Coalition discuss NDP review spending allocations
The plan, due to be announced on Tuesday, will contain spending of €97bn between 2026 and 2030.
That includes an additional €20bn of new funding which has been financed by the sale of AIB shares and back-tax paid by iPhone-maker Apple.
The meeting last night was attended by Taoiseach Micheál Martin, Tánaiste Simon Harris, Minister for State Sean Canney, Minister for Public Expenditure Jack Chambers and Minister for Finance Paschal Donohoe.
The review will contain spending on housing, water, energy and transport.
Next week Minister Chambers will tell Cabinet colleagues that there is uncertainty around global trade and that the threat of tariffs by US President Donald Trump poses "significant risk".
He will say that the best way to safeguard the economy and increase competitiveness is to address the country's infrastructure deficits.
Uisce Éireann has said it needs an additional €2bn on top of €10.3bn already allocated for capital spending.
ESB Networks says it needs an additional €1bn in equity as part of its €13.4bn spending plan.
It is understood there will also be funding for Eirgird, the body which operates the electricity grid.
Tuesday's publication will set out departmental capital ceilings up to 2030 and overall capital investment until 2035.
Government Ministers will outline the specific programmes and investment they will prioritise as part of Budget 2026 in October.
The publication of the review follows weeks of bilateral meetings and engagements between different Government departments and Minister Chambers' Department of Public Expenditure, as well as a public consultation.
Ministers will also be briefed on work being progressed to reform the country's delivery systems so that project life cycles can be reduced and better value for money can be achieved.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Journal
3 hours ago
- The Journal
Election pledge by Micheál Martin to double Renters' Tax Credit will cost €160m
DOUBLING THE RENTERS' Tax Credit to €2,000, something Taoiseach Micheál Martin pledged to do before the general election, will cost €160 million, according an expert advisory panel at the Department of Finance. The Tax Strategy Group papers which advise the government prior to the government, sets out that increasing the tax credit would incur varying costs to the Exchequer depending on how much the credit is raised. In an interview with The Journal , prior to the election, Martin outlined some of his party's housing priorities, pledging to boost the Renters' Tax Credit to €2,000 per person. Currently, the credit amounts to €1,000 per person or €2,000 per couple claiming. Advertisement Promise to double credit 'at a minimum' Martin said that people needed to have some financial pressure alleviated and the tax credit would help, stating: At a minimum, we would like to double it in the next government. Fine Gael, in its election manifesto promised to increase Rent Tax Credit to €1,500 per renter or €3,000 per couple, to support tenants in managing expenses. In the programme for government, there is a commitment to progressively increase the Rent Tax Credit. Revenue estimates that increasing the credit by €100 for single people and €200 for jointly assessed couples would cost the Exchequer approximately €20 million annually, the newly published tax papers set out. A larger increase of €500 for single people and €1,000 for jointly assessed couples would cost €95 million annually, while doubling the value of the credit to €2,000 for single people and €4,000 for jointly assessed couples would cost €160 million, the review states. The Summer Economic Statement set out that this year's €9.4bn budget includes a €1.5bn tax package. Related Reads No protections against rising rents for students leaving private tenancies at end of year New rental regulations will allow landlords increase rents if previous tenant leaves voluntarily Rental prices rising at near 20-year high as Limerick rents shoot up towards Dublin levels The largest group of claimants of the tax credit are young adults between 21 and 30 years old, the tax experts state. This is followed by individuals aged between 31 and 40 years old. 'This indicates a strong uptake of the relief and likely a larger renting population in this cohort. 'The difference between the amount of credit claimed and the amount of credit used is higher for the younger cohort; the difference tends to decrease as the claimants' age increases. This is likely to reflect lower incomes and hence less tax paid in the younger cohorts,' the review reports. Majority who claim earn less than €40k More than half of the Renters' Tax Credit claimants have a gross income lower than €40,000, while claimants reporting a gross income larger than €100,000 account for 7% of all claimants. Claimants with lower gross incomes also show lower rates of credit used over the total amount claimed, with the report stating that this is most likely because they have not paid sufficient income tax to fully absorb the tax credit. Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
The Journal
3 hours ago
- The Journal
Why Ireland's YIMBYs are having a moment
