The Irish Coast Guard, IRCG, is one area of my Department in which expenditure will not be reduced. It will be approximately €38 million in 2012 and will be increased in 2013 to take account of the added costs of the new contract for search and rescue helicopter services. The IRCG responds to 2,000 incidents annually, peaking in late summer. Of the average 3,500 persons assisted, it is considered that 160 would have perished but for the IRCG's intervention. The major funding elements for the IRCG are the provision of the search and rescue helicopter service, the maintenance of the IRCG's co-ordination centres, pollution response equipment, and management of volunteers in 52 locations nationwide. The new helicopter contract represents a major improvement in the capacity, range, speed and capability of Ireland's search and rescue, SAR, service. The new helicopters have the ability to stay on the scene longer, search using improved radar, night lighting and infra-red, the ability to fly in cloud and reduced visibility, and better hover performance. Such improvements will enhance the probability of successfully rescuing those in distress day or night. Maintaining the current level of IRCG capital funding in 2012 and the increase proposed for 2013 will allow the service to meet its contractual commitments for the new helicopter contract. They will also facilitate a station house building programme, with new station houses proposed at Killybegs, County Donegal and Doolin, County Clare. In addition, no reduction has been made in the allocation made by my Department for mountain rescue services and the Royal National Lifeboat Institution.
I am aware of the importance of ports as vital facilitators of trade and commerce. They are critical to our economic recovery. The past few years have been difficult for the ports, particularly the smaller ones. However, the sector returned to modest growth in 2010 and year-end figures for 2011 indicate further stabilisation. As with all transport infrastructure, the development of port capacity requires a long-term perspective. In that regard, I am heartened by the responsible approach taken by the major ports in planning for their future development. I recently launched Dublin Port Company's master plan which sets out the vision for the port in the next 30 years. The Port of Cork published a similar strategic plan in 2010 and a master planning exercise is under way in Shannon Foynes Port.
This sort of long-term planning is in line with international best practice and can only aid the development of a more integrated approach to transport planning generally. At a policy level, my officials and I are working on a revised ports policy statement, which I intend to publish later this year. The Irish ports sector is very diverse. It is clear to me that our commercial ports face differing challenges and opportunities. My intention is that the revised policy statement will provide a clear framework within which all of our ports can develop in the manner that most suits their particular circumstances. The 2012 capital Estimate provides for payments in respect of the necessary remedial works that are being carried out at regional harbours to facilitate their transfer to the relevant local authority or port company. The statement on ports policy that was published by the then Government in 2005 reiterated the view that most harbours would best achieve their potential through their transfer to local control. Since January-----
I ask the Minister to conclude because I would like members to be able to ask some questions before this meeting concludes at 11.45 a.m.
That is fine.
I welcome the Minister and his officials. I thank the Minister for his extensive presentation. I look forward to reading the rest of his documentation. I have a couple of questions. I will not get into the minute detail. I will give an overview of what we are considering.
Has the Department had internal discussions and discussions with other Departments about the possible use of the capital component of its expenditure in a manner that would assist in the recovery of the economy? I recognise that before now, the role of the Department was to fulfil its requirement to provide and develop transport infrastructure. During these uncertain times, when we have reached such a high level of unemployment, it is incumbent on all Departments, particularly those with a remit in areas of significant capital investment, to make an effort to identify important projects that can be prioritised in a manner that would deliver the best short-term return in terms of assisting in the recovery of the economy through job creation. Has any consideration been given to spending capital moneys in a manner that would assist in job creation generally?
The Minister mentioned that with the exception of two projects, the major road projects are on hold, in effect. I accept that major road projects are not big providers of employment in terms of numbers. Equipment is utilised to a much greater extent than individuals. I ask the Minister to comment on the route between Gort and Tuam, which is part of the Atlantic corridor. It would serve as an important enabler of infrastructural development along the corridor, as a key infrastructural support for regional development and as a means of attracting tourism investment and broader commercial and industrial development in the region.
I welcome the Minister's comments on the Luas BXD line. He indicated that 2015 is a potential start date for the project. That would be welcome. Has any consideration been given to furthering Bus Éireann's efforts to secure investment in bus rapid transit? The Minister mentioned the importance of the quality bus corridors that have transformed Dublin. Bus rapid transit, as utilised in other jurisdictions, is a significant improvement on bus corridors because it is the nearest thing to providing a rail service. I will conclude on that point.
