Report on Infrastructure and Capital Investment 2012-2016: Statements (Resumed)

Deputy Olivia Mitchell

I welcome the opportunity to speak to the revised capital expenditure programme published the week before last in the context of the upcoming budget. The fact that we must have a considerably downsized revised programme will be a source of disappointment for Members on all sides of the House and members of the public, particularly those whose jobs are very much bound up with a robust capital expenditure programme. Their disappointment is shared by Members of this side of the House. There is no Government which does not consider providing national infrastructure to meet future needs in the economic life and development of the country to be an essential part of its responsibility.

The Government is no different from any household in terms of its freedom to spend. Many householders look around to assess the state of their homes and see that money needs to be spent on them, whether it be on painting the windows, or renewing, enhancing or repairing their homes. They know that if they do not do this work, it will have repercussions in the future in that it might cost them more in that further repairs might have to be done. They know, however, that one cannot spend what one does not have or what one cannot borrow. That is precisely the position the Government is in; it does not have the money and cannot borrow it.

It is a tragedy that we cannot provide for the future needs of the economy in terms of the provision of infrastructure. There is no way to dress this up. A failure to invest now will limit our future growth prospects, make us less efficient and competitive. It will also mean we will fail to capitalise on the reduced cost of construction work. Sadly, it means many potential and existing jobs will be sacrificed and the loss of professional expertise and skills which we built up in the past 15 or 20 years. Many engineers, architects, quantity surveyors, carpenters, plumbers, welders and painters have lost their jobs and will continue to lose jobs in the coming years because of the need to cut back on our capital expenditure programme.

The loss of the skills we have built up is the saddest aspect. The tragedy of what was done to us is that we will lose the talented teams which gave us the Boyne bridge and the complex interchanges on the motorways. One of the good things that happened during the Celtic tiger years is that we built the inter-urban routes. We will also lose the teams which delivered the Luas. The people with these skills have gone abroad to build a prosperous future for other people in Canada, New Zealand, Australia and Africa. We are paying a heavy price as a country and as individuals for the mistakes and greed of others.

The reality is that we must remove €3.8 billion from the budget this year. This can be done only through cutting expenditure or increasing taxes. None of these options are ones which any Government relishes. What I am here to speak about today is the fact that we have €4 billion to spend this year, which is a great deal of money in the context of what is available overall. When one has a limited amount of money it is important to prioritise and spend it as it should be spent.

People were disappointed that funding was pulled from the metro project, particularly because so much money had been spent on planning it. However, a huge project like this is risky at the best of times and in the worst of times it would be far too risky even if one had the money for it, because if it went wrong it would go monumentally wrong, and would be tied around the necks of future generations like another Anglo Irish Bank. It was sensible to pull back from it.

I am pleased to see money will be spent on joining up the two Luas lines and extending the line to Broombridge which will allow for an interchange with the Maynooth line and the main rail network. What is important in public transport is not individual lines but that we provide a network of facilities.

Iarnród Éireann is probably disappointed with the unavailability of money for the DART underground but to be honest I have always had reservations about this. It is not that I do not think it is a great idea to join up the system because this is essential, but to do it underground in a small city is not a good idea. All of the evidence from abroad suggests that people will not go underground for very short journeys. I am not convinced this was ever going to be a good investment, notwithstanding that it is essential that we join up the network.

What we can do now, we should do. For instance, the Luas project to join up the lines was postponed originally because it would cause disruption in the city and we already had gridlock at that point. Now, at a time of recession when there is less economic activity, less traffic and less travel, is the time to do it, notwithstanding that it will cause some disruption.

I already welcomed the fact that in the years gone by we completed the inter-urban routes and what money is available now must be concentrated on public transport. Dublin Bus has had to reduce its services, which is being sold in Dublin as streamlining and it probably should have been done years ago. The fact that it could not replace buses meant it had fewer buses on the road. The investment in replacing buses was essential and was well-judged and focused on where it was really needed.

I urge the Minister for Transport, Tourism and Sport to look towards cheaper but very successful alternatives such as the rapid bus transport systems which are cheaper and offer greater flexibility in a built-up city and provide greater penetration in built-up areas. People may not feel it is as sexy as getting an underground DART or a metro but they work and are infinitely cheaper so we should consider them in terms of providing an overall network.

I will speak a little about health because it is in the news so much at present. I very much welcome the fact that although there is less money now and the choices are stark we are prioritising projects such as the children's hospital which is long anticipated and badly needed. I am pleased the Government is prioritising children through creating the role of Minister for Children and Youth Affairs and keeping them high on the political agenda. The funding mechanism for the national children's hospital is innovative as it involves selling the licence for the national lottery. I hope it works and that the troika allows us to keep the money from it. We probably need to get clarification on this in the new year.

I am also pleased that Dundrum Mental Hospital is to be replaced. When the old health boards existed, I was on the visiting committee and we visited many facilities in the area. The mental hospital in Dundrum was Dickensian. It houses many dangerous people but they are all patients. They are all sick people and to keep them in the conditions in which they have been kept for many years is unacceptable. Therefore, I am pleased money is being made available for this. I look forward to seeing the patients transferred to a new facility in Portrane.

I very much welcome the fact that a certain amount of the limited money available for education has been ring-fenced to provide for the many new schools we will need in the coming years to cater for our expanding population. We should view this expanding population as a plus; we need to replace ourselves as we do not want to end up in the same position as many other countries with an aging and expensive population. We need young people coming into the workforce in years to come — I hope in better times than these — to keep us all in our old age. I look forward to this and it is right that we spend our money now on education.

I am delighted to see that almost €500 million will be spent in the coming year on job creation. It is essential that we continue to invest through the IDA and Enterprise Ireland to attract businesses to Ireland. We must remain an attractive place to locate. It is not only money and grants which does this; the essential investment in a secure water supply, telecommunications and energy are also required if we are to continue to compete to attract a flow of inward investment.

Deputy Sean Fleming

I welcome the opportunity to speak on this subject. I recognise that we do not have the level of expenditure for these areas that we might have liked or that we had in the past. Some reduction was possibly necessary in capital expenditure and other expenditure headings, but the document in front of us, which was published by the Minister for Public Expenditure and Reform, Deputy Howlin, last week, goes a little too far and deep with regards to cuts in capital expenditure.

It was intended to spend approximately 3.5% of GNP on capital expenditure in 2012 but this document cuts this figure to 3%. The 2011 budget for capital expenditure is €4.65 billion. We proposed that this should be reduced by approximately €350 million to approximately €4.3 billion and everybody accepted this. The document proposes to cut this figure to €3.9 billion which reduces total capital expenditure next year by €750 million compared to this year. That immediately translates into people who are working on the €4.6 billion worth of projects this year in order that approximately 9,000 fewer people will be working on those jobs next year. That is because the budget for capital expenditure in 2012 will be cut to €3.9 billion. It surprised me that twice in one week the Minister went public with new documents of this nature. Just a few days after that he came up with another figure, saying that he would cut public service numbers by far more than was previously understood to be the case — another 12,000. I understand it is a coalition Government and there have to be compromises. I also understand that Fine Gael wants to cut the public service right, left and centre but it was disappointing that the Minister went so far down the Fine Gael road on that particular issue.

