Brian Hayes (Dublin South West, Fine Gael)
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Question 186: To ask the Minister for Finance if capital investment allocations have been reviewed since December 2008 to allow a focus on more labour intensive activities as outlined in Building Ireland's Smart Economy: A Framework for Sustainable Economic Renewal report. [43114/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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In February, the Government decided to re-allocate €150m to labour intensive activities in the areas of school building and energy efficiency/home insulation measures. This was part of the Government's response to employment difficulties by investing in labour intensive areas which will promote and sustain domestic employment and achieve other policy objectives. Overall capital investment in 2009 is still about 5% of GNP – very high by international standards – and the current competitive environment for tender prices means that a higher level of infrastructure can be procured with a lower level of resources.

As the Deputy is aware, capital investment generally supports employment directly as well as addressing issues that will help in sustaining employment, such as the development of key economic infrastructure including major transport projects, water services, school building, Science Technology Innovation capital etc. The overall objectives set out in the Smart Economy strategy, including the identification of investments that help maximise labour intensity, will inform Government consideration both of 2010 allocations and allocations thereafter.