Alice-Mary Higgins (Independent) | Oireachtas source

This is the final amendment for discussion and it goes to the crunch. It is a retrospective amendment whereas most of the others look forward. I am asking that the Minister publish in the next year a report looking at the period in question. If we are to shape the future in terms of a new economic governance framework for the EU we need to learn from the past. It would be beneficial if the Minister published a report examining:

where, between 2012 and 2020, compliance with EU fiscal rules has been a factor in Government decisions to deliver public services or infrastructure “off balance sheet”, through newly created bodies or through contracted services rather than through direct public investment or provision, and

... an analysis of the costs associated with such an approach, including the opportunity cost of short-term expenditure versus long-term investment.

We could list these, from Irish Water, which had to be done off balance sheet, creating much tension around the concern it was not being done through our public utilities directly, to the concerns in relation to leasing. We have thrown money away on leasing, rather than buying or building, and are continuing to do so.

I could talk at length on this but will not. We know the economic analysis of the opportunity cost and loss. There is a short-terming saving and a long-term cost. We know that from Mazzucato's writings and I know the Minister is aware of the role the entrepreneurial state can play in investing and driving the future. We know from Piketty the issues when having capital is given predominance. I worry that the policies and the fiscal rules we had led much of the time to the opportunity being given to the private sector and the State ending up subsidising that sector and being unable to make a wise choice. There is Terry Pratchett's story about the boots, whereby the best value are the boots that last ten years, but all people can afford are short-term boots that need to be replaced every six months. That is what we have had in terms of leasing. We have lost opportunities and allowed private sector capital to seize advantages and opportunities that could have been public advantages and opportunities. That is due to a short-term framework of targets that we have prioritised and to a prioritisation of austerity and narrow targets over long-term benefits.

Looking back at EU fiscal rules, we see how they have factored and the amount of times we have heard of things having to be off balance sheet or needing to be done in a way that defies common sense and, in many cases, has defied long-term development vision or long-term common sense. It is so we can learn from that and it can affect how we input into the new economic governance framework and how we ensure that we as a state have space in the future to make the transformational investment we will need.

I hope the Minister will consider such a report. He will be aware of the analysis that many bodies have done on austerity and its impacts but this is specifically in terms of giving scope to the State for long-term thinking and investment, especially at a time like now when the State can borrow at almost zero interest yet we are still asking private providers who need to build in a profit dividend and have to borrow at a higher rate than the State. All those financing, profit and dividend costs are added into the provision of the essential needs of the State. We can learn from the past. I hope the Minister will support the amendment for a report on that matter.