The Government must back pledges to spend billions of extra euro on water and energy with clear plans for key projects, business groups have cautioned while welcoming efforts to break infrastructure bottlenecks.
State water utility, Úisce Éireann, will get €1.4 billion next year to build supply and treatment plants to support new housing and bolster existing networks, said Jack Chambers, Minister for Public Expenditure and Reform on Tuesday.
He also confirmed an announcement from this summer that national electricity grid manager, EirGrid and State energy group, ESB, would receive €3.5 billion between them to tackle a looming power shortage and aid the shift to renewables.
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Andrew Brownlee, chief executive of the Construction Industry Federation (CIF) welcomed the commitments, part of the Government’s €275 billion National Development Plan.
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“It’s really encouraging to hear the minister taking about how this is the start of the infrastructure revolution,” he said.
The federation recommended that Government ringfence €500 million a-year for Úisce Éireann when it published its pre-budget submission in July.
The utility earlier this year warned the Government it faced severe difficulties providing supply and waste water systems needed for the 300,000 new homes the Coalition wants built here by 2030.
Mr Brownlee stressed that sectoral plans from State agencies outlining how they will spend cash allocated to them by Government for infrastructure will be critical to getting it built.
“Policy intent is great, funding is great,” he said. “But how are these projects going to be delivered on the ground, what is going to be fast-tracked and where, that’s really key to our members.
“As long as you have certainty, a real, clear pipeline of projects, our members can plan to have the capacity available and then respond.”
Aidan Sweeney, head of infrastructure and environmental sustainability at employers’ group Ibec, emphasised that the National Development Plan should set out a “consistent, credible pipeline of products”.
Mr Brownlee pointed out that the industry could meet the demands placed on it by the Government’s €275 billion plan, adding that Irish builders are currently bidding for work in the UK.
He said the same argument about clear plans applied whether it was water supplies, electricity networks or other infrastructure.
Noel Cunniffe, chief executive of Wind Energy Ireland, predicted that the €3.5 billion allocated to electricity supply networks would be critical to getting cheap green power to consumers.
He pointed out that €450 million in wind energy was wasted last year as “despite Eirgrid’s and ESB Networks’ best efforts”.
The national grid cannot cope with the electricity his industry produces, let alone what will come from offshore wind and solar, and the demands from electrifying transport and heat, Mr Cunniffe argued.
“This €3.5 billion investment in our grid will help transform our electricity system ad accelerate the delivery of clean, affordable and secure power to Irish families and business,” he said.
Mr Sweeney argued that investment in water and electricity was vital for housing and business.
“Capital investment must be prioritised of other public spending or tax cuts, as it is an investment in Ireland’s future,” said the Ibec executive.
