National Development Plan: Can Ireland deliver on €112bn schemes?
Big cash injection for housing
For example a €250 universal energy credit introduced during the worst of the cost of living crisis will not be renewed.Instead the run up to October's budget is expected to be dominated by a drip feed of announcements on the specific projects which will flow from that huge infrastructure fund, known as the National Development Plan.The government is able to spend this money because Ireland's long-held policy of low corporation tax has come good in spectacular fashion, delivering a huge windfall from US firms who pay their global taxes in the country.It is money which desperately needs to be spent because Ireland's basic infrastructure is creaking.For example, a chronic failure to build enough housing is contributing to economic and social problems, such as tensions around immigration.The infrastructure backlog has built up because public and private investment collapsed during Ireland's years of financial crisis and austerity.Many firms across construction and development failed during that period and the workforce shrank sharply.Then as the economy recovered rapidly and the population grew there wasn't the capacity to provide the investment which was needed.The National Development Plan (NDP) is an attempt to remedy this as quickly as possible.Unsurprisingly, the biggest allocation is for housing which will get €36bn between 2026 and 2030.
The next biggest chunk is for transport, which gets €22bn. Of that, €2bn is supposed to be used to start work on a long-planned underground Metro rail line from Dublin city centre to the airport and northern suburbs.The experience of the Dublin Metro can help explain some of the scepticism around the NDP.The Metro has been planned since 2000 but not a centimetre of track has been laid.The current planning application has been under consideration for more than 1,000 days and the man leading the project has conceded it is likely to face more legal challenges.There is also the continuing saga of the new National Children's Hospital in Dublin which has missed 15 completion dates and is almost €1bn over budget.The government has attempted to show people that the state does have the capacity to deliver.One section of the NDP is a list of recent projects across education, health, roads and broadband which have been built without much fuss.Another section lists the reforms to procurement and planning which should reduce delays, such as changes to judicial review processes.But there is a more fundamental issue: who will do the actual construction work required to turn the €112bn into houses, roads and sewers?The most recent figures suggest there are around 177,000 active construction workers in Ireland, the highest number in a decade.However, an analysis by the Department for Further and Higher Education estimates that another 80,000 workers will have to be found to meet the government's targets on housing, let alone other projects.Finding those additional workers at a time when the Irish economy is at close to full employment will be a challenge in itself.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
22 minutes ago
- Reuters
Heineken cheers EU-US trade deal as tariff problems hit shares
LONDON, July 28 (Reuters) - Dutch brewer Heineken ( opens new tab welcomed a trade deal between the European Union and the United States and said on Monday that it was weighing all options to deal with growing tariff challenges in the long term, including shifting manufacturing. The world's No.2 brewer exports beer, especially its namesake lager, to the U.S. from Europe and Mexico, and has also suffered from the indirect impact on consumer confidence in key markets like Brazil. Nevertheless, it reported a 7.4% increase in organic operating profit in the first half of the year, versus analyst expectations of 7%, crediting growth in once-difficult regions like Africa and Asia as well as cost savings. Heineken's shares fell 4.3% as the brewer cautioned on softer volumes for the remainder of the year as U.S. policies, especially on trade, disrupt markets in the Americas. CEO Dolf van den Brink welcomed the certainty brought by the trade deal clinched on Sunday, which reduced a threatened 30% U.S. tariff on EU goods to 15% - a rate that would still hit Heineken's U.S. profits. All options are being considered to mitigate tariffs long-term, including shifting manufacturing, he said, but added that such moves were capital intensive and would first need more consistency in policy. "We look at all options from ... continuing with our current setup, a more hybrid version, or otherwise," he told journalists on a call. "If and when we deem them financially to be more attractive in the mid- to long-term, we would for sure explore them." Heineken still faces U.S. tariffs of up to 30% on products it produces in Mexico unless the Mexican government can reach an agreement with Washington ahead of an August 1 deadline. Executives told journalists that since the first quarter, Heineken has also seen economic uncertainty hit spending and confidence in the U.S., Brazil and Mexico. In Mexico, remittances from the U.S. have fallen significantly, impacting beer industry sales. And U.S. Hispanic consumers were also spending less, van den Brink said. Heineken continues to expect annual profit growth of between 4% and 8%. The company also beat forecasts for second quarter revenue and volume, with growth in markets like Vietnam and India, and increased an annual cost-saving goal by a quarter to 500 million euros ($586 million). "They have slightly downgraded their volume everything going on in the to me doesn't feel like a terrible outcome," said Ryann Dean, global analyst at Heineken investor Aylett Fund Managers. Heineken's strong growth in markets like India and China, and consistent profitability, more than offset this, he continued, adding that emerging markets would drive Heineken's long-term volume growth. ($1 = 0.8535 euros)
