Business groups and trade unions have called on the Governement to help kickstart the economy by continuing to invest in the country's infrastructure.
Representatives from Ibec, Ictu, the Dublin Chamber of Commerce and the Construction Industry Council said spending on the public capital programme should be maintained at a mimimumof €5.5 billion per annum over the next five years, with a target of 5 per cent of GDP for Government cpaital expenditure.
The groups said that given Ireland's remaining infrastructure deficit, this level of spending would represent "a positive investment plan relative to our EU partners."
Speaking at a press briefing held in Dublin today, Ibec director general Danny McCoy said it was vital that the Goverment reviews is capital investment priorities or risk losing the momentum built up over the last few years.
“The cost-benefit arguments of a strong capital programme that delivers necessary infrastructure and gets workers off the Exchequer’s social welfare bill have been well rehearsed already. Since 2007, more than 140,000 construction jobs have been lost, with employment in the sector dropping from 270,000 to 130,000. Government has a huge role to play in halting this process," he said.
"With construction prices having fallen by 30 per cent, now is an ideal time for Government to put in place specific investment plans representing good value for money to protect jobs and generate a return for the economy,” Mr McCoy added.
Also speaking at the briefing, Ictu general secretary David Begg underlined the link between growth and jobs. He said the only sustainable route out of the current situation was through job protection and the creation of new work opportunities.
“It is our belief that the National Development Programme has already been cut back too far and this will damage our capacity for growth and future development. Unless there is sufficient investment in key infrastructure, there is a very real danger that we will erode and decimate our national skill base. A depleted skill base is hardly a sound foundation on which to build a smart economy.”
Dublin Chamber of Commerce said delays to major infrastructure in the capital are undermining economic recovery in the capital and called on the Government to clarify its intentions about the public capital programme.
“Delays to the second runway at Dublin airport, the frustration of Dublin Port’s investment plans, the delay in approving the Grangegorman development strategy plan, underinvestment in health and schools infrastructure, the absence of comprehensive plans for water facilities, inadequate broadband provision and the unprofitable levies proposed for promoters of waste management projects are all indicative of the failure to provide for the long term infrastructure needs of the economy," said Chamber president Peter Brennan.
Speaking on RTÉ today, Minister for Transport Noel Dempsey said: “We have a number of projects going through the planning process. Metro North is one of those. That will create 6,000 new jobs directly in construction”.
Mr Dempsey said the figure of approximately 260-280,000 working in the construction industry would never be seen again adding: “we have to on the one hand look to other sectors for employment and try and ensure that we upskill people that were in construction so they can take on other jobs".
