The purpose of the meeting is consideration of the Revised Estimates for the Department of Transport, Tourism and Sport for 2015. The Dáil ordered that the following Revised Estimate for public services be referred to this committee for its consideration: Vote 31 - Transport, Tourism and Sport. I welcome the Minister for Transport, Tourism and Sport, Deputy Paschal Donohoe, and his officials. A draft timetable for the meeting has been circulated. Is the timetable agreed?
Vote 31 - Transport, Tourism and Sport (Revised)
I must leave the meeting at 10 a.m. and I am aware Deputy Ellis must also leave then. If we have not concluded matters by then perhaps we could suspend the meeting and return at another time. Could that be done?
It would be very difficult to arrange given the difficulty in fitting in with the Minister's timetable. We had better commence the discussion and see how we get on. Briefing material providing details of the Revised Estimate was circulated to members. I propose that the following arrangements will apply. The opening statement has been circulated but perhaps the Minister wishes to read it out.
Thank you, Chairman and members. I will make some brief opening comments on the 2015 Estimates. As members are aware, the tourism and transport sectors have proven track records in creating employment and driving growth in the economy. Sport also has a vital economic role to play along with the obvious societal benefits. My Department’s investment programme is underpinning the efforts. With an overall budget allocation of €1.6 billion, we have the funding to target investment in the transport network, support the tourism sector and promote sport to drive the country forward.
At €1.8 billion, last year was an exceptional year in terms of Government investment in those sectors. A significant portion of the allocation was once-off stimulus funding which was made available through the sale of State assets. Some of the stimulus funding forms part of the 2015 budget allocation. A further Supplementary Estimate of €162 million in December enabled us to target funding particularly in the public transport sector and the benefits of the investment will be apparent this year.
At €910 million, I am pleased to say that my baseline capital funding for 2015 represents a substantial increase on the €818 million that was originally programmed for 2015 under the previous capital framework. I am also confident that this baseline will continue on an upward trajectory in the coming years in order that we can restore capital investment, particularly in land transport, to pre-crisis levels. That is vital to ensuring transport supports rather than impedes economic recovery. For tourism, it means we can build on the momentum achieved through initiatives such as the Wild Atlantic Way. For sport, it means we can make real progress towards the ambitious plans for a world class sports infrastructure.
My baseline for current expenditure is reduced by 2% in line with continuing fiscal and budgetary consolidation measures across Government. However, I have managed to safeguard key areas of spend, particularly public transport obligations, PSO, subventions for public transport and sport. Savings elsewhere are being achieved through leaner administration, IT efficiencies and greater recourse to other financing options.
Within this overall allocation, my Department will invest €967 million throughout the country in capital projects this year. That will fund the national roads programme to the tune of €326 million, including continued progress on the PPP programme completion of the N7 and N11 from Arklow to Rathnew. This PPP project also includes the provision of a new motorway service area on the Gorey bypass. Construction work will commence on the 57 km motorway and dual carriageway PPP project on the N17 and N18 from Gort to Tuam.
The local and regional roads programme will receive €250 million for maintenance and minor schemes. The programme is essential to the economic development of rural communities and to ensure regional connectivity. Public transport will receive €270 million in capital funding – ensuring continued progress on Luas cross city. Funding will also support the city centre re-signalling programme to facilitate the opening of the Phoenix Park tunnel, address congestion bottlenecks and improve the efficiency of the rail network. A rolling programme of PSO bus replacement will continue to be funded.
There will also be bus priority measures and improvements to bus stops and shelters. Equally, progress is continuing on the enhancement of the Leap card, with additional private bus operators joining the scheme. An interface to support use of mobile phones to read and top up Leap cards, will also be developed.
The capital envelope for sport will exceed €66 million in 2015, including carry-over from 2014. This will allow significant progress on the national sports campus and in particular on the new national indoor arena. It will also provide for a new round of sports capital funding which is a vital source of investment for local sports clubs throughout the country.
Tourism will also benefit from more than €18 million in capital funding. This will ensure the existing suite of capital projects are delivered, including the Dublin heritage trail, the Kilkenny medieval mile and Killarney House. It will also ensure significant progress on the Wild Atlantic Way.
