Tag Archives: bail-out

Guten Abend, meine Damen und Herren

I regret that I do not know German, so I’m relying on Google Translate, but I thought I’d greet those who have been visiting this site from German-language sites in the past week, mostly to read about the (Ulster) Canal to Clones.

It is good that German visitors are interested in the canal, because I suspect that the German taxpayer will be paying for it. The Greeks may have to borrow to bridge the gap between their taxes (too low) and their public spending, including pay and pensions (too high). Ireland has that problem too, as well as a banking problem, but it is also borrowing to invest … in a canal. A canal that will never meet its running costs, never mind recouping the construction cost, and that will not generate enough external benefits to justify the spending.

Arthur Young wrote this about Irish canals in 1780:

There is such a want of public spirit, of candour and of care for the interests of posterity in such a conduct, that it cannot be branded with an expression too harsh, or a condemnation too pointed: nor less deserving of severity is it, if flowing from political and secret motives of burthening the public revenues to make private factions the more important.

Other news

My comment has still not appeared on the Clones Regeneration Partnership blog.

Cost-benefit analysis

Here is an extract from what Mr Cowen, then Minister for Finance, said in Dáil Éireann (Volume 631) on 15 February 2007 about the National Development Plan:

Value for money is also a central theme in the delivery of the planned investment. Most of the capital projects, notably in the key area of transport, are being delivered on or below budget and, in some instances, ahead of schedule. Building on this performance, all expenditure under the National Development Plan 2007-2013 will be subject, as appropriate, to a robust value for money framework.

Among the key elements of this framework are that all projects will be subject to project appraisal, all capital projects over €30 million will require a full cost benefit analysis, the introduction of new procurement arrangements which will deliver greater cost certainty and evaluations under the value for money and policy reviews will be published and submitted to the relevant select committees of the Oireachtas.

In the coming period, my Department will be elaborating on the monitoring process to be put in place to measure progress under the plan. We envisage a streamlined, focused ap proach whereby progress can be readily assessed by reference to relevant financial and physical indicators. We will avoid the bureaucratic, committee-laden reporting process under previous plans, which was a source of dissatisfaction as expressed in the consultation process. The emphasis will be on efficient delivery and transparent reporting. A key new feature is the formal submission of an annual report on plan progress to the Houses of the Oireachtas.

The Clones Canal, stated to cost €35 million, clearly falls into the category of projects for which a full cost benefit analysis is required.

So where is it?