One of the biggest barriers to delivering infrastructure projects in the State has been the planning and objection system, according to the Fiscal Council.
A new publication by staff at the Fiscal Council, which is responsible for providing an honest and independent assessment of how the Government is managing the public finances and the economy, has assessed Ireland’s infrastructure relative to other high-income European countries.
Ireland has historically had a low level of infrastructure. The gap to other high-income countries in Europe has narrowed from 47 per cent per person in 1995 to 25 per cent today.
Yet there are significant shortfalls in four key areas, the Fiscal Council said, including housing, healthcare, transport, and electricity.
While some additional government investment may be required, the amounts required are modest relative to overall government spending. Getting better value for money on existing spending could also help address infrastructure deficits.
The Fiscal Council said the planning and objection system’s slow and unpredictable nature increases costs and delays the delivery of Ireland’s infrastructure needs.
Reforms here will be essential to addressing Ireland’s infrastructure deficits and the Fiscal Council said time will tell if the new Planning and Development Act will “bear fruit”.
Almost 80,000 additional workers may be needed to address Ireland’s infrastructure deficits, according to the report.
This is mainly to build new housing and retrofitting existing homes. However, improved productivity in the construction sector could reduce this number to less than 20,000. In addition, some workers could be reallocated from other projects.
Lead author of the report, Niall Conroy, said: “Ireland’s infrastructure deficits are long-standing issues which cannot be resolved overnight. They require a planned, multi-year approach.
“Ireland already spends a high amount on public investment relative to the size of its economy. The challenge is sustaining this and getting better value for money.
“Ireland’s slow and unpredictable planning and objection system makes it harder to deliver infrastructure projects and increases their costs.
“Addressing these infrastructure deficits could require an almost 80,000 additional construction workers. These are mostly required for building new housing and retrofitting existing homes.
“If productivity in the construction sector were improved, less than 20,000 extra workers would be needed. Reallocating existing construction workers to these projects could help too.”