Cowen on Infrastructure

[Kevin K Kelehan]

Cowen urges spending for future generations
From:ireland.com
Wednesday, 14th June, 2006


There must be a major programme of infrastructural investment before it is too late, Minister for Finance Brain Cowen warned today.

He told Oireachtas Committee on Finance and Public Service that by 2050, the increase in the ratio of over-65s in the State will mean "increased pressures across a range of age-related expenditure".

Mr Cowen said: "These costs will be very significant ... We must therefore use this window of opportunity to transform our infrastructure to world class standards."

He was outlining plans for the next National Development Plan (NDP) to cover 2007 - 2013, which he said would be published in November.

Signalling a shift in emphasis away from roads investment, Mr Cowen said "a radical enhancement of our public transport network in the Greater Dublin Area (GDA)" was needed.
He said an "accelerated level of investment" was required because "we simply have no choice".

"Already the city is suffering from intolerable congestion at peak times."

"It is simply unsustainable environmentally and otherwise to rely on the car and the bus network alone to provide the answer.

"In my view, if we do not invest at the planned level the result will be a further loss in competitiveness, serious deterioration in our environment and a lower quality of life for our citizens."

Investment in GDA would not be at the expense of regional development, Mr Cowen said, but he insisted that the capital's financial growth benefited the regions.

While saying the goals of the National Spatial Strategy would form the basis of regional development, he indicated the investment must be focused. He noted the economic benefits enjoyed by regions adjacent to developing regions.

"We must avoid the development of a narrow localised mindset and try to ensure an integrated prioritised approach to regional development.

"In particular unnecessary and wasteful duplication of infrastructure provision should be avoided."

Education was also key to future competitiveness, particularly in the area of research and development. He said the Government was committed "a quantum leap forward" to make Ireland a world leader.

Measures to increase the level of third-level participation and upskilling would be required as part of the process of developing a knowledge based economy.

Other areas of focus in the next NDP were: social and affordable housing, health, energy, broadband and childcare.

He insisted that all spending plans were contingent on the state of the public finances at the time and mindful of the cost overruns in recent infrastructural projects said value for money was "central to NDP investment, especially capital investment".

He said there will be ongoing programme evaluation of investment and an annual progress report and laid before the Houses of the Oireachtas for debate.

A real change or predictable pre-election spin for the masses?