Dáil Éireann Debate, Thursday - 26 January 2017
18. Deputy Dara Calleary asked the Minister for Public Expenditure and Reform if he will provide details on the capital review which is due in 2017; the timelines involved; if he will be inviting submissions on the capital review; and if he will make a statement on the matter. [3425/17]
Amharc ar fhreagra19. Deputy Thomas P. Broughan asked the Minister for Public Expenditure and Reform if he will report on his preparations to publish the capital review alongside the 2017 mid-year expenditure report; the level of capital expenditure necessary by 2021 to upgrade Ireland's infrastructure urgently; and if he will make a statement on the matter. [3281/17]
Amharc ar fhreagra33. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform the extent to which he and his Department have undertaken any audit in respect of infrastructural requirements such as housing, water, roads and or sewerage treatment facilities requiring urgent investment with a view to determination as to the way such investment might be undertaken as a matter of urgency thereby facilitating the provision of vital infrastructure and economic progress notwithstanding compliance with public spending guidelines; and if he will make a statement on the matter. [3420/17]
Amharc ar fhreagraThis morning the Central Bank issued its most recent report, reducing growth forecasts on account of Brexit. What work is under way in the Minister's Department on the impact of Brexit on expenditure plans or the likely impact of Brexit on the budgets for 2018 and 2019?
May I confirm that Question No. 18 relates to the capital review?
I apologise. I spoke to the wrong question.
I will answer on the capital review. The capital plan Building on Recovery is being reviewed to ensure capital spending is strictly aligned with national economic and social priorities, consistent with the programme for partnership Government objectives. A key goal for the review is to focus available capital resources on investment that can best underpin sustainable medium term economic growth and social progress and enhance Ireland's future growth potential. To answer the earlier question from the Deputy, the impact of Brexit is specifically included in the terms of reference I set for the capital review and the regional consequences for Brexit are recognised in the work that will happen across this year.
The review of the plan will be undertaken in two stages. The first phase will comprise a focused review of priorities aimed primarily at advising the Government in the context of budget 2018 on how the additional funding committed by Government for capital investment should be allocated over the remainder of the period of the plan. This will examine priority areas for investment, consistent with the objectives of the existing capital plan and also reflect the specific investment priorities set out in the programme for Government. The second phase of the review will assess and report on the framework required to underpin longer-term analysis of Ireland's infrastructure planning needs.
Submissions will be sought from Departments and key stakeholders and a public consultation will also be undertaken to inform the review. As part of the process, it is currently intended that my Department will publish output as part of the 2017 mid-year expenditure report, including a stock-take of progress to date on delivery of the capital plan; a macroeconomic analysis that will make reference to Brexit; and an infrastructure demand analysis, benchmarking existing infrastructure being supplied to assess its capability to meet demands as the economy continues to grow.
Will the Minister outline some of the dates for when the public consultation process will get under way and when there will be engagement with the Departments and various stakeholders, local authorities etc.? What role will the new national planning framework have in the context of the capital review? The Minister for Housing, Planning, Community and Local Government, Deputy Coveney, has given an indication that the framework will be restricted to an area south of a line to Galway city and including that area: other areas north of Galway city will not necessarily be included in that national planning framework. In terms of Brexit - that is the subject of my next question - the area that will be most impacted is the Border region. What specific Brexit initiatives will be in the review of the capital plan to assist it?
I have asked the next question consistently. What engagement has the Minister had with the European Commission around state aid and expenditure rules or its commitment to allow for capital expenditure beyond normal rules? President Juncker at the beginning of autumn stated that he wanted to see investment in infrastructure. This can be viewed particularly in the context of the pronouncements from the US relating to capital.
I anticipate we will begin public consultation in a few weeks and local authorities are welcome to make their views known. I have had a role with the European Commission relating to the classification of capital expenditure but the responsibility for what the Deputy seeks sits with the Minister for Finance, Deputy Noonan, in the division of responsibilities between the two Departments. The Minister, Deputy Noonan, has responsibility for engagement with the European Commission with regard to the split between current and capital expenditure and our compliance with fiscal rules.
With regard to regional impact, as I stated earlier I will particularly examine the economic consequences of Brexit on a regional basis. I am particularly aware the north west of our country and the Border counties will be particularly affected by the exit of the United Kingdom from the European Union.
On the capital plan, there was an earlier discussion on public private partnerships. There were 45 extra PPPs proposed for 2017 within the existing capital plan but how many will be met during the year?
I expect all of the PPP commitments we have under the capital plan we have up to 2022 will be met. With regard to those that are due to land across 2017, there is a bundle of primary schools - school bundle No. 5 - due in the education sector. In the transport sector we will see the M17 and M18 Gort to Tuam road. The other significant project is the Dublin City Council waste-to-energy incinerator.
The Minister would agree that the Government has a deplorable record in the provision of capital so going forward with this capital review is urgent. We have heard time and again at the budget committee that we have not even been meeting normal depreciation targets. One only has to go around the country and look at the "R" roads, such as those of the Minister of State in east Cork. The Government has allowed infrastructure to go to rack and ruin so the matter is urgent. I am interested to hear the Government is consulting the European Commission. It is pretty annoying that the likes of Portugal or France are two of the various countries that are allowed to do things when we are not.
The investment in our local and regional road network was increased by 11% this year.
They were in bits.
The Deputy made the charge that we allowed our capital infrastructure to go to rack and ruin. The Deputy clearly has not seen the Luas cross-city project now being built.
That is one item. Has the Minister been on the N32?
I made reference to the Gort to Tuam road a moment ago. It is a magnificent transport project.
That started long before the Minister was around, in fairness.
There should be one voice.
Of course we acknowledge that there are capital needs to be met but this is the reason we are reviewing the capital plan. It is the reason for the additional resources that will be available to the State, assuming a moderate degree of economic growth over the coming years. We have prioritised capital expenditure to benefit from that. We can consider what has been done in housing alone, where €2.4 billion has been committed to investment in public housing. A further €2 billion will be allocated to capital expenditure, assuming growth is inside the parameters we have set. That has been done precisely to address the fact that we need to invest more in maintaining infrastructure and delivering a select number of new projects.
Unfortunately, the time has expired. I gave as much latitude as I could.
May I ask a question on just one point?
You will not be able to get the answer, Deputy.
The Minister is going to answer it. We urgently need it. As Members are aware, 40% of our air connection is with the UK. In the context of Brexit, is the Minister going to deliver metro north under this programme?
Thank you, Deputy.
The Minister wants to answer.
The Minister will correspond with you, I have no doubt, in that context. Time has now expired. It will be a special note for northsiders.
