Oireachtas Joint and Select Committees

Thursday, 18 April 2019

Committee on Budgetary Oversight

Stability Programme Update: Minister for Finance and for Public Expenditure and Reform

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

I do. The Deputy asked if I want to change the balance between current and capital expenditure on housing and the short answer is, "Yes, I do". On his first question as to whether I accept this is a macroeconomic or overall risk for the economy, the answer is also "Yes". The Deputy and I differ on many things, as he well knows, but I accept the genuineness with which he approaches this issue, as he accepts my genuineness too. However, the balancing act I am attempting at all times involves building more homes in a sustainable way for our economy and as quickly as we can. The Deputy does not think we are spending enough in capital expenditure in our economy. He has argued that point with me many times and we have different views on it. However, to increase capital expenditure by one quarter in one year is as significant an increase as one will find in our recent economy history. I did that because I accepted that there are many legacies from the awful period we went through that are causing trauma and anxiety for many of our citizens today. Even if they were not legacies but were rather issues we were starting to face in 2019, we would want to do better. I do not want families and young children growing up in circumstances in which the only home they have ever known is a hotel bedroom. We can address that and we will. That is why we have made these increases in investment.

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