Capital spending could increase, says Michael Noonan

The Government is prepared to inject more money into long-term capital spending to meet the growing strains in the economy, Finance Minister Michael Noonan has said.

The promise comes as the Government starts on its review of its plans to spend on roads, rail, housing and schools over the next 10 years.

Mr Noonan in a speech at a conference involving the European Investment Bank — which backs long-term investments in infrastructure — said the Government is prepared to increase capital spending. He said that the Government is expecting the economy to expand 4.3% this year and create 55,000. In 2018, GDP will grow 3.7%, he said.