As regards the limited resources available to us, it is a question of how one prioritises the amount of money one has. I think the Minister of State, Deputy Kathleen Lynch, will support me on this important point. The first chart in this report's executive summary shows that roads and public transport will get 25% of this infrastructure and capital investment programme in the next couple of years. Environment and housing will receive approximately 19%. Much of the environment budget concerns waste water treatment services, with which we all agree. Meanwhile only 13% is being invested in the future of education. More disappointingly, however, health is only getting 11% of the €3.9 billion next year and from the €17 billion in the programme. As a percentage of expenditure and the Government's priorities, health has therefore been relegated to one of the smallest levels of any Department. I would have thought that health warrants a higher priority, as should education. However, the Government has chosen to give 25% of the entire capital programme to roads and transport, as well as another 25% to housing and the environment. At the same time, we are spending less on health and education combined than on roads.

We have a massive roads infrastructure and I would like to see extra road projects. We have built motorways and additional Luas lines as well as toll bridges, underpasses, overpasses and flyovers. That infrastructure is a credit to where we are today and it helps competitiveness, but in times of scarce resources I thought that health and education would have featured more strongly in terms of the Government's priorities. If capital expenditure in 2012 is to be €3.9 billion, then so be it. I would like it to be more but that is a Government decision. Within that figure, however, I am disappointed that health and education are to receive so little. I would like to concentrate on those kinds of issues and I would support a rejigging of priorities within the overall budget to give greater priority to health and education. If children do not get a good education, it will cause difficulties later. Equally, older people also need to be looked after. Deputy Stanley and I were with the Minister for Health, Deputy Reilly, last night talking about the closure of nursing homes for the elderly in Abbeyleix and Shane. The Minister was convincing and I was happy with the outcome of the meeting because what he is trying to do sounds positive. Although it is running against this direction, he wants to maintain as many people in HSE facilities for the elderly as possible. That can be done for a small extra amount. I know HIQA has new standards coming in but the figures being brought forward in that area would be a tremendous boost for the health services which need it.

As the main Opposition spokesperson on the public service, I told the Minister that we would support lifting the recruitment embargo for nurses. I think everybody in the House would support such a move because that embargo is causing the problem with all those nursing homes. Nurses are retiring and are entitled to do so as part of the agreement by moving out before next spring. If teachers or doctors retire, they are replaced, as psychiatrists and psychologists can be. By and large, teachers are exempt from the recruitment embargo, although some posts are not, such as non-teaching principals and assistant principals. Generally, however, if a mainstream teacher leaves a classroom, that teacher will be replaced and the same applies to doctors, surgeons and consultants. We now need to do the same for nurses. We would therefore support a reallocation of priorities within the budget to help health services and the education sector.

There is no mention of job loss or creation figures in this infrastructure and capital investment programme. None the less everything we are doing now should be focused on jobs, which is the biggest issue. The more people we get back to work, the fewer we will be paying on social welfare. The priority should be about jobs, although there is nothing in the programme about that, apart from job reductions. The same applies to the other public sector reform document I mentioned. There is nothing in it apart from job reductions.

It is intended to raid the National Pensions Reserve Fund for another €250 million. Last July, €500 million was raided by way of the pension levy, but that money was not spent on job creation. In fact, the majority of it has still not been spent. I know people on the Government side are smiling at me but those are the facts. More than €200 million of that has not been spent, although they say it will be spent next year. That may be so but the money is being deducted this year for job creation, yet it is not being spent. The Government is upfront and accepts that the money has not been spent. It is in the Government figures which were produced at the end of September. Nonetheless the Government reduced VAT in that jobs initiative to increase employment. However, it is now proposing to increase VAT in the forthcoming budget. People may say it has not been decided but we know it has been. As that will cost jobs, I cannot understand where the Government stands on jobs. It reduces VAT to help job creation but then turns round with the biggest macroeconomic statement of the year to announce a VAT increase. By definition that will cost more jobs. When one adds up the loss of jobs in this infrastructure and capital investment programme and those announced by the Minister, Deputy Howlin, last week for public service reductions, which are greater than those ever planned by the Labour Party or Fianna Fáil going into the last election, as well as job losses as a direct result of the budget, it is worrisome that priority is not being given to jobs.

I would like to see this plan being fleshed out further. Where construction work is going ahead, including on school buildings, a mechanism should be put in place so that small and medium-sized local businesses will get an opportunity to tender for such jobs. Most tendering bodies, whether they are local authorities, the HSE, the Department of Education and Skills or other Departments, only want companies that have had a massive turnover in the previous year to be allowed to tender. The majority of companies that are well capable of doing this work are not even allowed to tender at the moment. As a result, big companies are getting all the work while small and medium-sized companies lose out, although they do provide local employment. For example, in County Laois about four or five schools are under construction but not one of the contractors comes from Laois, and some of them do not even come from Leinster. They are coming from all over the place.

It is well documented in the Department of Education and Skills that people who are in the black economy are working on every publicly funded contract in County Laois. The main contractor employs subcontractors who, in turn, employ other subcontractors, and they employ people who are on the dole. They are working at a cheap rate. I have documented these matters regularly and have given examples to the Department of Education and Skills. The Minister for Education and Skills, Deputy Ruairí Quinn, is having a meeting on that issue because if they are publicly funded contracts, we must ensure that people in the white economy get those jobs, not those in the black economy. People who want to work properly should not be disadvantaged by those working in the black economy. I do not even need to put it on the record here because it is well documented in the Department of Education and Skills by way of correspondence. When I make statements like that, I always back them up.

I welcome the fact that we have a plan but I am disappointed that priority has not been given to health and education.

Deputy Seán Kyne

I wish to share time with Deputy Halligan.

An Leas-Cheann Comhairle

Is that agreed? Agreed.

Deputy Seán Kyne

I am delighted to have this opportunity to speak on the important issue of public expenditure and reform. When the textbooks of modern Irish history are written, and there has been much analysis in recent times, they will clearly show the inability of the last Government to manage our finances correctly. We have been left in the situation that we are now in, but we can see how the proceeds of the property bubble were used to fuel a bloated public sector and growth in public sector numbers over the years. We have also seen the use of stamp duty revenues and capital gains tax to promote and increase public sector numbers. Many of our public servants do great work, which I acknowledge, but we have seen many quangos and small committees in every area and in every Department that have taken from the public purse. Before the election Fine Gael gave a commitment that we would merge, reform and reduce quangos, and it is good to see in this public service reform report that the programme for Government's commitment to reforming the public sector is taking hold this year in the merger and abolition of a certain number of quangos.

In our manifesto we also discussed reductions in the numbers within the public service of up to 30,000, with the programme for Government settling on a figure of 25,000. Many of these will come from not replacing those people who retire, although there is a view to protecting front-line staff. I agree with Deputy Fleming that we have seen a new energy with Fianna Fáil in opposition, both in my constituency and the other constituencies which it represents. The new energy looks to argue what we should do without taking responsibility for what the party did while in government. I agree that the moratorium on recruitment of nurses and other front-line staff in hospitals must be examined. Unfortunately, there is a case in St. Francis's nursing home in Galway that we would prefer to have sorted out but a decision of the previous Government is coming home to bite with a possible closure. Such closures may be seen all over the country, unfortunately, as a legacy of the last Government.

We have seen much money spent on planning major bypasses and transport projects around the country. Although this has created a certain amount of employment, many people do not see those projects going anywhere. The Minister, Deputy Varadkar, made a tough decision to suspend the planning on such projects when there was no realistic expectation that we can conclude and complete them. That was the right move. There is no point in trying to fool people by saying we will do this, that or the other, continuing to plan those projects without having the relevant finances available when the planning process finishes in 18, 24 or 36 months.

