Written answers

Monday, 11 September 2017

Department of Public Expenditure and Reform

Infrastructure and Capital Investment Programme

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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254. To ask the Minister for Public Expenditure and Reform if he will report on his Department’s work on allocating additional resources for infrastructure investment in view of the Taoiseach’s decision to abandon the 45% debt to GDP ratio; and if he will make a statement on the matter. [38038/17]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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The Government set out its position in relation to the Debt Target in the 2017 Summer Economic Statement (SES) which was published in July. In this context, the planned debt to GDP target has not been abandoned rather it has been revised on an interim basis to 55 per cent which, in fact, falls below Ireland's obligations under the Stability and Growth Pact to reach 60 per cent which is expected to be achieved in 2022 as before.  Thereafter, and once major capital projects have been completed, the Government will target a further reduction in the debt ratio to 45% of GDP.  

This recalibration of the Debt Target will enable the Government to deliver additional medium-term fiscal flexibility to increase capital expenditure enhancing the capacity of the economy to continue to grow in a sustainable manner in the future.

The Programme for a Partnership Government committed to additional capital investment over the period of the Capital Plan to 2021, to be allocated on the basis of the outcome of the review of the Capital Plan.  As set out in the Summer Economic Statement 2017, Government will invest a further €4.1 billion in key infrastructure supporting economic and social progress. This is in addition to the extra €2.2b in Exchequer funding already allocated to housing under Rebuilding Ireland. 

The publication of the report of the review of the Capital Plan is a key milestone in terms of the Government's commitment to increase public capital investment and to maintain and enhance Ireland's public capital stock.  The report contains a comprehensive update on public capital investment priorities based on detailed research by the Irish Government Economic and Evaluation Service, engagement with all Departments and a public consultation. The review sets out the detailed analysis and evidence which will help inform decisions by Government, in the context of Budget 2018, on the allocation of the additional resources now available for increased public investment.

The report also sets the context for the preparation of a new 10 year National Investment Plan, which will be integrated with, and support the implementation of, the new National Planning Framework.

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