Frances Fitzgerald (Dublin Mid West, Fine Gael) | Oireachtas source

Deputy Michael McGrath is absolutely right when he said that capital investment fell severely because of the economic situation we faced. The crisis had its impact on our infrastructure and this is what we must now correct. The way we will do so is by prudent management of the economy and in making the very best use of the resources we have in the period ahead.

I will outline what the Government is actually doing. We are providing for a 66% increase by 2021 on the 2016 levels of capital investment. Effectively, this means the State is almost back to the levels of before the economic crash and the crisis. By any standard that is very significant in terms of the potential for investment in capital infrastructure.

The Deputy has made the point that every other avenue should be explored and of course I agree with him. In my own area of responsibility, for example, I met recently met managers involved with the Ireland Strategic Investment Fund to discuss how we can support business. This is an area we need to focus on given the challenges posed by Brexit. I also wish to acknowledge the point - the Deputy has already referred to it - that Ireland's reputation is such that we are in the excellent position in respect of lending and in getting the kinds of rates that make it feasible for us to continue to borrow at very suitable rates to invest in our infrastructure. The summer economic statement is all about how we do that in a way that is sustainable.

The Department of Finance is currently reviewing the role of the Ireland Strategic Investment Fund, which was established at a time when private investment was constrained and the banking system was restricted in its capacity to finance the real economy. Preliminary results acknowledge strong economic growth and an increased availability, as Deputy McGrath has rightly said, of private sector investment. This reflects the progress in the economy and the financial system since its establishment about which I have already spoken. Importantly, the Department has acknowledged that based on cashflow modelling, it will not be required to fully deploy its funds to meet its mandate. On this basis the Government will consider whether an element of the ISIF should be reoriented towards complementing the role of the rainy day fund.

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