There has also been a suspension of interest from international companies in public private partnerships, PPPs, and there has been none for the past two years. That shows recognition of the reluctance of international companies to invest in the State because of the dire economic circumstances. Firms wondered if they would get money back, which was the whole point of investing in the State. The Minister's plan is about dipping our toe into the water with PPP projects, and he has indicated that a number of smaller projects will test the level of interest from international companies for investing in the State.

We have seen a more positive view of the country over the past eight months since the new Government, with a strong mandate, has taken over. That can be compared with where we were this time last year, when there were questions about when the Government would collapse. We have come a long way and the view of international markets and companies of our country is more positive. It is important to consider what the reaction will be when we seek public private partnership companies to invest in various projects.

I will be slightly parochial with regard to a number of projects which have at least been mentioned within the reform proposals in transport, including the Galway city outer bypass. It is significant and a large project but by seeing how we get on within the smaller projects within PPPs, we can better judge how to progress the Galway city outer bypass. This large project would require considerable investment by outside companies and I am confident we will make progress on this vital project. It has the best cost-benefit analysis result of any road project in the country and it is imperative that in the coming years we make progress towards commencement and construction of the project.

Deputy Dominic Hannigan

I am glad to be able to speak today on the capital programme for the next few years. As a civil engineer I realise the importance of investment in our nation's infrastructure. There is no doubt that the nation's capital investment has been very successful in developing infrastructure over the past 20 years and in County Meath, there are now four motorways, with each making it easier for jobs to come to the area and for businesses and people to operate. We have reached the stage where there are very few shortfalls and gaps in our road network. With any remaining gaps there is an issue of providing bypasses while ensuring the current road network is well maintained. That is in preference to the construction of new motorways.

We must learn lessons from the motorway construction programme, particularly how effective was the spend and if the capital costs were in some cases excessive. For the next four years we have managed to find €17 billion for capital budgets and next year will see us spend approximately €4 billion. That is a reduction of €750 million but it is still a large amount. Deputy Fleming spoke of us raiding funds, which is totally unacceptable, particularly since the Deputy and his party raided each and every citizen of the country and put children into hock for generations. I do not accept such terminology. He spoke about the lack of job creation in the €17 billion capital programme but I remind him that when his party left government we had 440,000 people on the unemployment register. We are trying to get out of that mire by creating jobs and this capital investment programme will go a long way in doing so.

We must get the best value for money from this expenditure and we must target the expenditure on those projects which will give us the best return for our money. I have designed and overseen the construction of many road projects and I want to see more bypasses built. This is for a number of reasons. They reduce travel times for motorists and make it easier for businesses. They relieve clogged towns and villages and make it more attractive for people to visit and live in such places. They also reduce the number of accidents in towns and villages and create jobs in the construction phase.

Schemes like the bypass of Slane on the N2 will achieve all these objectives. I am glad the Minister has ensured there will be sufficient funding in the budget to proceed with the purchase of land for this bypass and in the next few years I will push him to release more money for construction. Every euro spent on a bypass such as that at Slane will give €3 back to society through social and economic benefits.

I mentioned that prior to entering politics I worked in the transport sector. One of my roles was as investment appraisal manager for new transport projects for British Rail. While there, I was responsible for carrying out a cost-benefit analysis for a new underground line in London known as Crossrail. I learned much about the various benefits that could be delivered by new metro systems. From examining the published documentation on metro north in Dublin I remain unconvinced as to whether the current proposal represents the most effective use of public money. Taking into account social benefits, time savings, road decongestion, accident savings, job creation, climate change benefits and all other items included in a standard appraisal, it appears that the project even then just about washes its face.

We are in a time when other projects may give a greater return for public investment. As we must be very selective about investment as funding is limited, it is only right that we think again about metro north. We must ask if a slimmer version would be better and if a more intensive quality bus network would be a better option. As funding is limited, we should use it wisely.

Deputy Brian Stanley

I welcome the opportunity to speak on this important matter. The report on infrastructural and capital investment is a wasted opportunity to invest in the green economy, jobs and sustainability. Next year's capital budget has been cut by €755 million to €3.9 billion. This report locks the State into economic stagnation and increased unemployment, and it will result in the loss of 7,500 jobs, which is significant.

The Government, like its predecessor, is choosing to ignore the role capital spending plays in the economic recovery process. There can be no recovery without job creation; suggestions to the contrary are fantasy. Sinn Féin has a different vision and the party's pre-budget submission, entitled Route to Recovery, outlines a comprehensive investment package for the next three years that maintains current capital commitments funded by the Exchequer and additional investment streams. This investment package includes the development of the green economy and, in particular, alternative energy.

One of the biggest omissions in the Government's report is the lack of commitment to alternative energy. Ireland has one of the highest rates of oil consumption in the world. Investment in wave and wind power and other alternative sources of energy must be a priority. The planned removal of the energy efficiency grants is lazy and ill thought out. At a time when 1.4 million homes are in need of retrofitting the Government should redouble its efforts to encourage insulation and upgrading. In removing these grants the Government has not dealt with the disadvantages of expecting utility companies to loan the money to householders. There are currently 200,000 homes in negative equity and, therefore, they may be considered a credit risk.

Sustainable Energy Ireland reported that every euro spent on the better energy homes scheme delivers a net benefit of €5 to society, through savings on energy, CO2 and other pollutants. The Sustainable Energy Ireland analysis shows that investment in home energy upgrades will be fully repaid through energy savings within eight years. Yet the Government is committed to phasing out those important grants that have been useful.

From the point of view of health service users — I hope the Minister of State, Deputy Kathleen Lynch, picks up on the point — the capital programme is undermined by the savage cuts to current spending that continue to be imposed. For example, the HSE appears to be retreating from care of the elderly, as shown by the closure of nursing homes in my constituency such as Shane in Portlaoise, in Abbeyleix and also in Dublin and Athlone. The health capital spend for the next four years amounts to more than €1 billion less than the annual cost to the State of the Anglo Irish Bank debt. We had a fruitful meeting yesterday with the Minister for Health, Deputy Reilly, on Abbeyleix. I appeal to him to actively examine the provision of the €1.2 billion investment that is required in Abbeyleix. I also appeal to him to partially lift the moratorium on the recruitment of nursing staff. We have provided for that in our budget proposals. One cannot make such calls unless one says how a plan is to be funded. We recognise that there is a shortage of money but we have set out in our budget proposals how to introduce a limited lifting of the moratorium on the recruitment of front line staff in limited cases.

The Government is committed to introducing water charges, yet the State's water distribution network is antiquated. Decades of under-investment means that in some local authority areas more than half the water is leaking away. Capital investment in water is being cut from approximately €435 million in 2011 to €331 million in 2012. That is a cut of €100 million or more than 25%. It is a cut of nearly €200 million on the 2010 allocation, with more cuts planned until the budget is just €266 million. Unfortunately for the public, there is a commitment to water rates. Today's plan commits the Government to "deliver high quality competitively priced water services to customers." It is not the householder, but the water distribution network, that is the biggest culprit when it comes to leaks. We all know the system is leaking in towns and cities but the Government is announcing a series of cuts which mean that the network will not be updated.

