Oireachtas Joint and Select Committees

Tuesday, 9 May 2017

Committee on Budgetary Oversight

Capital Investment Plan 2016-2021: Dublin Chamber of Commerce

4:00 pm

Ms Mary Rose Burke:

We appreciate the opportunity to speak to the committee today on the mid-term review of the capital investment plan for 2016 to 2021. Dublin Chamber of Commerce is the voice of business in the Dublin region. It represents 1,300 members who employ over 300,000 people across the greater Dublin area. Our membership is made up of a cross-sectoral base spanning the spectrum from start-ups through to multinationals, so we have a good insight into the infrastructure needs of both businesses and their employees over the coming decades.

Ireland faces an urban future and we believe the Government must plan for this through proper planning and infrastructural investment. Urbanisation is an overwhelming international global trend and the UN estimates that Ireland's population will be 75% urban by 2050. Rather than fighting this the Government should focus on getting urbanisation right, to optimise both social and economic outcomes. The greater Dublin area is currently home to 40% of the population and it is the engine of the Irish economy, accounting for 53% of GDP. It generates 62% of tax revenue in Ireland. For the foreseeable future it will remain the main demographic, economic and cultural hub in the country. In this urban future Ireland's success will depend on the strength of Dublin. The growth of the capital city should be intelligently supported, not frustrated.

Large infrastructural investments in the greater Dublin area are not just for Dublin. They have a national impact. For example, Dublin Airport is not just for Dublin. It is the national airport and eight out of ten air passengers to Ireland come through Dublin Airport. Enhancements to the connectivity of Dublin Airport to the city and the rest of the country have benefits for both the greater Dublin area and the country. The capital investment into Metro North as a key element of that connectivity is, therefore, a priority for Dublin Chamber of Commerce. Likewise, the DART underground is to be seen as national infrastructure. While it would connect the two main rail stations it also provides connectivity for Dundalk to Tralee or Sligo to Rosslare, so while Dublin based infrastructure is important for connectivity in the greater Dublin area it has a national impact as well.

We ask the Government to allocate resources in a way that respects and reflects where Irish people choose to live in their greatest numbers. A first step in this regard would be to allow a proper debate on capital investment choices, informed by clear and up-to-date data on relative costs and benefits for the proposed projects. This information is not publicly available at present. What is in the public domain is out of date, so we ask for that data to be made available so we can properly inform and comment on it. Under-investment in Ireland's biggest population hub has negative economic and social effects. None of these decisions is cost-less. For example, the Department of Transport, Tourism and Sport in a response to a parliamentary question estimates an annual cost to the Irish economy of €350 million caused by congestion in the greater Dublin area. This is projected to cost the Irish economy approximately €2 billion by 2030 if serious investment in infrastructure does not take place. The European Commission has recognised that urban Ireland suffers particularly from shortcomings in infrastructure and that this will be aggravated by rising activity and population growth. The under-investment in infrastructure is costing us on a number of indices, and the World Economic Forum has highlighted the lack of infrastructure as a bigger risk to Ireland's economy than the level of the country's debt.

We believe Ireland must have a new approach to capital expenditure. In the past we have both under-estimated future infrastructure needs and failed to provide for them. Dublin is now ranked as the seventh most congested city in Europe, with public transport usage by commuters at only 21.5%. However, we have seen that where successful infrastructure is built people engage with it. Connecting the centre of the population with the infrastructure means that people will engage with it. We need to move the dial on that 21.5% of commuters on public transport. Our current approach to infrastructure and capital planning is not working. We have one of the most unstable capital expenditure patterns in western Europe and the lowest proportional capital spend in the EU. We ask the Government to embrace long-term planning for infrastructure investment. We should adopt a 20-year capital investment plan that is aligned to other national strategies and supported with long-term fiscal commitments. Other countries have successfully shown the way on this, so we should seek to have a 20-year capital plan.

In the short term, we believe the Government should use the unallocated €2.65 billion to enhance competitiveness in light of geopolitical challenges. The most pressing of these is Brexit, but there are other challenges. Maintaining a focus on competitiveness is the key request. Housing supply, commuting and travel times represent the most practical and quantifiable measures under which the greater Dublin area can improve its international offering in a relatively short timeframe. Investment in housing and transport will also have a huge impact on quality of life for citizens in Dublin as well as supporting further growth and investment.

Metro North and the DART underground should both be prioritised in the capital investment plan. The Metro North is essential connectivity and it is also essential to easing urban congestion. Fingal in north County Dublin has a population of almost 300,000. It is the third most populous county in Ireland and is the fastest growing. Between the census of 2011 and the census of 2016 the population growth in Fingal far outstripped that of the five counties of Connacht. We must put investment where the people choose to live. The DART underground was first mooted in 1971, yet we still do not have it.

Again, there are opportunity costs to that and that has been a drag on the development of the city. Resources must be allocated to enhancing the existing public transport system, reducing commuting times, easing congestion and better delivery of health and environmental outcomes.

We also believe that Dublin Bus services play a hugely important role in the city's transport system and that bus priority and bus only corridors are a highly efficient way of transporting large numbers of people at peak traffic times. There are opportunities to upgrade ticketing and payment systems through allowing the use of contactless cards and phone pay, in addition to the Leap card. Improvements in cycling and walking infrastructure could also be achieved at relatively low cost but with very significant rewards in terms of traffic management and in health and environmental outcomes.

In terms of planning, complementary services such as Dublin Bikes, cycle lanes and bus stops should be located as close as possible to the existing rail stops to enhance commuter convenience and to encourage people to use public transport.

The other key area for capital investment is the Dublin water supply. The threat to water shortages in Dublin has been internationally recognised, with a Stanford University study in 2014 identifying Dublin as one of the most vulnerable cities in the world to water shortages in the future. The eastern and midlands water supply project is vitally important and it must not be delayed. We ask that Government would clarify the implications of the EUROSTAT determination that Irish Water remains on the State's balance sheets, the implications of that for the capital investment plan as a whole and that it commits fully to funding the eastern and midlands water supply project.

That is the summary of our recommendations. We would be delighted to answer any questions and go into each of those points in detail.

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