Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

The purpose of the infrastructure, climate and nature fund, as stated in the Bill, is to support State expenditure during a deterioration in the fiscal or economic position of State and on specific climate and nature matters. The climate and nature element recognises there is a need for additional investment to help Ireland deal with the transition to climate neutrality and the ongoing concerns with reductions in biodiversity and water quality issues in lakes, rivers and in the seas. In recognition of this, €3.15 billion of the infrastructure, climate and nature fund may be drawn down to support climate- and nature-related capital projects. This is a considerable amount of resources being committed to climate and nature projects, but would be significantly diluted if other types of projects were to be in competition for the same €3.15 billion.

In addition, focusing on the countercyclical element of the infrastructure, climate and nature fund in periods of economic stress and pressure on the public finances, capital expenditure, including spending on housing, has typically been reduced at a time when it would be of economic and societal benefit. This has create a stop-start approach not conducive to creating certainty or medium-term strategic planning. This stop-start approach also impacts on the capacity to deliver infrastructure as skills and competencies in businesses get lost in times of economic downturn and are difficult to replace when economic conditions improve. This fund can be deployed to smoothen this investment cycle and support capital projects, including housing development.

I expect we will go into housing again in more detail, a Chathaoirligh, so I will allow for an over-and-back discussion.