Republic and Northern Ireland must co-operate to attract foreign direct investment to border counties, says Taoiseach
Micheál Martin
has said, following the publication of a key economic report.
Border counties could become home to 'very significant' foreign investment benefiting from low taxes in the Republic, but, crucially, with ready access to Northern Ireland's labour pool, even though there are tax issues to navigate.
'The real challenge I've always found, which hasn't really been grasped, is whether we could have a joint FDI offering,' the Taoiseach told an
Economic and Social Research Institute
(ESRI) conference, though he questioned the interest displayed by state agencies in the past.
'I think there has been a real lack in trying to pull that together. It's not easy and there are challenges, but I am not sure that the will has been there among the agencies. Understandably, they have their remits,' he said.
READ MORE
Enterprise Ireland
and
Invest NI
have made 'significant gains' to boost the numbers of small and medium-sized companies from both sides of the Border travelling abroad together in search of business, though 'not as consistently as we might like'.
Illustrating the understanding enjoyed among unionist politicians of the successes of the Industrial Development Authority (IDA), Mr Martin quoted former
Democratic Unionist Party
leader
Peter Robinson
's declaration: 'Give me the IDA any day!'
Highlighting issues on which he wanted to see progress with Stormont, Mr Martin said there were substantial advantages to co-operation on education and skills training, health and environmental policy, along with direct investment and energy security.
'I want to see progress in each of these areas, and more in the times ahead,' he said as he launched the ESRI's report, Sharing the Island: Economic and Social Challenges and Opportunities
.
Huge strides have been made since the
Belfast Agreement
nearly three decades ago, but cross-Border co-operation has 'so far failed to meet its full potential' since.
'The sustained peace that we enjoy must also mean increasing prosperity, opportunity and wellbeing for all. This is pivotal in achieving a more reconciled future for all communities on this island,' Mr Martin said.
Pointing to the ground made since he established the Shared Island initiative in 2020, Mr Martin said 'a step change' had taken place in the deepening of all-island co-operation and connections.
Half of the €1 billion fund allocated by the Government has already been marked for spending, and a further €1 billion was going to be spent over the next decade on cross-Border co-operation, he said.
The Government, in conjunction with Stormont and London, would pursue 'the exciting, essential opportunity' that now existed to pursue 'a prosperity agenda for the whole island and achieve a deeper reconciliation'.
Research carried out by the ESRI has highlighted the 'huge untapped potential' that existed for all-island co-operation, along with the 'significant commonalities and differences'.
He noted the findings surrounding lower educational levels, productivity and life expectancy trends in Northern Ireland, which were 'a cause of concern' and a reminder of the need for more rapid change.
Prompted, perhaps, by events in the
United States
, the Taoiseach went out of his way to praise the role of the independent, but state-funded ESRI in Irish public policymaking.
'Institutions do matter in democracies, and the independence of institutions do matter in democracies, and access to independent research is critical in terms of keeping society and a democracy fit, and on its toes,' he said.
The ESRI has consistently made landmark contributions to the development of public policy in Ireland.
