Government's NDP is 'fantasy economics', says O'Callaghan
Coalition leaders finalised the revised NDP yesterday, which is the Government's scheme to build infrastructure such as roads, rail, electricity connections and sewage schemes over the coming years.
The Government said that total spending over the coming five years as part of the plan will be almost €100 billion.
Speaking on RTÉ's Morning Ireland, Deputy O'Callaghan said the plan was published "as if there was going to be no major fallout from the tariffs and the potential trade war with the US".
Mr O'Callaghan, who is his party's spokesperson on public expenditure and reform, said "it is likely that it will not be possible" for the Government to deliver on all the promises made during the election due to tariffs.
He stressed that the Government has published statements and forecasts "based on a 0% tariff rate".
Funding for housing in the NDP will be the largest part of the €100bn plan, while the Coalition has promised to cut the rate of VAT for the food service industry.
Mr O'Callaghan said that the Government should focus on accommodation and food, adding that his party does agree with targeted support for the hospitality industry.
He said investment in infrastructure in Ireland is behind comparable countries, with a 25% lower rate of investment in infrastructure in recent years in Ireland.
"So that means, in September when children go back to school, you've got kids in schools with leaking roofs where the rain water comes in and it is captured in buckets," he said.
He added that the country is "way behind" in terms of public transport, adding that there are "huge pressures" around housing and healthcare, where he said investment is "absolutely key".
Mr O'Callaghan also said there are significant gaps in funding in healthcare, adding that elective hospitals are underfunded in the plan.
He also said that Ireland has a "much less productive" construction sector than other countries and described the NDP as "the vaguest document" the Government has ever published.
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