Latest news with #NationalDevelopmentPlan
Irish Examiner
3 hours ago
- Business
- Irish Examiner
Central Bank governor: US-EU trade deal will 'dampen' growth
The US imposition of 15% tariffs on EU goods will 'dampen economic growth' although it will be partially offset by 'reducing uncertainty' and the likelihood of a more damaging trade war that has dominated the economic environment since the start of the year, Central Bank of Ireland governor Gabriel Makhlouf has said. On Sunday, the EU and US agreed the framework of a trade deal which will see tariffs of 15% placed on imports from the bloc to the US. Writing in a blog post, Mr Makhlouf said there was insufficient detail to provide a considered analysis of the deal but these tariffs will require a mix of absorption by firms, which means reducing their profits, or increasing the cost of these goods for US consumers. 'Overall, compared to six months ago, US tariffs of 15% on EU goods will dampen economic growth, although it will be partially offset by reducing uncertainty and the likelihood of a more damaging trade war that has dominated the economic environment since the start of the year,' he said. However, Mr Makhlouf said he would refrain from commenting further on the deal given the 'unpredictability that has been such an obvious feature of US Administration policy over the last six months', and the "fact that details matter'. Last week, Mr Makhlouf, and his colleagues on the ECB Governing Council, decided to keep interest rates where they are for the time being. On this, he said 'inflation was on track to stabilise at our 2% target in the medium term'. On the inflation picture in Ireland, Mr Makhlouf said the Irish economy and public finances have 'entered this period of heightened uncertainty from a strong position but there are also underlying vulnerabilities that need to be managed carefully'. Given the publication of the National Development Plan as well as the Summer Economic Statement last week, Mr Makhlouf said fiscal policy has to 'strike a balance between delivering on the necessary rise in public capital investment in the coming years' and 'current spending demands that seek to maintain or enhance existing levels of public services'. On the interest rate decision from last week, Mr Makhlouf said he believes they've reached a point in the easing cycle 'where we can wait and see whether the data and evidence indicates the need for a change in our monetary policy stance'. 'We are not committing to a particular rate path, and will continue to take account of new information when it arrives,' he said. The next ECB meeting is in September.
RTÉ News
3 hours ago
- Business
- RTÉ News
Why does it take so long to get big projects done in Ireland?
Analysis: While our track record on infrastructure delivery is poor, such structural challenges present opportunities for systemic transformation Last week, the Government unveiled its ambitious National Development Plan (NDP) Review 2025, committing nearly €100 billion toward transformative infrastructure by 2030. While this represents a watershed moment for Irish development policy, the nation's track record on infrastructure delivery remains deeply problematic. Complex procurement processes, bureaucratic bottlenecks and protracted planning procedures routinely stall critical projects. However, what if we reframed these systemic challenges not as insurmountable obstacles, but as catalysts for groundbreaking innovation? The empirical evidence reveals a concerning pattern of institutional dysfunction. Ireland's planning permission process averages nine months for Strategic Infrastructure Development projects, often followed by judicial appeals that extend timelines indefinitely. According to the Irish Fiscal Advisory Council, each additional month between planning and construction inflates costs disproportionately, creating a cascade of economic inefficiency. From RTÉ Radio1's Morning Ireland, what is the Government's National Development Plan? Procurement frameworks compound these delays through risk-averse procedures and fragmented decision-making structures. The Strategic Investment Board highlights critical weaknesses. These include duplicated business-case analyses, unclear objectives across Centres of Procurement Expertise, and defensive bureaucratic cultures that prioritise process over outcomes. This institutional inertia creates what scholars term governance gridlock, where multiple stakeholders possess veto power but lack collective accountability for delivery. The human capital dimension presents equally severe constraints. EY Ireland's analysis reveals a critical shortage of experienced project leaders and procurement specialists, with demand significantly outstripping supply. The Irish Fiscal Advisory Council estimates a deficit of approximately 80,000 construction workers, creating fundamental capacity limitations that no amount of funding can immediately overcome. Ireland's integration into global supply chains, while economically beneficial, creates acute vulnerabilities for infrastructure delivery. Post-pandemic disruptions, geopolitical tensions and commodity price volatility, particularly for steel, concrete and copper generate unpredictable cost escalations. Contractors respond by inflating bids to hedge against uncertainty, reducing competitive tension and undermining value-for-money outcomes. From RTÉ Radio 1's Today with Claire Byrne, reaction to the announcement of the revised NDP OECD research demonstrates that countries with extended procurement and planning phases face disproportionate exposure to global volatility. This creates a vicious cycle of longer timelines increasing cost uncertainty, which then generates higher bids, which then further delays project approval and implementation. Infrastructure development is inherently political, reflecting electoral priorities and coalition compromises. Ireland lacks robust central coordination mechanisms, with multiple ministries and semi-state bodies managing overlapping portfolios without clear hierarchical authority. The recently renamed