The Construction Industry Federation (CIF) has called for an urgent overhaul to how infrastructural projects are delivered in Ireland, claiming the current process is polluted by "political decision-making".
In a report carried out in conjunction with DKM consultants, the industry body said the current low levels of investment was undermining Ireland’s hard-won economic recovery, and accelerating social inequality through housing shortages and imbalanced regional development.
It called for the establishment of a national infrastructure commission to support objective decision-making in government.
The Government recently announced plans to reduce the proposed allocation to the State’s so-called rainy day fund, which commences in 2019, to allow for extra spending on infrastructure.
However, the CIF report has warned that significantly more investment was required to meet the needs of Ireland’s population, the fastest growing in the EU, noting that Ireland remained last in the EU for direct government investment in infrastructure.
DKM’s analysis showed that there is only €350 million per year up to 2021 to invest in new infrastructure projects.
Time horizon
"Whilst the figures quoted in the Public Capital Programme are vast, the proportion that is spent on new productive infrastructure, for example, roads, rail, broadband, schools, hospitals is reducing each year," said CIF director general Tom Parlon, noting that €350 million could be absorbed by just one of the critical strategic projects.
“Infrastructure investment needs to be made with a 10-15 year time horizon in mind,” Mr Parlon said. “However, our political system works against this type of long-term thinking.
“We’re proposing that an infrastructure commission is established to take a long-term view, to critically evaluate projects, and ultimately direct successive governments’ investment on infrastructure.
"We're asking the Government to adopt approaches similar to those used by Canada, Australia and the UK, where the delivery of critical infrastructure is less politicised, more cost-effective and ultimately more beneficial for society."
