‘Government must maintain investment in infrastructure’

THE Government needs to maintain capital investment in infrastructure to prevent the construction sector from meltdown, according to Davy economist Rossa White.

Mr White’s comments come against the background of the opening of the new 24km, €274 million section of the Dublin-Waterford motorway, which cost more than €10m a kilometre.

“By the end of this year, all of the major inter-urban motorways will be completed. But there is no room for complacency: Ireland still ranks poorly in OECD infrastructuretables. Moreover, recent data showed that roads accounted for a large chunk of the increase in our productive capital stock from 2000 onwards; there are deficiencies elsewhere. Meanwhile, the construction sector is deep in recession. In that context, it is worrying that the Government is contemplating more cuts in the capital programme,” said Mr White.