Oireachtas Joint and Select Committees

Wednesday, 21 September 2016

Committee on Budgetary Oversight

Current and Capital Expenditure: Minister for Public Expenditure and Reform

2:00 pm

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

As regards outstanding capital projects and requirements that need to be met, housing is crucial. This is why we have already chosen to allocate to housing so many of the resources the State might have available to it over the next five years. Of the €5 billion in the fiscal space that is available for capital expenditure, we have committed over €2 billion to building homes. The availability of homes in the right places is of crucial importance.

As I said earlier, we will have to return to the question of integrating that with improved public transport. As to whether additional capital expenditure will be available for this year as a result of the mid-term review of the capital plan, the answer is "No". The increased expenditure and funding availability will be from 2018 onwards.

I was asked if I believe the current plan is adequate. Given that we are seeking to increase investment in the area, this clearly shows that I believe current investment needs to be increased. That is what we are trying to do and are doing, but I know that colleagues will want to see that go further.

With regard to what the European Commission has indicated to us on its views in respect of capital expenditure, we will increase capital expenditure to approximately 4% of our national income, which is roughly in line with what countries comparable to Ireland spend at present, over the lifetime of the plan. What would be of help to us, and what we are working to obtain, is greater clarity on whether something that is off-balance-sheet now will remain so. Clarity on this will be of help regarding how we increase investment further. We are using housing projects as a way to gain this full clarity.

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