Dáil Éireann Debate, Thursday - 2 May 2024
85. Deputy Bernard J. Durkan asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the extent to which progress on the national development plan remains within expectations; whether any measures are needed to ensure the meeting of targets; and if he will make a statement on the matter. [19768/24]
View answerI am seeking an up-to-date position on the strategic development requirements in education, roads, transport, agriculture and drainage, whether arterial or otherwise, and the degree to which it will be possible to meet the targets within the time identified.
As the Deputy knows, we have a national development plan of €165 billion over the coming years, which was published early in the lifetime of this Government. We have added to that with the allocation of a further €2.25 billion between 2024 and 2026, which follows the conclusion of more than 30 meetings between me and ministerial colleagues. In 2024, we now have €13 billion available; in 2025, €14.35 billion; and in 2026, €15.46 billion, one of the highest levels of capital investment as a share of national income in the European Union.
To deal with the thrust of Deputy Durkan's question, in terms of the challenge that we have had in recent years and the amount of capital funding now being spent, we put those days behind us towards the end of last year. Certainly, as I look into 2024, I am very confident that all Departments are very close to using all of their capital allocations. I can see that is the case so far in the first quarter of the year, where capital spending is up very significantly in a number of Departments compared to a year ago. What we have tried to do is bring to life what that capital spending can look like, not only through the reality of schools and hospital extensions being built but also, for example, through the publication of annual reports. Yesterday a new tracker was republished that allows us to see a visual representation of the country on a website. If you put in your eircode, you are able to see what projects are being delivered near you by the State to make progress on all of the things on which we need to make progress. If Deputy Durkan has a moment, he should have a look at it. I think he will find it a very clear way of sharing information with interested citizens.
I thank the Minister and welcome his reply. I am thinking also of the most urgent requirements that have been urgent for a number of years such as, for instance, the Derry road which was mentioned in respect of another tragic accident overnight. There are several other projects like that, which we have talked about and where we put forward the various reasons they are an urgent necessity. While I am reassured by the Minister's affirmation on this area, what are the likely impediments to speedy progress and to what extent has the Department identified them with a view to resolution?
In terms of speedy progress, I have identified two matters. The first one is our efforts to ensure that we have enough companies tendering for public service contracts so that we have an adequate level of competition within the tendering process to allow key projects to go ahead. The second relates to the continued challenges we have with cost-price inflation. We are not seeing the surges in the delivery of projects that we saw in recent years. The cost of projects is now far higher than it was before inflation surged, which creates challenges in the delivery of projects. I expect the further €2.25 billion that we have allocated will go a long way towards dealing with that. I have identified those two factors as the key challenges we continue to face.
I again thank the Minister and note his warning in that regard. I wonder if it is possible to take any steps to avert, in so far as possible, the possibility of interventions or obstacles that might lead to delays of any nature.
I thank the Acting Chair for letting me contribute on this very important question. In County Mayo we see lots of delays in projects that were promised, especially schools and hospitals. We have the likes of Davitt College and Ballinrobe school, on which I hope there will be announcements soon. In addition, there are outstanding projects like the Educate Together school in Castlebar and Holy Trinity school in Westport. What is happening is that the schools have to refuse places to children. We have had an increase in population in these areas and we just do not have the capacity, so the educational opportunities are constrained. I would like an assurance from the Minister's that projects are not being delayed because of inflation and that hospital projects at Mayo University Hospital, Belmullet Community Hospital and Ballina hospital are not delayed either. Are they being run through the Department? I am also concerned about road projects such as the R312 project in Mayo. I know there is a lot there, but people were under the impression that these projects were going to be delivered and now it appears that they are delayed.
There can be a number of factors behind a delay in a project. I highlighted to Deputy Durkan what in my experience are the two key reasons. I will make the general observation that there is always a demand for more projects to go ahead than there is funding available at any given time. All Ministers want to be in a position to spend more and to allow many more projects to go ahead that they and their communities want to see happen. Even with the huge increases in capital expenditure that we have, and that we have planned, at times there will always be more projects for which there is a good case for them to go ahead than there is money available for them. I make that general observation because I must be honest with the House and acknowledge that it is a key issue that Ministers continue to raise with me. That is why what I have tried to do is increase capital expenditure year by year so that we are able to get more done.
The two issues to which I referred in response to Deputy Durkan, namely, tendering and the impact of inflation, continue to be challenges. I hope at least the latter will be alleviated by the allocation of a further €2.25 billion for this year and the coming two years.
I thank the Minister for his response. It is very important that the projects that are promised and announced are delivered because there is an expectation in that regard.
