This new Capital Investment Plan is a core element of our plan to get Ireland working again.
It represents a realistic plan – based on the reality of the economic situation.
When I was honoured to be elected Taoiseach, I promised to be honest and upfront with the Irish people. I would love to be able to say today that all the projects we would like to go ahead with are proceeding but the reality is that the country simply cannot afford to do everything we want to do.
This plan is based on what the country can afford. We have prioritised the investments that are most needed. Some other, very good projects have to be changed, or put on hold until the public finances have improved.
I want to thank my cabinet colleagues, particularly Minister Brendan Howlin, for the hard work that has gone into this plan.
It was real graft, long days and nights - weeks... poring over how to do the most, how to do the best we could.... with available funds.
This is a new capital investment plan, from a new government.
It represents a sizable investment by the State in new infrastructure that is cognisant of our current economic situation.
Against this backdrop the Government has still produced a significant capital investment programme that will see new projects being built all over the country.
There will be new schools, hospitals and treatments centres and the construction of a new Luas line creating an integrated light rail network in Dublin. These are just some of the significant announcements in today’s plan. Minister Howlin will outline them in more detail.
Jobs
I have said that this Government’s priority is jobs and I believe the Budget we have framed will promote employment as much as possible.
Jobs are the very core of the plan.
We all know that doing a day’s work gives us more than an income.
Just as importantly, it gives us dignity, purpose, confidence.
The very qualities and attributes we need for our country to recover and prosper again, this time correctly, sensibly, sustainably.
And I believe this timely, realistic investment plan.... will help us to do that quicker and better.
The State still intends to spend €17 billion directly on capital over the next five years and not counting other off balance sheet capital investment from the Semi States.
The Government is prioritising capital investment in our fiscal plan. As we announced last week, the Government is reducing current spending 4.5 times more than capital over the next four years (€6.35bn to €1.4bn).
Enterprise Investment
Prioritising job creation means supporting businesses, new and old. As such the capital allocations for the enterprise agencies remain significant and acknowledges their importance in creating new jobs in the economy. The Minister for Jobs, Enterprise and Innovation along with other Members of the Government will be aiming to get the most out of their available resources as part of a new Government Jobs Strategy to be launched early in the New Year.
Prioritising Spending
The Government’s plan also prioritises resources on critical infrastructure gaps in areas such as health, education and water services. As a result it has meant that there are fewer resources available for other areas. This is about choosing what the country needs most in the next few years and deferring other projects until resources become available.
Transport
Therefore, it has been necessary to postpone certain large capital transport projects at this time.
It is not correct to say that we are abandoning whole transport protects. They are being deferred until the economic situation allows them to proceed.
It is worth remembering that some transport projects have been long planned with little progress. Metro North was first agreed by Government 11 years ago yet even during the years of plenty the previous Government failed to deliver it. Now we are face a large budget deficit, dependent on support funding and operate in a very challenging international financial environment. It would be dishonest to continue with the planning phases of these projects in the knowledge the finance was not available to build them. But they will resume when the country is back on a firm financial footing.
The same applies to the A5/A8 road projects in Northern Ireland. The Government remains committed to these projects, even if they will now require a longer timeline. We are now proposing early discussions with the relevant authorities in Northern Ireland to explore a new implementation plan and timetable.
Other Capital Investment
It is worth remembering that direct State funding for new infrastructure is not the only source of funding for vital new infrastructure projects.
The Government made a decision to manage its portfolio of semi state companies in a better way and to use them to invest in new areas vital for economic development. The NewERA organisation was established this summer to achieve these goals.
The State has to be more innovative in finding new ways to fund new projects instead of a direct pay outs from the exchequer and taxpayer.
NTMA Announcement on a new Strategic Infrastructure Fund
On this note, I understand that this morning the NTMA and NewERA have made a significant announcement in the creation of a new Strategic Irish Infrastructure Fund that will use €250 million from the National Pension Reserve Fund and seek up to €1 billion from private investors.
This will provide significant funding for Irish infrastructure investments, assist job creation and make the economy more competitive.
This is all part of the NewERA plan to use some existing resources to attract private sector finance to new Irish infrastructure and create new jobs.
In the coming weeks and months I expect other significant announcements both on new funding for investment and on new investment plans in vital infrastructure.
Conclusion
This plan forms an integral part of the Government’s strategy of getting the country working again. It represents a major capital investment programme that will support thousands of the jobs in the economy over the coming years.
Ultimately, the future of new investment in infrastructure will be best delivered by regaining our economic sovereignty, fixing the national finances, and restoring our international reputation.
This remains the central mission of this Government.