Spending on infrastructure must be prioritised ahead of all other expenditure or tax cuts

• Multiannual funding certainty, a new central statutory delivery body with powers to co-ordinate and prioritising large infrastructure projects, and an expert review of ways the public good can be given priority in the planning and courts system among top recommendations in Ibec’s new position paper
• Ibec launches ‘Our Business Ambition’ campaign ahead of the Government’s Competitiveness and Productivity Action Plan calling for a gear change in public policy reform and delivery.

Ibec, the group representing Irish business, has today published the first in a series of policy position papers on Ireland’s competitiveness and productivity. In its paper on infrastructure delivery, Ibec is urging the Government to prioritise infrastructure investment above all other forms of public spending or tax reductions in order to address persistent challenges in delivering critical national infrastructure.

Among the key recommendations, Ibec is calling for the provision of multiannual funding certainty to State bodies to eliminate delays caused by the current system of annual budget approvals. It also recommends establishing an Expert Review Group to examine ways to rebalance between individual rights and the public good n Ireland’s legal and administrative systems as they relate to infrastructure delivery. Additionally, Ibec proposes the creation of a new central body, with statutory powers, tasked with advancing and prioritising large-scale, ‘nation-building’ infrastructure projects through the planning and consenting system.

This policy paper is the first in a planned series of six aimed at addressing Ireland’s competitiveness challenges, with further publications to follow in the coming weeks. These will focus on key areas such as regulation, skills, innovation, energy, and digital policy. The campaign precedes the Government’s upcoming Action Plan on Competitiveness and Productivity, which has been accelerated in response to increasing global trade uncertainty

Fergal O’Brien, Ibec’s Executive Director of Lobbying & Influence, said:

“It is critical that, in a world of growing uncertainty, we do not risk repeating the macroeconomic mistake we have made consistently over the past 50 years – deprioritising public investment when the economy slows.

"Right now, a number of pressures are converging which compels the problems. We are trying to catch up after decades of underinvestment and delays. At the same time, Ireland’s population is projected to grow by nearly one million people by 2035 and the global economic uncertainty only strengthens the case for strategic domestic investment—with infrastructure at the core.

We can’t continue with the status quo and just hope for improved outcomes. We need to fundamentally rebalance the system to put the common good first. Meeting existing commitments alone—along with provision for growth—will significantly expand the investment needs of the economy. But we do have the resources to do so. Getting this right can open the door to delivering large-scale projects that can transform our economy and society, service homes at the pace required and upgrading infrastructure to meet the standards of a modern economy and achieve our climate goals.”

Key Recommendations:

• Investment must be prioritised above all other fiscal priorities: Infrastructure spending must be prioritised over other forms of public spending or tax cuts, with a long-term fiscal investment target embedded in Ireland’s fiscal rules. This target should be backed by Exchequer funds, proceeds from the CJEU tax judgment, the Infrastructure, Climate and Nature Fund, and future share sales, enabling multiannual capital envelopes and sustained investment of around €200 billion through 2035.

• We must rebalance the system to put the common good first: Ireland’s infrastructure delivery is hampered by excessive legal hurdles and the disproportionate influence of individual objectors. Government should urgently implement outstanding recommendations from the Kelly Report and establish an expert review group to examine systemic reform, up to and including constitutional change.

• There must be a radical improvement in the delivery of nationally important projects: Delays persist in many key projects, with only 11 of 44 pipeline initiatives delivered on or ahead of schedule. Improved delivery can be achieved by cutting decision-making timelines, enhancing planning capacity, prioritising key projects, and ensuring early and meaningful public input.

• We need centralised oversight of large-scale projects: Major infrastructure projects often face delays due to fragmented and uncoordinated consent processes. A central body with statutory powers is needed to streamline approvals and prioritise strategically significant projects.

• The private sector plays a key role in national infrastructure delivery: Private investment is crucial to delivering infrastructure in energy, telecoms, health, and transport. Government must establish a permanent forum with private infrastructure investors to address regulatory challenges, ensure project viability, and attract future capital.

• Efficient planning timelines are critical to delivering national infrastructure:
  Strategic infrastructure must be prioritised within the planning system, with immediate Ministerial Directions issued to expedite underpinning projects. Ensuring adherence to statutory timelines and resourcing the planning system appropriately is essential to timely and quality infrastructure delivery.

• Regional delivery must be a national priority:
  All Irish regions should aim to rank in the top 10% of EU regions in the Social Progress Index by delivering region-specific infrastructure. Ibec’s priorities reflect detailed business input on the challenges delivering the projects needed to sustain local economic growth across the country.

Ibec will publish its next paper on May 27th focusing on regulation.

For more on the campaign:https://www.ibec.ie/OurBusinessAmbition