FOR THE DOZENS of (non political) people who actually read public consultations on Irish infrastructure projects, the recent decision on Ballyboggan came as a shock. The location is planned to be the capital's newest town , with officials planning to deliver 6,000 homes at the site of the Dublin Industrial Estate, which is close to Glasnevin Cemetary and only a short distance from the city centre. 6,000 sounds like a lot, and it is. But under Dublin City Council's proposed plan, much of the development would be limited to four storeys, with just a few above that height. Normally, these heights would be welcomed by locals in most areas of Ireland. Anyone who has read through planning submissions from local residents (if you haven't, what are you doing with your life) would know that there are often protests over new housing developments. Common issues cited are taller buildings blocking out light, too many new homes putting a strain on local services, too much traffic, and so on. But Ballyboggan was different. Not only were most of the submissions in favour of development – they actually called for taller buildings. While there were plenty of articulate submissions, one in particular succinctly sums things up: 'The plan would represent a huge missed opportunity to provide homes for thousands of people at a time of overwhelming demand.' The one line comment cuts to the core of the most important issues for many in Ireland – housing. Unsurprising, given prices have surged a staggering 40% or so over the last five years. The comment also outlines the solution many people want to see implemented: build more homes. As fast as possible, as affordably as possible, in an effort to tackle the country's crippling supply shortage. Their cause is increasingly being championed by Ireland's YIMBY movement – yes in my back yard. It's meant to act as a counterbalance to so-called 'NIMBYs' – not in my back yard. The proposed Ballyboggan development in Dublin. Dublin City Council Dublin City Council YIMBY vs NIMBY The two terms don't just apply to housing – they apply to any kind of new infrastructure development. In recent years, 'NIMBYism' has increasingly become a dirty word in Ireland. Some of this is with good reason. Think of how county councils zone for low-density property development in the middle of a housing supply crisis. Or the role local objections played in upgrading the Luas green line to a metro. Or local residents objecting to new housing developments in emotional, attention-grabbing terms – such as describing a proposed six-storey apartment block as a ' monstrous tower '. There are plenty more examples, which led then-Taoiseach Micheál Martin to agreeing in 2021 that Ireland has a 'culture of Nimbyism' . But there seems to have been some pushback as of late – which is where YIMBYs come in. Their ultimate aim is simple, at least on paper: Get stuff built. The YIMBY movement has its roots in the U.S. – as did its counterpoint, NIMBY (unsurprising, given that they both use the term 'yard'). The term 'YIMBY' has likely existed in some form for decades. But the movement in its current guise took off in San Francisco in the last 10 years or so, as a way to try to tackle the area's affordability crisis. Put simply: surges in house prices are normally attributed to too much demand, and not enough supply. Given there's not much you can do to lower demand in booming economic areas like San Francisco, YIMBYs want more to improve supply by building more homes, ultimately improving housing affordability. Advertisement The movement grew to become more broadly pro-development, generally pushing for the likes of transport and environmental projects. Given Ireland tends to follow the lead of the U.S. in most areas, it was perhaps just a matter of time before YIMBYism took off here. And resentment with NIMBYism had already been bubbling away for years as the housing crisis worsened – as evidenced by Martin's comments back in 2021. But Irish YIMBYism recently received a more definitive push from John and Patrick Collison, the two self-made billionaires from Limerick who co-founded payments processing firm Stripe. With the company's headquarters based in San Francisco, the YIMBY movement seems to have rubbed off on the pair, who have frequently called for more development in Ireland as a way of tackling surging prices. In May 2024, they helped launch 'Progress Ireland', a think tank which focuses on how to address 'housing shortages' and 'poor infrastructure'. Its ideas already seem to be gaining some traction. In February, the government announced it was considering making cabin homes in back gardens exempt from planning rules. Progress Ireland and other YIMBYs have advocated for similar measures, arguing that boosting the supply of 'small houses' could help ease some of the pressure in the property market. The government is now bringing forward other proposals which would be generally cheered by YIMBYs, such as legislation which would extend planning permission which has been challenged by judicial reviews. This relates to many cases for large housing developments, which are often appealed to the courts. A common complaint is that these judicial reviews tie up housing projects for years due to the slow process of cases being resolved in the legal system. There have even been claims that objectors have taken advantage of this, demanding huge sums of money from builders to withdraw legal complaints. This is a view which Housing Minister James Browne appears to subscribe to, as he said judicial reviews 'have been weaponised by some people'. Regardless of whether you think judicial reviews are being used in the spirit of the law or not, the move to extend planning permission timelines again shows a more pro-development