Inside the Government's €100bn infrastructure plan

RTÉ News​

6 days ago

Today the Government publishes its review of the National Development Plan. David Murphy explains why is it crucial to dealing with the housing crisis.
What is the National Development Plan?
The National Development Plan is the Government's scheme to build infrastructure such as roads, rail, electricity connections and sewage schemes over the coming years.
The first plan began in 1988. There have been many iterations since then and it has been the framework for investment in future years, with the current plan running until 2040.
The Coalition is reviewing the spending with an emphasis on 2026 to 2030 and will publish its plan today.
It is important because it is seen as crucial to address the chronic shortages of housing.
Ireland is seen as lagging behind other countries on investment in infrastructure.
Why is the plan important to housing?
There is no point building houses unless they have water supplies, sewage connections and are linked to the electrical grid.
However, Ireland is far behind in the provision of all three, which is holding back the construction of new homes.
Could a lack of infrastructure really stop new homes being built?
Yes, the situation is critical.
For example, in Dublin, local authorities may not be able to give planning permission for new homes in three years unless Uisce Éireann, formerly Irish Water, proceeds with the Greater Dublin Drainage scheme which treats sewage.
It has been tied up in the planning system for seven years partly due to an objection taken by one sea swimmer.
The planning board, An Coimisiún Pleanála, gave it the green light two weeks ago, but there is still a window during which it could be subject to a judicial review in the courts.
The treatment plant in Ringsend is at capacity and sometimes beyond it.
Building more homes without the new sewage system runs the risk of polluting Dublin Bay.
If the project is delayed again, it would be catastrophic for the provision of housing in the capital.
So, is sewage the only thing holding back housing?
No, the provision of water is a significant problem too.
Some 85% of the supplies for the greater Dublin area, with a population of 1.7 million, rely on the River Liffey.
The current sustainable production of water in the Greater Dublin Area is 620m litres daily. Frequently, the capital uses more than that, often over 640m litres.
Uisce Éireann relies on back-up supplies in treated water reservoirs to provide the additional 20m litres, but this practice is not sustainable.
Where would Dublin get more water?
The plan is to take 2% of the water flowing from the River Shannon at the Parteen Basin between Co Clare and Co Tipperary.
The proposal has been on the drawing board since the mid-1990s.
It has now been agreed by the Government, and Uisce Éireann expects to submit a planning application at the end of this year.
However, there are objections and obtaining planning permission will be complicated.
Why is the provision of water services such a problem?
Between 2005 and 2019, only 6% of Government capital expenditure was spent on water services compared to 20% on roads.
But now that lack of investment in water services is beginning to bite.
Is water the only problem?
Electricity connections are a huge problem too.
The population is forecast to grow by about one million between now and 2040.
They will all use electricity. Houses which are being built now use twice as much power as homes built 20 years ago.
By 2030, millions of devices including heat pumps, electric vehicles, battery storage, renewables and smart meters will be connected to the network.
ESB Networks says it must provide "urgently needed capacity" to facilitate economic growth and new housing connections.
It is worth bearing in mind data centres use more than a fifth of Ireland's electricity and their usage is growing quickly.
How is the National Development Plan going to help?
The National Development Plan review commits additional spending on top of money already allocated.
Some €20bn of extra money comes from the sale of AIB shares and back-tax paid by iPhone-maker Apple.
Total spending over the coming five years will be almost €100bn.
There will be a significant emphasis on water, housing, electricity, roads, transport including the Metrolink project.
So, how has Ireland been doing on investing in infrastructure?
Not well.
The International Monetary Fund published an assessment which said Ireland was 32% behind its peers in investment on infrastructure.
This was partly due to a lack of investment in the wake of the financial crisis.
Can I see which projects are happening in my area?
Yes, the Government has published a useful map which allows people to look at projects in their area.
It also shows when projects are due to be finished.
Why does climate change have a significant impact on the plan?
ESB Networks says "risks associated with climate change, including faster vegetation growth, the emergence of invasive species (including woodpeckers), and more extreme weather events such as flooding and high winds" means more investment is needed.
Uisce Éireann says: "Extreme weather in the form of both droughts and intense rainfall will affect both the availability and quality of water."
Also, areas which have been affected by floods in the past and locations which are vulnerable to rising sea levels and extreme weather will require flood relief works.
What else is to be announced today?
The Department of Finance will also announce the Summer Economic Statement.
This is an important document because it sets out how much money will be available for tax cuts in the Budget in October. It will also say how much will be allocated for increases in current and capital spending next year.
With the threat of escalating US tariffs, the Minister for Finance Paschal Donohoe has been urging his Cabinet colleagues to be cautious. That means he wants to announce a less expansionary Budget than previous years.
The Coalition promised to cut the rate of VAT for the food service industry. If the Government proceeds with that commitment, it is likely to use a lot of the space allocated for tax cuts in the Budget.