Written answers

Thursday, 6 October 2016

Department of Finance

Capital Expenditure Programme

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

78. To ask the Minister for Finance the representations he has made at EU level with regard to increasing scope for member states to increase capital expenditure following the European Commission President's statement on the matter to the European Parliament; and if he will make a statement on the matter. [29125/16]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

At an EU level, Ireland supports the European Commission's €315 billion Investment Plan for Europe which includes the European Fund for Strategic Investment (EFSI).  EFSI commenced operations in July 2015 and in May 2016 it was announced that it was part funding the Department of Health's primary care centres PPP project. There is also potential for EFSI to support a number of other Irish projects in areas such as broadband; renewable energy/energy efficiency; transport and water infrastructure; social infrastructure; and support for SMEs/commercial enterprises. President Juncker launched a Commission proposal to extend EFSI both in terms of time and financial capacity on 14 September last and Ireland is fully engaged in the discussions towards securing an agreement that will continue to support investment across the EU including in Ireland.

However Ireland still must comply with the two pillars of the fiscal rules, namely the Expenditure Benchmark and the pace of correction in the level of the structural balance. These rules constrain public spending to levels consistent with the financing capacity of the economy, ensure that spending is sustainably financed and help return the economy towards a balanced budget in structural terms. Therefore government expenditure, not classified 'off balance' sheet, such as PPP projects, is limited regardless of the source of funding.

Finally, I would point out that we are still running a deficit and our public debt remains high by international standards.  The answer, therefore, is not simply about spending more; it is about getting more from each euro of taxpayers' money that is spent.

Comments

No comments

Log in or join to post a public comment.