As outlined to the Deputy in my response to his previous parliamentary question on this matter, the capital review was published on 14 September 2017 and I believe that all members of the Oireachtas received a hard copy on that date. To recap, the review of the Capital Plan highlighted some key themes which will closely inform and be incorporated into the analysis leading to the finalisation of the new ten-year plan for public capital investment 2018-2027. These themes include:-
- confirmation of the central role of public capital investment in underpinning the economy's long-term growth potential and addressing overheating risks as well as supporting social progress;
- the need to align public capital investment priorities to a changing demographic profile;
- the critical importance of public capital infrastructure in meeting the essential requirement for balanced regional growth and promoting the societal transformation required to achieve climate action objectives;
- the mechanisms through which public investment can strengthen the economy’s resilience to major risks such as Brexit;
- the central importance of robust mechanisms to support the efficiency and value for money of public capital investment; and
- the strong business case for ensuring that public capital spending is balanced between new projects and maintaining the quality and capacity of existing public capital infrastructure.
Based on the analysis, the review of the capital plan identified a number of key sectors as priorities for investment, including transport, education, housing and health. The findings of the review assisted Government in selecting priorities for the allocation of the additional €4.3 billion capital expenditure allocated in Budget 2018 over the period to 2021.
Consequently, between 2014 and 2021, public capital expenditure in Ireland will have more than doubled and as set out by the Irish Fiscal Advisory Council, this will see public investment in Ireland moving to among the highest in the EU. Capital expenditure is projected to reach €8.4 billion in 2021 which is equivalent to 3.8% of GNI*.
The new ten-year capital plan is currently being finalised. I can, however, confirm that the plan will set out the Government's priorities in relation to public capital investment beyond 2021 and it is my objective that the plan will demonstrate the Government’s commitment to remaining amongst the highest investors in public capital investment in the EU over the period 2022 to 2027.
Public investment over the period 2018 – 2027 will be a key factor in delivering on the objectives of the new National Planning Framework (NPF) detailed in the Ireland 2040 Plan, which sets out a new model and approach to spatial planning in Ireland. The lack of progress in implementing the National Spatial Strategy launched in December 2002 resulted, in part, from a failure to ensure that our public investment plans were strictly aligned with delivering the spatial planning objectives. The investment plans which will be set out in the new 10-year capital plan will clearly demonstrate how public investment will help deliver the Strategic Outcomes detailed in the Ireland 2040 Plan.
