Capital Spending Shortfall - 'Death Knell' For Key Projects

The Irish government has been accused of reneging on promises to prioritise infrastructure spending by a consortium of the country's largest building firms.

At a time when governments across Europe are pledging money into public contracts, to shore-up domestic economies, the Master Builders and Contractors Association (MBCA) has accused the Irish state of "rowing back" on promises.

MBCA President Leo Crehan, who is also Managing Director of Collen Construction, said: "Most European and World governments are accelerating infrastructure spending to improve competitiveness, attract inward investment and create employment.


"Ireland is going in the opposite direction.

"Our members are seeing this particularly in relation to social housing projects, school buildings and urban regeneration."

Mr Creham claimed capital investment has been cut by €6 billion over the period 2009-2013 and by €2 billion next year.

He said this could sound "the death knell" for hundreds of vital projects.

The building boss said the less than conservative number of public private partnerships (ppp) scheduled for next year would falter if banks do not pledge support for the schemes.

"Is it government’s intention to directly fund projects where ppp financing does not become available? If not, the NDP is a pipedream," he claimed.

The MBCA President also called on Government to invest in improving the energy efficiency of its own stock of buildings to stimulate activity in this area and to promote the development of green technologies, including wind and wave technology, to reduce Ireland’s dangerous dependence on imported energy.

Mr Creham said: "The case for increased investment in green technologies, including wind and wave energy, is clear.

"There is a window of opportunity for Ireland to take a lead in new technologies but it won’t stay open for long," he added.

(PR/KMcA)