Written answers

Wednesday, 20 January 2016

Department of Jobs, Enterprise and Innovation

Regional Development

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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89. To ask the Minister for Jobs, Enterprise and Innovation the extent to which the requisite infrastructure for the development of the national economy will be met throughout the regions; if there is room for improvement; and if he will make a statement on the matter. [2526/16]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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The availability of competitively priced world class infrastructure (energy, telecoms, transport, waste and water) and related services is critical to support economic growth and enterprise development. The recent economic recovery, return to growth, and the creation of more than 135,800 jobs since the first Action Plan for Jobs was launched, have all been supported by Ireland’s national economic infrastructure.

The competitiveness of that economic infrastructure is assessed by the National Competitiveness Council (NCC). As noted by the NCC, there was a significant reduction in public capital expenditure over the course of the economic downturn, from approximately €9 billion in 2008 to €3.4billion in 2013, although weaker demand for infrastructural services (e.g., reduced road traffic, and declines in energy demand) partially mitigated the impact of this reduction. The Council state that a range of international benchmarks, mostly qualitative in nature, are available comparing the stock and quality of infrastructure in Ireland against our key competitors. In terms of the perceptions about the quality of Ireland’s infrastructure vis-à-vis other countries Ireland’s score has improved since 2010, but perceptions of quality in Ireland still lag the OECD average and are well behind leading performers.

The NCC believes that there is now a need to increase public capital expenditure, and that public investment in infrastructure should be prioritised and targeted at those areas that can have the greatest positive impact upon Ireland’s competitiveness.

In September 2015, the Government published Building on Recovery: Infrastructure and Capital Investment 2016-2021,which presents the Government’s new €42 billion framework for infrastructure investment in Ireland over the period to 2021. The Capital Plan reflects the Government’s commitment to supporting strong and sustainable economic growth and raising welfare and living standards for all, and in all regions.

As the Capital Plan states, public investment will have a positive impact on job creation across the country and in almost every sector of the economy. It will serve to underpin the Government’s commitment to seeing full employment of 2.18 million people by 2020 as set out in Action Plan for Jobs 2016. Investment in infrastructure, such as transport and communication networks, energy and water, is an important enabler of economic growth and the wider State sector, including the commercial State-bodies, has an important role to play in these areas. In addition, significant investments are planned to support enterprise and innovation. IDA Ireland has reported the highest level of employment in its client companies in its 67 year history. Total employment at overseas companies now stands at 187,056 people, the highest level on record. Enterprise Ireland has reported that total employment in its client companies has reached 192,223 - a record high for the agency. Investment in enterprise and innovation included in the Capital Plan will continue to support and grow the numbers employed in these foreign-owned and indigenous firms. Further, over the six years of the Capital Plan, it is estimated that around 45,000 construction jobs will be sustained through the Exchequer investments in physical infrastructure alone.

Regarding the regions, earlier this month the Government launched the seventh of eight regional jobs plans to be published, as part of a new €250 million regional jobs strategy. Ensuring the regions are adequately served by economic infrastructure is key to achieving these Plans’ ambition.

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