The arrival over the coming months of €14 billion into Ireland’s exchequer will provide a significant boost. However, contrary to much of the debate since the European Court of Justice decision, this needs to be kept in context. It is a significant once-off payment, but does not transform Ireland’s public finances.
The money has presented both an opportunity and a headache for the Government. It can help to pay for badly-needed infrastructure in areas like housing, energy and water in the years ahead. However, when ministers try to turn down any demand for money from an interest group in the months ahead then the inevitable response will be: “what about the Apple money?”
That’s politics. And for this reason the Government may well attempt to ringfence the money for particular areas. In reality, exchequer finances are fungible and the Government is not short of cash at the moment. However, it may be seen as good politics to allocate the Apple money to particular areas.
While the debate of recent days might suggest otherwise, it is not possible to spend all the money straight away. But nor does it needs to be locked away for ever and not used to the benefit of the population.
Paralympic cyclist Katie-George Dunlevy: ‘I want to inspire visually impaired children and the LGBT community to not give up’
What will €165,000 buy in France, the US, Croatia, Norway and Co Clare?
Emer McLysaght: Hamilton in Dublin will be incredible. It has evidence of the Brits being at it again in spades
Julius Caesar Variety Show: An anxious comedy about a theatre industry refusing to evolve
Some of the money could go into one of the two investment funds now being set up which is specifically directed at allowing investment in key infrastructure to continue over the coming years if the national finances tighten. In this way it can help to deliver houses and other economic and social infrastructure, underpinning confidence that the money will be there to deliver. And possibly increasing or accelerating such spending by direct allocations to some areas in the short term.
Above all, sensible decisions are needed. Proper assessment of projects is vital – and notably missing in some recent project wish-lists. Reform of planning is critical. And a new focus on delivery is needed. Without all this, the State will not get value from the Apple money or the many other billions which will be invested.
It is a folly to pretend that the money can all be spent now, or in the near future. The economy is already at full capacity and suffering from some labour or resources shortages.
This is not an argument for doing nothing. Far from it. But it does mean that proper planning is needed not only for individual projects but also at a national level.
Safeguarding the public finances needs to be part of this planning. Expert bodies believe that the financial situation facing the State will tighten in the coming years. The current period of plenty needs to be used carefully – and in a way that underpins climate-friendly economic growth. If the Apple money starts a debate on this, then all the better. But it would be a big mistake to see it as free money to be all spent up front.