State's €275m capital spending plan could unleash private sector co-investment and boost economic activity

Irish Times

2 days ago

The recent announcement of the €275.4 billion
National Development Plan
represents far more than the largest capital investment programme in the history of the
State
.
It presents an opportunity to renew our commitment to the uniquely Irish approach that has transformed Ireland from an agricultural economy into a global hub for innovation and investment: the partnership between public vision and private enterprise that has served us well for nearly a century to deliver transformational outcomes.
The
Government's
decision to publish this ambitious plan demonstrates a clear recognition of the infrastructure and
housing
delivery challenges faced by the State, and a determination to address them through strategic, co-ordinated action.
At Fine Grain Property, a long-term investor and operator in Irish commercial real estate, we welcome this renewed commitment to co-ordinated delivery, regional investment, and unlocking private-sector capability. Ireland's future success depends not just on spending, but on smart investment that multiplies impact.
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Looking towards the future we see that this plan has the positive potential to unleash private-sector co-investment, ingenuity and economic activity. When government spending acts as a strategic catalyst rather than a substitute for private investment, it can generate remarkable multiplier effects that amplify economic impact far beyond the initial expenditure.
This 'crowding-in' effect occurs when government investment creates foundational conditions – whether through transport links, digital infrastructure or regulatory frameworks – that make private-sector projects viable and attractive, thereby unlocking capital that would otherwise remain dormant.
This is one of the key objectives of our co-investor, the Ireland Strategic Investment Fund, which in its 10-year history has achieved a multiplier estimated at 1.4 times on its investment, attracting €12.6 billion in private-sector investment to Ireland and creating 28,000 jobs.
This virtuous cycle depends entirely on co-ordinated, strategic government action that spans departments and agencies. International research shows that when well-intentioned governance processes or government bodies operate in isolation, they risk creating the opposite effect: competing with the private sector, delaying delivery of projects and ultimately crowding out private investment by creating regulatory uncertainty and administrative burden.
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National Development Plan main points: how much is being spent and what are the big winners?
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As chief executive of Fine Grain Property, I have witnessed first hand how Ireland's collaborative approach to development creates exceptional outcomes for foreign direct investors.
Since we started to invest in Ireland at a time when there was a critical shortage of office investment in 2015, our company has invested over €350 million across 16 locations, providing workplace communities for more than 65 multinational and domestic clients.
In addition to great workplaces, world-class employees require excellent housing, and this is often quoted by our clients as the key constraint to their future growth plans. Alongside its ambitious direct housing investments, the NDP has the potential to unlock the expertise, speed to market and quality of private developers such as Glenveagh.
When the State invests in water infrastructure, transport links and energy networks alongside effective planning, they unleash massive pent-up investment in housing, making Ireland an irresistible proposition for global businesses, and most importantly, a great place to live and work.
Ireland's approach to transformational development didn't emerge overnight, but it has arguably been stifled in recent years. Ireland's development history is rich with examples of how public, private collaboration drives national success: from Ardnacrusha's hydro scheme in the 1920s to the Shannon Free Zone, the IFSC, and most recently, the Wild Atlantic Way, which now generates €3 billion annually.
Each success shared one thing: a public-private vision, executed with urgency and mutual respect.
Yet in recent years, momentum has slowed. Governance mechanisms – while critical for transparency – can, if poorly designed, become barriers to delivery. Planning delays, procurement complexity, and fragmented responsibilities often deter the very private partners the state seeks to engage.
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National Development Plan shows the Government is about to bet big on capital expenditure
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The principle of good governance should never mean paralysis and when systems are designed to facilitate rather than frustrate, they build trust and speed. That's what international best practice teaches us – and it's where Ireland must go next.
Australia's Infrastructure Australia provides independent, long-term planning horizons that depoliticise infrastructure decisions. Singapore's structured PPP framework delivers projects 15-20 per cent faster than traditional procurement. These models demonstrate that effective governance and rapid delivery are not mutually exclusive – they can be mutually reinforcing when properly designed.
The NDP scale and scope demonstrate the Government's recognition that the Republic's continued competitiveness requires not just investment, but the institutional capacity and structures to bring the public and private sectors together to work alongside each other.
The €24.3 billion allocation for transport, including support for MetroLink, and the €3.5 billion equity injection for ESB Networks and EirGrid show a sophisticated understanding of the interconnected nature of modern infrastructure. Housing cannot be delivered without water and energy connections; sustainable energy demands a robust grid; transport networks require integrated planning; economic development depends on all these elements working together.
IDA Ireland's new five-year strategy, targeting 1,000 new investments worth €7 billion in R&D alone, specifically identifies the critical need for suitable property solutions to meet prospective FDI demand. The agency's commitment to delivering 550 regional investments aligns perfectly with Fine Grain Property's strategy – more than half of our locations are outside Dublin, supporting balanced national growth.
Our investor base – comprising long-term strategic partners like the Ireland Strategic Investment Fund and Grosvenor – shares a belief in Ireland's potential, provided we preserve our unique collaborative model.
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State investor pledges more than €160m to climate businesses
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Ireland's global success is powered not just by investment and infrastructure, but by its extraordinary diaspora network. Having spent more than 30 years in Asia before returning home, I've seen how this community opens doors – bringing not only capital, but cultural fluency, market insight and trusted relationships.
Combined with Ireland's well-educated and innovative population, this global reach is a distinct competitive advantage.
The NDP offers the resources to unlock our next phase of growth – and it's private partners who will multiply that impact.
If we get this right, the next decade won't just address today's challenges – it will define a stronger, more resilient Ireland. The potential is there. The will is there. Now we must deliver – together.
Colin MacDonald is chief executive of Fine Grain Property