Brian Cowen (Laois-Offaly, Fianna Fail)

As the Deputy noted, clearly areas such as legislative change or issues which do not entail large costs can and should be progressed. I agree with that.

Two issues arise in regard to the question of prioritising capital investment programmes. We must concentrate on areas which give rise to social needs or economic returns. Our scarce resources must be concentrated on work that is strategically important in terms of enhancing the competitiveness of the economy so that we are in a position to take advantage of the upturn whenever it comes. As an export oriented and open country, we are dependent on a world economic recovery. We derive our wealth from what we sell abroad to a far greater extent than from what we produce and consume domestically due to the position of our economy, what we produce and where we spend and sell our products and services. It is therefore important that we use the recessionary period, during which there are scarcer resources, in a way that is focused on those priorities. That is not to say we are not mindful of providing labour intensive projects as well but the balance must be struck. We cannot just put in place projects which, when they are added up, do not provide the same economic rate of return as the more strategic work in transport, infrastructure or other necessary areas. Finalising our national motorway programme needs to be done and it would not make sense to divert money from that towards other areas that might be more labour intensive but would put at risk the major investment already made in the programme. We are in a position to complete it now at a time when outputs are far greater for the spend, given the more competitive tendering now available. There is no disagreement about finding that balance and there is a continuing high level of investment in overall terms of 5.3% this year in terms of capital spend.

In terms of the economic crisis and our financial position, we must be careful and see how we can maintain the capital programme and focus it on those areas that are strategically important. We must take advice from various State agencies that will ensure we support enterprise, improve competitiveness and continue to invest for the future while contending with the present difficulties.

See this speech in context