The current spend allocation of €674 million this year is a reduction on 2014 of around 2%. This is in line with the Government's fiscal consolidation objectives and, in the case of my Department, the reduction will be delivered on the back of greater efficiencies and leaner administration rather than service cuts. I have been able to honour my commitment to maintain the public service obligation levels for public transport companies at €210 million. I am also pleased that the 2014 level of current funding for sport has slightly increased. As both myself and my colleague, the Minister of State, Deputy Ring, have reiterated, investment in sport has hugely positive social, physical and mental implications, both for the individual and for broader society.
I am keenly aware of the importance of regional airports. The regional airport allocation is maintained at 2014 levels, which is €12 million and this will ensure continuation of this critical programme for regional development.
Another vital area of my Department's work is the maritime transport programme and it will be maintained at similar levels to 2014. This will ensure the Coast Guard level of service is maintained.
This Revised Estimate allocation is geared towards an economy in recovery. We do not have all the funding we need to progress all the projects we would like but we are moving in the right direction. I will continue to ensure that what funding is available is targeted to maximise jobs and economic growth. I am more than happy to answer any questions from members.
I note the Minister's tight time schedule and that of the Deputies. I will begin with questions from members and I propose we deal with programme A, civil aviation.
I do not have any questions on that particular area of civil aviation subject, of course, to the discussions we have had about the sale of Aer Lingus which has been well vented in other areas.
I do not have any questions.
We will proceed with programme B, land transport.
I have raised a matter with the Minister on a number of occasions, namely, the issue of the care and maintenance of the road network. The Minister is well aware of the constraints on the budget. The reductions made over recent years have required local authorities and the NRA to lengthen the period of time in which to carry out the standard care and maintenance programme. The greater the time between standard maintenance of the road network, the bigger the problem becomes. I ask the Minister to give us some sense of how the Revised Estimates will help to address that problem. The road network deteriorates over time and based on usage. While savings can be achieved annually, certain economists are of the view that at a future time in order to bring the road network back to the appropriate standard, whatever short-term savings are achieved only multiply by a certain factor the investment needed at a later stage.
It would be appropriate to mention that we have seen a deterioration of our road safety results and an increase in the figures for fatalities and injuries on the roads. I do not want to be dogmatic about the causes, which are numerous, but a deterioration in the road network could potentially be construed as being a problem which feeds into that issue.
I have a question about the PSO subventions. The Minister stated that he will maintain them at the same level. I ask if he can ensure this can be achieved. It is a vital service.
I thank the Minister for his presentation to the committee. The Tuam-Gort project has begun. I served on the county council for a short time. I do not understand why a five-year plan is not undertaken with regard to NRA routes. The council was told the budget was a yearly allocation. However, I know of many areas where there may be 10 km of road which is all twists and turns and which could be dealt with over a five-year period in 2 km sections. There should be a forward plan so that people would know that in five years time the road would be fixed from one end to the other. I ask the Minister to take this suggestion on board. I know he must work within his annual budgets. However, in my view, forward planning would not hold up jobs because a problem arising in section A would mean that work could continue in section D, if that was ready.
I will deal with the points raised by the Deputies. I refer to Deputy Dooley's point that a reduction in maintenance of the road infrastructure would result in an increase in the future cost of maintenance. This analysis could also apply to the rail network and his point could be applied to any fixed network with high capital costs. That is the reason that, over time, we will need to rebuild the capital spending profile of my Department because those needs will be there. I saw a clear example of this on last Monday and I mentioned it to Deputy Ellis in the House. I was in Donegal on Monday and the point was made to me that out of 6,000 km of road network in Donegal, only a very small part is made up of national roads while the remainder is made up of local and regional roads. County Donegal has between 4,000 and 5,000 bridges. When the annual funding is reduced the needs are still there and they will have to be addressed in the future. It is my objective, over time, to rebuild my Department's capital spending in order to address this point. Our projected spend for this year for regional and local roads is €250 million. Leaving aside the one-off funding made available last year for stimulus funding or to deal with storm damage, we are in a good position to begin but I fully accept that in the coming years either I or my successor will have to build on that figure to meet existing needs.
I do not mean to throw a question to the Minister which he may not be in a position to answer but he may be in a position to provide the information to the committee at a later stage. If maintenance were to be carried out in line with the general expectation of the NRA, what capital funding would be needed this year? The Department has €250 million available. What would be the appropriate figure to maintain the road network?
