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The Journal
an hour ago
- Business
- The Journal
Metrolink gets €2 billion funding boost - but no one knows what the final cost will be yet
THE METROLINK PROJECT is set to get a €2 billion boost in funding under the National Development Plan (NDP) – but the full cost of the long-planned underground rail line is not yet known. The plan, which was announced by the Government this afternoon , sets out what large-scale infrastructure projects Ireland needs over the next five to ten years. It details plans to invest €24.33 billion in transport between next year and 2030. Of this, €2 billion will come from the Infrastructure, Climate and Nature Fund (ICNF). The government said this funding is being allocated to support the development of 'low-carbon transportation' projects such as the MetroLink 'before 2030″. According to the plan, the government has decided to fund the proposed Dublin rail link using the ICNF due to the 'unique scale' of Metrolink, which it said will allow 'the ambitious pipeline of other public transport projects'. The Metrolink, which is the single biggest public transport project in the history of the State, will have 16 stations running from Swords to Charlemont and is estimated to carry 53 million passengers annually. The 18.8km route will have an end-to-end journey time of 25 minutes and serve residential areas including Ballymun and Glasnevin, as well as the City Centre and Dublin Airport, and will link to Irish Rail, Luas and bus services. Speaking this afternoon, Taoiseach Micheál Martin said that today's funding announcement was 'a very definitive commitment to the metro'. He said that while the actual cost of the project will be 'very, very substantial', the coalition is very clear that is has to be built 'for the future of the country'. 'If you look at the expansion of Dublin, if you look at it over 20 to 30 year period, there will be continued growth in population in Dublin. I don't think you could sustain Dublin without a metro,' he said. The Metrolink will have 16 stations running from Swords to Charlemont. Metrolink Metrolink In a later press conference, Finance Minister Paschal Donohoe indicated that the most recent costing for delivering the Metrolink is around €11 billion. He said the reason why an exact estimate for the cost of the project cannot be given is that there is now a procurement process due to commence. 'I'm not going to indicate what we believe the final cost will be until the procurement process is complete,' he said, stating that to do so beforehand could influence the value for money aspect of 'what it is a very, very big project'. The point was made to the minister that the public might find it hard to believe that the Metrolink will be delivered when there have been so many promises made about it over the last decade. Advertisement Donohoe accepted the point, but added that much of those decisions were influenced by the aftermath of global financial crisis, when capital investments was at a very low level. 'We tried to rebuild it, but it did take time, and we weren't able to give confidence regarding the money that would be available for projects like the Metrolink,' he said. 'There's only a very small number of projects that the government has given a particular commitment to and they are mega projects. They're in water and they're in transport. The main project that we are giving a commitment to up front is the mega project of the Metrolink. Planning An underground rail line for Dublin was first proposed in a government plan in 2005, but was shelved for several years during the recession. Cabinet approved a refreshed plan for the Metrolink in July 2022, with a planning application submitted to An Bord Pleanála that September. The current route of the Dublin Metrolink. Transport Infrastructure Ireland (TII) lodged a Draft Railway Order seeking permission for the project in 2023 and received 318 submissions in response. An Bord Pleanála – now called An Coimisiún Pleanála – held oral hearings to facilitate third parties expressing their concerns around the project early last year. During these hearings, further documentation was submitted, which resulted in a second public consultation process being held from August to October last year. A decision on whether to grant planning permission is now awaited from An Coimisiún Pleanála, with the Irish Times reporting on Saturday that the decision is due before the end of the summer. It's now expected that construction may not begin until at least 2028 . In 2021, the Metrolink was estimated to cost between €7 billion and €12 billion. Sean Sweeney, the director of Metrolink, told an Oireachtas committee in May that that estimate 'is going to change'. Speaking to RTÉ News this week, Sweeney said that the full cost of the project will not be clear until 2027 until tenders for the project are received. Asked today why people should believe the government when some €300 million has already been spent on the project and building has yet to commence, the Taoiseach said this money was spent on 'preparation' for the project. Artist interpretation of the underground station at Tara Street on the Northside of the city. 