Dáil Éireann Debate, Tuesday - 7 March 2017
693. Deputy Joan Burton asked the Minister for Agriculture, Food and the Marine the level of construction inflation that has been experienced by his Department in each of the past six years and to date in 2017 in respect of construction projects and other capital projects; the way in which he monitors construction inflation and the mechanisms he employs to establish this; and if he will make a statement on the matter. [11529/17]
View answerThe Department of Agriculture, Food and the Marine is responsible for the six Fishery Harbour Centres located at Howth, Dunmore East, Castletownbere, Dingle, Ros an Mhíl and Killybegs. This Department is also responsible for North Harbour at Cape Clear Island and for maintaining a range of piers, lights and beacons around the coast in accordance with the 1902 ex-congested Districts Board Piers, Lights and Beacons Act. The Fishery Harbour and Coastal Infrastructure Development Programme which the Department administers on an annual basis provides for works relating to the maintenance and development of the above located harbour infrastructure.
From 2011 to 2016 the Department has invested €52.8m in capital developments on this marine infrastructure. See the following table for details.
|
YEAR |
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
Total |
|
EXPENDITURE €m |
8.1 |
4.4 |
5.7 |
6.6 |
15.7 |
12.3 |
52.8 |
Capital works and works related services, are generally commissioned by means of an open competitive tendering process achieving best value for money based on prevailing market rates.
Other construction related services and materials are acquired having first considered what is available under the Office of Government Procurement Framework.
My Department is informed in its’ management functions by the relevant bodies who monitor inflationary impacts on construction projects.
Grant aid for capital work on farms usually involves construction of farm buildings. On-farm investment schemes such as Targeted Agricultural Modernisation Scheme (TAMS) are designed so that the construction work is paid for by the applicant and the Department then pays the applicant the appropriate level of aid. The Department operates a system of reference costs for farm construction to deal with construction inflation. Reference costs for various types of building work are set periodically by the Department and these act as a cap on the amount of grant aid payable. Reference costs are published by the Department and are freely available to applicants and builders. They are reviewed periodically.