Sinn Féin firmly believes that housing is a right. The "Prime Time" television programme earlier this week highlighted that the number of homeless people is on the increase. Sleeping bags are being handed out to the homeless because the hostels cannot cope. People cannot get a bed or find a hostel for a night. Those who languish on local authority housing lists will get little comfort from the report given the proposed cut to the housing programme of €150 million. That will only increase expenditure by the HSE on rent allowance but also the spend by local authorities on social leasing and the rental assistance scheme where we continue to subsidise tens of thousands of private landlords, many renting homes that are not up to standard and that are not registered with the Private Residential Tenancies Board. Once again, this is a missed opportunity to provide a long-term solution to the State's housing crisis. The plan gives a vague commitment to prioritising the regeneration of Limerick but offers no details and mentions no other regeneration project. This is particularly frustrating for families in Dublin in areas where they have been waiting years for regeneration projects to commence.

The slash and burn politics of the Government is highlighted in the massive cut in spending on the environmental infrastructure. This is a time when the Government should invest in our green industry to boost the economy and provide jobs. The capital budget to the Department of the Environment, Community and Local Government has been cut by €287 million. That includes cuts in investment for water services by €65 million and in the rural water programme by €10 million. There is no commitment to investing in water harvesting which aims to re-use rain water and little commitment to fixing existing leaks in the system. This investment would not only create badly needed jobs but would reduce water consumption by a third.

The massive cuts to capital and infrastructural spending clearly shows the Government has no interest in growth, sustainability or developing a green economy.

Deputy Patrick Nulty

I will use the time available to highlight a missed opportunity in the capital programme. Far more could have been done in capital investment projects at this time. The decision not to do so has been a mistake.

According to the European Commission investment in this country has fallen 74% since 2007 with the EU average being at only 11%. This crisis in investment coupled with a continued fall in domestic demand represents a significant element within the economic crisis facing the country, which is not replicated among other European counterparts. The opportunity to invest in worthwhile capital projects represents a part of the economic alternative that is open to this country. I specifically refer to the metro project on which I disagree with my colleague, Deputy Hannigan. The metro was scheduled to run through my constituency. Postponing investment in public transport simply pushes up costs in the long term and reduces prospects for economic growth. The building of metro north, which was scheduled to run from the city centre as far as Swords, would have been not only of societal benefit and a key resource for the local community but it would also have provided part of the economic stimulus this country requires.

One might ask how we would source such an investment. First, we could begin by broadening our tax base and increasing taxes on capital and wealth in this country which are well below the average tax take in other European countries. Unlike Fianna Fáil, which suggested that the National Pensions Reserve Fund was being raided, I believe it should be used in a constructive way in the next four years to promote capital investment and job creation. The only time Fianna Fáil used the fund was to pay off banks.

We also require immediate renegotiation of the Anglo Irish Bank promissory notes which would generate significant savings for ordinary people. The publication of a timeline for the metro project is essential. As far as I am concerned, while it may have been deferred; the metro is something that remains worthwhile and must be on the agenda.

I have inquired of the Minister for Transport, Tourism and Sport, Deputy Varadkar, about the work that will now be done to find the €1 billion which would have been sourced through private investment and whether the €500 million promised by the European Investment Bank as funding for the project will still remain in place? What is the justification for the €200 million already spent on the planning process? That will have gone into a black hole if the project is not pursued. The deployment of €1.2 billion over the next four years from the NPRF into investment projects would yield significant return. Metro north is a suitable candidate for such investment and I believe it should be done.

Despite investment in infrastructure in previous years, particularly in the road network, we still rank below OECD averages on the infrastructural issues facing the country. Ireland's distribution infrastructure is perceived to be poor. While Ireland scores high on air and water transport and improvements have been made in recent years, the quality of our energy infrastructure remains weak. In that context, I agree with other Deputies who have argued that we need to invest in measures such as retrofitting and rain water harvesting now and not row back on them.

A modern service provider and modern economy requires a world class telecommunications infrastructure which is vital to the country's ability to do business. Within the OECD Ireland ranks 22nd out of 30 countries in upgrading local broadband infrastructure. We need to invest in such infrastructure to promote economic development and ensure we will have a world class telecommunications network. The Minister for Communications, Energy and Natural Resources, Deputy Pat Rabbitte, has committed to this.

In a matter of weeks the budget will be announced in the House. Spending cuts across the board will be proposed. The reason for the economic crisis in the public finances is the disastrous policies pursued by the previous Government in guaranteeing and socialising private bank debt, as well as the disastrous taxation policies with property based tax loopholes and the reliance on property based taxes. The crisis cannot be viewed in isolation from the wider economic and social issues facing the country such as unemployment and the infrastructural deficit. The way to tackle the economic challenges is through growth, investment and job creation. This will require capital spending and further debate about how we invest in the capital programme int the next few years. Mistakes were made in not pursuing the metro north project. I hope that decision will be re-examined and that we will grasp opportunities in the years ahead.

Deputy Clare Daly

With the agreement of the House, I will share my time with Deputy Mick Wallace.

An Leas-Cheann Comhairle

Is that agreed? Agreed.

Deputy Clare Daly

I agree with Deputy Patrick Nulty. The cut in the capital infrastructure programme represents a gross missed opportunity. However, the Deputy has a neck to make these points, as he is a member of a party which is in government and responsible for the axing of the metro north project, among others. If he was serious, he would make a stand like Deputies Naughten and Penrose and vote against the Government in the upcoming budget. His constituency colleagues told us before the general election that they would support the metro north project, but the Ministers, Deputies Leo Varadkar, Joan Burton and James Reilly, now have nothing to say about it. This is an insult to the people of Deputy Patrick Nulty's constituency, but more than this it will have a detrimental impact on jobs in the area. This is a shovel-ready project that could immediately employ 600 people and would open up the north side of Dublin for economic development. It is a magnificent project which would transform the lives of citizens in the area. Given that it would cost the Government only €700 million in the course of the next couple of years, it is lunacy to shelve it. I appeal, even at the eleventh hour, to have the project be re-inserted in the capital budget.

Last week the Minister for Public Expenditure and Reform tried to say this debate was about choices and that we either had to cut deeper into current expenditure on education, health services and so on, or cut the capital budget. He said he had chosen to cut the capital budget and was putting these projects on hold because the country could not afford them. That is utter nonsense. Choices must be made, but these are not the only ones. The biggest rise in Government expenditure between 2008 and 2010 was on servicing the debt, much of which had been accumulated by private individuals. The cost of servicing the debt went from €2 billion to €4.9 billion.

There can be no economic recovery until people are put back to work. Therefore, we cannot afford to cut the capital infrastructure budget. The private sector is not investing money. There is a strike of capital and we need the lead to be taken from the Government benches. There is no other way.

The Minister made the point that there was no money available for capital expenditure. Our answer is that he should go and get it. He should get it from the wealthy in the form of a personal assets tax. Some 46.8% of net wealth is held by 5% of the citizens of Ireland. It is not unreasonable to ask the people concerned to pay a levy in this regard. There are many ways of increasing taxes on higher earners. There are numerous ways of getting the money if the Government really wanted to do so. Clearly, that is not a choice it is willing to make. It wants to protect the wealthy to the detriment of job creation. That is just not good enough.

There are many projects which were costed, developed and targeted during the boom and which now need to be reconsidered. The Minister said they had nothing to do with him, but that is not an acceptable answer. A major sewage treatment plant is planned for north County Dublin as a result of the greater Dublin strategic drainage study. That project will ultimately cost €2.5 billion and no one in the area wants it to go ahead. The Government could save money by going back to the drawing board and looking at the alternative of providing smaller, more regionally based local plants which could be phased in over time. Given that the pinch point is not until 2020, there is no need to go bald-headed after this project. We pose this suggestion as an alternative. The Government could save money on the project and transfer it to the metro north project. All communities and businesses in north County Dublin would be very appreciative of that measure.

