Mick Wallace (Wexford, Independent)
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20. To ask the Minister for Public Expenditure and Reform given the well documented importance of public investment in bringing about economic growth, if he has had discussions recently with the Department of Finance concerning the fact that Irish public investment, at approximately 2% of gross domestic product, ranks 26 out of 28 European Union member states; the plans he has to address this issue; and if he will make a statement on the matter. [40615/15]

Brendan Howlin (Wexford, Labour)
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As stated in my response to PQ 40614/15, there are important issues relating to differences in the composition of public expenditure in different jurisdictions affected by such factors as, for example, the age profile of the population, the level of defence spending and the mix between public and private provision of particular services that need to be taken into account in seeking to make cross-country comparisons on public investment.

Direct comparisons with public investment levels in Ireland under previous capital investment plans also need to be treated with caution particularly when such plans were oriented towards addressing long-standing infrastructural deficits as was, for example, the case in the period to 2008.  In addition, capacity constraints and levels of tender price inflation can impact on the level of real as compared to the nominal level of public capital investment and the value-for-money of the expenditure undertaken.

Reflecting these types of considerations, trends in public capital investment should preferably be examined over a more extended time horizon.  In this regard, the ESRI who reviewed investment levels in EU Member States over more than four decades from 1970 to 2013 found that Ireland ranks third behind Sweden and the Netherlands in terms of State investment in national infrastructure as a share of GDP.

The Government's Capital Plan "Building on Recovery: Infrastructure and Capital Investment 2016-2021" announced an Exchequer capital spend of €27 billion over a six year period.  Supplementing Exchequer-funded investment with the investment plan from the wider semi-state sector, and PPPs, total State investment amounts to €42 billion over the period.  At the time of the publication of the Capital Plan, State-backed capital investment, therefore, constituted a forecast average of 3.5% of GNP per annum over the relevant period.  

As the Deputy will be aware, this represents a step-change in public investment, the feasibility of which is attributable to the achievement of fiscal and economic stability and the successful delivery of which will require the maintenance of this stability.