Over the last three years there have been a number of calls for large scale “public works programmes” to create jobs and help our economy recover. However, the option of implementing a substantial stimulus programme based on borrowing was not available to Ireland. We have had to be more creative and to use other means to maintain investment in infrastructure.
We began in July 2012 with the re-launch of the PPP market in Ireland and a €1.5bn pipeline of new PPP projects. An ambitious programme given our economic position at the time and the fact that private finance for PPPs had virtually dried up. Our efforts paid off. Work on the largest project, the N17 Gort to Tuam Motorway commenced this week, and the procurement process is underway on the remainder of the programme with the projects expected to reach financial close during 2014 and 2015.
To continue the momentum, the PPP re-launch was followed with announcements of extra investment in traditional Exchequer projects using proceeds from the new licensing arrangement for the National Lottery (€400m) and the sale of State assets (€150m to date).
These efforts, along with other Government initiatives such as the action plan for jobs and supporting SME financing, are now beginning to pay off with growing employment and increased activity across the board (including in the construction sector).
I am keen to continue to support this recovery and one way in which we can do this is through the targeted reinvestment of asset sale proceeds. This led to my announcement earlier this week that €200m from the sale of BGE and ESB assets would be used to fund a range of projects across the state including new road schemes, social housing to meet acute needs arising in that area and a range of tourism related works to help support long term jobs.
We are also planning for the future. My Department is currently reviewing the public capital programme. This will help to inform Government decisions around capital budgets and investment needs and priorities out to the end of the decade. In approaching this capital review, I am conscious that circumstances are much changed compared to where we were in 2011 when we conducted the last review. At that time, maintaining existing resources and bridging the most critical infrastructure gaps were the two main priorities. Now things are slightly different, we are thinking more long term and considering, apart from immediate investment needs, what can help us to sustain our recovery and growth into the future.
Brendan Howlin TD, Minister for Public Expenditure and Reform
Bridge Image Courtesy of anankkml and FreeDigitalPhotos.net