I am unable to give the Deputy an exact figure for regional and local roads alone but I will give him another figure that will demonstrate the point he is making.
We have work under way which is referred to as the strategic framework in land transport. It is a long title for work that has a simple but important objective, which is trying to understand the level of funding we should have in place to support the current level of road infrastructure and to have the ability to expand it in future. The phrase used by economists to describe this is "steady state equilibrium", which is how much money is needed to fund what we have. We estimate that it would require approximately €1.2 billion to deliver all current form of land transport. Of the total capital spend in the Department-----
Does that include public transport networks and systems such as fixed and rolling stock?
Yes, everything that is land transport-based. Regardless of what way the figures are cut, we need to rebuild our capital spend not just to fund what we might need in the future but to maintain what we have in good condition, as I have outlined in different departmental publications and in my budget contribution.
This relates to Deputy Fitzmaurice's question regarding how we do this. For example, the NRA has a multi-year programme for projects it is involved in. It says it will do X this year, Y next year and complete it the year after. A number of projects are supported in this way. As the Deputy said, because the Oireachtas approves funding from year to year, that is a legal requirement we must meet and the councils work within that framework. I hope later this year a multi-annual capital plan will be published, which will outline notionally the amounts we will have available over the next few years. It will always be open to the incoming Government to change that, as would be its right, but we want to give clarity, for example, to the National Roads Authority and local authorities on how much we hope would be available over the next few years. It would give staff more certainty in planning their funding. That has not been possible over recent years for all the reasons about which we are aware, but that will change.
It would be helpful if the Minister could provide that breakdown in due course to the committee.
I will. I did not reply to Deputy Ellis's question. He asked whether the commitment I made regarding PSO spending this year will be delivered, and the answer to that is "yes".
Can the community schemes under the Department's remit be broadened? There is not a significant take-up under them. For example, in some areas people have to contribute to the maintenance of a local road even though it is classed as a council road. Can the scheme be broadened in order that roads that were not taken in charge could be funded by the people doing work on them, as used to happen under the local improvements scheme, LIS?
The Deputy is referring to the community improvement scheme, CIS, and the LIS. This is one of the funding streams that has been affected by the changes that have taken place. Once the Revised Estimates have been approved, we will have an understanding of the total amount available to us and how we can allocate that. I want to examine the CIS, in particular. I will be open with the Deputy because I do not want to create expectations I will be unable to meet. In previous years, the CIS was funded through a separate, additional amount that was made available to local authorities to spend. Where we are likely to go is within the total amount I have available is to see whether there is anything we can do with how the CIS was set up that might deal with the point the Deputy is referring to. I am clear, having met local authority staff and public representatives throughout the country, that the CIS can make a major difference to the operation and safety of local roads. If I can do something to make the scheme more widely available this year within the constraints I face, I would like to do so. I will look at that in the next fortnight.
We will move on to programme C - maritime transport and safety. Are there any questions?
I assume the new maritime safety programme is fully in place with the new helicopters deployed at all centres.
Yes, the contract for helicopters is in place.. We also hope in the coming period to publish a new maritime safety strategy, which will build on work the Marine Casualty Investigation Board has done on the causes of fatalities at sea. We will look to publish a strategy for the coming years in this regard. It will build on the learning we have gleaned in respect of road safety.
A number of Coast Guard facilities had to be built. The one in Doolin is under construction. Another facility was due to be completed in another location.
Work on the facility in Doolin will be completed soon and the Greystones facility is under way.
Is there a completion date for the one in Doolin?
I expect that to be completed in the next few months and I assure the Deputy he will be notified of that.
I am sure. There will be intense competition for the doughnut.
I will ensure the Opposition spokesperson on transport and marine safety is made aware of it.
We will move to programme D - sports and recreation services.
Is another round of sports capital programme funding expected this year?
Yes. We announced that during the budget debate last October. I expect the announcement will be made by the Minister of State, Deputy Ring, in the next few weeks.
Will there be an application process?
When does the Minister expect to announce the results?
The Minister of State will announce the process and the total funding that will be made available in the next few weeks.
Will the programme for renovating swimming pools be announced at the same time or will it be separate?
That will be separate.
Like the programme last year, it will concentrate on Mayo.