The Deputy asked about what we try to do with the capital component of the spend. The capital budget seems enormous, but that is quite misleading because much of it is used for restoration. One can resurface roads every year or two, but one will almost need to rebuild them every ten or 15 years. Similarly, the capital railways programme is used for maintenance more than anything else. That is the first priority. The second priority is to improve what we have and the third priority is new projects. The two key factors that are taken into account with regard to new projects are the potential for job creation and the value of the project in terms of recovery. The benefit to cost ratios are used in such assessments. When the capital investment plan that superseded the national development plan was drawn up, we were specifically directed by the Government and by the Department of Public Expenditure and Reform to prioritise projects that boost job creation and recovery. We would argue that our projects are much stronger in those respects than some of the projects in other Departments that receive funding. That is an internal view, of course.
It was envisaged that the Gort to Tuam road would be developed as a public private partnership, PPP. It is something we really want to do, not least because it would create a proper link between Galway and Shannon Airport. The motorway that would then extend as far north as Tuam will continue all the way to Cork when the M20 is completed in the future. It has been hard to get the PPPs across the line. I do not think a road PPP has received funding for three or four years. We are continuing to try to get such funding, but it is difficult to get banks with sufficient credit ratings and companies to take the risk. The doubts about Ireland's place in the euro and our ability to reduce our deficit add to that. It has been a real struggle. The project has not been abandoned. It will take some time before the PPPs get going again.
The National Transport Authority has done some work on bus rapid transit. It has identified a few potential corridors, including one in the Ballincollig area of Cork and the Stillorgan to Blanchardstown corridor. It is very expensive to put a proper bus rapid transit corridor in place. If we are to do it, we might as well do it properly with new rolling stock, nice stops and all the bells and whistles that would make it a Luas on wheels, in effect. Each corridor costs hundreds of millions of euro. We cannot afford it at the moment.
I thank the Minister and his staff for attending this meeting. Road safety in Ireland, as measured by the number of road deaths, is improving immensely. It is good that we are ahead of Germany for a change. I am also pleased that real-time technology has been rolled out.
I would like to ask about capital projects. We have discussed the A5 project in the past. We provided €12.7 million towards that in 2011. We will provide approximately €3.6 million this year, which represents a reduction of some 71%. This key project is vital for the north west of this country. I do not dispute that money is tight, but I would like this matter to be given further consideration.
There has been a cut of 9% in the annual subvention to CIE. Given that passenger numbers on public transport have decreased by approximately 1% in the last year, from what I can gather, why is such a substantial cut being provided for? I appreciate that these things can be weighed up in different ways. The subvention is important if we are to maintain our vital public transport services.
The amount of money being provided for national, local and regional roads has decreased by €125 million from its previous level of €885 million. The reduction in funding is 11% for national roads and 15% for local and regional roads. I do not know why such a substantial cut has been sanctioned in respect of local and regional roads, which are of great importance. Some of the roads in question have significant problems. I do not understand this imbalance. I would have thought that more money would have been invested in this sector.
My final question relates to non-pay administration in the aviation sector. Why is there such a discrepancy between the 2011 figure of €585,000 and the 2012 figure of €829,000?
We have given a commitment to provide a further £25 million sterling in respect of the A5 in 2015 and again in 2016. We have agreed with the North-South Ministerial Council and the Northern Ireland Executive that we will make commitments beyond 2016. We cannot say at this stage how much we will provide at that time. The Ballygawley to Aughnacloy and Strabane to Derry sections are to proceed, which will significantly improve the A5. While we would like to make a greater contribution, we are not in a position to do so. This is an important project for the north west but there are other important projects for which I would like to be able to provide funding of that magnitude. The A5 project will be allocated £50 million between 2012 and 2016 because of the sovereign commitment made on the fringes of the St. Andrew's Agreement.
Lack of money is the reason the CIE subvention is being cut. The Government would prefer not to reduce the subvention for public transport, which is already relatively low, but it will be reduced further. This will present major challenges for the CIE companies owing to their falling passenger numbers, rising fuel costs and a declining subvention. For these reasons, the financial position of the companies will be difficult in the months ahead.
The Deputy is correct that the allocation for local and regional roads has been reduced by a greater amount than the allocation for national roads. Much of this is accounted for by funding and contractual commitments that have arisen. The position will be reversed next year when funding for local and regional roads will be maintained at close to the current level, whereas the allocation for national roads will be cut by a greater amount. The reason for the greater reduction is that payments which were made last year do not have to be made again next year.
