Patrick Nulty (Dublin West, Labour)

I will use the time available to highlight a missed opportunity in the capital programme. Far more could have been done in capital investment projects at this time. The decision not to do so has been a mistake.

According to the European Commission investment in this country has fallen 74% since 2007 with the EU average being at only 11%. This crisis in investment coupled with a continued fall in domestic demand represents a significant element within the economic crisis facing the country, which is not replicated among other European counterparts. The opportunity to invest in worthwhile capital projects represents a part of the economic alternative that is open to this country. I specifically refer to the metro project on which I disagree with my colleague, Deputy Hannigan. The metro was scheduled to run through my constituency. Postponing investment in public transport simply pushes up costs in the long term and reduces prospects for economic growth. The building of metro north, which was scheduled to run from the city centre as far as Swords would have been not only of societal benefit and a key resource for the local community but it would also have provided part of the economic stimulus this country requires.

One might ask how we would source such an investment. First, we could begin by broadening our tax base and increasing taxes on capital and wealth in this country which are well below the average tax take in other European countries. Unlike Fianna Fáil, which suggested that the National Pensions Reserve Fund was being raided, I believe it should be used in a constructive way in the next four years to promote capital investment and job creation. The only time Fianna Fáil used the fund was to pay off banks.

We also require immediate renegotiation of the Anglo Irish Bank promissory notes which would generate significant savings for ordinary people. The publication of a timeline for the metro project is essential. As far as I am concerned, while it may have been deferred; the metro is something that remains worthwhile and must be on the agenda.

I have inquired of the Minister for Transport, Tourism and Sport, Deputy Varadkar, about the work that will now be done to find the €1 billion which would have been sourced through private investment and whether the €500 million promised by the European Investment Bank as funding for the project will still remain in place? What is the justification for the €200 million already spent on the planning process? That will have gone into a black hole if the project is not pursued. The deployment of €1.2 billion over the next four years from the NPRF into investment projects would yield significant return. Metro north is a suitable candidate for such investment and I believe it should be done.

Despite investment in infrastructure in previous years, particularly in the road network, we still rank below OECD averages on the infrastructural issues facing the country. Ireland's distribution infrastructure is perceived to be poor. While Ireland scores high on air and water transport and improvements have been made in recent years, the quality of our energy infrastructure remains weak. In that context, I agree with other Deputies who have argued that we need to invest in measures such as retrofitting and rain water harvesting now and not row back on them.

A modern service provider and modern economy requires a world class telecommunications infrastructure which is vital to the country's ability to do business. Within the OECD Ireland ranks 22nd out of 30 countries in upgrading local broadband infrastructure. We need to invest in such infrastructure to promote economic development and ensure we will have a world class telecommunications network. The Minister for Communications, Energy and Natural Resources, Deputy Pat Rabbitte, has committed to this.

In a matter of weeks the budget will be announced in the House. Spending cuts across the board will be proposed. The reason for the economic crisis in the public finances is the disastrous policies pursued by the previous Government in guaranteeing and socialising private bank debt, as well as the disastrous taxation policies with property based tax loopholes and the reliance on property based taxes. The crisis cannot be viewed in isolation from the wider economic and social issues facing the country such as unemployment and the infrastructural deficit. The way to tackle the economic challenges is through growth, investment and job creation. This will require capital spending and further debate about how we invest in the capital programme int the next few years. Mistakes were made in not pursuing the metro north project. I hope that decision will be re-examined and that we will grasp opportunities in the years ahead.

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