'You just don't go to a planning commission without substantial investment, ' Micheál Martin said. He said these are 'enormous projects' which demand a lot of allocation in terms of the work that goes into planning, designing the route and preparing a planning application, adding: 'So actually, I would take the €300 million as evidence of our commitment to building the Metro.' Related Reads Construction of MetroLink project may not begin until 2028, transport committee to hear Ireland is wasting a golden Green Line opportunity to appease misguided south Dublin fears 'I had death threats': MetroLink boss foresees pushback but also huge benefits in store Martin was also asked if the projects planned for in the NDP would go ahead if there is an economic slowdown, particularly as a result of US President Donald Trump's 30% tariff threat. The Taoiseach said that the international investment community is needed for projects at the scale of the Metrolink. 'They need to realise that we're going the full distance on the capital, and we will take measures if we have to, obviously, to meet the impacts of tariffs. But we are very clearly signaling that, unlike previous times, we want to protect the capital side of the equation.' Asked again if the spending would take a hit, he added: 'Current spending will be under pressure if such a situation was to emerge.' Reaction Fianna Fáil Senator for Dublin Fingal West Lorraine Clifford Lee said today's funding commitment of €2 billion is 'a statement of intent' from the government for a project that she said is 'essential' to meet the needs of a growing population. She said there has been an explosion in population in north County Dublin, in areas such as Balbriggan, Rush, Lusk and Swords, which infrastructure has not kept up with. 'There's always a chorus ready to kill a big idea before it starts, but we cannot base national planning on unverified cost fears,' she said. 'Final costs for Metrolink will come through the tendering process, and that's still to come. Let's be clear: this is a transformational project, and its long-term value far outweighs the short-term noise.' €2bn for Metrolink is hardly a vote of confidence that the project will be substantively progressed in this decade. It's supposed to take 6 years & be operational in early 2030's. €2bn is only 8%- 16% of the estimated total cost. #Metrolink — Marie Sherlock TD (@marie_sherlock) July 22, 2025 Fine Gael TD for Dublin North West Grace Boland also welcomed the ringfenced funding for the Metrolink, which she said is 'essential to get the project off the ground and marks a significant step forward'. However, Labour's transport spokesperson Ciarán Ahern said the €2 billion 'does not represent the scale or urgency required to deliver the long-awaited rail project for Dublin'. 'Metrolink is supposed to be the country's flagship public transport project and €2 billion is no small sum, but in the context of the overall cost of the project, it's nowhere near enough. We're talking about a fraction of what's actually required to see this project through,' he said. Ahern added that it is 'long past time that the sod was turned on Metrolink' and called on the government to commit the full funding required for the project. Sinn Féin's transport spokesperson Louise O'Hara meanwhile said the fact that the plan made funding commitments to the Metrolink but failed to mention any specific projects in the western and northern region is 'deeply disappointing'. With reporting from Christina Finn Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
Irish Examiner
4 hours ago
- Business
- Irish Examiner
Paul Hosford: US tariffs take shine off summer economic statement
Tariffs. They are the prince to the hamlet of global economic conversation, the dark cloud blotting out the sun of economic prosperity; they are omnipresent. On Tuesday, in Government Buildings, their prospect hung low as the Government announced its summer economic statement and National Development Plan. In a two-and-a-half-hour session of back-to-back press briefings, government leaders stressed the need to "recalibrate" economic plans in the face of the Trump administration's threats of a trade war with the EU. While Tánaiste Simon Harris has said that a 10% scenario is "baked in", the summer economic statement was based on a zero-tariff scenario. This, both finance minister Paschal Donohoe and public expenditure minister Jack Chambers, said would see the plans for the budget change if tariffs aren't avoided after August 1. In the document, the tax package available will amount to €1.5bn. The spending package will be €7.9bn, an increase of 7.3% on the revised 2025 general expenditure ceiling, but there are caveats. The most notable is that the Government isn't sure how much of that €7.9bn is spoken for. In previous summer economic statements, the existing levels of service has been outlined to break the available money down between extra spending and tax cuts. However, Mr Chambers said on Tuesday he was going to "engage with government partners" on just what their spending for this year will actually be. So, as of now, there is no clarity on just how much money Mr Chambers has to play with when ministers come banging on the door looking for their spending envelopes in September. Of course, Mr Chambers later said that this year's spending ceiling of €105.4bn will be overrun by €3.3bn, meaning that some departments will receive supplementary budgets. Uncertainty reigns The document itself is much more limited than previous ones, not featuring projections for future years, a sign that uncertainty reigns. "Our budget day decisions could change depending on the economic environment we find ourselves in during the summer and beyond," Mr Donohoe said, rejecting the idea that the statement was a wasted exercise given that much of the economic outlook will be decided after the