I am not sure what is the position regarding aviation. Perhaps Mr. Towey will comment.
Why is the allocation for non-pay administration under the civil aviation heading increasing?
The Deputy is referring to subhead A1 of programme A.
The total allocation is €645,000 rising to €829,000 in 2012.
Mr. Fintan Towey
There must have been some exceptional item on the aviation side which caused the figure to increase in 2012.
I will revert to the Deputy in writing on the issue as we are not certain of the reason for the increase in the allocation. It may be a result of a carry-over from the previous year.
I thank the Minister and his officials for briefing the sub-committee on the Revised Estimates. The Department's responsibilities cover a wide area, including important infrastructure such as transport networks, roads, railways and ports. These are the arteries that will help drive economic recovery and it is essential we maintain this infrastructure as best we can, while recognising the need to do more with less money.
I agree with the thrust of Deputy Dooley's contribution. We should, where possible, prioritise capital investment that will stimulate employment and growth in transport and tourism. While the Government had done this through a number of tourism initiatives, opportunities arise in other areas such as roads.
I welcome the smarter travel initiatives. This is good, sustainable investment which will help citizens. We must invest in maintaining the motorway network, the sole positive legacy of the Celtic tiger years. In this regard, I note the provision made in the Estimates for this purpose. As I have consistently pointed out, the absence of a service station on the M9 between Dublin and Waterford presents a major safety issue for people travelling on the route. Will the Minister provide an update regarding the public private partnership proposal for a service station on the road? Could the project be facilitated by thinking outside the box? A service station on the M9 would stimulate some employment and allow safe travelling on the route.
When I was a Senator I consistently argued that our investment in maintenance programmes for the local and regional roads network does not address the root cause of the damage done to these roads. We do not have an asset management database covering all roads, similar to the database the ESB has developed for its networks. We have in place an ad hoc system where local authorities depend on local overseers to provide feedback to their engineers and records are kept locally. We should use a proper, electronic geographic information system, GIS, for the local and regional roads network.
I ask the Deputy to-----
This is an important issue.
All contributions are important.
I ask to be allowed to make this point as it is very important.
Please conclude as the meeting must finish by 11.45 a.m.
With due respect, I will make my point as quickly as possible. I ask that an electronic database network be established to properly manage the asset of our roads network. This would generate savings in the long term.
The regional airports are important for tourism. Waterford Airport has launched new initiatives and attracted Aer Lingus regional services to provide key connections with major centres in the United Kingdom, including Birmingham, London and Manchester. We need to continue supporting such initiatives. Their costs will be met by increased revenue and new revenue streams in the regional airports.
I agree with the Deputy on the need for service stations on the M9, which is a road I know well. A service station should have been built when the motorway was constructed. Service stations were planned at Kilcullen, County Kildare, and Paulstown, County Kilkenny. The Kilcullen project has been deferred, largely due to a public private partnership, PPP, issue. It was to be tendered as a PPP with a service station project at Gorey on the N11 but has become stuck owing to the general delay in public private partnerships. No progress has been made on the Paulstown project. While it is intended to have a service station on the M9, unfortunately progress is slow.
The Deputy makes a valid point on network maintenance. Ideally, the road network should be maintained in the manner in which the electricity and gas networks are maintained as opposed to on an ad hoc basis, as is currently the case. Some work is being done in this regard, including the development by the Local Government Management Services Board of a system known as MapRoad. This software will enable us to move to a system similar to that proposed by the Deputy. Road maintenance will be done as a network maintenance operation rather than on an ad hoc basis with people travelling around the roads network looking for potholes. It will be some time before local authorities make the transition to the new system. While some of them will not want to adopt it, we want them to do so.
On regional airports, all the studies done on this issue indicate the value of these airports to tourism is limited as the number of tourists travelling to Ireland through regional airports is very small. They probably have more value in terms of business connections.
I welcome the Minister and his officials. I also welcome the combination of road safety measures, including a number of unpopular measures, which have reduced the number of road fatalities to 186, the lowest figure since 1959. The most tangible means of measuring road safety is to point out the number of people who are walking around today who would no longer have been with us were it not for these measures.
