Finance Department – building sector must be closely monitored
A Department of Finance report has stated that the building sector must be closely monitored to prevent another housing boom. The report also said that a “strong supply response” is fundamental to tackling the housing crisis but that developments in the private sector require careful oversight to pre-empt the risk of a construction-led housing boom.
The progress report sets out priority areas as Government decides how it will spend the extra €4.1 billion it has available for roads, public transport, hospitals and schools. The study also found that traffic congestion around urban areas is posing major problems and parts of the road network are almost at the point of breakdown.
It says there is a clear requirement for additional investment in public transport.
Earlier, the department said the Government will publish a new 10 year National Investment Plan by the end of this year which may include projects that are supported by the European Investment Bank. It will also include the results of an ongoing review in the future of Public-Private Partnerships.
In a review of the Government’s current Capital Plan, the department said the amount it has allocated to capital investment had risen considerably since 2015. At that time the Capital Plan, which is to run until 2021, was to involve €20.9 billion worth of spending. However this has been supplemented by a further €6 billion. The department said the new National Investment Plan will build further on this, running from next year until 2027.
