McCreevy sets out priority for first class road network

Priority will be given to the development of a first class road network in a proposed programme of private sector involvement in meeting public infrastructure needs the Minister for Finance, Mr McCreevy, has said.

Mr McCreevy, who is a strong supporter of the concept, said the Government has agreed to an urgent and in-depth evaluation of the potential for greater participation of the private sector in developing public infrastructure.

"The increasing weight of infrastructural investment which will be required in the future, coupled with the Government's commitment to fiscal restraint, has presented an opportunity to seek other ways of financing costly capital needs," Mr McCreevy said.

An inter-departmental group has been established to develop criteria for, and advise on, the issues arising in implementing private sector involvement. The group is to submit its initial report by the end of June. The National Roads Authority and the National Treasury Management Agency are represented in the group, along with the Departments of Finance, the Taoiseach, Environment and Local Government, Education and Science, and Public Enterprise.

Mr McCreevy also established an informal advisory group, which includes representatives from the Irish Business and Employers' Confederation, the Irish Congress of Trade Unions, the Construction Industry Federation, and Forfas.

He pointed out that EU transfers to Ireland will start to fall after next year, while the economy will continue to have major investment needs and infrastructural deficiencies. At the same time, the Government will have to abide by the rules of the Stability and Growth pact, an element of EMU which requires that budgets are kept in balance or in surplus in normal economic conditions.

"Preparations should commence now to restructure our investment programmes," Mr McCreevy said. "It is my aim to encourage commercial investment to accelerate improvement in national transport infrastructure and Partnership 2000 also expresses Government support, in principal, for Public Private Partnership in construction.

"The Government believes that investment in road infrastructure is vital, not only to decrease congestion, but also to help lower transport costs, increase the security of supply and improve safety." Priority will be given to the development of a first class road network, with self-financing and other toll road projects.