Department of Public Expenditure, Infrastructure, Public Service Reform & Digitalisation represents recognition of this challenge, but institutional restructuring alone cannot overcome deeper coordination failures. Academic research on planning optimism bias reveals how early project commitments, often made for political reasons, systematically underestimate costs and overestimate benefits. This creates lock-in effects where projects proceed despite deteriorating economics, generating public scepticism about infrastructure investment more broadly. From RTÉ Radio1's News at One, chairman of the new Oireachtas Committee on Infrastructure, Sean Fleming, discusses a new report on what's needed to deliver a revised national development plan, including a less complicated planning process and more trained construction workers Yet these structural challenges, viewed through a different analytical lens, present unprecedented opportunities for systemic transformation. Peter Diamandis and Steven Kotler's research on exponential technologies suggests that constraints often catalyse remarkable innovation breakthroughs. Ireland's infrastructure delays create powerful incentives for digital transformation across procurement, planning, and project management systems. Consider procurement innovation. Blockchain technology and smart contracts could transform traditionally bureaucratic processes into transparent, secure and efficient systems. AI-driven project management platforms could provide real-time risk assessment and adaptive scheduling, dramatically reducing uncertainty and improving stakeholder confidence. Digital transformation of planning processes offers similar potential. Integrated platforms combining environmental assessment, stakeholder engagement and regulatory approval could compress nine-month timelines into weeks. Virtual reality technologies could enable immersive project visualisation, reducing appeals through enhanced public understanding and engagement. From RTÉ Radio1's Morning Ireland, Taoiseach Micheál Martin joins the programme to discuss the National Development Plan Ireland's skills shortage, rather than representing an insurmountable constraint, creates incentives for innovative workforce development strategies. Massive Open Online Courses (MOOCs), digital credentialing systems and immersive apprenticeship programs could rapidly scale expertise in procurement and project management. Global collaboration networks could provide access to international best practices and specialized knowledge. The historical precedent of the Shannon hydroelectric scheme demonstrates Ireland's capacity for decisive action when political will aligns with institutional innovation. Michael McDowell's analysis reveals how special legislation in 1925 ensured swift project completion through streamlined regulatory frameworks and clear accountability structures. This model offers a blueprint for contemporary infrastructure challenges. Technology-enabled transparency could revolutionise infrastructure governance by creating real-time accountability mechanisms. Publicly accessible digital dashboards tracking project milestones, budget expenditures and performance metrics would reduce political interference while enhancing public trust. Such systems would shift focus from factional interests toward collaborative problem-solving and evidence-based decision-making. From RTÉ Radio 1's Today with Claire Byrne, the ESRI's Sean O'Driscoll, a member of Ireland's new infrastructure taskforce, on the radical action needed to end Ireland's infrastructure gridlock This approach echoes successful international models where transparency platforms have transformed public sector performance. The key insight is that technological solutions must be embedded within reformed institutional structures that incentivise cooperation over competition between government agencies. The NDP's €100 billion commitment creates an unprecedented opportunity for comprehensive reform. However, success requires addressing structural weaknesses simultaneously with increased investment. First, streamlining approval processes through statutory time limits and higher thresholds for legal challenges would reduce uncertainty and planning delays. Second, adopting the OECD's STEPS framework for strategic procurement would balance risk management with competitive dynamics, encouraging broader market participation while maintaining quality standards. Standardising public-private partnership approaches would reduce legal complexity and transaction costs. From RTÉ Radio 1's Today with Claire Byrne, Seamus Coffey from the Irish Fiscal Advisory Council on the lag in Ireland's infrastructural strategy Third, developing clear career pathways for infrastructure professionals, benchmarked against private sector compensation, would build institutional capacity over time. Centralised knowledge-sharing platforms could prevent duplication and accelerate learning across government departments. The National Development Plan represents more than ambitious spending, it embodies Ireland's potential to become a global model of innovative infrastructure delivery. By embracing technological solutions, institutional reform, and evidence-based governance, Ireland could transform chronic delays into competitive advantages. The moment for comprehensive reform has arrived; the only question is whether Ireland will seize it. Rather than accepting infrastructure dysfunction as inevitable, Irish policymakers have an opportunity to demonstrate that small, agile nations can lead global innovation in public sector transformation. The Shannon Scheme's legacy reminds us that decisive action, supported by appropriate institutional frameworks, can deliver transformational outcomes. The question is not whether Ireland can afford to invest €100 billion in infrastructure, but whether it can afford not to simultaneously invest in the institutional innovations necessary to deliver that infrastructure effectively. The moment for comprehensive reform has arrived; the only question is whether Ireland will seize it.
