Shane Cassells
Question:36. Deputy Shane Cassells asked the Minister for Public Expenditure and Reform how he has deployed cash received from the sale of State assets; and if he will make a statement on the matter. [13073/16]
View answerTuesday, 31 May 2016
Questions (36)
Oral answers (35 contributions)
It has been the consistent policy approach that funds released from State asset disposals should be used, as far as possible and when the fiscal rules allow, to support the economy and job creation, while also using some of the proceeds to reduce debt. Since the State assets disposal programme was agreed to by the Government, a number of significant announcements have been made of allocations of additional funding for capital investment to be funded from the proceeds of asset disposals. In this regard, I draw the Deputy's attention to the following. In July 2012, in its first infrastructure disposal programme, involving a total investment of €2.25 billion, the Government announced that on foot of the State assets disposal programme, it would undertake further Exchequer investment, including enabling works to support PPP projects. Almost €100 million has been made available for enabling works on roads and education PPPs. In June 2013 the Government allocated an additional €150 million for schools, energy efficiency and roads projects. In budget 2014 the Government announced that, with the €200 million already committed to the national children's hospital, some €200 million would be invested from the proceeds of the lottery licence transaction and used for a range of projects and programmes. In May 2014 the Government allocated a further €200 million. In budget 2015 the Government announced that €400 million of the proceeds to be received from the sale of BGE would be made available to support the Government's social housing programme. In 2015 the Government allocated the €335 million in proceeds from the sale of its shareholding in Aer Lingus to establish a connectivity fund.
In total, the Government has allocated over €1.5 billion from the proceeds of the State assets disposal programme and the sale of the national lottery licence to support jobs and economic development across the country.
Deputy Shane Cassells is not in the House.
The stability programme-----
Did Deputy Brendan Howlin want to come in?
Deputy David Cullinane should note that his question was skipped because the time for Priority Questions was up. The Acting Chairman has moved on to the next question, No. 36.
Regarding the moneys from the sale of State assets, particularly the €400 million arising from the sale of BGE, a very sizeable sum, does the Minister have-----
On a point of order-----
We are on Deputy Shane Cassells' question.
The Acting Chairman missed a question.
On a point of order, are Priority Questions not taken first?
Deputy David Cullinane's question was a priority question.
It was a priority question.
Yes, but I have moved on from Priority Questions to Other Questions.
We had two priority questions and there was no chance to respond.
There was another question, Question No. 35.
Yes, but the time for Priority Questions was up.
Under the old Standing Orders, if questions were not taken in the allocated time, one moved to Ordinary Questions.
I moved to Other Questions and advised that I was taking Question No. 36 in the name of Deputy Shane Cassells.
With respect, that is not what we were given to understand in terms of how Priority Questions would work. With respect, if we have two priority questions, we have a right to ask them and have the Minister respond to them. I have been denied that right. We tabled two priority questions. It is not good enough that the spokesperson is allowed one question. We will not get to any of our oral questions. It is just not acceptable that I am not allowed to put questions to the Minister.
I thank the Deputy; his point is noted. I have advised the House that I have moved to Other Questions. Question No. 36 is now being taken.
It will be rectified under Standing Orders this week.
The 30 minutes allowed for Priority Questions have elapsed.
On the €400 million from the sale of BGE allocated by the previous Government for social housing, will the Minister tell us whether any progress has been made in finding a suitable mechanism for the investment of that money? Will it be deployed in the building of social housing?
I am informed that the total amount involved is as I confirmed to the Deputy. It is €400 million from the sale of assets. With regard to a particular mechanism and how the fund will be made available for housing, I am not in a position to give the Deputy an answer now. However, I will identify one and respond to him by tomorrow.
The Minister might do the same on the money for connectivity projects.
I will.
I have two questions. Does the Minister have plans for other disposals of State assets during the lifetime of the new Government? Second, has all of the money associated with Aer Lingus, BGE and various other assets sold off, including the national lottery, been drawn down from the various purchasers?
To respond to the first question on whether I have further plans to dispose of State assets, the answer is currently "No".
Currently.
Yes. I will inform the Deputy if the position changes but I am not aware of any such plans.
As to whether all the funding has been drawn down, I understand it has been drawn down in the sense that it was handed over after the financial transaction took place. Was the Deputy referring to the release of the funding to achieve the objective for which it was intended?
Yes.
The answer to that will vary according to which element is involved. Funding has been available for the objectives of programmes that operated between 2012 and 2014. I will revert to the Deputy on how moneys connected with the sale of Bord Gáis Energy and Aer Lingus will be released. I understand the principles governing the establishment of the connectivity fund were agreed by the House. I will contact the Deputy on the level of funding, if any, released under the fund.
The Minister indicated that income from the sale of State assets is being used to fund capital expenditure. Has he read a report from the European Commission indicating that the State is falling behind in terms of capital expenditure, especially on housing, health care, child care, water services and infrastructure? What plans does the Government have to increase capital expenditure? Given that IBEC has been making a similar argument to the Commission, it seems everybody except the Government recognises the need for capital investment.
The European Commission also acknowledged that Ireland's public finances have improved immeasurably. We have entered the preventative phase of deficit management. This is extraordinary progress when measured against the position we were in a number of years ago. I had hoped the Deputy would have acknowledged this progress when commenting on the need for capital investment. I have acknowledged the need to increase capital expenditure and the Government will work towards that end. However, we should take a different approach to capital expenditure. Rather than identifying how much additional money we want to spend and using this figure as a target to be achieved, we should identify what projects we want to deliver, work out their costs and complete them.
The European Commission identified target areas, including health and housing.
If we move to a position in which we seek to increase expenditure without identifying what projects are to be delivered, prices will rise and best practice in respect of cost-benefit analysis and the need to spend taxpayers' money wisely will not be adhered to.