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Irish Examiner
a day ago
- Business
- Irish Examiner
Taoiseach on NDP: Infrastructure spend will be prioritised over day-to-day spending
The Government has vowed that the €200bn injection in infrastructure will be protected over day-to-day spending if tariffs cause an economic slowdown. As Taoiseach Micheál Martin defended the lack of detail in the National Development Plan (NDP), arguing that previous iterations were too long, he said borrowing to deliver the programme is not being ruled out. Details of how each department intends to spend its money will not be unveiled until October, with Minister of State at the Department of Transport Sean Canney admitting he 'doesn't know what roads are being done'. The new NDP will see a total investment of €275.4bn in infrastructure over the next decade. Some €102.4bn will be invested up to 2030, with a further €100bn to 2035. Much of the investment will go towards housing, with a total allocation of €36bn in the next five years. Some €7.68bn of this will go towards water. This does not include another €4.5bn 'equity injections', which brings the total for housing and water to €40bn. Some €22.3bn will be spent on transport, with a provision of €2bn for the Dublin Metrolink. The Metrolink money is part of a ringfenced €10bn 'equity funding', that will also see €3.5bn provided in 2025 to improve the energy grid. The rest will go to water. The Taoiseach said the Government will remain committed to infrastructure investment and if the financial situation changed, it would be prioritised over day-to-day spending. 'A lot depends on where the cards land and that negotiation [on tariffs] isn't over yet,' Mr Martin said. 'It's a tense negotiation. It's a difficult, challenging negotiation between the European Union and the United States, and it is one that is causing a lot of concern. 'We have factored in as much as we possibly can, various scenarios. But what we're absolutely determined to do, as best we can, is safeguard the capital side of the budget over the next number of years. 'We don't anticipate having to borrow, but we're ruling nothing out. 'But we do need the investment community, and particularly the international investment community, particularly in terms of the Metro project of that scale, they need to realise that we're going full distance on the capital. 'We will take measures if we have to, obviously, to meet the impacts of tariffs. But we are very clearly signalling that, unlike previous times, we want to protect the capital side of the equation. 'Current spending would be under pressure if such a situation [an economic downturn] was to emerge.' This was echoed by Finance Minister Paschal Donohoe, who said the 'priority' will be maintaining capital investment. Opposition criticism The opposition was critical of the lack of detail in the plan, with both Labour's Conor Sheehan and Sinead Gibney of the Social Democrats suggesting this was the case so that deals with independent TDs during Government formation talks would be kept under wraps. However, the Taoiseach branded this claim 'ridiculous'. He said: 'Sectoral plans will be announced by the ministers close to budget time. We're going to work through them.' Public Expenditure Minister Jack Chambers said it was 'never my intention' to publish a 'long list' of projects as part of the NDP. One of the only specifics from the announcement was the inclusion of an additional €2bn for the Metro. Labour TD Marie Sherlock claimed the 'hype of €100bn' was 'punctured with little or no detail'. 'The reality is that this is a catch-up NDP, where the supply of housing and public infrastructure has fallen far behind the growth of our economy and our population,' she said. Sinn Féin TD Mairead Farrell, who is also chair of the Oireachtas Finance Committee, criticised the fact that the NDP review was just 49 pages. 'With the dust settling on their big announcement, we are still left wondering where all this money is going to go, how they will address the current bottlenecks, and whether 'value for money' will just be another political cliché,' she said.
Irish Examiner
2 days ago
- Business
- Irish Examiner
Government to remain tight-lipped on projects added to National Development Plan
The Government will stay tight-lipped until October about projects that will benefit from a review of the National Development Plan, which will see €200bn invested in infrastructure over the next decade. Public expenditure minister Jack Chambers will unveil the plan following Tuesday's Cabinet meeting, after weeks of intensive negotiations. Some €200bn will be invested in capital projects over the next decade, with €100bn to be spent over the next five years to address shortfalls in water and energy infrastructure that is stalling the delivery of new homes. It is understood the plan will commit to an extra €30bn allocation for projects over the next five years, bringing total spending to €100bn; a further €100bn investment in infrastructure between 2030 and 2035; a 'ringfenced' €10bn for the electricity grid, water infrastructure, and transport projects, including the Dublin Metrolink; the 'largest single investment' in the country's electricity network; and a 'major increase' in defence spending over the next five years. The National Development Plan, launched in 2021 in Cork, is being updated due to an influx of cash received in recent months. This includes the €14bn Apple tax windfall following last September's European Court of Justice ruling, as well as the sale of the State's remaining AIB shares. Negotiations were continuing late yesterday, despite suggestions that the plan would be signed off by the Coalition leaders, including Taoiseach Micheál Martin and Tánaiste Simon Harris, at a pre-lunchtime meeting. However, meetings were still taking place yesterday evening, with discussions on housing holding up the review being finalised. Sources stressed that the plan announcement will be a 'review' rather than a new plan that will see specific projects and details announced. The new capital allocations for each department will be confirmed by Mr Chambers on Tuesday. However, details of how each department will use its allocation will not be revealed for another three months, with specific projects not expected to be outlined until budget day in October. Mr Harris, who is also defence minister, is understood to have secured an increase in defence spending over the next five years. He will tell Cabinet that the revised plan presents a 'once-in-a-generation opportunity to transform Ireland's infrastructure' against the backdrop of global uncertainty over trade and tariffs. He is expected to tell his colleagues that 'quicker approval processes and less red tape' will be critical to delivering on the plan to upgrade water, energy, transport, and other infrastructure that will 'enable the delivery of new homes, more schools and childcare places, and improved disability services and health outcomes'. Meanwhile, ministers will be told of the need to 'moderate' day-to-day spending ahead of this year's budget. The Government will today release the summer economic statement, which will outline the broad parameters of October's budget. While Government sources say that there will be money to spend, economic uncertainty means that current spending will need to be managed. It is expected Mr Harris will tell Cabinet this year's document will be 'different' from previous years, and that decisions made in the budget will 'have to focus on protecting jobs and investment during what could be an economically turbulent period ahead'. Government sources have said the increase in protectionism, rising tariffs, and the 'fragmentation of global supply chains' poses a threat to Ireland's economic model, but that Budget 2026 will see additional public spending and taxation measures delivered. In last year's summer statement, the projection for this year's budget was that there would be around €2bn for additional expenditure and €1.2bn for tax-related changes. "Government sources said that the focus has been on finding 'the right balance between enhancing our public infrastructure, improving public services and maintaining the long-term sustainability of the public finances'.
Extra.ie
3 days ago
- Business
- Extra.ie
Trump's tariffs may derail €30bn Metro splurge
Spending of €30billion on infrastructure, including the Dublin Metrolink, over the next six years will be announced tomorrow – but sources say the plan depends on Donald Trump's tariffs. 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. Today's top videos STORY CONTINUES BELOW 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
