McCreevy wants value for €5.6bn capital investment

Finance Minister Charlie McCreevy said in his Budget speech today that the Government would be spending €5.6bn on capital investment next year, and that he wanted to see better value for these funds.

The Finance Minister said a more "focused and planned" approach to spending was needed.

Minister McCreevy announced plans for changes in the areas of public sector contracts for construction.

He said there would be a greater use of contracts in which more of the inflationary risks will be borne by contractors which will insure against huge losses for the public sector.

The Finance Minister also said he wanted to move away from the hiring of consultants on construction projects.

The Minister will be providing €30m for primary and secondary school buildings and a once-off figure of €30m for the Local Government Fund.