Trump's tariffs may derail €30bn Metro splurge
Details of the National Development Plan (NDP) are expected to reveal a plan of works that will see a major upgrade of roads, the water network and the power grid.
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Jack Chambers, Minister for Public Expenditure and Reform, said yesterday that the cash will focus on areas in need of urgent development. The extra funding is possible following the sale of AIB shares and the €14billlion Apple tax windfall.
Jack Chambers, Minister for Public Expenditure and Reform. Pic: Sam Boal/Collins Photos
He said: 'It's across three specific areas, namely water and wastewater infrastructure, the Metro project and also the necessity to provide investment in our grid.'
Mr Chambers said the upgraded NDP 'gives an opportunity for transformation and investment' in the economy over the next five to ten years. Asked where the extra €10bn is coming from, the minister said it is 'part of our medium-term economic planning', adding that the Government is prioritising capital investment over the medium to long term.
He said an 'additional uplift' is needed to address areas that 'can't wait any further'. Speaking on RTÉ radio, Mr Chambers said the timeline of the Dublin MetroLink is dependent on the planning system.
MetroLink Dublin. Pic: MetroLink
Already, €35million of taxpayers' money has been spent on metro consultancy fees. The revised NDP comes as Uisce Éireann said it needs an additional €2billion, on top of €10.3billion already allocated for capital spending, and ESB Networks says it needs an extra €1billion as part of its €13.4billion spending plan.
It is understood that there will also be extra funding for Eirgrid. The NDP is expected to be agreed today by Taoiseach Micheál Martin, Tánaiste Simon Harris, junior transport minister Seán Canney, Finance Minister Paschal Donohoe, and Mr Chambers.
It will contain spending plans for housing, water, energy and transport. The spike in spending is a final attempt to solve the housing crisis. Spending allocations for departments such as Housing, Health, Transport, and Education will be decided by the leaders.
Fianna Fáil leader Micheál Martin and Fine Gael leader Simon Harris. Pic: Maxwell's
Mr Martin and Mr Harris met on Saturday at 5 pm to make final decisions, and negotiations are ongoing. But concern is high that the Trump tariff proposals may scupper the plans.
One source said: 'All eyes will still be on Trump when the new plan is launched. These plans are all conditional on Trump coming to a deal on tariffs.'
A minister warned: 'He [Trump] really casts a long shadow. He negotiates in headlines. You might think you've a plan nailed down, but if he has a bad Epstein morning, in the afternoon, he could come out with a 30% tariff.
US President Donald Trump. Pic:)
'We thought we had pharma locked away and then he puts it back on the table. He has a different plan for breakfast, dinner and tea.'
Another said: 'Everything in the locker is being thrown at this. It is a once-in-a-generation opportunity.'
The Government will use the Summer Economic Statement and the NDP to send a message about current and windfall one-off expenditure.
One senior figure warned: 'The message we need to send out now is when it comes to the budget, it will be 'Brace yourself, Bridget' time,' while another minister warned: 'It is back to McCreevy economics: when we don't have it, we don't spend. The age of €1million social houses is over. It was the apogee, the end of the cycle.'
A source added: 'Paschal and Jack are in total control. We don't want to repeat past Celtic Tiger errors when we cut back on infrastructure spending at the wrong time. The line is being laid down this week. We do not want a summer of leaks, particularly when there is nothing good to leak.'
Additional reporting by John Drennan
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