I thank the Chairman and members for the opportunity to present the 2009 Revised Estimate for the Department of Transport for consideration.
The revised gross expenditure provision for my Department in 2009 is €3.1 billion, comprising €2.4 billion for capital projects and €705 million for current spending. The capital allocation does not include a sum of €78.5 million carried forward from 2008 that is also available for spending this year. This year my Department will spend €970 million on public transport, close to €2 billion on roads, including €37 million on road safety, €49 million on the maritime sector and €30 million on the aviation sector and regional airports. Of the €2.4 billion to be spent on capital investment, €2.04 billion is for Transport 21 projects.
My Department's Estimate was adjusted by a total of €315 million as part of the very necessary reductions in public expenditure agreed by the Government in the supplementary budget — a €15 million reduction in current expenditure and a €300 million reduction in the capital provision.
I will briefly outline where those reductions have been made. The €15 million reduction in current expenditure is comprised of a reduction of €5 million on national road maintenance, bringing the revised provision to €44 million; and a reduction of €10 million in public transport service payments to CIE, the revised provision being €303 million.
The €300 million reduction in capital expenditure is in the following areas. There is a €150 million reduction in the capital provision for regional and local roads, bringing the revised total to €321.5 million. The current expenditure allocation for regional and local roads is unaffected and remains at €126 million. The capital provision for public transport is reduced by €150 million to €628 million.
Despite this very significant reduction, public spending on transport is still at a very high level and we will continue to make real tangible progress during 2009, building on the sustained investment over the past decade. For example, as recently as the year 2000 total expenditure on national roads was less than €700 million compared with €1.5 billion today.
The €628 million provision this year for investment in public transport will maintain the momentum of our investment programme to date and continue the transformation of our public transport system. Several important projects will be completed this year. The Luas extension from Connolly Station to the docklands will be completed, with services due to start early next year. Phase 1 of the western rail corridor from Ennis to Athenry will be completed during 2009. The Cork-Midleton rail line will re-open, leading to a major extension of commuter rail services in Cork. Services will commence this summer with 20 trains a day in each direction. Work will continue in 2009 on several important projects: the Luas extension from Sandyford to Cherrywood; the Citywest Luas extension; phase 1 of the Navan rail line; the Kildare rail project; and the Dublin city centre rail resignalling project. Planning will continue on metro north and DART underground, two critical transport projects that will provide the backbone of an integrated public transport system in Dublin. The year 2009 will also see the continuing phased introduction into service of 183 new inter-city railcars nationwide and the remaining 118 provincial buses of the 239 new buses delivered at the end of 2008.
Investment in bus priority in Dublin and the regional cities will continue. A total of €40 million will be provided for projects in Dublin including the elimination of pinch points on the bus network such as the College Green bus gate; enhancements to north Clondalkin and Rathfarnham QBCs, an inbound bus lane on the N3 from Clonee to the M50, an extension of the Blanchardstown QBC and phase 1 of the Castleknock QBC. Funding of €15 million is being provided for bus priority in provincial cities, including: the completion of the Farranree-Blackpool green route and making substantial progress on the Ballincollig green route, both in Cork; the completion of phase 1 of the Dublin Road green route by Limerick County Council, and the completion of bus priority works north of Claregalway and on the Dublin Road in Galway. The accessibility programme will continue also with expenditure of €20 million on the roll-out of accessible coach services on the Navan-Dublin Airport-DCU and the Cork-Waterford bus routes; the continuation of the programme to make bus stops in Dublin more accessible; and improve accessibility of railway stations on the Dublin-Galway line.
I am also pleased to say that the development of the integrated ticketing system, for which there is a provision of €20 million this year, is at an advanced stage. It is being introduced initially in the greater Dublin area on a phased basis, using smartcard technology over the period to the end of 2010. All the Luas network and the Dublin Bus fleet have been fitted with smartcard readers and the fitting of smartcard readers is under way at Irish Rail commuter stations. The next step will be the launch by Irish Rail of an interim smartcard scheme from late this summer. It is planned later this year to commence the introduction of a single smartcard on a progressive basis for Dublin Bus and Luas services which will have an electronic purse capability which facilitates cashless travel. Later next year the single smartcard, with electronic purse capability, will replace the interim smartcards and be extended to DART and commuter rail services. Discussions are being held with private bus operators on their participation in the scheme over this timeframe.