attitude from officials which lines up with YIMBYs. Objection rates So between support from the general public, a new voice in the policy debate, and increasingly favourable attitudes in government, it appears things are going fairly well for the YIMBYs. But it's worth keeping in mind that there are still plenty of questions to answer. The first one being – is the problem of NIMBYism really as big a deal as it's made out to be? Housing lecturer Lorcan Sirr has argued that the issue is overstated. Writing for the Irish Times in 2023, he said just 6% of planning permissions granted nationally in 2021 were appealed. This would suggest that objections may not be as big a barrier for housing development as they are made out to be. This is also backed up by the fact that planning permission for tens of thousands of homes are currently unused. Opposition politicians had called for 'use it or lose it' rules to be introduced, due to the suspicion that some developers were applying for planning permission solely to increase land values. But the government's plan for increased time extensions suggests a move in the opposite direction. There is also the argument that increasing supply alone may not be enough to tackle Ireland's housing affordability crisis. As previously examined , it would likely take a decade or two before boosting supply made a real dent in prices. Regardless, many YIMBYs would argue that doing something to impact a positive change, no matter how small, is better than letting problems continue to worsen. And with the government planning to scale up housing delivery from 30,000 to 50,000 homes a year, it's likely new rules will be increasingly pro-development. The progress of legislation which could broadly be classed as pro-YIMBY over the last year looks like a sign of things to come. In short – it's a good time for those who want something built in their back yard. Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
RTÉ News
6 hours ago
- RTÉ News
Ireland faces 15% tariff reality as EU-US deal takes shape
The EU and US are edging closer to a trade deal revolving around tariffs of 15% imposed on European goods. The details of any agreement will be critical. Recent discussions have come close to an agreement only to be derailed at the last minute by the White House - and that could happen again. Based on what is known so far, the EU-US deal would include a baseline tariff of 15%. Some existing tariffs would be folded into that 15% meaning it would be an all-in tariff. For example, it would include the existing "most favoured nation" duties of 4.8% which exist currently under World Trade Organisation rules. However, there would be some exceptions. The punitive 50% rate on steel and aluminum, introduced by US President Donald Trump on exports from the EU, would remain in place. It is understood that what may emerge is an agreement between the two sides that sees the threatened 1 August cliff edge of 30% tariffs on EU goods removed. It is now long past time to strike a deal. Tánaiste Simon Harris says he remains "cautiously optimistic" a deal could be reached for a "positive future EU-US trading relationship within the coming days". He adds: "It is now long past time to strike a deal." Under the framework, which is being negotiated, the US would have some immediate implementation steps, but some aspects would still need further negotiations. In a boost for Irish exporters, it is expected aircraft, medical devices and spirits would be covered by a zero for zero tariff arrangement. The critical part for Ireland is what would happen to exports of pharmaceuticals and computer chips to the US. At present, there are no tariffs on either sector while the US holds an investigation on national security grounds into imports of those goods. However, indications are that the investigation may result in the EU seeing a 15% tariff imposed on both pharmaceuticals and computer chips once the process concludes. If that rate is introduced, it would have significant consequences. Pharmaceuticals are Ireland's biggest export to the US and were valued at €44bn last year. Any company faced with a new tariff is going to have to figure out how it will be paid. Exporters will be asking whether they can make internal savings, adjust supply chains or pass it on to customers? Donald Trump told Taoiseach Micheál Martin on St Patrick's Day that Ireland "took" American pharmaceutical companies. But despite Mr Trump's comments, no US drug manufacturer with an operation in Ireland has so far threatened to relocate to America. The baseline tariff of 15% for many companies would have significant effects. Simon McKeever, CEO of the Irish Exporters Association, said his organisation would be looking for a "tariff adjustment fund" largely based on the Brexit Reserve Fund of €1bn, which was introduced to help companies when the UK left the EU. While there may be relief if a deal is agreed it would be a much worse trading environment than Irish companies faced last year. Tariffs are fundamentally bad for an export-led economy such as Ireland. Globally, the removal of trade barriers over recent decades has lifted millions of people in developing countries out of poverty. But perhaps the most damaging aspect of the trade war is that it has created enormous uncertainty and put many investments on hold in Ireland and elsewhere. If a deal is agreed companies will know the future landscape. And that is likely to unlock investments which had been put on hold.
