David Cullinane (Waterford, Sinn Fein)
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35. To ask the Minister for Public Expenditure and Reform for an update on Government plans for capital investment, given the desperate need for this in housing, health, infrastructure, public transport and so forth and in the context of the European Commission country report for Ireland 2016 which states that public investment under the capital spending plan for 2016 to 2021 is back-loaded towards the end of the plan's duration, as the Government has given preference to tax cuts and other expenditure increases at this time, and that in 2016 Government investment is actually projected to contract by 1.4% compared with 2015 levels; and if he will make a statement on the matter. [13251/16]

Paschal Donohoe (Dublin Central, Fine Gael)
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The current Capital Plan "Building on Recovery: Infrastructure and Capital Investment 2016-2021", published last September, announced an Exchequer capital spend of €27 billion over a six year period. Supplementing this Exchequer-funded investment with investment from the wider semi-state sector (€14.5 billion), and PPPs (€500 million), brings total state investment to €42 billion over the period. Capital investment increased from €3.6bn in 2015 to almost €4bn in 2016. Based on the most recent figures published in the April 2016 Stability Programme Update Capital investment is projected to increase by 3.7% in 2016. This level of investment represents a forecast average of about 3.2% of GNP per annum over the period of the Plan.

The scale and profile of the Exchequer component of the Capital Plan published in 2015 was developed following a strategic review of infrastructural requirements and with reference to the Government's medium term economic growth forecasts, while also ensuring that it was fully consistent with both our national and European fiscal rules.

TheProgramme for a Partnership Governmentcommits to a review of Government priorities within the capital plan as published, in the context of the Mid term review to be undertaken by mid 2017. This Review will also provide the Government with an opportunity to consider the scope for increased levels of investment, consistent with the fiscal rules. However, the Programme already provides for the Government to propose Oireachtas approval for a cumulative, additional €4billion in exchequer capital investment up to 2021 in the areas of transport, broadband, education, health and flood defences, to accelerate delivery of priority infrastructure requirements.