Brendan Howlin (Wexford, Labour) | Oireachtas source

I raise a different issue, which is of great concern. It is my understanding that, in determining the fiscal space available to the State, the Government decided to disregard the 2015 figures on gross domestic product, GDP. While we happily took the additional corporate taxes generated in this period from the relocation of corporate profits to the island of Ireland, for some very odd reason that I genuinely do not understand the Department of Finance decided not to take advantage of the 2015 growth rate. I understand the European Commission was happy to accept the 2015 figure, which would have given the State an additional €7 billion of fiscal space. This money is needed to invest in infrastructure. Why arbitrarily reduce by €7 billion the fiscal space available between now and 2021 by ignoring the 2015 growth figure? This was a political choice that will impact on our capacity to invest in infrastructure at a time when, as the Taoiseach noted, money is cheap and available.

The leader of the Fianna Fáil Party is pushing for more public private partnerships, PPPs. I argue for a cap on PPPs because they are the most expensive approach. When the State can borrow money at very low interest rates, it does not make sense to have PPPs rather than direct investment, although PPPs make sense in some areas. We must have a debate on the infrastructural needs of the country and how they should be funded. I am puzzled by the arbitrary political decision, despite the views of the Commission, to lessen the capacity of the State to invest in infrastructure.

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