Jack Chambers (Dublin West, Fianna Fail) | Oireachtas source

The previous Government committed to €165 billion in capital investment through the national development plan, published in 2021. As a percentage of national income, annual capital investment is now among the largest in the EU. In 2025, €15 billion will fund vital infrastructure in areas such as housing, transport, education, enterprise, sport and climate action. An additional €2.25 billion of windfall corporate tax receipts has been allocated from 2024 to 2026 to provide funding for critical infrastructure projects that are at an advanced stage, as well as to the existing climate action fund. Ensuring that projects are properly costed with realistic start and completion dates is vital in achieving value for money from this investment.

My Department is responsible for the infrastructure guidelines, which replaced the public spending code for capital appraisal since the end of 2023. These set the value-for-money requirements and guidance for evaluating, planning and managing Exchequer-funded capital projects. Management and delivery of investment projects and public services within allocation and the national frameworks is a key responsibility of every Department, Accounting Officer and Minister.

The 2019 update to the public spending code, the introduction of the external assurance process and the major projects advisory group, and the most recent updates were informed by a number of different factors. These included recommendations arising from several reports, including the 2017 IMF report Technical Assistance Report – Public Investment Management Assessment and the PWC independent review of the escalation in costs at the new children’s hospital, a consultation process involving key stakeholders, as well as international evidence.

The introduction of the infrastructure guidelines in 2023 focused on reducing the administrative burden in delivering major capital projects which came as part of the Government’s priority action to maximise the delivery of projects. This was implemented through reducing the number of approval stages and streamlining the requirements for major projects, while retaining the international best practice governance and oversight arrangements already in place. This will ensure that vital infrastructure projects will be delivered on time.

I will continue in my next contribution.

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