A NEW long-term capital investment plan, a new national infrastructure authority and greater use of public-private partnerships (PPPs) are the key recommendations included in a new report on capital spending in Ireland produced by employers group Ibec and accountants KPMG.

The report, published yesterday, states that a clear business case exists for the greater use of PPPs, as they have a track-record of delivering infrastructure projects on time and within budget.

About €2.1 billion of private sector funding was used to extend the national road network in recent years.

But some PPP projects, like the Thornton Hall super prison in Dublin, failed to take off.

The report recommends that a new long-term capital expenditure plan be drafted that prioritises specific projects.

It also calls for a greater use of non-exchequer funding, with all significant infrastructure considered for procurement as a PPP.

The report cites water services as an example of an area where private funding could be used.

It argues that a defined PPP spend should be agreed to provide clarity as the the extent of the State’s long-term financial commitment in this area.

Typically, it can be 25 to 30 years.

PPPs are potentially attractive to the cash-strapped exchequer as a means of paying for infrastructure as this funding is not counted as part of government borrowing.

Ibec and KPMG have called for a new national infrastructure authority to be set up. This would bring together the expertise of the National Roads Authority, the Railway Procurement Agency and the National Development Finance Agency.

They also argue in favour of responsibility for the delivery of infrastructure being added to the portfolio of a minister.

Ibec director of policy Brendan Butler said Ireland still lags behind much of Europe when it comes to infrastructure.

“New investment will help stimulate economic activity, create jobs and restore competitiveness,” he said. “The Government has a lot less to spend on infrastructure, but the private sector has the capacity to step in and fill the gap.”

Michele Connolly, a partner with KPMG, said there were still “gaps” in the infrastructure that remain to be filled.

The four-year plan for the public finances envisages a near 60 per cent cut in capital expenditure by 2014 from its peak in 2008.