Micheál Martin (Cork South Central, Fianna Fail) | Oireachtas source

Our sympathies go to all of those who have suffered as a result of the horrific terrorist attack in Kabul. Up to 80 people were murdered in an unwarranted attack.

I want to raise with the Taoiseach the overall crisis facing the country, in terms of the need for capital investment. I do so in the context of the IPO for the sale of a portion of AIB. There is no question that our level of investment in capital infrastructure is not where it should be, given the growth in population. We are still at 2000 or 2002 levels of investment, at approximately 2%. There are major needs in housing, health, education, public transport, road infrastructure and broadband. The essential future productive capacity of our economy and quality of life depends on a much greater level of capital investment then we have planned or are providing.

Many people are missing the point on the sale of AIB. It is not the key issue in terms of capital investment and the problems around it. In our view, the Government has received advice to sell now. The advice was to the effect that the timing may now be optimal in terms of the return to the taxpayer, which is certainly a consideration the Government has to take on board. It is one of the reasons we have not opposed the sale of shares. It is an important judgment call, but that is what it is in terms of a window that opens up.

The broader issue is flexibility in how we use money and the EU and Irish rules on capital investment. It is our view that the proceeds of the AIB sale should be allowable for expenditure on capital projects. Equally, we know we already have substantial funds locked up in the Ireland Strategic Investment Fund. There are billions of euro in cash, bonds and equities that fall victim to the same rules as do the proceeds from the sale of AIB in terms of the capacity of the Government to use that money for road projects and various other direct infrastructural projects.

To a certain extent, the debate is a focused exclusively on AIB but the issue is much broader. Does the Taoiseach accept that we need dramatically more flexibility than we are getting in terms of European Union and Irish imposed rules? It is the Government which has put a 10% limit on public private partnerships. It is an arbitrary rule imposed by the Department of Finance. The Government's former economic adviser, Andrew McDowell, said there is no current basis for that rule. We could have more public private partnerships. The head of the NTMA has also made the point that, given the very low interest rates, the Government's capacity to lock in low interest rate levels over a longer time period for public private partnerships is possible.

What efforts has the Government made in terms of the getting the European Commission to change the rules, in particular given Brexit, which is a critical issue? We need more capital investment. Can the Taoiseach outline whether the Government has made representations to Brussels? Is the Government prepared to change its rules on public-private partnerships?

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