Waterford Chamber is calling for further investment in strategic infrastructure.
In September 2015 Government is expected to announce an Infrastructure and Capital Investment Plan which will run until 2020.
This information note provides an overview of the current need for capital investment and is intended as a guide for Chambers to highlight local infrastructure projects of significant economic importance in their local PR and media activities.
Current Policy Context: The fiscal consolidation programme has had a significant impact on capital expenditure and the consequences are now beginning to show. Between 2008 when investment peaked at 5.3% of GNP and 2014, Government has reduced capital expenditure by 60%.
In our Pre-Budget Submission this year, Waterford Chamber highlighted the need for prioritising investment in our strategic infrastructure.
A well-functioning infrastructure system is critical for any modern economy’s ability to generate growth. If we wish to remain competitive in a global market, we must increase investment and invest smartly.
Waterford Chamber therefore recommends Government to:
Increase investment in economic infrastructure and borrow to do so where necessary.
• Leverage the opportunity presented by low-interest funding.
• Prioritise strategic projects with strong long-term economic benefits for investment having been appraised with a rigorous cost-benefit analysis.
• Fully engage with the European Investment Plan as a means to fund Irish strategic infrastructure projects.
• Ensure that investment decisions today reflect the strategic objectives of Ireland’s economic future.
By investing smartly and strategically, Ireland will be put on the right track to attracting further inward investment while supporting indigenous businesses to grow their output. Although more capital spending would involve upfront costs and borrowing from European lenders, we consider the long-term return on investment higher than the cost since the development of key infrastructure projects will improve our national competitiveness.
For further information please contact Waterford Chamber directly on 051- 872639