The Independent
24 minutes ago
- The Independent
No grants available yet on EVs – but Hyundai adds to discounts along with MG, Alfa Romeo and Leapmotor
Two weeks after the government's surprise EV grant went live, there are still no cars listed on the official government website as being available with grant money applied to the list price. However, car makers are jumping in with their own 'EV grants' to avoid a stall in EV sales while car buyers wait to find out which cars are eligible for the government grants. The Electric Car Grant was announced on Monday July 14 and went live on Wednesday July 16. Car makers must apply for the grants, which are available on EVs up to the price of £37,000 and where car makers have signed up to low-carbon Science-Based Targets around manufacturing. Grants of between £1,500 and £3,750 will be available for eligible cars. While the announcement of the EV grant has been broadly welcomed by car makers, it took many of them by surprise, with some learning about the government plan via the media. One car company executive, speaking anonymously to The Independent, also confirmed that dealers were reporting customers cancelling orders until it was clear which cars were, and which weren't, eligible for grants. Hyundai is the latest car maker to offer its own electric grant, with the biggest discount available on Hyundai's smallest model. The Hyundai Inster – recently voted World Electric Car of the Year – gets a £3,750 'grant' bringing the entry-level car's price down to £19,755. There's still an additional £500 off if you go for Hyundai's low-rate PCP finance, too. The rest of the Hyundai electric car range, including models over £37,000, are also getting a £1,500 discount as part of the offer. Buyers of Chinese-made EVs were also left to reconsider their purchases with news that the government wasn't expecting those models to be eligible for the Electric Car Grant. Speaking on Radio Four, Minister for the Future of Roads, Lilian Greenwood, said, 'We don't expect any cars that are assembled in China to be eligible for this scheme. 'The grant is restricted to those manufacturers that reach minimum environmental standards. And, frankly, if you generate a lot of the electricity that powers your factory through coal power stations, then you are not going to be able to access this grant." The Department for Transport told The Independent: 'We expect dozens of models will be eligible but manufacturers will need to apply for the grant before we can confirm eligibility. We have held multiple calls with vehicle manufacturers to explain vehicle eligibility and how to apply for the grant. These discussions will continue to ensure manufacturers have all the information they need. 'All eligible models will be published on once the application has been approved. Applications will be processed on a first come, first served basis and as quickly as possible.' Chinese car brands have been quick to react by introducing their own 'EV grants' to stimulate demand among private buyers. Leapmotor was first out of the blocks with its Leap Grant, offering £1,500 off the Leapmotor T03, making it Britain's cheapest car at £14,495, while the Leapmotor C10 family SUV gets a £3,750 discount, taking the price down to £32,750. MG followed with its own EV grant, offering a discount of £1,500 off the MG4 and MGS5 EVs on top of existing offers, while another Chinese brand, GWM, has taken the full £3,750 off its GWM ORA 03 models with its Green Grant, bringing the starting price down to £21,245. It's not just Chinese brands applying discounts, though. Alfa Romeo is offering £1,500 off its Alfa Junior Elettrica range, on top of existing zero per cent finance offers and the promise of a free EV home charger with standard installation.
The Independent
24 minutes ago
- The Independent
Poll of the day: Should England's Euro 2025 win be marked with a bank holiday?
The Lionesses' dramatic penalty shootout victory over Spain in the Euro 2025 final has sparked nationwide celebrations – and renewed calls for a bank holiday to celebrate the historic win. Prime Minister Sir Keir Starmer made a surprise appearance at the stadium in Basel alongside his wife Victoria, describing the Lionesses as 'history makers' after watching them defend their European title. Their victory has been hailed not just as a footballing triumph but also as a cultural milestone in the ongoing fight for equality and recognition in sport. Sir Keir previously backed calls for a 'proper day of celebration' when England reached the Euro 2022 final, saying the team's success should be honoured with a nationwide event to promote women's and girls' participation in football. Now, many are asking whether this latest win should spark the same conversation. The FA confirmed there will be an open-top bus parade along the Mall before the ceremony at the Queen Victoria Memorial. However, an official bank holiday has not been announced. So – should the Lionesses' Euro 2025 win be marked with a bank holiday, or are there better ways to honour their legacy? Vote in our poll and tell us what you think in the comments below.
