Budget deficit reductions may be used to build factories

Reductions in the budget deficit may be used to fund the building of ready-made facilities such as factories and offices in a bid to lure large-scale foreign companies to Ireland and boost employment.

Jobs Minister Richard Bruton wants to use extra funds from any easing of budget measures to help the IDA attract foreign direct investment. The battle lines are currently being drawn between ministers ahead of October’s budget with potentially €600m in savings up for grabs. Cabinet ministers will hold a special meeting on Thursday on job creation, with a particular focus on the construction sector.

The extra funds available from the Anglo promissory note savings could see the budget adjustment reduced down to €2.5bn from a target of €3.1bn.