Money For Infrastructure Drops
NATIONAL DEVELOPMENT PLAN (NDP) capital expenditure is expected to decrease by almost 20 per cent in 2009 according to government sources. Spending on transport and justice (prison building & Garda stations) will see the biggest drop, decreasing by 24 per cent and 34 per cent respectively. In 2008, the government spent almost €1 billion on public transport programmes. In 2009, this figure is expected to drop to €628 million.
Expenditure on prisons, courthouses and Garda stations under the NDP amounted to €232.8 million in 2008. It is estimated this expenditure will total €153.3 million in 2009.
To some degree it is inevitable that the Development Plan money should come under pressure given the general state of the national finances. However the AA has always felt that building infrastructure is not a cost but an investment, and one which pays us back many times over into the future. Our new motorway network may have been expensive but its there now. We have it to use and it will contribute solidly to the economy for years to come.
Likewise projects like the Port Tunnel or the Luas Lines which were severely criticised in their time now look positively cheap compared to other bills that the nation faces.
The National Development Plan, and it’s cousin Transport 21, envisage a spend on €3.4 billion per annum for a decade on infrastructure projects. We can hope that this will be adhered to. One very significant project is Metro North for Dublin. With an estimated price tag of €5bn, some commentators reckon it could be first for the chop in these tighter times.
That would be a pity. At the moment the project is progressing its way through the planning process. It should get a planning ‘green light’ before the end of the year. Hence government was able to sit on the fence this year, declaring that the project was still on schedule while in fact not having to sign a single significant cheque until 2010.
It was encouraging to see recently that Energy Minister Eamon Ryan declared his unflinching support for the scheme earlier this month. He said that it would be ‘blind stupidity’ not to go ahead even in these difficult times.
Let us hope that his cabinet colleagues agree with him.