Olivia Mitchell
Ceist:70 Ms O. Mitchell asked the Minister for Finance his views on whether a review of the performance of the NDP would now be timely. [7079/05]
Amharc ar fhreagraThursday, 3 March 2005
Ceisteanna (71, 72)
Bernard J. Durkan
Ceist:112 Mr. Durkan asked the Minister for Finance the extent to which he views the national development plan being achievable within budget and on time; the financial implications; and if he will make a statement on the matter. [7423/05]
Amharc ar fhreagraFreagraí scríofa
I propose to take Questions Nos. 70 and 112 together.
I would also refer the Deputies to my response to Questions Nos. 23 and 82 of 1 February 2005.
A detailed evaluation of the National Development Plan 2000-2006 was conducted by the ESRI in 2003. The evaluation found that the NDP has made significant progress towards its objectives of promoting continuing sustainable national economic and employment growth and of consolidating and improving Ireland's economic competitiveness. In particular, the ESRI found that the NDP will have a sustainable positive effect on competitiveness and the productive capacity of the economy in the long term. It also found that NDP expenditure over the period under review raised the level of GNP by over 7% above what it would have been had the NDP not been undertaken and, in the long run, the level of GNP will be approximately 3% higher. The real rate of return on NDP investment is around 14%. More generally, the mid-term evaluation endorsed the strategy underpinning the NDP and its continuing relevance. Therefore, it is not necessary to conduct a further review of the NDP at this juncture.
Most of the key infrastructure projects are delivered through the economic and social infrastructure operational programme, ESIOP, which accounts for over €19 billion of the total €31 billion spend on the NDP to date. It was acknowledged some time ago that the NDP output targets under some headings would not be achieved and that the cost of the infrastructure programme would be ahead of initial targets. This is due to a variety of factors including initial cost underestimation, re-specification of projects and inflation. By the end of 2004 it is estimated that the Exchequer had contributed almost €3 billion more on the ESIOP than initially planned.
The Government continues to provide investment in infrastructure over the medium term beyond the completion date of the current NDP. The multi-annual capital envelopes for 2005-2009 provide for overall capital investment of €36.3 billion; as a percentage of GNP this is a level around twice the European average. This level of investment will ensure that by end 2006 investment under the ESIOP will be greater than the initial target and will fund a major enhancement of Ireland's economic and social infrastructure up to and beyond the current NDP.