The 2009 capital allocation for national roads is €1.44 billion, including a carryover of €37 million from 2008, reflecting the very high level of contractual commitments on this programme. This will allow the National Roads Authority to sustain the unprecedented progress on the national motorway network which is on schedule to transform the road links between Dublin and the main regional cities of Cork, Galway, Limerick and Waterford. These major interurban routes are on time and budget for completion by the end of 2010. By that date the country will have over 750 km of motorways and dual carriageways, a huge achievement in the past decade.
The NRA expects that eight major projects, totalling 156 km of dual carriageway road, will open to traffic this year. These are listed in members' briefings. Work will continue on a range of other important projects, totalling 328 km of road. Again, these are listed in the briefing. Over €320 million is being provided for local authorities for the improvement of regional and local roads. This will allow them to continue renewal and improvement works on the extensive non-national road network. While we have found it necessary to reduce the 2009 provision, it is important to recall that we have made a huge investment in these roads in recent years. Over €5 billion of Exchequer capital and current funding has been provided since 1997. This unprecedented spend has tackled investment backlogs and funded a major renewal, reconstruction and new works programme.
Our recent investment in the country's transport infrastructure is paying dividends. We will have finished the five major interurban motorways by the end of 2010. We have revitalised the national rail network, renewing the infrastructure, improving safety, replacing the fleet and making a step change in the quality of services. We have doubled the passenger capacity of the DART in the past ten years. Luas is carrying 28 million passengers a year and three extensions are under construction. Dublin Bus passenger capacity has expanded by over one quarter and over 80% of its buses are accessible for people with disabilities.
In 2009 my Department is providing almost €17 million to maintain the existing network of PSO regional air services and help the regional airports with their day-to-day operational expenditure. My Department will provide €6 million in capital funding for the regional airports to meet existing contractual commitments.
The current expenditure allocation is €705 million which will allow my Department to provide funding for a range of expenditure programmes. Some €328 million is being allocated to support the provision of public transport services throughout the country, while €170 million is provided for the maintenance of national, regional and local roads. Some €39 million is allocated for maritime safety measures and the Irish Coast Guard; €37 million will be spent on road safety programmes and, as I mentioned, €17 million will be expended on supporting regional air services.
I promised in my budget speech last October that the Government would finalise a new policy framework for transport and travel in Ireland. I have since published that policy, Smarter Travel. It is a radical new approach to travel which aims to deliver on the Government’s vision of having a sustainable transport system by 2020. This new framework underpins all of the activities of my Department and reaches across all areas of government. At the launch of Smarter Travel in February I emphasised that the scale of the investment envisaged in the policy would not be available in the short term and that, therefore, the focus needed to be on demonstration projects and developing plans to move the policy forward. I have retained the allocations needed to begin this work. The €10 million for carbon reduction measures remains in my Department’s Vote, as does the €2 million to support the green schools travel initiative.
I am providing €37 million for the Road Safety Authority and the Medical Bureau of Road Safety. Road safety continues to be an important priority for the Government and the road safety strategy 2007-12 provides our road map which is being successfully implemented with the involvement of a number of Departments, the Garda Síochána and other agencies. We have seen a sustained reduction in the number killed on the roads. The number of road deaths dropped by 30% in the period from 1997 to 2007 and 2008 saw the lowest number of fatalities on record — 279. The welcome downward trend continues this year and has been achieved despite the fact that there has been a large increase in the number of drivers and vehicles on the roads.
Funding for the Irish Coast Guard and maritime administration is being increased by €2 million on its 2008 level to €44.5 million. There will be an additional €1 million in capital funding which was carried over from 2008. The decision to allocate this level of funding, in spite of the financial restrictions, reflects the vital nature of the services being provided. The allocation for 2009 provides for expenditure of €4 million on essential upgrading of radio communications at the marine rescue centres.
The Government had to take the difficult decisions necessary to tackle the unprecedented decline in the public finances. This required a number of reductions in public expenditure, while seeking, as far as possible, to protect front-line services, sustain employment and support the productive capacity of the economy. We have faced difficult choices. Notwithstanding these major difficulties, we will spend €2.4 billion on transport capital investment this year. This shows our continuing commitment to improving the transport system and our determination to deliver on the projects contained in Transport 21. This investment will sustain over 24,000 jobs and create the conditions necessary for renewed economic growth when the international recession is over. We have also sought, as far as possible, to sustain our expenditure on public service obligations and to meet our regulatory obligations and safety imperatives. We have got the balance right.
I commend the Estimates to the committee and I will be happy to take questions from members.
