False economy to scrap Metro North project

INFORMED readers will readily accept most of Ivan Yates’s arguments and solutions in relation to the dire state of the public finances (May 21).

However, his dismissive “cheerio to the €5bn Metro North” in Dublin shows a lack of awareness of the value of capital projects, in particular Metro North, to encourage economic recovery and growth.

In an economic downturn, it is wise to avail of the lower construction costs to build as much as possible, both to keep people in jobs and provide the necessary infrastructure to take advantage of the economic upswing.

There is no evidence that Metro North will cost €5bn.

That figure was plucked from thin air by opponents of the project using construction costs that are no longer realistic.

The actual cost of Metro North won’t be known until the final route, track and station design has been agreed and the tendering process is completed.

But even if it does cost €5bn, cancelling it will not save any money because most of the costs won’t be paid out for many years.

Approximately 10% of the cost of Metro North will be spent in 2010 and 2011 for enablement works to allow it to be constructed.

Most of this 10% will be met from a ringfenced superlevy which is being collected on the Metro North economic corridor which extends 1km each side of the line. Cancelling the project will result in tens of millions of euro sitting in a bank doing nothing.

The remaining 90% will be paid out over 20 years. But the first payment won’t be made until Metro North is finished in 2014.

Cancelling it will not save any of this money because we wouldn’t be paying any of it for at least another five years anyway.

Metro North is a vital piece of transport infrastructure which will connect Stephens Green, O’Connell Street, the Mater, Croke Park, Dublin City University, Dublin airport and Swords with a possible extension to Donabate.

Metro North has the support of all mainstream political parties and every sane and credible candidate in north Dublin because they see the economic sense of it.

There is a myth being perpetrated that cancelling it will find a magical €5bn so that cuts won’t be made elsewhere. But cancelling Metro North won’t save €1bn, never mind €5bn.

The reality is that a cancellation will cost the taxpayer more that it will save with lost income tax, PRSI and VAT revenue, and increased welfare because 7,000 construction workers will be sitting idle instead of working.

Jason Fitzharris

Rivervalley

Swords

Co Dublin