Great care is taken to ensure all the money is well spent and can be stood over.
Nothing was provided through the dormant accounts fund for sports measures in 2014 but an allocation has been made for this year. Why is that?
The reason for that is it is an EU initiative. We are working with the Department of the Environment, Community and Local Government on this funding stream to ascertain if there is an opportunity to spend that money on sports and sports capital projects.
There is a problem in Roscommon regarding helicopters bringing people to hospital at night. Is there any link-up with the Department of Defence and the HSE to provide a facility at night? Everyone does not get sick while it is bright.
We need joined-up thinking to solve this problem. Is this happening?
The objective of the helicopters referred to in the Revised Estimates is coastal safety and to deal with what can happen at sea. They are used also for offshore transport from islands and can be used in the case of a medical emergency. Deputy Fitzmaurice asked about helicopter services for medical emergencies and I understand that in inland counties such services would be provided by the Air Corps or the Defence Forces in conjunction with the HSE. The primary role of the helicopters that are referred to in the Vote is coastal safety. There is a requirement to have these helicopters located at particular points in case anything were to happen offshore. We need to ensure we respect that requirement and for that reason the service in inland counties such as County Roscommon is provided by other helicopters.
In respect of the national sports campus in Abbotstown, will the national indoor arena be completed or is there sufficient funding only to continue with the work? Has there been a drop in the sports capital funding? How is the funding of local clubs distributed?
The Minister made an announcement on the drinks industry sponsorship of sport. I think the decision was sensible in light of a shortfall in funding for sports if that sponsorship was lost. It would be ideal if sports events were not sponsored by drinks companies selling alcohol but I think the decision is sensible.
The Deputy raised three points. First, the contract for the national sports campus was signed earlier in the year. I believe construction work will start in the next few weeks. My understanding is that the indoor arena will be open by the second half of 2016. It is a very large project overall, but what I am telling the Deputy is the time the indoor arena will be completed. When the arena is open, the facility will be able to host everything from indoor athletics to equestrian events. It will be an extraordinary facility and will operate alongside what is there already. We will see the FAI and the GAA begin a phased opening of their pitches in the first half of this year. The national pentathlon centre, which is unique in Europe in terms of what it can offer, is located there as well as the aquatic centre. With the opening of the pitches in 2015, the scale of the facility will become apparent. It will be an immensely beneficial development for sport in Ireland. I very much look forward to seeing it.
The Deputy asked whether there has been a decrease in the sports capital programme. Discussions are taking place at present on the level of funding for the sports capital programme that the Minister of State, Deputy Ring, will launch in the next few weeks.
In 2013 the overall capital funding for sport was €13.5 million, in 2014 the estimate is for €23 million and we are estimating that in 2015, it will be €25.5 million. I know Deputy Ellis asked about the sports capital programme itself. I will be able to answer that question soon, but it will be in the context of a further round of sports capital funding from the Government. We announced the first round in 2012, the first time the programme had been put in place since 2008, we then put in place the 2014 programme and I am looking forward to the announcement of the programme for this year. When that happens, it will be the third round of funding put in place since we came into office.
The Deputy's final comment was on the sponsorship of sporting events by drinks companies. The Minister of State with responsibility for sport, Deputy Ring, has been leading on this. If one considers it in conjunction with the Bill the Minister for Health, Deputy Varadkar, has introduced, it will make beneficial changes in the supply and display of alcohol in the country. The current regulations will be put on a statutory footing, which I believe will be an important step forward.
May I make a further point to the Chairman? I am not sure if the committee or individual Deputies have visited the national sports campus recently.
As the Minister was speaking I said to the clerk that we as a committee must visit the national sports campus. I have been there on a couple of occasions. It will be a fantastic facility for the country. The fact, as the Minister stated, that it caters for minority sports which would not be in a position to have funding for world class facilities is significant.
This is an ideal time to visit. If one had visited it last year or in previous years, one would have seen what was being planned or in the early phases, but now one will be able to see where the pitches that will open in 2015 are located, as well as the work on the national indoor arena. This is a national facility. The reason I have been so eager to support it is that its objectives are, first, to cater for elite high performance athletes. One will be able to see where the high performance boxers will live and the other facilities they will have when training. There is the award winning facility, the national diving centre, which is for people who seek to participate in international events.
