Plan for State, private sector link on projects

Radical proposals for joint public/private partnerships on a range of infrastructural projects are expected to be brought to …

Radical proposals for joint public/private partnerships on a range of infrastructural projects are expected to be brought to Cabinet today when Ministers meet for their second day-long meeting in a week.

A memo to Cabinet has been prepared by the Department of Finance following a report by an advisory group and an interdepartmental committee.

They were asked to study the feasibility of joint public and private sector funding of major projects. The idea is based on the Public Finance Initiatives adopted in Britain and is designed to prepare for the inevitably dramatic fall-off in EU funding to Ireland.

One major public project, a new prison at Portlaoise, is being built on a private basis and, on completion, will be leased back to the State by the developers.

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The prison is the biggest to be constructed in the State, and is being built by a west of Ireland company, Henry Rourke, at a cost of close to £30 million. The builders meet all the up-front costs and the State has no involvement in funding the project.

However, once finished, the State will pay the developers a specific fixed amount every year over a pre-agreed period. After this time, the State will assume ownership of the institution.

The Government decided six weeks ago to establish two groups - an inter-departmental body and an advisory group made up of representatives of organisations such as IBEC, the CII and the National Roads Authority - to investigate the possibility of joint investments.

They were asked to report back on the practicalities of such a development within weeks rather than months.

It is envisaged that the building of roads and the development of land for housing would lend themselves particularly to such joint ventures and the proposals are expected to be welcomed by the Government.

Meanwhile, the Government is also expected to clear the establishment of a new Disability Board to replace the current National Rehabilitation Board in order to unite different areas of policy under one umbrella.

Ministers are expected to deal with up to 34 items on the agenda over seven hours in an effort to clear the way for the summer break. Ministers met in a similar session last Monday to deal with budgetary plans for December.