[Colm Moore]

http://www.businessandfinance.ie/cat...sp?itemID=3224

Stalled transport projects could deliver competitiveness - Chamber
18 November 2010 9:24

Given current Exchequer constraints Transport 21 projects need to be delivered with the support of private financing, according to Dublin Chamber of Commerce.

Speaking at the Dublin Chamber’s Annual Transport 21 briefing, Dublin Chamber President, Peter Brennan expressed serious concern that 17 of the 32 Transport 21 projects in Dublin are delayed. If delivered, he argued, these would improve the competitiveness of Ireland in general and Dublin in particular.

“Despite the economic climate the more rapid delivery of Transport 21 projects needs to be prioritised as it will facilitate a more sustainable economic recovery,” said Mr Brennan. “We are concerned that the Government are not progressing any new transport projects at the moment. While it is obvious that economic conditions do not allow for the Government to make major spending, they are we understand not making any decisions on projects that could be delivered through private financing.”

Earlier this year the Department of Finance reviewed the capital expenditure programme which prioritised projects in the context of reduction in the level of capital spending. Dublin Chamber is concerned that in addition to this reduction that the capital spending is exaggerated because the review transfers certain current spending items to the capital side, such as roads maintenance.

“Ireland’s capital assets are an essential component of the competitiveness of the economy,” said Mr Brennan. “Yet Ireland remains far behind our European and OECD counterparts in terms of infrastructure provision, despite high levels of investment in recent years. These investment projects often have the added benefit of being employment rich in nature. It is important that we all recognise that the Metro North and DART Underground projects - which should be built at the same time - will alleviate capacity constraints in the Dublin rail network.”

The challenge for Government is how to fund the capital expenditure programme. Mr Brennan believes that the private sector could be used to meet most of the financing needs. “The use of private finance through the Public Private Partnership model allows the Exchequer to spread the cost of infrastructure over a longer time frame that is more in line with the usage of and benefits from the investment. Projects procured under this model are being delivered faster and ahead of schedule whilst significant long term responsibility and risks are being passed in a value for money manner across to the private sector. It is a proven procurement and funding model and more projects in our view could and should use this route.”

Mr Brennan was speaking at the Dublin Chamber’s Annual Transport 21 Briefing, which included speakers from the National Transport Authority, the Railway Procurement Agency, Irish Rail, Dublin Bus, Bus Eireann and the National Roads Authority.