Public Expenditure and Reform Minister Jack Chambers announced that details of specific, “ring-fenced” additional funding will be released on Tuesday.
Coalition leaders convened on Saturday to finalize adjustments to the National Development Plan, which will increase investment in critical infrastructure to make Ireland a more attractive investment destination.
Mr. Chambers informed Cabinet members recently that infrastructure investment is the most effective method of protecting the economy, particularly if the EU and US engage in a trade war with tariffs exceeding 10%.
Senior Coalition sources acknowledge that a 10% tariff is likely, but caution that anything higher could significantly impact the Irish economy.
Sources indicated that Mr. Chambers has advocated for allocating the windfalls from the Apple tax case and the AIB shares sale to address infrastructure gaps identified in the National Development Plan (NDP).
Mr. Chambers stated this weekend that the government aims to “provide the headroom” necessary for Irish Water to support increased housing supply.
“We’ve heard clearly about the funding deficit facing Uisce Éireann, and the urgent need to address concerns nationwide regarding water and wastewater infrastructure if we want to accelerate housing supply,” he told RTÉ’s .
He emphasized that the “central focus” of this NDP review is housing supply and the infrastructure that supports it.
Mr. Chambers also announced a “major uplift” in commitment to public transportation, road projects, and active travel initiatives.
However, the Government also acknowledges the need to “ensure that road projects in regions across the country, such as the West or South-West, that have been under consideration for years are progressed.”
“This is fundamental to achieving balanced regional development, improving road safety, and ensuring connectivity to our regions in the West of Ireland and elsewhere.”
Mr. Chambers confirmed that additional funds will be allocated to defense spending within the NDP, dismissing concerns that this would limit spending in other areas.
“We cannot ignore significant infrastructure deficits in water, energy, transport, and housing, and that is why they are being prioritized in the overall allocation,” he stated.
The Government will also release its Summer Economic Statement this week, outlining the available funding for this year’s budget and capital spending over the next several years.
In parallel, the government’s strategy to address tariffs will involve a new fund, to be unveiled by Enterprise Minister Peter Burke, designed to assist companies most affected by tariff-related cost increases stemming from the Trump administration’s policies.