EU and US decide what the future of their relationship will look like. It's very clear that we're at a moment of significant transition That level of transition is weighing heavily on Irish policymakers but, as they preach prudence on one hand, government leaders had taken to the same stage just minutes previously to talk about record amounts of money which would be unleashed to build houses, infrastructure, and safeguard future finances. The revised National Development Plan was touted as "transformational" and would "overcome pinch points that are holding back investment", but its announcement was a lot less prescriptive than in previous years. Whereas plans in the past were effectively a shopping list of projects it would aim to deliver from roads to mega projects in water, electricity, and transport, this version is more a statement of intent. With billions set to be deployed, categories for spending were remarkably vague. 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 to water. This does not include another €4.5bn in 'equity injections', which brings the total for housing and water to €40bn. Some €22.3bn will be spent on transport, with €2bn for the Dublin Metrolink. Sea change in Irish policy For the public who are hearing that belts need to be tightened and day-to-day spending is to be "moderated", they may look at the billions heading towards projects aimed at other parts of the country and wonder where all of the money is going. In truth, we don't know yet. The plan is merely a way for the Government to ringfence funding that can be argued for when individual departments work out what they can deliver and when. Pumping money into infrastructure is both necessary and overdue, but the watchword here will be delivery. For something which is being touted as a sea change in Irish policy, it doesn't feel like it This is largely down to two factors: A lack of detail on projects, and even less detail on how delivery of infrastructure is going to change pace in Ireland all of a sudden. The ringfencing of €2bn for the Metrolink in Dublin was hailed as a show of commitment, but the project has been on the political agenda for a decade — after a decade and a half of planning before that. I, personally, have been to two launches. At what point was it not committed to? The plan is a war chest the likes of which has never been seen. It has the potential to genuinely transform Ireland. However, its lack of a detailed timeline or plan of how this will be achieved will leave much to be desired from a public that is facing the reality of an economic downturn head-on. Read More Government to invest €102bn in infrastructure by 2030 under revised National Development Plan
Irish Examiner
4 hours ago
- Business
- Irish Examiner
National Development Plan allocates almost €4bn for defence and justice capital spends
Capital spend on defence is set to total €1.7bn over the next five years under the National Development Plan (NDP), with justice due to get a total capital budget of €2.18bn. The total allocation for the Department of Defence between 2026-2030 compares to €697m in the five years 2021 to 2025 — an increase of 144%, excluding inflation. The total spend on the Department of Justice in 2026-2030 compares to €1.35bn in 2021 to 2025 — a rise of 61%, not factoring in inflation. The expansion of the Department of Justice to incorporate migration explains, in part, the extra capital allocation. In addition, cybersecurity and the National Cyber Security Centre have just been transferred to it. The National Development Review Plan 2025, published on Tuesday, outlines annual allocations across the security departments: Defence — €300m in 2026, rising to €340m in both 2027 and 2028, and increasing to €360m in both 2029 and 2030; Justice — €390m in 2026, rising to €430m in 2027, €440m in 2028, €455m in 2029, and €465m in 2030. There was no detail of department allocations in the 49-page NDP review, compared to the 184-page NDP 2021-2030 document. Levels of investment The Government has committed to implement the second of three levels of investment (LOA2) set out by the Commission on the Defence Forces in February 2022, centred on increasing the annual defence budget from €1.1bn in 2022 to €1.5bn in 2028, based on 2022 prices. The NDP capital spends are also based on the Defence Equipment Development Plan 2020-2024 and the Defence Capital Infrastructure Development Plan 2022-2027. Major capital projects include three C295 surveillance aircrafts (third due in September), a refit of 80 Mowag armoured personnel carriers, a primary radar system (due in 2028), four modern helicopters (the commission recommended eight), and an expansion of the naval fleet to nine ships by early in the next decade. The Defence Equipment Plan 2020 also mentions plans to acquire an 'air combat interceptor', but it is not clear where that plan went. It is not part of LOA2, although LOA3 does recommend a squadron of fighter jets capable of interception. Overcrowding crisis It is not yet clear what the breakdown is under the justice budget and how much will go to prison expansion and refurbishment, given the escalating overcrowding crisis in the Irish Prison Service. The programme for government commits to 1,500 new spaces by 2030. Justice minister Jim O'Callaghan recently secured Cabinet agreement to accelerate the delivery of 960 of the additional spaces in Castlerea, Midlands, Wheatfield, and Mountjoy Prisons. He said that, 'subject to the necessary funding' in the NDP, this should speed up delivery by 12 to 18 months.
