Infrastructure: Ireland's Achilles Heel

Comment: Government has lost enthusiasm for progressing the NDP

This year's Mid-term Review of the National Development Plan (NDP) by Government must provide a blueprint for tackling Ireland's infrastructural Achilles Heel that could undermine further development and prosperity in this country.

While we have got a lot of things right over the past decade in terms of industrial and economic development, and in improving the quality of life for our citizens, this good news story will only last as long as Ireland remains internationally competitive, and an attractive location for companies to set up business. International business is very mobile and, as we have seen, large companies can very quickly decide to relocate their operations. The bad news is that Ireland has started to drop down the rankings in the international competitiveness league.

The recent May 2003 World Competitiveness Yearbook ranked Ireland 28th of 29 countries for maintenance and development of infrastructure overall, and last in the ranking for distribution infrastructure such as roads, trains, planes etc.

While Government has committed through the NDP to redress the infrastructure deficit, recent extensive research by the Institution of Engineers of Ireland (IEI), as our contribution to the plan's review, makes worrying reading:

• On national roads, inter-urban routes are at least 12-15 months behind programme and at current spending levels will not be completed until 2013;
• With seaports, progress against even the modest scope of projects in the NDP has been poor;
• Many water and wastewater projects are delayed by an average of two years, with the rate of investment well short of the amount needed to complete the programme by 2006;
• In the waste infrastructure area, only a small fraction of the money to be invested has been spent to date and recycling targets are unlikely to be achieved;
• Implementation of the NDP objectives in the ICT area has been delayed by the lack of affordable broadband access.

Of course, some progress has been made. A significant amount of new road construction has been completed or is under way. Most public transport projects, with the exception of the Luas, are on target from time and expenditure perspectives, and while substantial pressure remains on housing lists and the price of starter houses are outside the reach of many young people, NDP housing targets are being achieved.

However, the IEI is very concerned that the vision and enthusiasm which gave rise to the NDP and the National Spatial Strategy has waned due to the contraction in economic growth and tighter public finances. Yet, vital pre-conditions to address our infrastructure deficit are now in place - the capacity and productivity of Ireland's construction industry is at an all-time high; construction cost inflation has reduced significantly, and the cost of borrowing is at an all-time low.

We note the Taoiseach's comments earlier this week about budget and time overruns on infrastructural projects and share his concerns. This month the IEI will be furnishing the Minister for the Environment and Local Government, at his request, with proposals on controlling the cost and timely delivery of major public projects, and on how private sector project management disciplines can be applied effectively to this task.

In relation to the NDP itself, two key problems must then be addressed. Firstly, overall investment in key infrastructure must be increased significantly. As a nation we must appreciate that we spent little or nothing on our infrastructure for decades compared to our European neighbours and international competitors; our economy and population have grown significantly since the NDP was conceived, and the infrastructure benchmark against which we are compared internationally continues to rise - other countries are not standing still.

Infrastructure investment is an investment in the future of the country. In the private sector, big capital projects would be funded mainly through borrowing and depreciated over a long period. The same precedent applies in the semi-state sector where, for instance, ESB will borrow to fund investment in networks or power generating plants.

If Ireland is to have EU levels of infrastructure and social provision, it must borrow or raise funds through other means such as charges, taxation, development levies and public private partnerships. The bottom line is Government must ensure a significant increase in infrastructure investment.

The second key issue concerns our planning and appeals process. While recognising the absolute right of individuals and organisations to object to proposed projects, the IEI believes the current convoluted planning process contributes to facilitating unwarranted objections to infrastructure projects, inordinate delays and significant increase in cost. Recent examples include the Corrib Gas Terminal, the M50 Carrickmines Interchange, the Glen of the Downs Road Project, the Kildare By-Pass and the Cork Electricity Transmission Grid Project.

A method of fast-tracking infrastructure projects of national interest should be established:

• Mandatory timetables for decisions should be given for all infrastructural projects and these target deadlines should be met.
• A special division of the High Court should be formally established to deal with legal challenges to infrastructural and environmental planning.

Paddy Purcell is director general of the Institution of Engineers of Ireland