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Building a Port in a Storm to support our Economic Future

This article was originally published in the Irish Examiner on 9th of April.

Why we need to double down on infrastructure expenditure and ensure Ireland remains attractive from a competitiveness perspective.

Following the global fiscal crisis a decade and a half ago, Ireland stood accused of having made a number of fundamental errors.

One of the most profound and lasting critiques was that our investment in public infrastructure had ground to a virtual halt as the public finances collapsed amid international banking and economic turmoil.

As we approach another period of global tumult — though hopefully of a lesser order than 2008 — we must ensure that accelerated infrastructure delivery remains a key priority. We must harness the same level of energy and intensity that was visible during the covid-19 pandemic to deliver on these priorities, thereby ensuring that Ireland emerges stronger and future-fit.

As we enter a global trade dispute, as yet uncertain in scale, Ireland must not lose focus on the absolute necessity of bridging the gap in public capital investment that remains as a hangover from the fiscal crisis years.

Ireland's infrastructure deficit in housing, water and transport is well-documented, and this deficit has a direct correlation with our national competitiveness. The case for new infrastructural investment is also powerful in areas like offshore wind and other carbon-reduction technologies.

It was reassuring to hear minister for public expenditure Jack Chambers recently give a resounding commitment to the prioritisation of public capital investment in the event that difficult spending decisions may have to be made by this government in the coming months and years.

The government's commitment to rapidly expedite a number of large-scale capital projects across housing, energy, road infrastructure and water services is a welcome acknowledgment of this urgent need. These initiatives are crucial for enhancing Ireland's competitiveness and addressing its infrastructure challenges. What we need now is pace of delivery.

While securing funding is essential for effective infrastructure delivery, the Government must focus on streamlining planning regulations. The recently passed Planning and Development Bill, which aims to simplify the planning process and remove bottlenecks, is a welcome step in this direction, but some of the powers in this legislation remain to be activated by statutory instrument.

It is fantastic to see the initiatives set out in Ireland’s Programme for Government, which are aimed at ensuring the timely delivery of essential infrastructure projects, including an early review of the National Development Plan, enhancing project prioritisation, and the establishment of a dedicated Infrastructure Division.

A recent EY Attractiveness Survey highlighted that while Ireland continued to be a favoured destination for foreign direct investment, the competition has intensified significantly. In light of recent trade tariff announcements from the United States, it is essential that Ireland prioritises infrastructure expenditure and delivery to maintain its competitive edge and attractiveness.

The need for robust infrastructure has never been more pressing, and the current infrastructure deficits threaten not only the quality of life for citizens but also the ability of businesses to operate effectively. To ensure that Ireland remains a viable option for international investors, we must make bold investments in infrastructure now that can support our economy's future.

It is crucial to prioritise infrastructure projects that also align with our carbon reduction goals. Investments in offshore wind energy, improved public transport, and energy-efficient housing will not only promote economic growth in the medium term and support our long-term sustainability objectives but also position the country as a leader in the global green economy.

If we are entering a new international crisis, then this is also a time to collectively don the green jersey. In a world characterised by swirling change, infrastructure can serve as a constant. A reliable foundation that supports economic stability and growth — a port in a storm. By doubling down on infrastructure expenditure and delivery and adopting strategies that emphasise speed, innovation and collaboration, Ireland can set itself apart and remain attractive, fostering confidence among investors and citizens alike.

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