The Journal
4 hours ago
- Business
- The Journal
Analysis: Delaying details of big projects stinks of distraction ahead of the budget
LAST TIME OUT – back in 2021 – the government's National Development Plan ran to 189 pages. Today's document setting out the list of infrastructure projects the current coalition hopes to deliver over the next decade comes in at just under 50 pages and is rather scant on detail. The NDP is the government's long-term plan for what large-scale infrastructure projects will be needed in Ireland over the next five to ten years. Numbers in the billions were bandied about by the Taoiseach, Tánaiste and Minister of State Sean Canney as they announced the plan at Government Buildings , but details on the top projects, the timescale and how they will delivered, were thin on the ground. There was no mention of road projects, new hospitals, or specific schools that were going to be built. They only real specific mention was that the MetroLink was getting fully funded, but the government still doesn't know how much it will cost. Instead of providing a list of projects, Taoiseach Micheál Martin said each line minister had a body of work to do over the next couple of weeks. Announcements to be made closer to October's budget Those various ministers will come back and outline their priorities and what they can do with the money allocated to them 'closer to the budget', which has been confirmed for October. Interesting timing. The Journal asked if pushing out the departmental announcements is an attempt to distract the public with shiny capital spending announcements ahead of what is expected to be a lacklustre budget, particularly for workers. The Taoiseach's response? He said the previous NDP in previous years was 'too big a document, if I'm frank'. He outlined how each minister will now have to prioritise the projects they want to get over the line. Advertisement 'They have work to do within the department in terms of prioritising the allocation of that funding and prioritisation is going to be key.' He denied there was any attempt to distract the public. 'I mean, this is concrete substance in terms of investment in projects, be it roads, in active travel, be it in third level education, be it in research projects, the people receiving that funding won't see it as a distraction. They'll see it as very real.' Martin said today's slimmed down document with little detail was the 'right approach', in his view. 'Doing things differently' Similarly, the Tánaiste said in the past, there has been a 'big rush' to publish the NDP, which included a 'long list of projects'. 'We've tried to do things differently here. We've tried to provide ministers and their senior officials with certainty as to the envelope of money that they have for the next five years. And now we're telling them to go back and look through and tell us what can be delivered and the pace in which it can be delivered. 'We have to be agile in relation to this. You know, when it comes to capital projects, you might have two projects. One gets planning quicker than the other. We have to provide people, I think, with the flexibility here on what can be delivered quickly and ensure that value for money,' said Harris. Public Expenditure Minister Jack Chambers also defended the document today, stating that he never intended to publish a long list of detailed projects. While the Taoiseach denied that departmental announcements in the run up to the budget were a form of distraction to keep the focus off budget measures, such a tactic would not be a surprise move. Why? There was a stark warning from government ministers today that October's budget projections could be built on sand. After the NDP was launched today, the government also published its Summer Economic Statement (SES), which outlines the parameters for the upcoming Budget. While in previous years there has been talk of 'bumper budgets' and once-off measures, there was no such talk today. Instead, the budget spending pot was revealed under a cloud of uncertainty. Related Reads Houses, water, health and Metrolink: The key points from the National Development Plan Minister for Public Expenditure Jack Chambers and Minister for Finance Paschal Donohoe, speaking to the media at a press conference. Alamy Stock Photo Alamy Stock Photo While this could in fact be a very large budget, in terms of increased spending on last year, the Finance Minister Paschal Donohoe cautioned that a 'deterioration in the tariff