Cowen casts doubt on future of NDP projects

Taoiseach Brian Cowen has cast doubt on the future of the National Development Plan (NDP) as economic conditions become less favourable.

Mr Cowen warned that Ireland was not immune to the international economic environment, and said it was something the country had to "take consequence of". He said projects under the 2007-2013 plan that were "most productive for the economy and society " would be prioritised.

Fine Gael said Mr Cowen's comments indicated that the NDP was "not secure" and that the Government had gone back on its word.

When questioned in the Dáil this morning on whether a proposed information technology investment for schools would go ahead, the Taoiseach said it would depend on budgetary parameters over the next seven years. Under the NDP, €252 million was earmarked for investment in IT for schools over seven years.

"The assumptions which are set out in the plan are predicated on growth of over 4.5 per cent per annum," Mr Cowen said.

"I've been making the point generally speaking that it's important we prioritise investment in those areas which wil improve our competitiveness and ensure that we can continue to see investment coming to the country to create jobs and maintain wealth, and grow wealth for the country so we can develop public services," Mr Cowen added.

The Taoiseach's admission come shortly after the newly appointed Minister for Education Batt O'Keeffe said that investment in IT in schools under the NDP was "an aspiration".

Fine Gael leader Enda Kenny said the current situation was a "mess", claiming there was less than one computer for ten students in schools, with less than one in five working, and what he described as "complete inconsistency" in terms of broadband and replacement of hardware.

Mr Kenny said the Taoiseach's comments would come as "a complete shock and an absolute disappointment" to pupils, teachers and parents around the country who would find their schools are inadequately resourced in comparison to overseas competitiors.

"This is the first admission from the Taoiseach that the NDP is not secure and the commitments entered into under the NDP will no longer stand up," said Mr Kenny.

The Opposition leader quoted Mr Cowen's budget speech last December, in which the then Minister for Finance said: "The National Develoment Plan is my top priority. Postponing or delaying it would be a major policy error. I am determined to roll it out as planned and thereby secure our future."

"We're now hearing from you that it is all predicated on financial prevailing and prevailing financial circumstances," said Mr Kenny.

He asked the Taoiseach to give a commitment to honour the schools investment promised under the NDP, saying the future careers of thousand of students and the future expansion of the country depended on his answer.

Mr Kenny also questioned the future of other commitments under the NDP, including the proposed Metro, and the children's hospital.

However, Mr Cowen defended the Government's record on education, saying its commitment was "unprecedented" and would continue. He levelled criticism at the Opposition for inconsistency. "On the one hand they talk about the deterioration of public finances, on the other they say we're not spending sufficiently as the leader of the Opposition is saying today," he said.

"We will prioritise investments in those areas which will be most productive for the economy and society, and education has been consistently been an area where we have expanded and increased investment on an ongoing basis and will continue to do so. We will have to do so as members of the Euro area in compliance with stability and growth pact commitment, which affect all governments, and that requires us to keep broad budgetary balance.

"We have certain commitments we have to contend with and in the meantime we will prioritise investment in the productive sectors of the economy, including education, physical infrastructure and in other other areas including in social expenditure, on the basis that year on year as our estimates are being prepared we come forward with proposals that give priority to those areas."

Speaking after Leaders' Questions, Fine Gael spokesman on education, Brian Hayes, said it must be "a humiliating climbdown" for the Taoiseach, but warned the Government was putting the country's future prosperity at risk.

“It is obvious that failure by Brian Cowen and his Government to control day to day current spending is now putting at risk the economic and social infrastructure that is necessary to get the country back on track and secure future prosperity," he said.

"Our future economic success will depend on our ability to keep and attract high tech industries. We cannot do that if we don’t invest in technology in our schools but now there is a serious threat that the money set aside for this in the NDP will not now be allocated."