Increase in capital spending not enough

Labour spokesperson on Finance Joan Burton TD has said the proposed increase in capital expenditure by €500 million a year is not enough, and that the rainy day fund is the wrong approach at this time. the document has nothing to say on tax justice, nor what the Government’s priorities are on taxation.

Deputy Burton said:

“The Summer Economic Statement which was finally published today, had nothing to say on tax justice, nor does it go far enough on increasing capital expenditure.

“We can’t take our recovery for granted and the only way we can ensure continued prosperity is investing in people, in services and in infrastructure.

“That means increased investment in environmentally friendly infrastructure like public transport.

“With a growing population we need more housing, not just social, but in particular affordable housing for families who need the State to take a more proactive role in resolving the supply issues in the market.

“Currently those families may be paying more in rent then in an equivalent mortgage, and this is daft economics.

“The SES was a wasted opportunity. In 2019 the UK will leave the EU and we need to Brexit-proof our economy.

“By 2021, at current rates we will only be investing 2.3% of GDP in infrastructure.

“It is disappointing that we had to wait until the second week of July for this update, and it shows the lack of commitment in Government to reforming the Budgetary process, with little new information.”