We use Google Analytics to see which pages are read and how the site is used, so we know what to improve. This only runs if you accept. See our privacy notice for details.

Dáil
‹ Questions on Promised Legislation

PPP risks and school projects

Summary

Deputy Boyd Barrett argued the Carillion collapse showed PPPs were risky for schools, housing and infrastructure and called for a debate. The Taoiseach said debate timing was for the Business Committee, defended the model as sometimes useful, and stressed that the State had not yet paid over the money and owned the schools.

The collapse of Carillion calls into question not just the wisdom of public private partnerships, PPPs, in terms of the five schools affected and the Carlow Institute of Further Education. It also gives rise to questions regarding a range of commitments in the area of school-building, house-building, social housing in particular and capital infrastructure projects as to whether the PPP model is an accident waiting to happen rather than an efficient way to deliver these vital projects. I endorse the call by Fianna Fáil and others for a vote on this, although it is worth noting that as recently as last May, Fianna Fáil was saying that the Government was not being ambitious enough in taking up PPPs. The Labour Party also supported this in terms of the school programme-----

Comment on this

We put a 10% cap on it.

Comment on this

That is right. The Labour Party, when in government, signed off on the contracts for these schools.

Comment on this

We need a serious debate about the wisdom of using PPPs to deliver housing, schools and vital infrastructure-----

Comment on this

The Deputy's time is up.

Comment on this

-----because, as we have seen with McNamara Construction and with the schools in question, PPPs are an accident waiting to happen.

Comment on this
Leo Varadkar The Taoiseach Fine Gael

The timing of a debate is a matter for the Business Committee. To reply to the Deputy's substantive point, however, the Minister for Education and Skills, Deputy Bruton, answered that very well. If these schools and the college of further education had been procured by traditional means, namely, a simple contract with a private construction firm, it is equally possible that said firm could have gone bust.

Comment on this

Who is going to manage the schools? This is not just about construction.

Comment on this

Management companies will do so to an extent.

Comment on this
Leo Varadkar The Taoiseach Fine Gael

Companies of all types can go bust and as the Minister for Education and Skills pointed out, we are in a more favourable position because we have not paid over the money yet, and we have ownership of the schools. I am often a sceptic when it comes to PPPs. There is a role for PPPs to provide infrastructure in different ways. We built almost all our intercity motorways by means of PPPs. Had we done that by traditional methods, it would have taken very much longer. The party opposite made the right decision in doing that-----

Comment on this

I thank the Taoiseach. His time is up.

Comment on this
Leo Varadkar The Taoiseach Fine Gael

-----but PPPs are certainly not a panacea to everything. They involve risks and we need to be wise in respect of them.

Comment on this