Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I thank the Deputy. The Irish Fiscal Advisory Council made that observation regarding its view on the deficit of capital funding in the time ahead. This is the same organisation that is making the case for the implementation of the 5% spending rule. On the one hand, it is arguing, understandably and I agree with it, that we need to move back to the 5% spending rule. On the other hand, it is saying that we need to increase the value of capital expenditure. That is fine; that is its job. What I and the Government have to do, however, is to try to reconcile those competing priorities. Likewise, the Economic and Social Research Institute, ESRI, is making the case for further targeted capital expenditure but it is also warning that the we are at full employment and that the economy is experiencing supply constraints. It is offering different recommendations to me which my colleagues in Government and I have to try to bring together and be consistent on.

I appreciate that there are some projects that are not moving forward with the speed that the Deputy and communities would want. The Government, by having a capital spending plan for this year of nearly €13 billion, is doing all it can to move projects forward across the country.

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