In a time of increased discord and reduced attention spans in public debate, the institute was a respected, rigorous voice that informed discussion, the Taoiseach told the gathering hosted by the ESRI, which this year celebrates its 65th anniversary.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Journal
3 hours ago
- The Journal
Metrolink gets €2 billion funding boost - but no one knows what the final cost will be yet
THE METROLINK PROJECT is set to get a €2 billion boost in funding under the National Development Plan (NDP) – but the full cost of the long-planned underground rail line is not yet known. The plan, which was announced by the Government this afternoon , sets out what large-scale infrastructure projects Ireland needs over the next five to ten years. It details plans to invest €24.33 billion in transport between next year and 2030. Of this, €2 billion will come from the Infrastructure, Climate and Nature Fund (ICNF). The government said this funding is being allocated to support the development of 'low-carbon transportation' projects such as the MetroLink 'before 2030″. According to the plan, the government has decided to fund the proposed Dublin rail link using the ICNF due to the 'unique scale' of Metrolink, which it said will allow 'the ambitious pipeline of other public transport projects'. The Metrolink, which is the single biggest public transport project in the history of the State, will have 16 stations running from Swords to Charlemont and is estimated to carry 53 million passengers annually. The 18.8km route will have an end-to-end journey time of 25 minutes and serve residential areas including Ballymun and Glasnevin, as well as the City Centre and Dublin Airport, and will link to Irish Rail, Luas and bus services. Speaking this afternoon, Taoiseach Micheál Martin said that today's funding announcement was 'a very definitive commitment to the metro'. He said that while the actual cost of the project will be 'very, very substantial', the coalition is very clear that is has to be built 'for the future of the country'. 'If you look at the expansion of Dublin, if you look at it over 20 to 30 year period, there will be continued growth in population in Dublin. I don't think you could sustain Dublin without a metro,' he said. The Metrolink will have 16 stations running from Swords to Charlemont. Metrolink Metrolink In a later press conference, Finance Minister Paschal Donohoe indicated that the most recent costing for delivering the Metrolink is around €11 billion. He said the reason why an exact estimate for the cost of the project cannot be given is that there is now a procurement process due to commence. 'I'm not going to indicate what we believe the final cost will be until the procurement process is complete,' he said, stating that to do so beforehand could influence the value for money aspect of 'what it is a very, very big project'. The point was made to the minister that the public might find it hard to believe that the Metrolink will be delivered when there have been so many promises made about it over the last decade. Advertisement Donohoe accepted the point, but added that much of those decisions were influenced by the aftermath of global financial crisis, when capital investments was at a very low level. 'We tried to rebuild it, but it did take time, and we weren't able to give confidence regarding the money that would be available for projects like the Metrolink,' he said. 'There's only a very small number of projects that the government has given a particular commitment to and they are mega projects. They're in water and they're in transport. The main project that we are giving a commitment to up front is the mega project of the Metrolink. Planning An underground rail line for Dublin was first proposed in a government plan in 2005, but was shelved for several years during the recession. Cabinet approved a refreshed plan for the Metrolink in July 2022, with a planning application submitted to An Bord Pleanála that September. The current route of the Dublin Metrolink. Transport Infrastructure Ireland (TII) lodged a Draft Railway Order seeking permission for the project in 2023 and received 318 submissions in response. An Bord Pleanála – now called An Coimisiún Pleanála – held oral hearings to facilitate third parties expressing their concerns around the project early last year. During these hearings, further documentation was submitted, which resulted in a second public consultation process being held from August to October last year. A decision on whether to grant planning permission is now awaited from An Coimisiún Pleanála, with the Irish Times reporting on Saturday that the decision is due before the end of the summer. It's now expected that construction may not begin until at least 2028 . In 2021, the Metrolink was estimated to cost between €7 billion and €12 billion. Sean Sweeney, the director of Metrolink, told an Oireachtas committee in May that that estimate 'is going to change'. Speaking to RTÉ News this week, Sweeney said that the full cost of the project will not be clear until 2027 until tenders for the project are received. Asked today why people should believe the government when some €300 million has already been spent on the project and building has yet to commence, the Taoiseach said this money was spent on 'preparation' for the project. Artist interpretation of the underground station at Tara Street on the Northside of the city. 'You just don't go to a planning commission without substantial investment, ' Micheál Martin said. He said these are 'enormous projects' which demand a lot of allocation in terms of the work that goes into planning, designing the route and preparing a planning application, adding: 'So actually, I would take the €300 million as evidence of our commitment to building the Metro.' Related Reads Construction of MetroLink project may not begin until 2028, transport committee to hear Ireland is wasting a golden Green Line opportunity to appease misguided south Dublin fears 'I had death threats': MetroLink boss foresees pushback but also huge benefits in store Martin was also asked if the projects planned for in the NDP would go ahead if there is an economic slowdown, particularly as a result of US President Donald Trump's 30% tariff threat. The Taoiseach said that the international investment community is needed for projects at the scale of the Metrolink. 