Construction works on the BXD Luas line to connect the green and red Luas lines is due to commence in 2013. Last autumn, Dublin City Council started works on the construction of a bridge to connect Hawkins Street with Marlborough Street. The council closed one lane on Eden Quay and recently closed a lane on Burgh Quay, resulting in severe congestion on the quays. This is a foretaste of what will happen when construction commences on the new Luas line. Is a plan in place to manage disruption when the construction of the new line commences given that it has the potential to paralyse Dublin city centre?
A railway order for Luas BXD has not yet been issued but we are hoping An Bord Pleanála will issue an order this year to allow us to start initial works in 2013, with heavy construction beginning in 2015. While these works will cause disruption in the city centre, the relevant agencies have learned a great deal from the construction of the previous Luas lines. We will work to ensure construction is completed with as little disruption as possible. Discussions are already taking place with retailers, Dublin City Business Association and the city council as to how this can be managed. The work will also affect taxi ranks and Dublin Bus. Like with any structural projects, there will be disruption, but we will do our best to minimise it. As Minister, I will take a personal interest in that as I imagine it will become quite a political issue. This is worth doing so as to be able to link up our DART, rail and Luas networks. It will be worth it if someone can, for example, get on the Luas in Dundrum and get out in Leixlip with just one change. It will give us the kind of network other cities have that we do not have currently. It will be worth the hassle and whoever is Minister in 2015 will have that hassle.
We have had statements from all groups, but before I invite Deputies Walsh, Flanagan and Bannon to contribute I would like to put a question to the Minister. It may be a bit of a side issue, but I wish to ask about cost savings, performance indicators and general management of roadwork programmes. The establishment of Irish Water as a major single State utility will involve significant structural work that will have an impact on roads and footpaths over the coming years. There is nothing more frustrating than to see a new road being laid only to see it being dug up again by a utility group a few months later. What sort of interface will the Department of Transport, Tourism and Sport have with Irish Water with regard to road disruptions, road building programmes and the like?
I thank the Minister for his presentation. It was very refreshing to hear a frank and honest assessment of the Department's current position. There is not a huge amount of good news in what the Minister presented to us today, but that reflects the financial position in which the Department finds itself. A host of projects around the country would love to be included in the plans, not least the Galway city outer bypass, on which I have spoken to the Minister on a number of occasions. Will the Minister or his officials confirm that in the assessment and cost-benefit ratio analysis undertaken recently on infrastructural projects, Galway city outer bypass ranks as the highest and most deserving of assistance in future plans?
In the context of yesterday's informal Leaders' summit, there was little or no reference to the fiscal treaty. The agenda has moved on now to growth, investment and stimulus packages. Does the Minister see an opportunity in this for additional capital expenditure, arising from the new emphasis on a stimulus package? Perhaps this could come through the European Investment Bank, EIB, the sale of State assets or some funding could be made available from the pensions reserve fund. If that is the case, does the Minister see an opportunity for further capital development over and above what was included in the capital plan he announced late last year?
I welcome the Minister and commend him on his hard work. With regard to the Gathering, how is planning for that going and how many tourists does the Minister expect will come to Ireland for it? Can the Minister also give us some feedback on the visa waiver programme? On the issue of electric cars, what role does the Minister see these playing in cities and what plans are there for the roll-out of the bike rental scheme to Dublin suburbs? After the cold winters we have had in recent years, many road ramps in residential areas have been destroyed. Is new funding required from local authorities for this or can this be redressed through the various sub-contractors who, it seems, used inferior materials in construction?
I too welcome the Minister and his officials. With regard to the M4 motorway from Dublin to Sligo, construction is completed from Dublin to Mullingar and from Sligo to Roosky, but there is a bottleneck in the midlands, particularly across Longford-Westmeath because the project has been put on hold. Can the Minister give an indication as to when the last loop of this project will go ahead? I brought investors to the midlands recently and they were surprised at our slipshod approach to development. They were surprised we did not start at the east coast and move west or start at the west and move east and wondered why we left the bottleneck in the midlands.
I also have a question with regard to the N55. This national secondary route could pull much of the heavy traffic to Northern Ireland out of Dublin if it was upgraded and fully developed. In an NTR report produced the year before last, this was deemed as one of the most dangerous routes in the country and it needs urgent consideration. On the issue of heavy freight, are there any plans to move heavy freight back onto the rail system? In the midlands in particular, juggernauts travel with heavy freight on roads making travel difficult for ordinary travellers and causing a nuisance to people travelling from Sligo to Dublin when they hit the bottleneck in the midlands. Will the Minister elaborate on that?
