Metro Safe as Key road and rail projects axed

FORTY major road projects and key rail and Luas projects have been scrapped because there is no money to build them.

Nine new motorway rest areas planned for the M7 (Limerick), M8 (Cork), M9 (Waterford), M3 (Cavan) and N11 (Wexford) have also been mothballed by the Government, an Irish Independent investigation has found. The National Roads Authority (NRA) has run out of money to build the 40 roads, which include bypasses and dual carriageways.

It has been "directed" by the Government not to build the remaining rest areas along motorways, sources revealed.

The axed projects will be confirmed in a government mid-term review of the National Development Plan (NDP), which is expected to be completed within weeks.

The investigation also found:

The Government has almost halved funding for infrastructure between now and 2013, from €39.6bn to €22.9bn.
The NRA will begin just three projects next year, and all are in partnership with the private sector, with monies to be paid back over 30 years.
A series of projects under the NDP also face the axe, including several of the capital's Luas links.
The only projects considered "safe" under the NDP are Metro North, the Atlantic Corridor Road project linking Letterkenny to Waterford, and the underground DART.



Government sources confirmed vulnerable projects included four Metro/Luas schemes -- Metro West, Luas lines from Cherrywood to Bray, Lucan to the city centre and St Stephen's Green to Liffey Junction.

Question marks also hang over the N3 Belturbet bypass in Co Cavan, the N5 Longford bypass, the N22 Tralee bypass and N25 Cork southern ring road junction upgrade.

These are due to go ahead next year "subject to funding being available". Phase two and three of the Western Rail Corridor are also in doubt as the Government undertakes its review of the NDP.

A spokesman for Transport Minister Noel Dempsey last night admitted that "because of the changed economic circumstances, it was now likely that not all of the projects originally identified in Transport 21 will be completed by 2015".

He added: "No projects have been cancelled and Transport 21 continues to provide the strategic framework for capital spending on transport infrastructure into the future."

It is estimated there are 70,000 people employed in big capital projects around the country. There are now concerns that government spending cuts will add to the lengthening dole queues.

The most recent live register figures showed there were more than 450,000 people seeking unemployment benefits -- the highest in three years.

Economic experts argue that good infrastructure is essential to ensure Ireland can create jobs and capitalise when the global economy turns a corner.

This is because Ireland does not have a jobs stimulus package, which is the norm in many European countries.

The Government's own growth forecasts of more than 3.3pc in 2011 and more than 4pc for the following three years are based on capital expenditure of €5.5bn every year until 2014.

But the latest Exchequer figures show that while tax returns are roughly in line with expectations, capital expenditure is already running 25pc, or €600m, below target.

Employers group IBEC described the trend as "worrying". IBEC economist Fergal O'Brien added: "The Government is telling us it is spending money, but we are not seeing it on the ground.

"The capital expenditure programme is our equivalent of a job stimulus.

"It certainly seems like the Government is cutting spending and the big question is what happens when big programmes like the already completed Aviva Stadium finish up. Where will the growth be for the next two years and where will the jobs come from?"

He added that, with tender prices down 30pc, the Government would get good value if it was spending money on capital projects that were needed, like roads, schools and hospitals.

a tricky tightrope, page 25

- Treacy Hogan and Ailish O'Hora

Irish Independen