Public Private Partnerships.

Dáil Éireann Debate, Tuesday - 23 March 2004

Tuesday, 23 March 2004

Questions (26, 27)

Paul Kehoe

Question:

23 Mr. Kehoe asked the Minister for Finance the impact on public investment of the recent changes in the system for accounting for projects with private sector participation. [8703/04]

John Gormley

Question:

70 Mr. Gormley asked the Minister for Finance the way in which EUROSTAT changes in the way public private partnerships can be accounted for will result in announcements in infrastructure projects being funded through such a mechanism; and when. [8978/04]

Written answers

Minister for Finance (Mr. McCreevy)

I propose to take Questions Nos. 23 and 70 together.

I welcome the recent clarification from EUROSTAT as to the accounting treatment of public private partnerships. It will assist Departments in implementing the ambitious PPP investment target of €3.6 billion in the period 2004-2008 under the five year rolling multi-annual capital investment envelopes which I announced in the 2004 budget.

Public private partnership investment is an important component of the five year investment envelope. The latter is set at 5% of GNP, over twice the EU average. The objective of the investment envelope is to address our infrastructure deficiencies. To the extent that the EUROSTAT ruling provides greater clarity it will assist this objective. Individual projects, PPP or otherwise, are a matter in the first instance for relevant Departments. I look forward to the implementation of these PPP targets by individual Departments taking account of the EUROSTAT clarification.

It might be noted that the overall investment envelope will be reviewed in the context of the 2005 budget taking account of budget sustainability and, as appropriate, the EUROSTAT clarification.