Govt to unveil €1.2bn plan for North

The Government is to pump more than €1.2bn into the North over the next seven years under a massive investment plan unveiled today.

It is the first time that taxpayers’ money from the Republic will be spent on public infrastructure across the border on such a massive scale.

Funding is being allocated towards north-south co-operation projects to support the planned resumption of power-sharing in Belfast next month.

The unprecedented National Development Plan (NDP) fund will be spread across education, skills, science and innovation, renewable and sustainable energy, regional development tourism, development tourism, poverty, social inclusion and community infrastructure.

Last November the British government also pledged a £50bn (€76.4bn) “peace dividend” for the North over the next decade if devolution is restored.

Under the NDP, a total of €180bn will be spent on public infrastructure in Ireland over the next seven years.

The blueprint is the most ambitious investment strategy ever drawn up for Ireland and dwarfs the €57bn budget of its forerunner, which covered the years 2000 to 2006.

However, the Economic, Social and Research Institute (ESRI) warned that the scale of investment is too large to be absorbed into the economy.

The think-tank is concerned the spending may lead to inflation and poor value for money and advised the Government to cut back the investment.

The detailed document will be launched at Dublin Castle this afternoon by Taoiseach Bertie Ahern and Minister for Finance Brian Cowen.

The blueprint is also seen as a major political trump card by the Taoiseach as he bids to secure a record third term in office after this year’s general election.