Development of big State building projects ‘outrageously slow’

The development of major State construction projects is “outrageously slow” a meeting of the Dáil’s public spending watchdog has heard.

Fianna Fáil Cork East TD James O’Connor outlined planning issues and bureaucratic hurdles he believes are occurring on road and rail projects at the Public Accounts Committee (PAC).

Secretary general of the Department of Public Expenditure and Reform (DPER) David Moloney responded, defending efforts to ensure value for money in such projects. But Mr Moloney expressed concern for delivery of the Government’s National Development Plan (NDP).

Mr O’Connor asked Mr Moloney if he accepted criticism that the public spending code delays major projects but the DPER official replied he did not. Mr Moloney said major capital projects take a long time to plan and execute and there’s no reason why this process cannot run alongside the timeline for ensuring value for money.

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“We believe that by ... planning it properly at the start, the chance of getting it on time and on budget is much higher.”

Asked if he was concerned at the pace of projects, Mr Moloney replied that the NDP “has coincided with a period of instability initially due to Covid, then due to supply-chain problems, disruption with regard to the war in Ukraine and energy pricing. So we are concerned about the delivery of the NDP.”

Mr O’Connor highlighted last week’s scrapping of the planning permission for the Galway Ring Road after a court case brought by an environmental campaign group was conceded by An Bord Pleanála as he spoke of his own concerns for the NDP.

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He questioned if there would be an analysis of all road projects in the NDP as a result of the case.

Mr Moloney said the Department of Transport is responsible for the roads programme.

Mr O’Connor also raised the issue of delays in developing a metro for Dublin and other projects he said have been affected by “red tape”. He said “we seem to be tying ourselves up in knots when it comes to delivering capital projects” and has heard that rail projects are being delayed as decisions are awaited from An Bord Pleanála.

He put it to Mr Moloney that “it is outrageously slow to develop a capital project in this country”, asking how this can be improved upon.

Mr Moloney replied that the planning process is being reviewed and spending code examined to see “what shortening can be done on that”.

But he also said concerns have been raised, including by the PAC, over value for money on certain projects and “we have a balance to strike”.

Mr Moloney said: “We want to, and will, exploit every possible opportunity to accelerate and to deliver the NDP.”

Business case for new NMH

Earlier, Social Democrats co-leader Catherine Murphy raised the project to move the National Maternity Hospital (NMH) from Holles street to a new building at the St Vincent’s hospital campus.

She told Mr Moloney that a response she got from the Department of Health to a parliamentary question on the business case for the new NMH “would indicate there are some weaknesses” in the plan.

Ms Murphy later told The Irish Times her suggestion was based on the department telling her the business case is being updated as a result of an external review.

Mr Moloney said that DPER is yet to receive the National Maternity Hospital business case from the department but expects to “reasonably shortly” and it will be analysed then.