On the issue of airports, the proposed Chinese hub for Athlone includes a proposal for the development of an airport in the midlands. Has the Minister been contacted on this or has he any further information on the proposal for an airport in the midlands to link in with the Chinese development in Athlone?
Thank you Deputy.
On the issue of sports and recreational facilities -----
We have to move on. I call on the Minister to respond.
We have not had any contact with Irish Water yet, but that can be done once the body is established. With regard to utilities, there is a problem when roads must be dug up and then redone. By an large, road opening licences are done by the local authorities and it is for them to co-ordinate utility works and they are expected to that. On the issue of the Galway city outer bypass, the benefit to cost ratio of that project came out at 6:1, which is the highest I have seen. Therefore, no other project has a higher benefit to cost ratio. However, the first issue is to get permission and then finance for it.
On the stimulus package and whether there is additional room for capital expenditure, I hope there is. I expect there will be from €1.5 billion to €3 billion from the sale of State assets, but they must be sold first. It is possible that some money can be drawn down from the pension fund, although people have reservations about that because it is the last bit of money we have in our savings account and one never knows when it might be needed. I am a little concerned when I hear people talk about getting funding from the EIB or pension funds because the EIB is a bank and banks want their money back with interest and pension funds are bondholders and they too want their money back with interest. Therefore, when people suggest getting funding from the EIB and pension funds, they are suggesting more debt, but I doubt the solution to the debt crisis in Ireland or in Europe is further borrowing and the payment of interest to banks and bondholders. It is ironic that the people who give out about banks and bondholders are often the first to want to stimulate the economy with money from them. It is early days and I would not want to raise any expectations that there will be additional capital expenditure, until we see the shape of the Government's proposals.
On The Gathering, it is going very well and some €5 million has been allocated for it in the Estimates this year. The target is 325,000 additional visitors. The visa waiver programme has been very useful in terms of getting Chinese and Indian tour operators in particular to add Ireland to their itineraries, because not needing an extra visa means it can be added on more easily. However, this is not the ideal solution. The ideal solution would be a mini Schengen or common visa area with the United Kingdom or even all of Europe.
With regard to the take-up of electric cars, this is done through the ESB and the energy sector. Take-up has been very slow and there are certainly more charging points than there are electric cars. This was probably inevitable. I am going to borrow an electric car for a weekend next month for a trial, but I expect take-up will be slow. With regard to ramps in residential areas, this is a matter for the local authorities.
Is funding required from the Department for that?
No funding comes from us specifically for ramps, but funding can be provided from time to time for traffic calming schemes that might include ramps. However, the replacement of those would then fall to the local authorities. The N4 and the N55, like many road projects, are on hold for the foreseeable future. The stretch from Castlebaldwin up to Sligo is very poor and we would like to do it, but it comes out at around €100 million, which we do not have. For the time being, there will only be low cost improvements on the N4 and the N55.
There is potential in heavy freight and rail, as the rail freight business is growing again. Irish Rail and some of the private companies are doing a very good job there. However, it will be limited. For rail freight to work, ultimately what is needed is bulk cargo that does not have to get anywhere in hurry. The rail line also needs to go into the port and into a particular business, because if that is not the case, then the business has to put the freight on a truck which takes it to the station, where it is put on the train and so on. That is very expensive and slow. Some of the ports are now connected to the railways and we are hoping to connect Foynes to the railways as well. However, no matter what we do, in 20 years up to 90% of freight will still go by road.
Building a new airport or an air strip does not require permission from the Department. It requires a licence from the IAA and planning permission from the local authority. One thing that is absolutely the case is that we will not subsidise any new airports, so it would have to be entirely funded from elsewhere. I am in office for 15 months and every two weeks somebody comes to me with a grandiose scheme backed by mystery Chinese investors. I tell them to come back to me with the Chinese investors and their money, and they never do. I am sure there is genuine Chinese investment in Ireland, although I have not seen many examples of it. To me, it is just the latest wheeze, when people tell me they have money backed by mystery Chinese investors who never appear and nobody ever sees their cheque book.
There is no mystery in the signal I am getting that we have to vacate the room very shortly. I thank the Minister and his officials in assisting the committee with our consideration of the Revised Estimates and programmes.