Capital investment funding Government’s fiscal adjustment

Statement on behalf of Tom Parlon, Director General, Construction Industry Federation

Exchequer Returns to the end of December 2011 highlight the extent to which reduced capital investment is being used to subsidise day-to-day public spending.

Whilst net voted current spending increased by €903 million or 2.2% during 2011, Government spending on productive infrastructure declined by €1.6 billion or 27.5%.

The Returns also raise serious questions over the delivery of the Public Capital Programme.  In the period to the end of November 2011, capital investment stood at €3.1 billion, indicating a further expenditure of over €1.1 billion, or one quarter of the total programme, during the final weeks of the year.

“Exchequer returns for 2011 clearly show that investment in the Irish economy is being scarified to fund the fiscal adjustment and that day-to-day spending remains out of control.  There are also serious question marks over the manner in which the Public Capital Programme is being delivered and an urgent need for the publication of the list of projects funded this year and those planned for next year”.