Brendan Howlin (Wexford, Labour)

Before this question can be considered, it is necessary to point out that the sort of capital works programme required to create 100,000 new construction jobs in a given year would require a minimum of €10 billion in expenditure on top of existing allocations, and such funding is just not available. While some of this may be recoverable in the form of tax receipts and reduced welfare costs, very significant costs to the Exchequer would remain. This would require us to reduce dramatically expenditure on the current side and institute additional taxes on a scale significantly above those already imposed.

The quantum of pain to ordinary people that this would involve would be extreme. Moreover, this approach ignores the significant improvements in our infrastructure that have been made to date, as attested to by the OECD. It is worth noting that, over the past decade, some €70 billion was invested in infrastructure and the productive sector. Judged by a range of measures, the quality and quantity of the country's stock of infrastructure has been considerably augmented in recent years.

Even were additional funding available, it is questionable whether such an approach would be feasible or the most effective means of creating new employment. Capital planning must be undertaken with meticulous attention to detail to ensure that the infrastructure being proposed meets a genuine social or economic demand that cannot be adequately met by the private sector and that, if the infrastructure is necessary, the project approach that provides the best outcomes, value for money and optimum return to the State is undertaken.

In regard to job creation, it is important to note that much of the capital programme for the next five years as laid out in the infrastructure and capital investment programme will be geared towards smaller, more labour-intensive projects. However, it is not necessarily the case that capital works programmes would provide the optimal job-creation approach. Infrastructure best serves the economy by aiding economic growth and generating sustainable jobs in the medium term, rather than by providing short-term employment in its construction phase.

Additional information not given on the floor of the House.

Capital investment in enterprise supports has the highest direct employment impact. Accordingly, the capital review undertaken last year made a point of protecting supports to the enterprise sector primarily through agencies such as Enterprise Ireland and the IDA. The unprecedented level of investment over the past few years and in 2012 delivered through the enterprise development agencies can foster sustainable and valuable employment in the exporting sectors of the economy which will be critical to recovery. While the overall capital envelope for 2012 has been reduced, we have held the level of capital allocation for the enterprise sector relative to the preceding period.

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