Ringfence asset sales funds for infrastructure investment - CIF
RINGFENCE ASSET SALES FUNDS FOR INFRASTRUCTURE INVESTMENT – CIF
Up to €1 billion could be made available for capital spending
The Construction Industry Federation (CIF) has called on the Government to ringfence funds generated by the sale of State assets for investment in infrastructure. Under the details announced by the Minister for Public Expenditure & Reform, Brendan Howlin TD, the Government has the option of putting one third of the proceeds from sales towards reinvestment in the economy.
This means that up to €1 billion could be made available.
“Up to one billion of the funds generated can go towards reinvestment in the economy, so it is vital this money is ringfenced for infrastructure projects,” said CIF Director General, Tom Parlon. “The Government will be generating this money from the sale of State assets, so it makes sense to put the money provided back into infrastructure that will help the State.”
“What we don’t need to see is more short term economic thinking. This is a once off opportunity for the State to sell some of the family silver. We don’t need them to put it towards meeting the next bill. We need the Government to think bigger and more productively about what to do with this source of finance.”
“By ringfencing this money and investing it in infrastructure, the Government will bring more employment and investment opportunities to the State, creating jobs directly and indirectly.
“It will also help provide the right infrastructure to attract more companies like Paypal or to build the schools needed for the rising number of students in our education system. These practical measures will make a major difference to the people of this country and to the overall economic picture.”
“For that reason investment in capital spending is the most obvious choice open to the Government. They must ringfence this funding, otherwise we’ll have to sell off more State assets just to keep the ongoing debt burden from our door,” Mr. Parlon concluded.
