Dáil Éireann Debate, Thursday - 22 June 2023
141. Deputy Brian Leddin asked the Minister for Finance if consideration has been given to allocating some of the general Government surplus to investment into sustainable transport infrastructure; and if he will make a statement on the matter. [30152/23]
View answerLast year a General Government Surplus of approximately €8 billion was recorded. However, my Department estimates that in 2022, windfall corporation tax receipts were in the region of €11 billion. Once these windfall receipts are stripped out, the headline budgetary surplus masks an underlying deficit somewhere in the region of €3 billion. Going forward, an annual average of between €11-12 billion of corporation tax receipts was identified in the Stability Programme Update 2023 as being potentially at risk and an underlying surplus is not expected until next year.
In terms of transport infrastructure, this falls under the remit of my colleague, the Minister for Transport. However, as the Deputy is aware, this Government is committed to a fundamental change in the nature of transport in Ireland and at the heart of that change will be a shift toward increased use towards both active travel and public transport.
Exchequer investment reflects that commitment, with significantly increased funding being provided for public transport infrastructure and services. I understand that almost €1 million being spent every day on active travel to deploy enhanced and more secure walking and cycling infrastructure. That funding is supporting the delivery of transformative projects such as DART+, MetroLink and BusConnects programmes in all five cities, as well as the roll-out of new, enhanced and improved rural bus services across the country under Connecting Ireland. In addition to these projects, the Department of Transport has overseen fare reductions to make public transport more attractive, with a general 20 per cent reduction applied across Public Service Obligation services and an additional 50 per cent reduction introduced for holders of the Young Adult Card.
These investments are necessary if we are to achieve the targets set by the Climate Action Plan 2023 to reduce the modal share of daily car journeys from over 70 per cent to approximately 50 per cent by 2030.
On the broader question of the treatment of the projected budgetary surpluses, my Department continues to work on proposals for the establishment of a long-term savings vehicle, while also paying down debt and provisioning for additional targeted capital investment. These proposals will take account of the analysis contained in the Department’s paper ‘Future-proofing the Public Finances – the Next Steps’, which was published last month. Any additional targeted capital investment will take account of the existing Exchequer investment, while at the same time ensuring that capacity to deliver is not a constraint.
