I welcome this opportunity to address the House on the National Development Plan 2000 – 2006. For the benefit of the House I recall the key features of the plan, which was launched by the Government last November. In my forward to the plan I said its vision was to ensure that Ireland will remain competitive in the global international marketplace and that the fruits of economic success will be shared more equally at regional level and throughout society. This vision was reflected in the following key objectives of the plan, namely, to continue sustainable national economic and employment growth; consolidate and improve Ireland's international competitiveness; foster balanced regional development; and promote social inclusion.
Consistent with this vision and objectives, the Government decided it should be an ambitious national plan which was wide in scope, rather than having the drawing down of EU funding as its primary focus. Accordingly, for the first time, the plan included key areas of social infrastructure, such as housing and health.
The ambition of the plan is illustrated by the unprecedented level of funding provided – over £40 billion at 1999 prices. Of this £40 billion just under £36 billion is from domestic sources, the vast bulk of which is from the Exchequer. This level of Exchequer provision is not only a dividend of the excellent management of the economy in recent years, it is also a clear signal of the Government's determination to see the vision and objectives of the plan realised.
Key features of the plan include an investment of about £21 billion in the economic and social infrastructure which, over the period of the plan, will transform the road network and bring about significant improvements in the level of public transport provision; an employment and human resources programme of almost £10 billion with a major focus on education and training for those who are disadvantaged or unemployed; a programme of about £4.5 billion for the productive sector, including an objective over the period of the plan that more than half of all new jobs from future new foreign direct investment projects will be in the Border, midlands and west region; a £15 billion allocation across all operational programmes aimed at promoting social inclusion; an allocation of £6.7 billion in various operational programmes to support rural development; and a minimum target of almost £2 billion for public-private partnership investment under the plan.
The plan also contains significant other features including, for the first time, the devolution of the management of the two regional operational programmes to the regional assemblies for the Border, midlands and western, and southern and eastern regions, respectively; a commitment in the context of regional development policy to the preparation of a national spatial strategy and a reinforced basis for North-South co-operation on foot of the development plans of both jurisdictions.
In summary, the NDP is without precedent in terms of its ambition, scope and level of resources. It is not surprising, therefore, that there was a consensus among social partners and regional interests at the time of its launch that it represented a solid blueprint for tackling the economic and social issues facing Ireland in the early years of the new millennium.
Solid progress has been made in implementing the plan since it was published in November last. The community support framework for Ireland, which sets out the agreed priorities for the use of Structural Funds under the NDP, has been agreed with the European Commission and was formally adopted in July. The CSF reflects the plan's priorities and strategies. Negotiations have effectively concluded with the Commission on the operational programmes.
The employment and human resources development operational programme has been approved and the remaining five operational programmes are expected to be approved by the Commission very shortly. Work is progressing with the special EU programmes body and the Northern Ireland authorities on finalising the peace operational programme for submission to the Commission.
As regards plan expenditure, while progress was relatively slow in the first six months of this year, the quarter to the end of September has seen an acceleration in key areas. In the infrastructure area, expenditure on roads has been noticeably strong. While expenditure in other infrastructural areas has been weaker to date it is still anticipated that overall spend in 2000 under this heading will be very close to the plan's target for the year.
Obviously current escalating costs in the construction sector are a major worry in terms of their implications for the level of resources necessary to deliver the planned level of output under the NDP. It is no secret that the tender prices across the whole range of the NDP infrastructure programme have been higher then when the plan was prepared. There is a limit to which the Exchequer can be expected to compensate for excessive cost increases. Nonetheless, I assure the House that the Government is determined to implement the infrastructure programme set out in the NDP over the period of the plan.
In a scenario of rising costs it behoves us to ensure that all other elements which influence cost effective and timely infrastructure delivery bear positively on the situation. The Cabinet Committee on Infrastructure and Public-Private Partnerships and the cross-departmental team which supports its work have been very active in this regard. The Cabinet committee has received and will continue to receive regular reports and oral presentations from the relevant implementing agencies on progress on the key infrastructural project in the NDP. In addition, the Cabinet committee and cross-departmental team have under ongoing consideration the legal, institutional and administrative obstacles which could impede the delivery of infrastructure under the plan. Among the steps taken to date arising from their deliberations are measures in the Local Government (Planning and Development) Act which will enhance the statutory approval and judicial review process; additional resources for An Bord Pleanála, the NRA and Dúchas have established a code of practice to ensure co-ordination in regard to archaeological issues for major projects; the NRA has also put in place enhanced management procedures which will reduce delivery time for road projects; and a communications strategy for the NDP is being put in place.
The deliverability issue is one of the key considerations behind the NDP communications strategy which is being developed. A key element of this strategy will be to ensure that the public, especially communities directly affected by NDP projects, are fully and openly informed about the NDP. A second key element of the communications strategy will be an information campaign aimed at key international companies in the sphere of infrastructural delivery with the objective of augmenting domestic capacity in this area.
All of us are aware of instances where local controversies have arisen in relation to the impact of infrastructural projects. I do not for a moment wish to deny the right of individual groups and communities to voice valid concerns in relation to the impact of such developments on them. It is very important, however, that we also try to look at the bigger picture and the national interest in relation to these issues. If we cannot provide ourselves with the transport facilities, the proper environmental services, including waste management facilities, and necessary access to energy and communications networks, we will not create the conditions for continuing sustainable economic growth, nor will we assist the objective of a better regional balance in economic development.
For its part, the Government will work to ensure that the proper balance is maintained between speedy delivery of necessary infrastructure and the need to address any adverse consequences it may have on particular communities. It should be noted that there are structures in place to address concerns that may arise in relation to the planning, environmental and heritage implications of infrastructure projects.
We are only ten months into a seven-year plan. Given the scale of some of the infrastructure projects in the plan, it will be some time before sig nificant progress will be visible on the ground. A key factor at present is the need to ensure that implementing agencies are proactively engaged in delivery on infrastructure and that other issues such as construction capacity are addressed. The Cabinet committee is actively engaged on these issues.
The national development plan is a central element in the achievement of continuing sustainable economic growth, a more inclusive society and better regional balance in economic growth. I assure the House that we will be vigilant at the highest levels of Government in monitoring progress on the NDP. I look forward in the future to reporting to the House on a periodic basis on plan implementation.