Some €30 million has been expended on land acquisition for the Nevitt landfill project which is at a halt, but families in the area have the death sentence of compulsory purchase orders hanging over their homes and do not know what is happening. However, we know that the project will not proceed. The Government should come clean, get rid of it and save the money allocated.

It is clear that the Government plans to charge for water supplies and, ultimately, privatise water services. The installation of water meters represents a shocking waste of money which should be used to reinvigorate the network.

In every local authority area an audit should be undertaken of the decisions made during the boom, to re-examine all the decisions made in these changed times and come up with an alternative budget. We would save a fortune if we were to do so. It is not good enough to say it is a matter for individual Departments. The Minister should order them to re-examine projects. That would free up money to be invested in worthy projects for which communities and workers are clamouring.

Deputy Mick Wallace

Working towards job creation in the immediate future, as well as making serious investments for the long term, would make very good sense in the current economic climate. Sadly, the Government has continued along the path taken by the previous Government in accepting the austerity package lock, stock and barrel. This neo-liberal agenda suits the markets. The notion that we introduce austerity and expect the ordinary citizens of Europe to pick up the tab for failed banking institutions is getting harder to take the more the crisis deepens.

It is a pity the Government lacks the courage to do something different which would be regarded as a greater investment in the country and its people and our society.

I understand the supply of money is not limitless and that the Government cannot spend everything it wants on infrastructure. Therefore, I agree with the withdrawal of a number of projects. For example, we have spent enough mad money on the Thornton Hall project. While money must be spent to improve prison conditions, we should not expand the number of prisons. Instead of locking more people away, it would make better sense to invest more in the social aspect of crime prevention and address the root causes of crime. More than enough people are in prison. The scrapping of the Thornton Hall project was a good move on the part of the Government.

Given the current economic climate, a number of road projects were over the top. Ten years ago there was a serious deficit in the road structure, but there have been many positive advances since. That said, we probably got carried away with ourselves and I am not sorry to see some projects being shelved. For example, the grandiose Wexford and New Ross bypass projects were beyond——

If we are to continue with austerity measures and making ordinary people pay for the crimes of big business, it is a sad day.

Deputy Paul Kehoe

The Deputy is fairly fond of big business himself.

Deputy Frank Feighan

I welcome the chance to contribute on this important issue. The capital programme shows a marked reduction on previous transport allocations. Much has been delivered in that field in recent years, but we are in a difficult financial position. While they are not of the Government's making, we must make difficult decisions to address the problems facing us. It is welcome that 85% of the funding available under the programme will go towards restoring and maintaining existing road and rail infrastructure and replacing buses and trains.

Where did the money go? For years it was not well spent. To an extent, I agree with Deputy Wallace that some of the money was spent on buying land at exorbitant prices, but who watches the watchers? In a race to the bottom we tried to pursue the most grandiose projects at the grandest costs, but they provided no value for the taxpayer or the country.

Whenever I drive to Dublin and use the eFlow system, I spend €2.70 on the M4 and might drive onto the M50. After examining my bills at one point, I reckoned that I was spending approximately €1,000 a year. It is another tax. Many drivers use the Enfield-Kilcock road because they are not prepared to pay €2.70 each way. For trucks, the charge is €6 or €7. We need to get real. The companies which are making a great deal of money should bring their costs down. Otherwise, people will take to side roads and projects will not be used as much as was intended.

The port tunnel nearly cost €1 billion to build. I have argued long and hard to have the cost for cars using the tunnel to be reduced. It is good that the charge has fallen to €3, but I cannot understand why taxis are charged for using the tunnel. If I take a taxi from Dublin Airport to the city centre, if I do not use the tunnel, the journey takes 15 or 20 minutes longer and costs €25 or €26. If I ask the taxi driver to use the tunnel and pay the €3 charge, I will get into the city ten or 15 minutes sooner and save €6 or €7. Taxis should not be charged for using the tunnel, as doing so is anti the tourism industry and is a poor use of the infrastructure in which we invested so much money.

In terms of road maintenance, it is welcome that the Ballaghaderreen bypass, a shovel-ready project, has received the go-ahead. It will create employment in counties Roscommon and Mayo. It is nice that common sense has been used to approve this necessary project.

The work on the A5 with the Northern Ireland Executive presents a difficulty. We are in a restrictive position, but we made commitments and, if one is coming from County Donegal and the island is viewed as a whole, the project makes sense. Some believe we should not spend the money, but we must live up to our commitments under the Good Friday Agreement. This gesture of goodwill will also represent value for money, as the country needs national infrastructure.

The Galway city bypass project needs to move beyond legal delays. The situation is crazy. In the middle of July I travelled two or three miles in an hour and a half. People elsewhere do not fully realise how bad the traffic is in Galway. The issue needs to be addressed. The Leas-Cheann Comhairle is aware of the position, but I did not realise how bad it was until I was sitting in traffic. The project needs to be advanced.

On smarter travel initiatives, the investment in key cycling and walking infrastructure is welcome. The Ballinamore-Ballyconnell Canal is well used, while the old railway line from Newport in County Mayo is being used by cyclists everyday. We must consider in greater detail how we can link towns and villages along railway lines, canals and rivers using cycling infrastructure. Cycle paths in Holland and Germany are not used by other vehicles. A similar initiative here would help tourism. The existing commitments regarding tourism will be fully honoured, which I welcome. The reduction in VAT and airport tax stimulated the tourism economy. That creates jobs because people spend money when they come into the country. We must try to get people around the country and we have much to offer. The new Ryanair route to Knock Airport will get people to the west. Tourism needs to be spread around the country. When one walks around Temple Bar tonight or tomorrow night, it is evident what the tourism dividend means to this country. Unfortunately, many native people do not seem to apply for jobs in cafés, restaurants and pubs. The jobs pay the minimum wage but there are many opportunities out there. I walk by restaurants and I see signs for waitresses or publicans wanted; there are opportunities.

Connecting the two Luas lines makes very good sense. Going up towards Broombridge, which I know from the Sligo line, there is an area without many houses, which is linked to an industrial area. There are opportunities for those areas.

We have talked about metro north and we would love to see these projects built. We have not used the port tunnel to its maximum value. One can get on a bus at Connolly Station or Busáras and be at the airport in five or ten minutes by using the port tunnel. It is a bit like the Bertie bowl. Croke Park stadium is fantastic, as is the IRFU stadium. I shudder to think what would have happened if we had spent €1 billion on the Bertie bowl because it would not have been filled. Other Deputies have outlined how, when the reigning world champions South Africa were in town a few months ago, the stadium was half full. People cannot afford to attend. I am delighted that the Bertie bowl was not continued.

Infrastructure is vital and I pay tribute to Irish Rail for upgrading its fleet and competing. On the Sligo line, people are voting with their feet and taking the train. The cost of trains is exorbitant. I note that there are safety issues but they need to come up with more innovative ways to get people on the train. If I am in Boyle or Sligo, it would cost €39 or €40 for a return ticket to Dublin. If I drive to Longford, which is in the commuter belt, I can get the train for €10. This is what puts people off. Many people are using the train services but they drive to an area where they can get the train at a cheaper price when travelling to Dublin. We will not have a satisfactory public transport system if the cost of driving a car is less than taking public transport. Infrastructure provides jobs and a competitive economy and I welcome these measures.

