Irish Daily Mirror

Gov ‘dilemma’ over national developmen­t

Report urges rethink on €165bn flagship projects

- BY GRAINNE NI AODHA news@irishmirro­r.ie

THE Irish Government “faces a dilemma” on major infrastruc­ture projects as it faces labour shortages and a rising population, a report has said.

Research by think-tank the ESRI, funded by the Department of Public Expenditur­e, National Developmen­t Plan Delivery and Reform, examined the Government’s flagship National Developmen­t Plan.

While examining any new factors that had emerged since 2021 and how projects could be prioritise­d, it found that “the earlier level of ambition may have underestim­ated what is needed”.

The report outlines a conflict between the need for public investment, due to Ireland’s rising population and the challenge it faces to

meet its emissions reduction targets, and constraint­s on investment such as labour shortages, with a historic low rate of unemployme­nt, 3.8%. It said it was “almost certain” existing targets for housing supply “understate need”, based on the increase in population recorded by the census.

The National Developmen­t Plan, launched in 2018, set out a plan for public investment in Ireland, with those aims renewed in 2021.

The 10-year plan promises €165billion for projects, including motorway investment­s, the Ulster Canal and Narrow Water Bridge projects and planning reforms.

ESRI director Alan Barrett said the Irish Government “faces a dilemma”.

He added: “On the one hand, there is a clear need for investment in public infrastruc­ture as our population and economy grow and our climate targets remain challengin­g.

“However, on the other hand, the economy is operating at full employment so the resources needed to accelerate the NDP are not readily available.

“In this report, we suggest that the Government revisits the analyses undertaken for capital projects and re-assesses the sequencing of projects to account for the demands they will place on resources.”

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ESRI’S Alan Barrett
RESEARCH The ESRI’S Alan Barrett

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