Irish Examiner
19 hours ago
- Business
- Irish Examiner
Excessive regulation delaying key infrastructure projects, Cabinet to hear
Big projects are battling against too much regulation and are being delayed by up to five years due to judicial reviews, Cabinet is to be told. Public expenditure minister Jack Chambers will brief ministers on a report by his department's infrastructure division at the final Cabinet meeting before the summer break at Government Buildings. It is understood that this report will outline emerging themes and barriers that are delaying the delivery of infrastructure in Ireland following consultation and engagement. It comes just a week after the publication of the review of the National Development Plan. It is understood that the report will outline 12 key thematic issues delaying the delivery of infrastructure. These include the increased regulatory and legal burden for those developing key infrastructure, inconsistent planning decisions, limits on regulatory agencies' ability to prioritise and consider wider societal aims, and limited public awareness of the consequences of poor infrastructure. The report is also expected to place a heavy emphasis on the impact that judicial reviews are having, as well as the growing threat of judicial reviews on infrastructure delivery. It is estimated that the planning and consenting process for critical infrastructure takes between three and five years longer due to the added threat, duration, and impact of judicial reviews. The report will also outline areas of international best practice that are being examined as potential solutions in Ireland. These include recent reforms such as the One Canadian Economy Act 2025, which provides for certain projects of national interest to be fast-tracked. The final report, together with an accompanying action plan, will be published in the autumn. Housing minister James Browne, meanwhile, will bring plans to Cabinet to increase housing supply targets for each local authority in the country. The number of units zoned for will increase from 33,000 to 83,000 per annum until 2034 under the new guidelines. It is understood that Mr Browne has indicated that he expects 'urgent and immediate action' from all councils to respond to the housing crisis'. Ministers are also expected to be updated on minister of State for planning John Cummins' proposals to exempt certain developments from having to seek planning permission. A public consultation will go live today. Elsewhere, social protection minister Dara Calleary will tell ministers that pensions auto-enrolment is making "good progress" before its launch in January. It follows earlier delays to the project, which saw it pushed from January 2025 to September 2025 to January 2026. Energy minister Darragh O'Brien will bring a bill which will outline how ESB Networks should deal with unmanaged vegetation and commercial forestry close to electricity infrastructure. This was developed in the wake of Storm Eowyn. Read More Call for Government to republish summer budget projections after US-EU trade deal
Extra.ie
a day ago
- Business
- Extra.ie
Plan to cut VAT on hospitality sparks ferocious row between ministers
A spat between the Coalition parties over Fine Gael plans to cut VAT on hospitality to 9% has developed into a 'a ferocious row'. Simmering tensions about where budgetary cuts will land this autumn came to the fore last week between Fianna Fáil and Fine Gael over the issue of VAT cuts. After years of record spending increases, the review prior to the Summer Economic Statement came as a shock to ministers. Senior Fianna Fáil Minister of State Niall Collins. Pic: Gareth Chaney/Collins Photos In an extraordinary attack on the proposal, which would devour two thirds of the money allocated to tax cuts, the senior Fianna Fáil Minister of State Niall Collins said luxury and five-star hotels benefiting from a universal rate reduction to 9% would sit 'very, very uncomfortably with me'. However, Enterprise Minister Peter Burke has doubled down in his determination to see the €1billion cut through. He told 'The reduction on VAT is a promise we made to the hospitality sector in good faith. I am fully committed to its delivery as it is core and central to sustaining the 228,000 jobs in that sector, many of which are in regional locations. Enterprise Minister Peter Burke. Pic: Sam Boal/Collins Photos 'The tourism sector is a €9billion industry and one which I am focused on supporting particularly with our new tourism strategy which will be published in September.' But one Fianna Fáil minister said of the proposal: 'Fine Gael once again appear to be forgetting they are the junior partners. They do not decide tax policy and they certainly are not going to be allowed to create a scenario where the public will be furious over a measure that will only benefit a few coffee shops.' Tánaiste Simon Harris, Taoiseach Micheál Martin and Sean Canney, Independent TD for Galway East, speaking at a press conference for the launch of the Government's Summer Economic Statement and the National Development Plan for the next five years. Pic: Niall Carson/PA Wire Responding to Fine Gael plans to front-load the cuts during Micheál Martin's term as Taoiseach, one Fianna Fáil senior figure warned: '(FG leader) Simon Harris may want to be the new Bertie Ahern but he won't do it at our expense.' In a further indication of the new levels of tension surrounding expenditure, a number of legal challenges are being prepared by representative groups in the education sector should the Coalition fail to adequately fund schools. One education sector source said: 'There is trouble and underspending across the board, from primary education to third level. Serious trouble is coming down the tracks if ministers don't perform. 