'They need to realise that we're going the full distance on the capital, and we will take measures if we have to, obviously, to meet the impacts of tariffs. But we are very clearly signaling that, unlike previous times, we want to protect the capital side of the equation.' Asked again if the spending would take a hit, he added: 'Current spending will be under pressure if such a situation was to emerge.' Reaction Fianna Fáil Senator for Dublin Fingal West Lorraine Clifford Lee said today's funding commitment of €2 billion is 'a statement of intent' from the government for a project that she said is 'essential' to meet the needs of a growing population. She said there has been an explosion in population in north County Dublin, in areas such as Balbriggan, Rush, Lusk and Swords, which infrastructure has not kept up with. 'There's always a chorus ready to kill a big idea before it starts, but we cannot base national planning on unverified cost fears,' she said. 'Final costs for Metrolink will come through the tendering process, and that's still to come. Let's be clear: this is a transformational project, and its long-term value far outweighs the short-term noise.' €2bn for Metrolink is hardly a vote of confidence that the project will be substantively progressed in this decade. It's supposed to take 6 years & be operational in early 2030's. €2bn is only 8%- 16% of the estimated total cost. #Metrolink — Marie Sherlock TD (@marie_sherlock) July 22, 2025 Fine Gael TD for Dublin North West Grace Boland also welcomed the ringfenced funding for the Metrolink, which she said is 'essential to get the project off the ground and marks a significant step forward'. However, Labour's transport spokesperson Ciarán Ahern said the €2 billion 'does not represent the scale or urgency required to deliver the long-awaited rail project for Dublin'. 'Metrolink is supposed to be the country's flagship public transport project and €2 billion is no small sum, but in the context of the overall cost of the project, it's nowhere near enough. We're talking about a fraction of what's actually required to see this project through,' he said. Ahern added that it is 'long past time that the sod was turned on Metrolink' and called on the government to commit the full funding required for the project. Sinn Féin's transport spokesperson Louise O'Hara meanwhile said the fact that the plan made funding commitments to the Metrolink but failed to mention any specific projects in the western and northern region is 'deeply disappointing'. With reporting from Christina Finn Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
Irish Times
5 hours ago
- Irish Times
The Irish Times view on the State's new investment plans: the work is only starting
The Government's plan to invest more to address the infrastructure deficits in the Irish economy is a move in the right direction. Shortfalls in housing, water, energy and transport are not only crippling competitiveness but affecting people's daily lives. The Government is correct to push ahead with its planning, despite the international uncertainty. A growing economy and a rising population have left recent administrations running to catch up. International investors have been increasingly outspoken about Ireland's infrastructural shortfalls. All of this needs to be addressed. And Taoiseach Micheál Martin is correct when he says that State investment spending must be protected no matter what. However, the plans published yesterday raise of number of important questions. The lack of any detail of the projects to be included in the plan is somewhat puzzling. Everyone knew in the final period of the last government and the opening months of this one that the review was due. So why has no list of projects been completed? Because of this, as Prof Alan Barrett of the Economic and Social Research Institute pointed out, we do not have any of the essential detail on how the projects all fit together. READ MORE There are, of course, a significant number of projects which we do know about and which will be funded by the money now being put aside. The focus on vital areas such as water, wastewater and energy is important. But with last-minute rows over housing in particular, it is unclear that the Government yet has a convincing plan in this key area. An updated housing plan, due in the autumn, needs to give a clear view . The Government is also – belatedly – looking seriously at the blockages and delays to project planning. This is welcome but long overdue. These issues have been hiding in plain sight in recent years, leading to extraordinary delays and additional costs in projects large and small. Too much time was lost here by the last government. This one needs to get serious on the issue of the delivery. This will be uncomfortable politically and it remains to be seen if the Government has the stomach for the necessary fights. The scale of the investment commitments being made are significant. And paying for it will use a lot of the leeway in the national finances and also the cash put aside from the Apple tax payment and the sale of AIB shares. This means a higher level of risk. To create the required leeway in the national finances – and ensure yet more cash is not pumped into the economy – the increased investment spending must be combined with much tighter control of day-to-day spending. This is the trade off. If this does not happen, then the scale of the financial risks facing the State will increase yet further. And they are already high enough.