Deputy Brendan Smith

I wish to take up one of the points mentioned by Deputy Frank Feighan regarding the proposed development of the A5 north of the Border. It is an important project for the island and is very important for Donegal. My Dáil colleague, Deputy Charlie McConalogue, my Seanad colleague, Senator Brian Ó Domhnaill, and the MEP for the North-West, Pat the Cope Gallagher, have been vocal in their support for this project. If one is in business in Donegal and trying to bring product to the ports or airport in Dublin, it is essential to have a good arterial route to the capital. I ask the Government to review the decision. The project was identified after the signing of the Good Friday Agreement and the St. Andrews Agreement. It is not only beneficial to counties Tyrone and Derry but also to my constituency, particularly County Monaghan, and Donegal. Crossing the Border at Aughnacloy on the Monaghan-Tyrone border, the road deteriorates very quickly. The route is not adequate for the volume of traffic travelling from Derry and towns along the route.

Previously, when debates took place, officials from Departments attended. The current practice seems to be a new departure. A few weeks ago, we had a debate on social welfare and a number of Deputies from all sides of the House raised matters. I noticed that there was no official taking notes. I appreciate that the Minister cannot always be present for debates. That day, the Minister for Social Protection was not present for that part of the debate. I am sure she had other commitments but there was no official from her Department present. In the past, officials from the Department would take notes and, if queries were raised by Deputies on any side of the House requiring clarification, the relevant Minister or Department would revert to that Deputy.

I refer to an issue exercising the minds of the people and the local authority in Monaghan regarding a decision by the Minister for Transport, Tourism and Sport to withdraw funding due to be allocated by the National Roads Authority to Monaghan County Council to complete a project between Monaghan town and Emyvale. Part of the work has been completed satisfactorily and all preparatory work to complete the remainder of the project has been undertaken. This is a matter of road safety concerning the removal of dangerous bends on a national primary route that is not up to standard. I ask the Minister to review the decision, which concerns relatively small amounts of money given the capital budget for the Minister's Department. The Mayor of County Monaghan, Councillor Seamus Coyle, and Councillor Robbie Gallagher spoke to me in recent days about this issue. They are anxious that the decision is reviewed.

Speaking about the province of Ulster and not just the three southern counties, I am appalled at the proposal to increase VAT by 2% in the forthcoming budget. That will lead to significant job losses in Border communities. I appeal to the Government, through the Minister of State, to think twice before loading another 2% VAT on consumers this winter. Whether this happens immediately after the budget or on 1 January, it will be devastating and will do enormous damage to the economy of the Border counties. I am concerned about the economy of Cavan and Monaghan and areas south of the Border counties. Already we see businesses north of the Border capitalising on reports that Fine Gael and the Labour Party are set to increase VAT by 2% in the forthcoming budget. We see advertisements encouraging shoppers to travel across the Border for a better price. For small businesses across my constituency and further afield that are already struggling, such a significant hike will be disastrous as they head into the difficult winter months. The Government should be encouraging consumers to support their local economy rather than incentivising them to flock across the Border for what might be termed better value. Before and after the election, Fine Gael and the Labour Party claimed that job creation would be their top priority in office but their actions since coming into power show quite clearly that this is not the case. By frontloading VAT increases, pushing the cost of sick pay onto employers and cutting the rebate to employers on redundancies, this Government will stifle businesses and hamper entrepreneurship. That is the last thing we want to happen at a time when the economy is facing major challenges. Every household is also facing major challenges. There is still time for the Government to see sense and not accept the proposal from the Minister for Finance to frontload a VAT hike. I appeal to the Minister of State and Government Deputies to review this proposal. It was proposed in the four year plan published a year ago. If VAT was to be increased under that plan, it was to be increased by 1% and 2013 and 1% in 2014. The idea of frontloading it in the budget in two weeks' time is ridiculous and will do enormous damage.

I have represented Cavan-Monaghan in the Dáil since 1992. Far too often, we have seen business literally ebb away from our towns. Those towns during the years of economic progress saw new shops and centres developed and they all provide top class value and great choice for the consumer. Such an increase in VAT will do enormous damage and we sincerely hope that will not happen.

The Minister for Education and Skills has rightly outlined that he faces formidable challenges in providing accommodation for all the new entrants into the school system. The welcome growth in our population places particular demands on ensuring the Department has primary school and secondary school places available. We have seen a huge transformation in the education infrastructure of the country in the past decade, with the provision of new facilities and the upgrading of existing facilities at primary, post-primary and third level. There is always a need to continue the refurbishment programme and the provision of new facilities. The Minister, however, has indicated that there will not be funding for the summer works scheme or the emergency building works scheme. At Question Time a week ago, I appealed to the Minister to review that decision, with his Government colleagues. All of us have seen exceptionally good value for money where schools have drawn down money under those schemes and have been transformed as a result of small grants. The taxpayer has got the best return on those investments and I appeal to the Minister to reinstate those programmes in the next few years.

We have all seen the expansion and upgrading of facilities at third level. In June, the Department of Education and Skills showed the demand for higher education is set to grow by 62% in the next 20 years. That will be a welcome development. In the last ten years, the participation at third level has increased by 60%, growing from 100,000 to 159,000. We have seen people from homes with limited income getting the opportunity to go on to third level. In 2009, we reached the situation in the European Union of the highest tertiary level attainment rate among 25 to 34 year olds. That is great evidence of the success of the programme of investment in the facilities and the human capital.

It is vital at a time of challenging economic circumstances that we prioritise education expenditure. Other countries that face formidable economic circumstances in the past all prioritised Government expenditure. The first debate in this Dáil was a Private Members' motion I tabled on behalf of Fianna Fáil in April and we won unanimous support from all sides that the Government would prioritise education for expenditure despite the challenging economic and fiscal circumstances. I call on the Government to do that on the revenue side and the capital side. We can be satisfied with the progress that has been made but more progress is necessary. Investment is needed in our schools at primary and secondary level and at third level.

Deputy Shane Ross

I realise the difficulties the Government is facing. It has been left in a difficult situation where cuts are essential but investment in infrastructure is also essential. It is in an unenviable position. It has made plain where cuts must be made and to some extent that is the easy part. In theory, it is easy to draw a line through the metro project, Thornton Hall prison and other plans. There might be local difficulties but it must be done.

The difficult part is the investment. In that area, the Government has shown it does not have a great deal of scope or imagination and does not hold out much hope. I take the point that the report emphasised the potential of public private partnerships but it is only potential and I do not see an enormous degree of optimism that it will be able to raise money in that sphere. Private money requires profit; it does not look for any social or community benefit. There are very few investors who want to invest in Ireland at the moment; that is the reality. There are very few who want to invest in Europe, as we saw from the German bond auction yesterday. The lack of hope and optimism in that area in this report and in the Minister's speech is ominous.

I note with alarm the rather desperate way the report looks towards pensions. There was a time when the National Pensions Reserve Fund was looked upon as a source for investment in infrastructure in the areas we have now cut as a result of Government policy. Those coffers are now empty and in this report once again the pensions industry and the pensions pot is being looked at as a way to rescue the Government. The report says it will make offers to pension funds to invest in the infrastructure it cannot fund itself. That is a desperate situation that is based on the alarming realisation that the money will not come from anywhere else. The State is out of money and so the pension funds are being eyed in exactly the same way as when the State applied the 0.6% levy.

