Mairead Farrell (Galway West, Sinn Fein) | Oireachtas source

I agree that at this stage we should be planning for an alternative in the event that corporate tax changes have an impact. The council notes in its opening statement that capital spending projections are well above those contained in the capital plan. This ties into what Mr. Barnes has just said in relation to funding in order to ensure that we build and grow. The IMF has said in recent times that Ireland has infrastructural deficits. Those deficits actually put us on the back foot when Covid-19 struck, particularly in the context of our hospitals and schools and we had exceptionally long lockdowns as a result. The capital spending projections are well above the capital plan but there have been reports in the media that the Minister for Public Expenditure and Reform is concerned that Departments may not meet their capital spending targets.

In terms of balanced regional development as we emerge from this crisis, we have huge concerns about unemployment levels and businesses no longer being viable. New sectors will have to be built up and infrastructural deficits addressed. In that context, capital spending will be an important core element and such spending must be done on a regionally balanced basis. Is IFAC aware of any mechanisms used by other member states to ensure that Departments meet their spending targets? That is going to be very important. It is one thing not having funds available to stimulate the economy but it is another thing entirely having such funds available but being unable to spend them, unable to get funds into the hands of contractors to commence capital projects and, most importantly, unable to have that money circulating in the economy.