Cost Implications of Delivering this Strategy

Cost Implications of Delivering this Strategy

A strategy’s value and impact depend on its capacity for implementation. As part of the development of this Strategy, delivery was a key consideration from the start of the process, with an emphasis on understanding the capacity and capability of government, business, industry and the citizen to get behind and implement measures where required. The Strategy points to the need for further analysis in this regard, particularly a need for implementing authorities to assess the feasibility of certain measures for their local areas – especially where they are being introduced for the first time in an Irish context. Guidance on demand management schemes will have a crucial role to play in shaping this analysis.

While the Strategy presents no immediate costs for the Exchequer (beyond the proposed identification of funds envisaged in Recommendation 31 to support demonstration and capacity building), it is anticipated that there will be government and economy-wide costs associated with pivoting towards an environment that supports more sustainable transport options – although these are not quantified within this document. For example, the Strategy encourages effort across the private and public sector to develop Smarter Travel Programmes and to seek recognition for this effort by applying to the Smarter Travel Mark. These initiatives would have cost implications for the organisations involved but these are likely to be met from existing resources.

The Strategy identifies who is responsible for implementing measures and what legislative powers exist or may be needed to ensure the delivery of recommendations, including the timescales involved, as well as the enforceability of the options proposed. It considers the acceptability of the proposals, from a political and public perspective, and suggests supporting measures to improve acceptability where needed such as through communications, public engagement and further supply-side measures and incentives.

There are many interventions that have upfront costs but are cost neutral over a period of time. For example, while new infrastructure and technologies would be needed to implement roaduser charging, it is likely that such costs would be recouped over the long-term. The costs and benefits of such an approach would need to be fully examined and considered by Government. Similarly, there would be administrative costs associated with developing any legislation for new or enhanced demand management measures but the model deployed for operating related systems could be cost neutral or have a negative cost due to the likely co-benefits of increased air quality and improved health along with the potential to invest any revenue that might be raised from interventions into, for example, enhanced public transport services. An analysis of all costs - Exchequer, environmental but also the regulatory burden on citizens and business as appropriate – will need to be undertaken as and when specific measures are brought forward for consideration by local councils or by Government. The cost of doing nothing will also require consideration.

The Strategy considers whether relevant ‘owner’ organisations are sufficiently resourced or competent to carry out functions effectively, particularly in new areas of policy or where more innovative interventions are required. Consideration is also given to financial resourcing and whether current funds, revenue raising powers or incentives are sufficient to support the likely new measures.

Finally, the Strategy has taken account of what is needed to achieve the strategic objectives, the relative impacts and challenges of measures involved, the likely high-level quantum of associated costs, and the timing and sequencing of measures relative to ‘supply-side’ interventions, particularly those being funded under the National Development Plan 2021-2030, which was recently revised as part of a commitment under the Programme for Government 2025.

As mentioned earlier in the Strategy, analysis undertaken by the Department of Transport estimates that the cost of congestion in our cities is expected to rise substantially by 2040. Congestion is a symptom of an inefficient system, one that is at capacity at certain times. These costs do not consider the health costs associated with sedentary travel, air pollution (inside and