Jonathan O'Brien (Cork North Central, Sinn Fein) | Oireachtas source

I recognise that the updated capital programme is an improvement and to be welcomed. The smoothing of capital increases over four years is something of which we have availed and also welcome. However, we need greater flexibility, given that the capital budgets in the most progressive economies are 4% of GDP. We are not going to reach a figure of 4% of GNI* until 2025. Therefore, we have catching up to do. The Committee on Budgetary Oversight made some proposals in a report it issued. One was that there be an increase in the four-year smoothing period, while another concerned a relaxation of the fiscal rules for capital projects co-funded by the European Investment Bank. Has the Minister raised any of these issues with the European Union? He said at the committee that he would discuss the matter with it to see whether we could avail of other mechanisms which he outlined in his initial response.

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