Metro on track in State €30bn splurge on new infrastructure

Extra.ie​

15 hours ago

The National Development Plan (NDP) launch next week will unveil a €30 billion cross-party capital expenditure bonanza, Extra.ie can reveal.
It is understood that there will be a sufficient allocation to the Department of Transport for substantial tunnelling to begin on the long-awaited Metro. However, no specific capital spending projects will be outlined until October's Budget.
It had been anticipated that the increase in infrastructure would be €20 billion, but senior sources noted: 'There are unique factors like Apple and the AIB money from the final sale of the bank's shares. It is understood that there will be a sufficient allocation to the Department of Transport for substantial tunnelling to begin on the long-awaited Metro. Pic: MetroLink
'This is a one-off opportunity to make sure when it comes to infrastructure in five years' time that we won't be saying 'sorry you can't come, we've no electricity'.'
With a scaling back of current expenditure and no 'cost-of-living' package in the Budget, the Government is relying on a distribution of infrastructure projects as the central political boost. Spending allocations for key Departments such as Housing, Health, Transport and Education will be decided by the leaders.
Micheál Martin and Simon Harris, along with Finance Ministers Paschal Donohoe and Jack Chambers, met last night to finalise allocations to the three biggest capital spending departments: health, housing and education. Ministers said the final division of the €30billion has not yet been finalised, and how much each department received will not be announced for a few days. Pic: Maxwell's
Ministers said the final division of the €30billion has not yet been finalised, and how much each department received will not be announced for a few days.
'This NDP is going to be about €30 billion of extra expenditure . . . We've announced €20 billion, but we'll also give money to Irish Water and Eirgrid,' said a Cabinet minister.
There is a €22billion capital allocation but according to ministers involved in negotiations, when additional monies from the Apple Tax rebate and the sale of AIB shares are factored in, the NDP allocation will come to €30billion. There will also be funds allocated to the Department of Education for a school-building programme and the Department of Transport for a major road-building programme. Pic: Colin Keegan, Collins Dublin
There will be major announcements of funding for energy, water and other fundamental infrastructure. There will also be funds allocated to the Department of Education for a school-building programme and the Department of Transport for a major road-building programme.
Ministers confirmed the Dublin Metro will go ahead. 'The major spending on the Metro comes later in that project's timeline,' said a Cabinet source, 'so it's not a very contentious matter in Government at all.
'But it's fair to say the Metro affects a number of Cabinet ministers, including Jack Chambers, Paschal Donohoe and Darragh O'Brien, it will run through two of their constituencies and significantly benefit Jack's constituency.' It follows weeks of bilateral meetings and engagements between different Government departments and Minister Chambers's department, as well as a public consultation. Pic: Fran Veale
Ministers stressed that many 'departments aren't settled'. 'There are major outstanding issues in Housing and Health this weekend,' said a source.
'It won't be a list of 10 roads, here's five schools, and all that,' said a Cabinet source, 'you'll see on Tuesday the allocation for each department for the next five years, and then the ministers will do the work on their projects, which will be announced on Budget Day.'
Ministers explained the lack of specifics. 'We won't be able to announce Garda stations, etc, for two reasons,' said a Cabinet source. 'The first reason is a big announcement like that, or series of announcements, would just be kind of lost in the middle of the summer silly season, the public aren't listening. Public Expenditure and Infrastructure Minister Jack Chambers will inform Cabinet colleagues that there is profound uncertainty surrounding global trade, and the threat of tariffs by US President Donald Trump poses a significant risk to the economy. Pic:)
'Secondly, because we're going to be having a big giveaway budget, this will mean capital would be a big part of our budget story. It's a capital budget, announcing money we don't have to spend today or tomorrow.'
Public Expenditure and Infrastructure Minister Jack Chambers will tell Cabinet colleagues there is profound uncertainty around global trade, and the threat of tariffs by US President Donald Trump poses a big risk to the economy.
He will say the best way to safeguard the economy, protect growth, jobs and living standards, and increase competitiveness is to address infrastructure deficits through investment in the key growth-enabling sectors of the economy.
The review, which has been fast-tracked, has a significant focus on scaling up housing delivery by providing big 'once-in-a-generation capital funding into Irish Water, ESB and EirGrid. The key utilities' difficulties in delivering services to new housing developments has been identified as a significant barrier to scaling up housing.
Ministers will also be briefed on work to reform the country's delivery systems so project life cycles can be reduced and better value for money can be achieved. The review of the NDP will allocate over €90 billion over the next five years.
Tuesday's publication will set out departmental capital ceilings to 2030 and overall capital investment to 2035. Government ministers will outline specific programmes and investment they will prioritise in October's Budget.
It follows weeks of bilateral meetings and engagements between different Government departments and Minister Chambers's department, as well as a public consultation. Ministers stressed that the economies of Britain, Germany, France and Italy are already in trouble.
And that is before Trump has even rolled out his trade tariff scheme. Cabinet sources and officials across the Government warned that widespread concerns about a pending global economic downturn are influencing all economic and fiscal decisions in the Government.
Our sister publication, the Irish Mail on Sunday, revealed last week that there will be no cost-of-living payments in the Budget. There are no plans to have double welfare payments or payments to help households.
It is likely there will be targeted social welfare increases and there is already a raising of the ceiling of qualification for winter fuel payments factored into the finances. There were accusations of cynical vote-buying when the Government brought in household supports in last year's Budget.