Micheal Martin defends development plan, saying it will ‘transform Ireland’

The Taoiseach has defended the Government’s flagship plan to invest 275.4 billion euro in infrastructure over the next 10 years, which has been criticised as “vague”.

The coalition Government pledged to fix a deficit in Ireland’s public infrastructure, particularly in energy and water, which is hampering housing delivery.

The revised National Development Plan commits to spending 102.4 billion euro between next year and 2030, an increase of 23.9 billion euro on the previous iteration.

The ESB and Eirgrid will be given 3.5 billion euro to enhance energy infrastructure, while Uisce Eireann will be given 2 billion euro to help deliver an additional 300,000 homes up to 2030, according to the plan.

The investment will be funded by the Apple tax windfall of 14 billion euro, proceeds from state shares in AIB, and the Infrastructure, Climate and Nature Fund.

At Government Buildings on Tuesday, Taoiseach Micheal Martin, Tanaiste Simon Harris and Minister of State Sean Canney hailed the plan as “unprecedented” and said it would “transform Ireland”.

Mr Canney, representing the Regional Independents supporting government, said it would make a “profound and tangible difference to everyone’s lives”.

They defended the lack of detail on what projects would be funded after opposition criticism.

“Today, we have a plan so vague it doesn’t even rise to the level of wish list,” Social Democrats deputy leader Cian O’Callaghan said.

“Instead, the Government’s 10-year development plan comprises just 49 pages which seek to bamboozle with the budget to disguise the paucity of both commitments and detail.”

Mr Martin said ministers had been given “huge, significant” infrastructure budgets per department and can decide what should be prioritised.

He said the last version of the plan, launched in 2021, was “too long” and that details on projects would be announced closer to the budget on October 7.

He and Mr Harris said the announcement gave a signal to firms that Ireland is a country worth investing in.

“We will send a very clear signal to the investment community: this infrastructure commitment is one for the long run,” Mr Martin said.

“I think the big prize today for the Irish economy is in trying to provide certainty to those who wish to invest in our country,” Mr Harris said.

Under the plan, Ireland’s transport network will be given 24 billion euro to extend transport routes and greenways and support the electrification of public transport fleets.

Housing is to get 36 billion euro, which mostly does not include water infrastructure.

When it was put to Mr Martin that the funding for housing, 5.8 million euro a year, was not much more than before, he said it did not include water and energy infrastructure or private investment.

Mr Martin said the largest projects had already been “baked into” the plan, such as the Metrolink, the Dublin drainage system, and a major infrastructure plan to pump water from the Shannon to the Midlands and Dublin.

He said that while many public investments are done “efficiently”, oversight of projects would be strengthened as there are “clear issues in some areas”.

“Not all projects are over budget, not all are delayed unnecessarily. So there’s been very good stuff in education, very good stuff in roads, further education. The key change now is the infrastructure division within the department of public expenditure – how can we accelerate delivery?

“So there will be a rigorous focus in value for money in respect of this.”

He said the Government had followed its promises on how to spend the Apple tax money “to the letter”. The Government had previously pledged it would be spent on housing, water and other infrastructure projects.

He also criticised the 2:1 ratio of investment in favour of public transport from the previous coalition government, which had the Greens as a junior partner.

“In terms of the so-called 2:1 ratio, I’ve never been of the view that that was realistic because of the timelines of projects. To try and have a 2:1 ratio every single year, it’s just unworkable.

“The obvious illustration of that is the Metro. So when the big, heavy money gets to be spent on the Metro, you’ll be looking at 3:1, 4:1, in favour of public transport versus roads.

“I would have issues with some on the environmental side, roads can be very good for the environment, can be very good for air quality. You talk to people in Macroom, you talk to any major town that’s being bypassed. The congestion alone creates enormous issues in air pollution and in environmental health.”

Green Party leader and former minister Roderic O’Gorman accused the Government of “abandoning the critical schemes that will help us reduce our emissions”, naming energy innovation and offshore wind.

Asked if capital funding would take a hit in the event of an economic slowdown, Mr Martin said current expenditure “would be under pressure if such a situation was to emerge”.

“The Government is very committed to capital over the next five years – current will be challenging but we are absolutely determined, or I want to send a very clear signal, that infrastructure is a key priority for us.”

He added that EU-US trade negotiations were “tense” and “causing a lot of concern”.

“We have factored in as much as we possibly can various scenarios, but what we’re absolutely determined to do as best we can is safeguard the capital side of the budget over the next number of years.

“We don’t anticipate having to borrow, but we’re ruling nothing out.”

Asked about poor second halves – after Cork’s defeat in the hurling final to Tipperary – Mr Martin congratulated the victors on their “outstanding” win before adding: “The mushroom may fade, but Cork, never.”