Seven-year development initiative seeks to improve transport, education, housing and health systems Overview
Arthur Beesley, Senior
Business Correspondent
The Government aims to spend €184 billion to improve the State's transport, education, housing and health systems in the new National Development Plan (NDP).
The seven-year initiative, which aims to foster "a better quality of life for all", includes new social inclusion measures to improve childcare, elderly and disability services and the provision of social housing.
The plan aims to reinforce Ireland's position on the global stage and improve its competitiveness as globalisation deepens and the EU expands. It assumes favourable international economic conditions in which the economy grows at 4-4.5 per cent per annum in the period to 2013.
With the State's population projected to grow to more than five million by 2021, from 4.2 million at present, the plan assumes an average annual rise of 2-2.5 per cent in the labour force in the next seven years after the number at work reached two million in 2006.
The plan involves an acceleration in Government capital investment to 5.9 per cent of gross national product in 2009 from 4.7 per cent in 2006, and an average of 5.4 per cent in the plan period.
The main source of funding is an allocation of €140 billion from the exchequer. The EU will contribute €3 billion and the remainder will come from public-private partnerships (PPPs), semi-State bodies, local authorities and separate State funds.
In line with Government policy and priorities set out in the Towards 2016 social partnership deal, the plan aims to encourage regional and rural development, environmental sustainability and co-operation with the North's economy. Government priorities for agreement with the British authorities and a restored Northern Ireland executive include an improvement of the road links between Dublin, Belfast and Derry and the Dublin-Belfast rail service.
Some €54.7 billion will be spent on economic infrastructure, including €32.91 billion on transport systems. The money is to be used to complete the major road routes linking Dublin with Belfast, Cork, Galway, Limerick and Waterford by 2010. Money is also available for the Atlantic road corridor, linking Letterkenny with Sligo, Galway, Limerick, Cork and Waterford.
In line with the Transport 21 plan, there are provisions for an expansion of rail capacity in the greater Dublin region, including a metro service to the airport and Swords. Rail projects outside Dublin include new commuter services in Cork and Galway.
The €8.5 billion allocation for energy aims to enhance security of supply and environmental sustainability. Some €4.7 billion will be spent on water services, €753 million on waste management and €270 million on climate change programmes to meet Ireland's targets under the Kyoto pact. A €435 million investment in broadband will be concentrated on the metropolitan area networks programme.
A total of €49.6 billion will go to social inclusion initiatives, €19.25 billion of which is set aside to implement the 2004 National Disability Strategy and a new education support scheme for students with a disability.
Some €12.29 billion will be spent on child protection and services for children with special needs and childcare, including €1.366 billion to create 50,000 new childcare places by 2010, while €9.7 billion is to be spent on services for the elderly. This allocation comprises €5 billion for residential care and €4.7 billion for living at home schemes.
The plan includes €33.6 billion for social infrastructure, with €21.21 billion going on initiatives to build 60,000 social housing units and €4 billion to expand the affordable home scheme.
The €4.97 billion health allocation includes €2.4 billion for hospital investment. Another €2.1 billion will go to primary, community and continuing care services, including the creation of 500 primary care teams by 2011.
The €25.8 billion allocation for "human capital" includes €13 billion for third-level education. However, this includes current expenditure of €10.5 billion. Another €1.4 billion will go to third-level infrastructure, along with €595 million in PPP investment. Some €5 billion will go to school infrastructure, while €4.9 billion is allocated to training schemes for lone parents, people with disabilities and Travellers.
With €20 billion going to enterprise, science and innovation, this allocation includes €8.03 billion for agriculture and food development and €6.11 billion for eight science and technology research programmes. Another €3.32 billion will go to enterprise development, with €1.69 billion going to county enterprise boards and €1.63 billion to attract foreign investment.
Under agriculture, some €6 billion is to be spent on measures to enhance the rural environment. An additional €1.7 billion will include measures to create opportunities for young farmers. The food industry will receive €289 million for capital infrastructure and marketing.
The tourism sector will receive €800 million, €385 million of which will be used to market Ireland as a tourist destination and €317 million of which will be used for product development and infrastructure.