It is a dangerous precedent to look at pension funds as a source of funds for State projects. We are not going down the road of confiscation but we are going down the road of pressure. If we start to pressurise pension funds to put money into projects that are for the benefit of communities, they are being asked to deny their commercial mandate. Once they do that, they are betraying the pensioners who put money into them. It is a difficult conflict to resolve but it is very dangerous for those pensioners if the pension funds go into non-commercial, Government directed projects for the good of the community. The community must be looked after but it is wrong to look after them from private pension funds if they are put under non-commercial pressure to do it.

The other area where investment is most important is multinationals. It is indicative and depressing that the report mentions education and health as priorities but it admits that there will be cuts in third level education because there is not enough money to fund all educational requirements. What does that mean? Multinationals, I suspect, will look upon us with a more jaundiced view than in the past. They will look at the education infrastructure and say we are not educating our people for the jobs they have created here. There was evidence of this recently when the American Chamber of Commerce came out and revealed there were at least 2,000 unfilled jobs because the education had not been provided at third level to train people for those posts.

Broadband is another area that must be examined if multinationals are to continue coming here. If the word goes out, and we have been lucky so far that it is not more widespread, that broadband in this country is not up to scratch, the multinationals will look elsewhere.

An alarming phrase in the report pertains to the setting up of a next generation broadband task force. Using the weasel words used when one is not going to fulfil one's requirements, the report states the purpose of the task force is to discuss the optimal policy environment required to facilitate the provision of high speed broadband across the country. This means a task force has been set up to solve a problem it cannot solve. It is considering projects that will not be developed in the timescale in question. This is an amber light, a danger signal that there is no commitment to broadband provision. There was no such commitment by the previous Government. I brought forward two Private Members' Bills on the matter.

An Leas-Cheann Comhairle

As a matter of courtesy, the Deputy should allow Deputy Fleming to contribute.

Deputy Tom Fleming

Road projects which are advanced regarding planning and land acquisition and which are shovel-ready will have to be prioritised. They are vital to completing the jigsaw required to enable our economy to rise from its currently depressed state. Apart from jobs related to the transport and communications aspects, jobs generated in the construction of road network projects were never more wanted. I ask the Cabinet to reconsider and re-evaluate the investment programme.

In Kerry, the Killarney-Farranfore primary route project has been shelved. The corridor for the new road has been mapped and negotiations with landowners have practically been finalised. There has been considerable expenditure of public money on these exercises. Kerry has the most successful regional airport in the country, namely, Kerry Airport in Farranfore. Kerry is the home of the Irish tourism product. The road in question is essential to enable Kerry to get back on its feet and exploit its great potential. Access to the county and within the county is very badly needed. Access routes would make the county more attractive to potential investors, including those interested in foreign direct investment. At present, Kerry is at a huge disadvantage in this regard. The main approach from Cork, through Macroom, to the Kerry county boundary, is very seriously deficient. This is a major drawback for the economy of the south west and it militates against the economic development of County Kerry. I urge the Minister for Transport, Tourism and Sport to make progress on this vital artery, keep it on the programme and expedite the new road construction project.

With regard to the Dublin side and the west, the Adare-Abbeyfeale approach has sections that need to be completed. These sections are relatively short and it is not beyond the means of the Exchequer to complete them. The approval of these road projects would give a much-needed stimulus at construction stage and would generate activity that would create thousands of jobs.

I commend the National Roads Authority on its national road developments, over the past ten years in particular. Journey times have reduced drastically, which is of considerable benefit to the domestic and commercial commuter. Public private partnerships have been successful, and the access roads to Kerry should be considered seriously for completion under such partnerships.

I welcome the statement on next-generation broadband and its inclusion as a priority. I hope its roll-out will be country-wide and proceed at an early date. Two private projects, in Dublin and Wexford, are already up and running. Recently, by means of a priority question, I urged the Minister for Communications, Energy and Natural Resources, Deputy Rabbitte, to extend private projects to take in Kerry because it is the hub of tourism. It attracts a considerable number of visitors every year. There are some black spots in the county and we need to increase broadband speed and bandwidth.

Currently Kerry's infrastructure in this area is far inferior to what is required for businesses. Consider the requirements for large events and conferences, for instance. The infrastructural inferiority was illustrated twice over the past two years during the Irish Open. Only for the on-the-ground expertise of our technicians, the foreign media would have been inconvenienced seriously when reporting this major event.

I welcome many of the developments with regard to the National Children's Hospital and I urge the Government to give priority to education and the creation of jobs. I commend the Government on what it has done for the tourism product this year, for instance.

With regard to agriculture, the report gives a figure of 170,000 workers, but we were told by the IFA today that 300,000 are engaged in the agriculture and food industry.

Deputy Joan Collins

I welcome this debate. The claim by the Minister for Public Expenditure and Reform, Deputy Howlin, on 16 November that creating jobs would be made a top priority of the Government simply does not stand up against the facts. On what is the idea that the IDA is on target to create 105,000 new jobs, with 640 investments, based? In effect, there is an investment strike by the private sector. Since 2009, non-financial corporations in Ireland have made over €30 billion in profit. They are not investing this. Despite falling wages and rising profits, they are sitting on these funds. The State must take the lead with an emergency jobs programme to meet the needs of the 450,000 who are employed. Instead of doing this, the Government's approach to the capital programme is to make cuts. Projects that would create jobs, such as metro north, have been axed.

The commitment of €1.6 billion towards water infrastructure is pathetic. It would cost more just to deal with leaking water mains and the completely inadequate Victorian sewerage system in Dublin city alone. Next Monday, Dublin City Council will be presented with a capital expenditure estimate of €356.9 million in respect of water and sewerage systems for the period 2012-14. This sum is paltry; it is a drop in the ocean. Expenditure will depend on whether the council gets the money from the Government. The figure is an estimate and could be much lower. The money must be used for flood relief, water treatment in Ringsend, the new reservoir in Saggart and the fixing of broken water pipes.

There is a need for a programme of emergency works to renew water mains and drains. It is an absolute scandal that drains in Dublin city are so old that they keep backing up. Around the corner from me, on O'Donoghue Street, residents have been contacting the council continually over problems associated with the back-up of water every time there is a flood. Only three or four weeks ago, they had three or four feet of water in their homes owing to the heavy floods. This is outrageous. The problem is systemic in my area and I am sure it features all over the city.

There is a need for a programme of emergency sewerage works in both urban and rural areas. There is a need for rainwater harvesting systems, as have been mentioned, flood prevention, road repairs, insulation of public buildings and the conversion of used public buildings into public facilities.

I have not really heard the question of regeneration mentioned today. People are condemned to live in unfit properties. Residents in Dolphin House live in conditions such that they are facing a denial of their human rights. Residents and council tenants in St. Michael's Estate and O'Devaney Gardens have all been let down by previous Governments, and public private partnerships condemn them to live, over the coming years, in abject housing conditions. There is no funding for completing these projects.

The United Left Alliance prepared a budget proposal that it believes would immediately create 100,000 jobs through direct employment on foot of dealing with the issues I have mentioned, at a cost of approximately €5 billion per year. This proposal has been costed and the money could be raised through wealth taxes, including an asset wealth tax.

