CIF: 'Little sense of urgency' in Govt stimulus plan

The investment will go towards “shovel ready” projects in education, transport, justice and health, with building work likely to start as early as the end of this year.

The bulk of the jobs created will be in the construction sector.

But opposition TDs and critics have argued that while economic stimulus is welcome, the Government’s prolonged timeframe, which will see some of the work not started until 2016, leaves unemployed people with little to celebrate.

Taoiseach Enda Kenny, Tanaiste Eamon Gilmore and Public Expenditure Minister Brendan Howlin, who made the announcement, all insisted the investment underlined the Government’s commitment to tackling the unemployment crisis.

“Job creation is this Government’s top priority,” said Mr Howlin. “The stimulus announced today will help to generate significant numbers of jobs in the construction sector.”

The Taoiseach insisted spending on the stimulus would add nothing to the country’s debt.

One of the biggest projects funded by the package will see the long-awaited build of a new Dublin Institute of Technology campus in Grangegorman, with construction work starting in 2015.

Six new schools will also be built in Cork, Kildare, Louth and Clare by 2018, while work will begin no later than 2014 on new roads in Galway, Kilkenny and Wexford.

Mr Howlin rejected suggestions that the latter – his own constituency – was unfairly chosen to benefit from the boost, insisting projects have been selected based purely on the fact there are existing plans and the work is ready to begin.

“These are things that are ready to run, but that have been held for a lack of money,” said Mr Howlin.

The €2.25bn package will be made up of €1.4bn of funds from the European Investment Bank (EIB), National Pension Reserve Fund and domestic banks.

A further €850m will come from the sale of State assets and money secured in a new licensing arrangement for the National Lottery.

Mr Howlin would not give a breakdown of how much specifically would come from each source, saying it would depend on the individual projects.

He also refused to speculate on exactly how much the Government expects to raise in the sale of state assets next year, which will go towards the infrastructure plans.

“I can’t give you an exact figure on that but we are absolutely confident that we will be able to go beyond the projects we have identified here,” said Mr Howlin.

While ministers hailed the investment and subsequent jobs boost as good news for the construction sector, workers within it said there was not enough urgency to get people back to work.

Construction Industry Federation director general Tom Parlon said while he welcomed a stimulus package, the timings envisioned by the Government were too far out.

“There is little sense of urgency in today’s announcement,” Mr Parlon added.

“The construction sector has been crying out for greater capital investment. However going on today’s announcement it we won’t see any real progress for another 18 months to two years.”

Sinn Féin TD Peadar Toibin agreed, adding that the plans are too little for people on the dole and for those who have left the state to find work elsewhere.

The party’s finance spokesman Pearse Doherty also described the package as “little more than window dressing and clever accountancy”, pointing out the investment will not make up for the planned spending cuts in December Budget.

The Government cut public spending by €750m in the 2012 Budget and is expected to trim a further €550m from the next.

Fianna Fáil's Sean Fleming added: “Today’s stimulus announcement will go nowhere towards filling the gap left by these massive cuts in capital expenditure announced by Minister Howlin last November.

“Overall the Government should at least maintain capital expenditure at 2011 levels. Even with this new stimulus programme they will not achieve this.”