Anthony Lawlor (Kildare North, Fine Gael)
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15. To ask the Minister for Public Expenditure and Reform his plans to increase the level of investment in capital projects to secure the continued growth in the economy; his views that this investment needs to occur quickly; if the proceeds from the sale of shares in Allied Irish Banks could be used to invest in these projects; and if he will make a statement on the matter. [40407/15]

Brendan Howlin (Wexford, Labour)
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Assessment of the appropriate level of investment in the economy depends on a number of factors, including:

- the need to  maintain sustainable rates of growth in the economy; 

- securing economic and fiscal stability as a key enabler of the level of private investment in the economy; and

- ensuring that the Exchequer component of the Government's Capital Plan is consistent with Ireland's fiscal targets over the medium-term period.    

As far as economic growth is concerned, forecasts from both national and international authorities - reflecting the investment levels provided for in the Government's Capital Plan - are for the achievement of continued strong and sustainable growth in the Irish economy.  Indeed real GDP growth in Ireland having outpaced that realised in all other European economies in 2014 at 5.2 per cent is forecast to grow faster this year and remain robust over the medium-term growing in line with growth in the economy's growth potential. 

The scale and profile over time of the Exchequer component of the Government's Capital Plan has been developed with reference to medium-term economic growth forecasts and consistency with the Government's fiscal objectives.  The Deputy will be aware that the Capital Plan marks a step change in the Government's capital investment policy prioritising projects both to meet social needs and to support the maintenance of a sustainable growth path for the economy.

In addition, the strong and sustainable growth projected for the Irish economy over the medium-term, together with the projected improvement in Ireland's fiscal position - in terms of both the structural budget balance and the debt ratio - are concrete measures of the economic and fiscal stability that underpin the continued recovery in private investment and employment creation.   

As far as the proposal that the proceeds from the sale of the State's shareholdings in the banks should be used to finance additional capital spending is concerned, under EUROSTAT rules the sale of financial assets, such as shareholdings, do not result in a beneficial impact to the General Government Balance (GGB) as they are classified as financial transactions.  Consequently, any sale of shares in AIB would be neutral as regards general government revenue and any proceeds arising would not provide any increased capacity for expenditure without impacting adversely on the General Government Deficit.