Mass unemployment and emigration now comprise a structural feature of our economy and society and will remain such unless the Government breaks with its failed policy of austerity, which has destroyed domestic demand. The State must play a key role in the creation of jobs. I do not know if I am abusing my time. This morning I heard that a Nigerian taxi driver died after being violently attacked last Monday. I condemn that attack and send my sincere condolences to his family. I think my sentiments will be echoed by every Member of this House. This was a racist attack and we cannot accept the killing of a man while he is doing his job.

Deputy Mattie McGrath

I concur with the sentiments expressed by the previous speaker regarding a horrific murder. Nobody carrying out his or her lawful work should be subjected to such attacks. It is a tragedy.

I welcome the publication of the Government's capital expenditure programme but I am disappointed about what it contains. When I sat on the benches opposite I had to listen to the current Chief Whip, Deputy Kehoe, and his colleagues as they demanded more and more. He interrupted Deputy Wallace today to speak about projects in New Ross. We all have projects in our own areas. The cuts in capital spending in education and agriculture alone will do enormous long-term damage to this country.

I met a delegation from the IFA earlier today. Agricultural exports have increased from €7 billion three years ago to almost €9 billion today. The cuts proposed by the Minister for Agriculture, Food and the Marine, Deputy Coveney, will set the sector back at least ten years. Farmers helped us out our last two recessions and they can help us again this time. They are willing to take small cuts but they will not tolerate a slash and burn approach to grant schemes.

The Government is blaming its predecessor for the mess in which it found itself but it is hoping that it can continue to cut for the next two years and still be seen as the good guy in three years' time. That is a false hope. I lived through the same attitude among Ministers in the last Government. The people cannot take any more. Ordinary people cannot live with these cuts. It does not appear to bother the Government that it is breaking every promise it ever made.

I can understand the reason for scrapping certain major infrastructural projects given the costs involved but smaller projects could still proceed. In County Tipperary, we accept we will not get an upgrade of the N24 to motorway status between Pallasgreen and Carrick-on-Suir but Tipperary town is jammed with traffic and needs a 3 km bypass. The bypass that was constructed around Cashel 12 years ago became part of the N8. That was a case of forward thinking. We can achieve unprecedented value for money because 450,000 unemployed people are ready, able and willing to do the work and the projects are ready for tender. If we do not reconsider the cuts to smaller projects we will close down the country.

Across County Tipperary, from Tipperary town to Carrick-on-Suir, the talk is about closures. Government backbenchers came out of their most recent parliamentary party meeting announcing that 40 hospitals would be closed. They are scaremongering. I realise that some of these hospitals will be closed but they should not frighten the daylights out the elderly people who have done so much to build up this country. If we added up all the cuts the Government has leaked over the past several weeks, it would amount to nearly €3 billion. The Government wants a soft landing on 7 December but it is stifling investment and frightening people who are entitled to nursing home care and hospital places. These are people who paid their taxes. The Government has lost the plot and is spinning like a top. It has more spin doctors than previous Governments.

Even though the rural public transport scheme operates on a paltry budget of €10.8 million, it is a fabulous system. It depends on voluntary groups such as the Carlow-Kilkenny-South Tipperary Ring a Link, members of which I will meet this evening in Kilkenny. The Ring a Link is operated by two staff and drivers employed on a community employment scheme. It offers a wonderful service to people in rural areas.

Next week we will be debating a Bill which discriminates against rural dwellers who have bought their sites, received planning permission and built their houses. They will face penal, if not criminal, taxes. Inspectors will crawl around back gardens like the peep of day boys to inspect what these people have worked hard to build. The county councils will impose registration fees even though they should be able to compile a register of every septic tank in their areas from their planning records. They have planning files stretching back God knows how many years, unless they have been burnt or shredded. It is further bureaucracy from the Government and the Civil Service. The people cannot and will not take any more of this. Why should rural dwellers be penalised to the tune of €10,000 or €15,000 when we have spent hundreds of millions of euro on water and sewerage schemes in our towns? Why do we have a two-tier system in which rural dwellers are criminalised and required to pay for appeals? Ratepayers will also have to pay if they want to appeal their rate bills. As a representative of the people, I do not accept this imposition.

Acting Chairman (Deputy Joanna Tuffy)

The next speakers are Deputies Pringle and Maureen O'Sullivan, who will share ten minutes of speaking time. Is that agreed? Agreed.

Deputy Thomas Pringle

I welcome the opportunity to speak on the Government's capital programme. Certain aspects of the programme, such as the commitments to primary care, mental health provision and the national children's hospital, have been praised by the media and experts. However, the programme's commitments mean nothing because they are subject to the availability of financial resources over the coming two or three years. Within weeks of the report's publication, rumours have started to appear in the media that community hospitals may close and mental health services may not receive the €35 million which is supposedly ring-fenced for next year.

Politicians often say that polls are a snapshot in time. This report is also a snapshot in time because it is already out of date. It will be subject to significant roll-backs over the coming several years while the Government continues to slash and burn public service programmes. The reduction of €750 million in next year's capital programme will stifle job creation and remove stimulus from the economy. Any benefits that would be generated from these construction projects will be lost forever. The result will be further austerity in next year's budget. Rolling back on capital investment does not make sense at this time. This issue has been thrashed out many times in the House and in public discourse. Capital investment should be maintained if not increased during this period because value for money can be achieved, construction costs are lower and they have a multiplier effect for the economy. They would boost confidence and, ultimately, increase revenue for the Exchequer.

Last week's North-South Ministerial Council meeting was lauded as a success for saving the A5-N2 project. However, the Government is only committing €50 million to the project in 2015 and 2016, which is no more than it offered to invest prior to the meeting. The only light coming from the meeting is the Northern Assembly's commitment to match this €50 million. Instead of a project that will deliver first class infrastructure and access to the north west, we will get €100 million worth of road improvements over the coming five years and a woolly commitment from the Taoiseach that further funding will be made available after 2017. The commitment to the A5-N2 project was part of an international agreement entered into by this State and its British counterpart. The Government can roll back on that commitment but there is no movement on other sovereign agreements. When it comes to the bail out, the Government cannot do anything. What is sauce for the goose should be sauce for the gander. If this sovereign agreement does not mean anything then any other sovereign agreements into which we have entered do not mean very much either.

Regarding the upgrading of broadband, the Government's entire focus seems to be on developing wireless communications, which creates major fears within the community regarding the increasing number of masts required to provide all the wireless services. There is little confidence in local communities that this is acceptable to them. The recent Forfás report on broadband indicates that there is consensus across Europe that the roll-out of fibre should be the backbone of any state's broadband policy. Ireland has 13% fibre penetration for broadband access. Countries such as Latvia and Lithuania, which would be classified on the lower tier in the European Union for Internet access and the knowledge society, are considerably better than we are. Latvia has 41% access to fibre broadband and Lithuania has 44% access to fibre broadband. In ten years we will not get anywhere near those figures based on the Government's plans. As Forfás has pointed out, the capital infrastructure investment programme should commit to rolling out fibre to all towns with a population of more than 1,500 people. Forfás projects it would cost approximately €2.2 billion, but it would be a worthwhile investment that would pay back in spades to the State by allowing us truly to become part of the knowledge society. It would allow businesses to access markets and avail of Internet sales.

Dáil Éireann díospóireacht - Thursday, 24 Nov 2011

Report on Infrastructure and Capital Investment 2012-2016: Statements (Resumed)

Dáil Éireann díospóireacht -
Thursday, 24 Nov 2011