landscape' would result in a 'recalibration' of its €9.4 billion Budget 2026 package announced today. The paper also stated there will be a €1.5 billion taxation package, essentially tax cut measures. However, this could be gobbled up if the hospitality VAT rate is reduced from 13.5% to 9% at a cost of €1 billion. The finance minister confirmed that there will be 'trade-offs' where other tax cuts might not get the green light due to the hospitality VAT cut. Fantasy economics Donohoe also confirmed that the SES published today is based on the workings that there will be 0% tariffs between the EU and the US. Yes, you read that right. Zero per cent. This is despite Tánaiste Simon Harris and other senior ministers stating that a 10% tariff is 'baked in' to government projections… just not for the budget package projection published today it would seem. Essentially, the SES published today is not worth the paper it is written on as no-one in government is working to the optimistic view that Trump will roll over on tariffs. If anything, the predictions are the landing zone could be above the 10%. Hocus pocus projections and fantasy figures are how the SES projections published today could be described. Even amid the economic uncertainty that comes with the ongoing standoff over tariffs, capital spending will be protected, the Taoiseach said, stating that 'current spending would be under pressure'. 'Our budget day decisions could change,' if the global uncertainty does come to pass, Donohoe said today. Chambers said the government will 'absolutely have to revisit' the €9.3bn budget allocation 'if there is a deterioration'. All this points to a strategy of delaying 'good news' infrastructure announcements until the autumn – by which point, presumably, we'll have a better idea of how grim the economic situation is looking. Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
RTÉ News
5 hours ago
- Business
- RTÉ News
National Development Plan centres on housing delivery
Housing delivery is the centrepiece of the National Development Plan, boosting spending on housing infrastructure by over €40 billion over the next five years to address the chronic shortage of new homes. Excluding water, housing investment will be around €36 billion. €2 billion in equity funding is being provided to Uisce Éireann to enable the delivery of 300,000 additional homes between 2026 and 2030, with a further €2.5bn provided for large-scale water projects over the period. Meanwhile, €3.5bn is earmarked for electricity services and the energy grid. Funds will be invested in areas such as water supplies, sewage connections, as well as the grid - all of which are key roadblocks holding back housing delivery. In Dublin, local authorities have warned they may not be able to give planning for new homes in coming years, unless such deficits are addressed. However, despite the significant investment housing consultant and former CEO with Clúid Housing Fiona Cormican said that "unless we radically change the way we do things, we're not going to be able to spend that money in the time (2026-2030)." "When I say radically change the way we do things, we are very tied up," she said. "The whole system is tied up in bureaucracy, in low-level risk management, worrying about ticking boxes, procurement regulation an so." "Yes we have to be diligent with public money, however, if we don't allow people to make decisions and to move at a pace, we will not be able to spend this money and what money we do spend may not be spent wisely," Ms Cormican added. A lack of labour in the construction sector has been raised as a potential barrier to overcoming these infrastructure shortfalls. However, the Construction Industry Federation (CIF) has said the workforce capacity is in place to meet the requirements of the National Development Plan. CIF Director-General Hubert Fitzpatrick said: "If we look at patterns over the last couple of years, we see the domestic side of the industry not growing at the same pace as the export side. "We've seen many construction companies actually export labour abroad where they're able to see sight of a pipeline of projects. "With the publication of the plan today and the implementation of projects in a timely manner, that will enable the industry to plan ahead, and ensure it has the resources to deliver and get on with delivering the key infrastructure that this country needs in order to accommodate the growing housing crisis that we currently have in the country."