'We don't do press releases or complaints on the Order of Business. We are going to hold the Government to account over their legal responsibilities and we are prepared to take the legal route to defend the fiscal integrity of schools and the State's legal obligations to deliver appropriate facilities for children.' Taoiseach Micheál Martin. Pic: Sasko Lazarov/ The proposed challenges will increase concerns within the Government that it faces a destabilising summer of internal discontent over fears that Ireland faces its first austerity budget in a decade. One senior Government source said: 'Paschal [Donohoe] and Jack [Chambers] are engaged in a great act in expectation management. There is a great tidying-up process: all the cycle lanes, all that green stuff, we are not wasting that money.' Another senior Government figure added: 'The budget will be factually expansionary, look at the figures. We are, however, laying down the marker in the Summer Economic Statement to stop runaway stories.' However, Cian O'Callaghan, Social Democrats acting leader and finance spokesman said: 'It is clear that after the big giveaway pre-election budgets, citizens are facing difficult times. Cian O'Callaghan, Social Democrats acting leader and finance spokesman. Pic: Gareth Chaney/Collins Photos 'The Government can spin all they want about returning to normality. The truth though is that people experiencing the frontline of the cost-of-living crisis are and will experience the very real return of austerity budgeting.' Despite attempts by Government ministers to calm their TDs, unease remains high within the Government ranks. One Government source said: 'There are billions of one-off payments facing the axe and it is not going to be pretty. 'Look at James Lawless, he let the cat out of the bag too early on third level registration charges and he hasn't been seen since, he has disappeared.' However, a Fine Gael minister said: 'There's no great plot against Fianna Fáil, it is simple logic. When it comes to cutting, do you want to be unpopular now or would you prefer to be unpopular in five years' time. Our friends need to calm down.' Minister of State James Lawless. Pic: Sasko Lazarov/ The pre-budget negotiations could be a chance for Mr Chambers to put himself in position for a future leadership bid. A FF source said: 'There may be a bit of leadership-building going on with Jack [Chambers] as well. At some stage Micheál has to go and let's face it, at 64 he is nearer the end than the beginning.' Another Fine Gael source noted of 34-year-old Mr Chambers: 'He hasn't made too many friends in Fine Gael going around the place being led by the nose by his officials. Even the Tánaiste had to battle for Defence spending.' Unease is also growing within Fianna Fáil with sources speculating that succession factors may be at play when it comes to the vigour with which Mr Chambers is going about his task. The source added: 'There is a bit of an invisible leadership competition building up between Jack and Jim O'Callaghan. Big Jim is going very well at the moment so Jack may be trying to out-do him by generating a reputation as a great reformer of the public finances.'
Irish Independent
a day ago
- Automotive
- Irish Independent
The Cork highway that's so bad even the county's roads boss has called it ‘substandard & unsafe'
A motion by Councillors Anthony Barry and Rory Cocking at this week's meeting of the local authority's Southern Division called for urgent funding for increased safety and traffic management measures on the section of the N25 between Midleton and Carrigtwohill. Cllr Cocking said the section near Carrigtwohill is 'absolutely lethal' with trucks merging on to the road from a nearby quarry. 'And when these trucks are coming onto the road, it's forcing cars into the fast lane and the speed is horrendous there at the moment.' The East Cork councillor said that with thousands of housing units proposed between Midleton and Carrigtwohill, 'this is only going to get worse. I believe the road is at capacity at the moment and a serious upgrade is required. Unfortunately, we've seen a lot of accidents in recent times. Some of them have had fatalities, unfortunately.' Cllr Barry said that that section of the N25 has had 'fundamentally no improvement works since the day it was opened in 1968. It is a crazy situation from a health and safety level.' 'It poses serious questions for further development in East Cork. And we're talking about putting another 4,000 to 5,000 residential units down there. I think it throws into question any further development that can be put in place on the [rail] corridor until that basic infrastructure is put in place.' Responding to the motion, Padraig Barrett, Director of Services in the council's Roads and Transportation section, said national funding for the Carrigtwohill to Midleton upgrade was suspended in 2022 and hasn't been restored since despite the best efforts of the council. 'From my own point of view, I would consider it one of my greatest disappointments in my role as Director of Services for roads in Cork County. It's a road that's carrying 36,000 vehicles a day, it's an absolutely essential project. It's a substandard, unsafe road.' Mr Barrett said the council is hopeful that the revised National Development Plan announced this week with its €28bn budget for transport will provide funding for the upgrade. The Cathaoirleach of the Southern Division, Cllr Ann Marie Ahern, called on central government to address the lack of funding for the N25 upgrade as a priority. 'I don't think we as a council can accept it going forward. This isn't a reflection of Cork County Council at all, this is actually a reflection of a Taoiseach, who's from Cork, who isn't acting for Cork, and particularly East Cork. And the ministers that are sitting up there, we haven't seen anything in ten years down in East Cork for the N25,' she said.
