GENERATING EMPLOYMENT:THE GOVERNMENT plans to shift the focus of the National Development Plan (NDP) to projects that create high employment and deliver an immediate economic impact.
The economic plan published by Taoiseach Brian Cowen yesterday states that the Government remains committed to high levels of spending on public projects such as roads and transport, in line with the NDP.
"Investments in infrastructure also support employment and stimulate economic activity," it says. "This forms part of the stimulus package during the economic downturn.
"Given the current economic and financial circumstances, there is a need to prioritise projects and expenditure on those with the most immediate positive impact on the economy and employment," it adds.
Building Ireland's Smart Economy argues that the plan must be delivered in a coherent and efficient manner, and must focus on the role that strong cities play as "economic engines" for their regions. The Government's objectives include building the infrastructure needed for the next phase of the State's growth and to stimulate the economy by investing in projects that create employment and inject money into the Republic.
It also aims to cut costs and boost competitiveness through providing the infrastructure that the State needs, enhance productivity through improved communications and cut the causes of "hidden inflation" such as traffic congestion.
It is understood that the cost of public projects is coming down. According to some Government officials, contractors are now seeking 20 per cent less than in previous years.
The document points out that the budget provides for exchequer spending on capital projects of €8.2 billion next year.
