Capital review will identify where spending best allocated: Minister

Finance Minister Paschal Donohoe says a mid-term capital spending review will identify the best ways to spend an additional €4.1bn earmarked on transport, education and housing in the coming years.

Capital review will identify where spending best allocated: Minister

Finance Minister Paschal Donohoe says a mid-term capital spending review will identify the best ways to spend an additional €4.1bn earmarked on transport, education and housing in the coming years, writes Eamon Quinn.

However, the publication has sparked a battle from business groups to secure money for specific projects in their regions.

Business group Dublin Chamber said the capital deserved the lion’s share of any new money as the most populous region faces the challenges of Brexit.

Projects such as Metro North and the Dart Underground would deliver the biggest returns for the whole country because investing in infrastructure in the capital “respects and reflects where the Irish people are actually choosing to live in their greatest numbers”, said Dublin Chamber chief executive Mary Rose Burke.

Cork Chamber chief executive Conor Healy said he welcomed the commitment on additional capital spending. Spending will be required in the capital but investments in projects such as the M20 Cork–Limerick Motorway and Dunkettle Interchange would also sustain economic growth across the State, Mr Healy said.

Mr Donohoe’s review included an in-depth analysis of the strains facing existing infrastructure.

Including over 50 submissions from local authorities, politicians and business groups, the review said the additional €4.1bn will be allocated on the basis of evidence of bottlenecks and on risks such as Brexit facing the economy. The money will be allocated while recognising “the potential for overheating as the economy approaches full capacity”, it said.

A 113-page analysis, called Strategic Public Infrastructure, said population growth and the strains on primary care health services, demands on Third-Level education, housing shortages, and Irish Water investment “highlight the need for a concerted focus on getting project selection right”.

On roads, it said increased demand meant parts of the network were “either unstable or at breakdown” and “specific analysis of the M50 and the Cork Ring Road, two of the primary routes in those cities, shows that the level of service is a particular issue in these areas”.

Its research showed the population density is greatest in the Dublin and its suburbs, followed by Limerick and its suburbs, Galway and its suburbs, Cork and its suburbs, and Waterford and its suburbs.

The reports cited EU findings that low rates of use of public transport in Dublin compared with many European cities was because of the low population density of the capital.

It reports the national road network of major roads (5% of all roads) has been valued at €30bn, “highlighting both the overall value of the network as an asset and the requirement to maintain asset value”.

Meanwhile, the British Irish Chamber of Commerce warned higher education needs more resources if the Government is to secure “limited benefits of Brexit”.

The review was criticised by Fianna Fáil expenditure spokesperson Dara Calleary.

“The initial plan was published back in 2015 as a pre-election stunt but it lacked any ambition and failed to recognise the scale of the capital deficit in Ireland.

“Today’s review has failed to bring any new ideas to the table,” he said.

This story first appeared in the Irish Examiner.

more courts articles

DUP calls for measures to prevent Northern Ireland from becoming 'magnet' for asylum seekers DUP calls for measures to prevent Northern Ireland from becoming 'magnet' for asylum seekers
UK's Illegal Migration Act should be disapplied in Northern Ireland, judge rules UK's Illegal Migration Act should be disapplied in Northern Ireland, judge rules
Former prisoner given indefinite hospital order for killing Irishman in London Former prisoner given indefinite hospital order for killing Irishman in London

More in this section

Joe Biden Biden increases tariffs on Chinese imports of electric cars and chips
Construction - digger working at building site on sunny day Large investment funds eye office and data centre projects now interest rates are about to turn
Housing and renewable energy remain key focus for Cork businesses amid election season Housing and renewable energy remain key focus for Cork businesses amid election season
IE logo
Devices


UNLIMITED ACCESS TO THE IRISH EXAMINER FOR TEAMS AND ORGANISATIONS
FIND OUT MORE

The Business Hub
Newsletter

News and analysis on business, money and jobs from Munster and beyond by our expert team of business writers.

Sign up
ie logo
Puzzles Logo

Play digital puzzles like crosswords, sudoku and a variety of word games including the popular Word Wheel

Lunchtime News
Newsletter

Keep up with the stories of the day with our lunchtime news wrap.

Sign up
Cookie Policy Privacy Policy Brand Safety FAQ Help Contact Us Terms and Conditions

© Examiner Echo Group Limited