Major transport cuts expected in spending plans

MAJOR cuts to transport projects around the country are expected to be announced today as part of the Government’s revised capital spending plans.

The plan to spend €39 billion on infrastructure between now and 2016 is being described as a job-creating “stimulus” by the Government.

Ahead of today’s launch, Taoiseach Brian Cowen said it is “exactly the type of stimulus the economy needs to help rebuild confidence and accelerate economic recovery”.

But it marks a large reduction in previously announced transport spending under the National Development Plan and is expected to involve the scrapping of a rail link between Dublin and Navan as well as the third phase of the Western Rail Corridor to link Sligo with Limerick.

At today’s launch at Dublin’s National Convention Centre, the Taoiseach will be joined by Green Party leader, John Gormley, whose party has promised to prioritise rail projects.

Projects including the €2.5bn Dublin Metro North and an extension of the DART will remain a priority, Community Affairs Minister Pat Carey said.

Mr Cowen said the Government has “refocused our priorities” because they “recognise that we are in a new situation”.

He said the plan will include an upgrading of water services and “a doubling of investment through the enterprise agencies to help build the Smart Economy and create sustainable jobs.”

Ministers will discuss €1bn in capital savings as well as a further €2bn in cuts next year at today’s Cabinet meeting – the last before September.

Economist and author of the Bord Snip report, Colm McCarthy, said cuts in capital spending “make sense” because “the economy is much smaller than we thought it was going to be and the pressure on infrastructures is going to be much less than we thought it was going to be”.

Mr McCarthy said a review group set up to examine state assets, of which he is chair, will be ready to report by the end of the year.