MEETING OF SOUTH DUBLIN COUNTY COUNCIL
Monday, October 10, 2011
HEADED ITEM NO. 19
HEADED ITEM: M. Maguire - Corporate Services
UPDATE ON METRO WEST PROJECT
REPLY:
Minister for Transport, Tourism & Sport Leo Varadkar recently confirmed that he has suspended the planning process for Metro West as funding to construct the new railway will not be available in the foreseeable future.
In his press release Minister Varadkar said: ‘Acting on the advice of the National Transport Authority (NTA), I have instructed the Railway Procurement Agency to withdraw its application for a Railway Order from An Bord Pleanála’.
“From this weekend, I have suspended all planning works for Metro West and the An Bord Pleanála oral hearing which was due to commence next month will now not proceed.
“Metro West was to be procured as a Public Private Partnership (PPP). However, a significant Exchequer contribution would also have been required. The successful awarding of a major PPP contract involving private funding is challenging at any time but particularly in current circumstances. No major PPP project has secured funding since the financial crisis began three years ago. Until financial credibility is restored, the international debt funding market will be reluctant to lend funds to finance projects in Ireland, the repayment of which is ultimately dependant on the State. Moreover, the Exchequer will not be able to make its contribution to the cost in the foreseeable future.
“Metro West has always been considered a long-term project and many of the new communities that it will to serve have not materialised due to the collapse in home building.
“This does not mean that Metro West has been cancelled. However, with very limited funding available for capital projects over the next few years, I did not consider it to be a good use of taxpayers’ money to advance Metro West any further through the planning process, as I do not know when we will be able to build it. By the time we are able to build, it’s likely that planning and environmental laws will have changed and railway technology will be different. So we would then have to go back over it all over again anyway.
“Metro West will be examined again at a future stage when the country’s finances have improved."
Following the above decision the implications for both the proposed line of the route and the S 49 scheme for Metro West have been discussed with the National Transport Authoity and the Railway Procurement Agency. The NTA have written to South Dublin County Council, (letter dated 5th October attached), detailing the position. It is stated therein :
"...we advised the withdrawal of the Metro West scheme from the then current approval process with the intention of its resubmission at an appropriate time closer to its construction commencement date............." However, the letter goes on to state : "This withdrawal of the planning application does not mean that Metro West has been cancelled. Instead, the project remains part of the overall strategy for an enhanced public transport network for Dublin and it is anticipated that the project will proceed to implementation at a future date when circumstances permit. In the interim, it is requested that the route remains protected and available for the subsequent development of the scheme."
Specifically in relation to the Section 49 Scheme in respect of Metro West the letter continues :
"Since a likely resubmission date for this project to An Bord Pleanala is not yet known, the general practice to date would suggest that it may be appropriate to suspend the operation of the Metro West Supplementary Development Contribution Scheme until the timing of such resubmission is determined. When a likely date for a re-application is available, the supplementary contribution scheme can then be reactivated at that stage. Should this suspension be put in place, it would also be recommended that the levies collected and retained to date under this scheme be reimbursed to the relevant planning applicants.
While it is recognised that a decision on the temporary suspension of the Metro West Supplementary Development Contribution Scheme is a matter for the elected members, we confirm that the National Transport Authority would have no objections to such a suspension on the basis set out above. "
By letter dated 6th October (also attached) the RPA have also expressed the views outlined above.
In accordance with the letters from the NTA and the RPA it is recommmended that the members adopt the following resolution :
That this Council RESOLVES to suspend the operation of the Metro West Supplementary Development Contribution Scheme until the timing of the resubmission of the Railway Order application closer to the construction commencement date is determined and that the levies collected and retained to date under this scheme be reimbursed to the relevant planning applicants.