IBEC backs call for infrastructural spend

EMPLOYERS’ body IBEC has weighed in behind the call for increased infrastructural spend by the incoming Government, but has added that an entirely new approach to funding is ultimately needed.

Through a new report — jointly published with accountancy giant, KPMG — IBEC is calling for the establishment of a new long-term capital expenditure plan that prioritises specific infrastructure projects. It also wants more PPP (public/private partnership) involvement and less exchequer funding. A new National Infrastructure Authority, combining the expertise of the existing National Roads Authority, Railway Procurement Agency and National Development Finance Agency, should also be set up, it claims.

According to Brendan Butler, director of policy at IBEC, Ireland is playing catch-up behind its continental neighbours. The country, he claims, still lags behind much of Europe when it comes to infrastructure and needs to catch up and can do so through a greater use of PPPs.

“New investment will help stimulate economic activity, create jobs and restore competitiveness. The government has a lot less to spend on infrastructure, but the private sector has the capacity to step in and fill the gap. There has never been a more compelling argument for increasing the number of projects delivered by PPP,” Mr Butler said.

“Our experience from the 1980s demonstrates that a decade of under-investment in infrastructure can undermine economic growth and competitiveness. It can also result in costly, long-term socio-economic problems, most evident in the areas of social housing, health and education,” he added.

Michele Connolly, partner at KPMG, added that use of private finance and PPP investment can deliver infrastructure improvements quickly and at limited cost to Government: “Notwithstanding our current economic difficulties, we still have gaps in our infrastructure that remain to be filled — both to improve quality of life in areas such as healthcare and education and also to help attract new industry to Ireland.”