Govt investment plan will create a smarter, greener economy - Gormley

The Leader of the Green Party John Gormley introduced the Government's Capital Review Programme at a launch in the National Convention Centre in Dublin.

Minister Gormley said: This Capital Review takes a strategic, long-term view of what we need to do now to get the maximum return on capital investment into the future for jobs and economic growth.

State infrastructure investment is not merely about sustaining building sector jobs, although these are of course welcome. It’s about a fundamental move to create a more sustainable economic and social future. We will encourage the development of a smarter and greener economy with real, lasting jobs.

This programme makes definitive commitments to investing in research and development and to targeted supports for foreign and indigenous enterprises. We are confident that these measures will contribute to the realignment of Irish economic life.

The strategy recognises the natural limits imposed on us - most importantly by peak oil and climate change - and meets the fundamental challenge of moving to a greener, more sustainable future.

This programme focuses on critical needs across all areas of Government. In my own Department, for example, the allocations of almost €8.6 billion from 2010 to 2016 represent the assignment of very significant, scarce resources to key areas of capital infrastructure. Capital investment in housing, water and other areas is central to:

• underpinning economic renewal;
• creating substantial employment opportunities;
• enhancing environmental compliance;
• supporting greater balance in regional development; and
• providing much-needed social infrastructure.

The degree of certainty on medium-term allocations now being provided by the Review is very welcome. Our Government bodies can now begin the essential work on planning and implementation. And our citizens can look forward to future benefits they will get from this investment.

Many overall allocations are down on previous years – that is current financial reality. But we will prioritise our use of taxpayers’ money, increase spending efficiency and benefit from lower costs generally. In short, better value-for-money.

HOUSING

On Social Housing (€4.5 billion 2010-16), we will continue with the restructuring programme - away from the traditional “build and buy” towards leasing and the Rental Accommodation Scheme - to achieve maximum results.

Necessary savings are being achieved through this restructuring. But the Review recognises persistent social housing needs and programmes will meet the needs of some 63,000 households by 2016.

We will focus on regeneration (including in Limerick and Ballymun); on enhancing energy efficiency; and helping the most vulnerable – the homeless, those with disabilities, the elderly. Spending here will be targeted on high productivity returns which are the most labour intensive.

WATER

Investment in Water Services (€3.468 billion 2010-16) is a key support for economic recovery, securing better environmental compliance and promoting conservation of supplies.

Water services investment is identified in the Review as a key priority that can deliver significant economic and environmental returns.

Projects to 2016 will be well aligned with key economic and environmental priorities:

• the need for schemes linked to economic recovery in critical centres, particularly in National Spatial Strategy Gateways and Hubs;
• the need for greater focus on water conservation; and
• the need to respond to pressures generated by EU regulatory compliance.

Our aim is 100% EU compliance on secondary treatment of wastewater and national drinking water requirements. These targets will be taken forward through the Water Services Investment Programme 2010-12, which I published earlier this year, and its successors.

Longer term, very significant investment will be required in a number of strategically important water services schemes to address emerging capacity constraints, including Dublin Water Supply (long term source) and Dublin and Galway Waste Water. Planning work will continue on these in the coming years.

Other key areas of investment (involving over €600 million) include local government services (fire, libraries, disability services); our important natural and built heritage; and waste management infrastructure.

I welcome the proposed re-establishment of the Gateways Innovation Fund from 2012 to be financed with €200 million from the Capital Reserve that is now being created to address emerging priorities.

ENERGY AND INNOVATION

Energy, communications and natural resources policies have critical contributions to make to restoring our competitive edge, promoting sustainable economic recovery and employment, and developing smart innovation. Energy policy is central to mitigating the effects of climate change.

€880m has been provided for investment in energy. This major increase reflects the Government’s support for key energy efficiency measures, including the National Retrofit Programme announced by the Minister for Finance in Budget 2010. This new programme has the potential to be the most innovative, ambitious, energy-efficiency initiative ever introduced in Ireland. It will significantly contribute to meeting the national efficiency targets including the target of 33% set for the public sector. It will also create significant employment in the energy and construction sectors in support of economic renewal.

High priority is being given to Ireland’s ocean energy potential. Ocean energy will contribute to Ireland’s renewable energy targets and boost inward investment supporting economic renewal. Full implementation of the Ocean Energy programme commenced in 2009.

COMMUNICATIONS

A communications infrastructure is critical for economic growth and recovery. Ireland requires a world class national broadband infrastructure ensuring all the country has full coverage to attract cutting-edge, knowledge-based industries. Whilst this will be delivered primarily through private investment, €320m has been provided to 2016 for investment in the communications sector.

This includes the National Broadband Scheme which, along with the Rural Broadband Scheme due later this year, will ensure universal broadband coverage by 2012. Funding is also allocated for the rollout of 100 Mb/s connectivity to second-level schools to provide the interactive learning environment that will prepare our students for jobs in the knowledge economy. Following the publication of the Knowledge Society Report last July, funding is also available for the Exemplar Network Test-bed Lab.

TRANSPORT

I am pleased that the programme focuses on moves towards a more integrated public transport system. We will invest in an expanded and upgraded bus fleet for our city and intercity routes. We will continue to work on the Metro North and the Dart Underground project which comprise big public transport investment over the next 6 years for Dublin. We will link the current Luas Lines and invest in cycling. We will create much greater impetus in support of our sustainable transport policy launched in February last year, “A Sustainable Transport Future”.

We have worked with our government partners to provide this country with the means to emerge from recession and build a more sustainable future of economic prosperity. This Capital Programme – stressing good planning and value for taxpayers’ money - is a very important step in the right direction.