The chairman and chief executive of the organisation are absolutely clear that the national sports campus has also to deliver mass participation. They have great ideas on how they want to open this facility to the entire country and get everybody who has an interest in sport involved. Regardless of what part of the country one represents, one will see how this facility will be able to provide something for either high performance athletes in their counties and nationally and also for clubs all across the country to participate in national events.
I urge the committee members to go out there in the next few months,
We will finalise our work programme in the next couple of weeks and I aim to include a visit to the campus.
We will now deal with programme E - tourism services.
We are continuing to apply 9% VAT rate to hospitality services. That has been a great initiative in terms of creating employment and the catering industry has benefitted. The number of tourists coming to the country has increased dramatically. Now that we are coming toward 2016, I would like to see more emphasis on the preparation for some of the event that will take place. We need to start on the preparation this year. I hope we will see initiatives that will drive the events that will take place in 2016 because I think it is a very significant period for us.
With regard to the Wild Atlantic Way and the greenway cycle tracks, we are entering a new phase with the track from Dublin to Galway. We should step back a little and listen to the views of people in various areas who do not wish to have farms divided. I encourage the Minister to urge the officials who are dealing with it to take a common sense attitude. At present, resentment is emerging from Athlone to Ballinasloe and Galway, which is not good. In fact, I have met groups of farmers who could help to solve the problem, and perhaps in a more economical way, if people would listen to them. The Minister should take their views on board and work with them, rather than adopt the attitude of saying the Department has compulsory purchase order, CPO, power and can go where it wishes. That will not work, and the farmers have made that clear. I ask the Minister to take that on board when he is dealing with this issue.
I thank the Deputies. With regard to 2016 and the potential for tourism support, as the Deputy is aware the lead Department for that programme of events is the Department of Arts, Heritage and the Gaeltacht. The Oireachtas all-party commemorations committee is obviously playing a central role and I understand it was briefed recently on the current plans.
On the question of how this could be a source of tourism activity, I am treading carefully in that regard. I will be happy to discuss it with the Deputy at another time when the commemoration plan has been agreed and publicised. It is important to respect the solemn nature of what will be taking place and I would not wish to dilute that in any way by seeking to advertise it in the same way as I would, for example, the Wild Atlantic Way or Dublin as a place for people to spend weekends or the way we would support food tourism. The events that are taking place are extremely important for the country, in terms of looking at where we came from and where we want to go. I am clear that any role for agencies such as Fáilte Ireland or Tourism Ireland in that regard would be in a support capacity by seeking to support anything that is already happening, rather than seeking to maximise it or to drive it with a tourism objective in mind. The Department of Arts, Heritage and the Gaeltacht has the lead role in that and when the overall programme from 1916 onwards is agreed with all stakeholders, we will certainly look at it. However, I would envisage us being very much in a support role.
Deputy Fitzmaurice asked about greenways and the views that are developing in that regard. I am aware of that. That point has been put to me not only by the Deputy, but also by other public representatives in the area. I have participated in some discussions with local authorities about this, particularly Galway City Council and Galway County Council. I am also aware that there is a big demand for the roll-out of greenways and the work taking place there at present. It will form an increasing part of the tourism offering not just to international tourists, but also to domestic tourists. It is something we must do.
In respect of the use of CPO and how it might work, I am very clear about the role of CPOs for delivering big road projects or projects such as the Luas line. There is a track record of CPOs playing an important part in making those work. As to their role in respect of greenways, I would expect the use of compulsory purchase orders to be the last tool used in that regard. I am not saying they have no role to play, because they do. If we want to deliver these projects cost effectively and in a timely manner, the availability of the use of CPOs is very important. They might have to be used. However, it is something that should be used after other options have been exhausted, and I have made that point to the local authorities involved in this. I will monitor what is happening with the route to which the Deputy referred. I am anxious that these greenways should be something that the vast majority of people are willing to support, as is the case in other parts of the country. In fairness, I believe that intent is there. I have conveyed those views to the local authorities and will monitor what happens with it because I am aware of the point made by the Deputy.
Section F is appropriations-in-aid and administration. There are no comments or questions on those two areas from the Deputies. I thank the Minister and his officials for assisting the committee with the consideration of the Revised Estimates.