The initiative for growth adopted yesterday by the European Commission identifies three transport projects involving Ireland among its priorities for investment.
They are: an improved rail network linking Cork, Dublin, Belfast and Stranraer;
a road-rail corridor linking Dublin with Belfast and Larne in the North and with Cork in the South;
a "Motorway of the Sea" aimed at increasing maritime freight traffic between the Irish Sea and the Iberian Peninsula.
The improved road and rail links are already part of the National Development Plan, which is partly funded by EU structural funds, and the Government is pleased these key projects remain EU priorities. Yesterday's proposal does not, however, include a recommendation that Government spending on the projects should be exempt from the calculation of its budget deficit for the purposes of the Stability and Growth Pact. The pact demands euro-zone governments maintain a budget deficit of less than 3 per cent of GDP.
Officials remained uncertain last night about the significance for the State's finances of the Commission's proposal to increase the EU's share of direct aid funding for the projects from 10 per cent to 30 per cent. They estimate, however, that it could reduce the cost to the State of improving the road and rail network by more than €2 billion.
The Commission's proposal comes as the EU prepares to review its structural funding system next year, with most observers expecting a sharp reduction in the funds allocated to Ireland. In this context, a three-fold increase in direct aid to key transport projects could cushion the blow to the Exchequer.
Yesterday's proposals are based on an EU report on the Trans-European Transport Network earlier this year by a former Commissioner, Mr Karel Van Miert. The report identified certain infrastructure projects as priorities for the creation of an integrated transport network in Europe.
It said further modernisation of Ireland's rail network was necessary to increase the frequency, reliability and safety of trains.
"The new Irish rail network construction projects will help increase the speed and frequency of passenger and freight services. It is estimated that 30 minutes will be saved on the journey time between Dublin and Cork, and a saving of 15 minutes on the journey time between Dublin and Belfast, thus making this means of transport more attractive," it said.
It found that road projects, particularly the development of a driver information system, would help to improve traffic flow and safety.
"It is anticipated that the road infrastructure investment on the Dublin-Border route will result in journey time-savings of 24 minutes on the full route (based on 1999 journey times) and investment on the Dublin-Cork route will result in journey time-savings of 58 minutes on the full route," the report said.
Irish officials were uncertain last night about the status of plans to improve rail links between Dublin and the west in the EU's proposals. This route was identified as important in the Van Miert report but was allocated a lower priority than the other road and rail projects.
The Motorway of the Sea between the Irish Sea and the Iberian Peninsula is one of four such routes identified by the Van Miert report. The idea is to encourage more freight traffic on sea routes by improving port facilities, reducing customs delays and improving punctuality and security.
"Genuine motorways of the sea are therefore aimed at acting as a substitute for motorways on land, either to avoid saturated land corridors or to give access to countries separated from the rest of the EU by seas. In addition to reducing the number of lorries on main roads, they could also... contribute to fostering the transport of passengers by sea, since vessels can carry at the same time freight and passengers," it said.