Irish Times
5 hours ago
- Irish Times
Budget plan for €9.4bn public spending boost will be reconsidered if tariffs hit
Plans to spend an extra €9.4 billion on public services , tax cuts and building projects next year will be reconsidered if the US imposes tariffs on EU imports, Minister for Finance Paschal Donohoe and Minister for Public Expenditure Jack Chambers said on Tuesday. But they, along with Taoiseach Micheál Martin and Tánaiste Simon Harris , pledged that if there is pressure on spending plans, they would protect infrastructure budgets and cut growth in current spending on public services, welfare and tax cuts to realise the necessary savings. The Coalition leaders launched a review of the National Development Plan (NDP), promising to spend €100 billion between now and 2030 – a €30 billion increase over what was planned – to improve water, energy, transport and housing infrastructure. [ National Development Plan shows the Government is about to bet big on capital expenditure Opens in new window ] The ambitious plans were overshadowed by the threat of a trade war between the European Union and United States, which Mr Donohoe and Mr Chambers admitted could compel them to revise plans published on Tuesday for a budget day package of €9.4 billion in October. READ MORE In the event of high tariffs, the Government would 'recalibrate its fiscal strategy' and reduce the budget package to keep public finances stable, said Mr Donohoe. Already, the plans for October's Budget 2026 envisage growth in public spending being trimmed from 8-9 per cent of recent years to 6.4 per cent next year. Mr Donohoe said there would be a package of tax cuts of some €1.5 billion. But he added that the cost of cutting VAT on hospitality – a Fine Gael election promise included in the programme for government – would amount to nearly €1 billion in a full year, meaning the scope for any tax adjustments to rates and bands would be reduced significantly. Tariffs: Why has Donald Trump threatened the EU again? Listen | 47:35 'It would not be right to grow the scale of our tax package,' said Mr Donohoe. The Coalition published the amended NDP and summer economic statement at Government Buildings on Tuesday. The NDP promises expenditure of €25 billion on capital projects in 2026, with the amount increasing every year and peaking at €28 billion in 2029. The total is set to reach more than €100 billion by 2030. The plan was immediately criticised for not identifying individual projects, though the Government did point to a small number of 'megaprojects', including the Dublin Metro and two big water schemes: the Shannon to Dublin water supply project and Greater Dublin Area drainage initiative. Social Democrats spokesman on public expenditure Cian O'Callaghan said the plan is 'so vague it doesn't even rise to the level of wish list'. Sinn Féin 's health spokesman David Cullinane said the allocation for health falls 'far short of what is needed' over the next five years. Labour 's Marie Sherlock, meanwhile, has said the €2 billion allocated for the MetroLink is 'hardly a vote of confidence that the project will be substantively progressed in this decade'. The summer economic statement, normally a key document in the preparation of the October budget, was considerably shorter and less detailed than usual. It contained several warnings, however, about threats to the State's public finances from several sources. [ NDP shows Government about to bet big on capital expenditure Opens in new window ] 'Even before the full impact of tariffs takes hold, it is increasingly evident that heightened levels of uncertainty have prompted firms to delay investment plans and households to step up precautionary savings. These headwinds are set to slow the pace of economic expansion,' it said. The document also warned that the 'headline surplus is now likely to be considerably lower than set out in the spring'. It flagged that spending pressures in several Government departments will require additional funding above their agreed allocations, prompting Mr Chambers to warn of the need for spending discipline and an end to bailouts in the second half of the year – a now familiar necessity in some departments.
