The National Roads Authority (NRA) has advised that it could spend an additional €500 million on infrastructural projects without it having an impact on construction inflation, Taoiseach Bertie Ahern has said.
Speaking at Dublin City University (DCU) yesterday, Mr Ahern defended Government plans to accelerate spending on roads, railways and other infrastructure despite a recent warning from the Economic and Social Research Institute (ESRI) that investment, particularly in the area of transport, should be slowed down.
The ESRI expressed concern that the construction sector would not be able to cope with the number of planned projects.
Mr Ahern said the ESRI "give good advice and overall we take their advice, which is to continue on prudent management of the economy and have economically sustainable book of Estimates and budgets".
He said for decades the country had no money and there was no capital programme.
"The National Roads Authority have stated that they could spend half a billion more on the transport capital programme than they presently are and not have any effect on construction inflation and [ remain] well within the capacity of the construction industry.
"And to be frank they are the people who know. They are the people doing this overtime."
Mr Ahern also said the Government did not plan to increase motor taxation.
Fine Gael yesterday maintained that the Government's Estimates had only contained provision for a 2 per cent increase in funding for local authorities next year. Fine Gael said this could result in increases in stealth taxes such as motor tax.
Mr Ahern said car tax was a matter that the Minister for the Environment had to look at from time to time. However, he said he did not think there was any particular proposal in this area.
The Taoiseach said local authorities were doing "extraordinarily well".
"This country is now a low-tax economy under all the headings by European Union and OECD figures and we are going to keep it that way. There are some charges as there would be in any country," he said.
Mr Ahern was speaking at the launch of a new €5 million sports academy at DCU. Up to 100 athletes, initially in three sports - Gaelic football, athletics and tennis - will be eligible for membership of the academy.
Those selected will be entitled to special scholarships and supports worth up to €10,000 each, including on-campus accommodation, financial assistance towards college books and tuition fees, personal tuition, access to key national and international competitions, physiotherapy, sports nutrition advice and education talks and workshops.
