Dáil Éireann díospóireacht -
Tuesday, 3 Jul 2001

Vol. 540 No. 1

Written Answers. - Roads Funding.

Bernard J. Durkan

Ceist:

363 Mr. Durkan asked the Minister for the Environment and Local Government if current and anticipated inflation rates have a bearing on the roads programme as outlined in the national development plan; and if he will make a statement on the matter. [20179/01]

Bernard J. Durkan

Ceist:

364 Mr. Durkan asked the Minister for the Environment and Local Government if he anticipates previously unforeseen difficulties regarding the completion of the roads development plan, as identified in the national plan; and if he will make a statement on the matter. [20180/01]

Minister for the Environment and Local Government (Mr. Dempsey)

I propose to take Questions Nos. 363 and 364 together.

The national development plan, which sets out a strategic framework for the development of economic and social infrastructure over the period 2000 to 2006, provides for investment totalling £5.3 billion – 6.7 billion – in the national road network. Satisfactory progress is being made by local authorities and the National Roads Authority on the detailed programming of the work required and in the planning, design and implementation of individual national roads projects. Total overall expenditure on national roads improvements amounted to £481 million in 2000 – 17% more than forecast in the NDP. Projected expenditure in 2001 is £620 million plus £40 million on maintenance, with 20 projects expected to open to traffic and work due to start on a further 23. Good progress is being made on the planning and design of the upgrading of five major inter-urban routes and their completion by 2006 – by 2007 in the case of Waterford – is on schedule.

The availability of sufficient cost effective construction industry capacity and the efficient operation of the CPO system will be critical to the efficient and effective delivery of the national roads development programme.

The position in regard to the construction industry is that construction cost inflation generally averaged 12.5% over the past two years. If sustained, this level of inflation will have implications for the timely and cost effective delivery of the NDP infrastructure programmes, including the roads development programme. A number of measures have been taken to expand construction industry capacity, including an action plan on construction industry capacity, the greater use of PPP and the promotion of greater participation by foreign contractors. In addition the NRA is pursuing a range of measures to moderate cost increases.

The position on land acquisition is that my Department and the NRA have been in discussion with the IFA in regard to the operation of the CPO system and compensation for land. Discussion are continuing in an effort to resolve the issues involved.