Seanad debates
Wednesday, 5 November 2003
National Development Plan Mid-Term Evaluation: Statements.
The report states that infrastructural expenditure is important and should continue irrespective of economic circumstances. However, the Government and, in particular, the Department of Finance have indicated that they propose to cut back on capital projects because it is easier to do so. While yesterday's numbers were good, they indicate that Departments are taking the easy option by cutting back on new spending for capital projects. The ESRI states that we must accept the basic premise that such projects are necessary to sustain and improve economic activity and that it is short-sighted to cut back on them because the economy is not performing as well. The Government is headed towards this easy route and the Department of Finance should exercise its management role and state that this should not happen. We will keep a close eye on what happens on budget day to ensure that the 5% minimum for capital expenditure is maintained.
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