The Government has given a major boost to its capital spending programme for 1998, allocating an additional £338 million for social housing, educational facilities and roads.
The Minister for Finance revealed that capital spending will increase by 17.5 per cent - well above the Government's own limit of 5 per cent growth - with a substantial tranche going to the Education Technology Investment Fund.
The fund, which is dedicated to meeting emerging skills shortages in the economy and to promoting research and development projects, is to receive £100 million next year. The Minister stressed that this allocation is "wholly justified" to sustain continued economic growth.
The Department of the Environment and Local Government is also set to receive a 16 per cent increase with a total allocation of £123 million. This will allow spending on roads to increase by £57 million, while the Government has also made a provision of £20 million for the redevelopment of Dublin's Ballymun area. Mr McCreevy said this is the "first step" in an eight-year programme. Spending on hospitals is also set to increase, with an extra £18 million earmarked for improving and redeveloping buildings and in improving the information technology facilities of the State's health agencies.
Some £20 million extra will be spent on the prison-building programme in 1998, in line with the continued implementation of the anti-crime package, the Minister said.
The scale of the overall increase in capital spending next year surprised most observers and was warmly welcomed.
The Minister for the Environment and Local Government, Mr Dempsey, said the generous increase will underpin future progress on a range of programmes including social housing, roads and water and waste services.
The Department's funds for spending on social housing will increase by £45 million. Mr Dempsey said this is evidence of the Government commitment to sharing the benefits of economic prosperity with the less privileged in Irish society.
The value of investment in roads and water services in supporting future economic growth, he said had also been acknowledged. "This investment will speed up journey times on national roads, accelerate the restoration of county roads, expand social housing provision and protect the environment," according to the Minister.
Meanwhile, the Construction Industry Federation has also welcomed the increased expenditure programme. Its director general, Mr Liam Kelleher, said the increases recognised the growing investment needs of the Irish economy particularly in the area of productive infrastructure. The CIF praised the Government's decision to invest £250 million over three years in the Education Technology Investment Fund. This includes £80 million to rebuild Regional Technical Colleges and £20 million to provide additional apprenticeship and post-Leaving Cert places for students. "These extra places will support a much-needed increased intake of construction apprentices," according to Mr Kelleher.
He also urged the Government to speed up key projects such as the Southern Cross and South Easter Motorways, the Dublin Port Tunnel and the LUAS to ease the growing congestion on the roads.