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[Article] New development plan projects 'may fall victim to cutbacks'

17-09-2008 9:17am

#1

thomasj

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In todays Independent [wed 17-9-08]

http://www.independent.ie/national-news/new-development-plan-projects-may-fall-victim-to--cutbacks-1476832.html

New development plan projects 'may fall victim to cutbacks'
By Fionnan Sheahan

Wednesday September 17 2008

Taoiseach Brian Cowen admitted yesterday that new projects in the National Development Plan are not guaranteed to go ahead due to spending cutbacks.

Only road projects where contracts are already signed and work is under way were sure to go ahead, Mr Cowen said, adding that the Government would have to decide what infrastructure projects to prioritise and proceed with.

"The major road projects, to which we are already contractually committed and in process of doing, those will be completed, those will be going ahead," he said. "And obviously the prioritisation of all aspects of the capital investment programme is now part of the process that is ongoing over the next few weeks as we prepare for the budget.

"There are the expenditure issues to deal with, there's the capital programme and there are the taxation issues to consider.

"Those are the three elements. The bringing forward of the budget means all activity is geared towards coming up with the choices," he added.

Mr Cowen admitted that framing a balanced budget would be difficult and reiterated there was "no painless way" of coming up with a plan when there was less money to spend.

"People expect their government to put forward the appropriate policy responses for what is a new economic situation that we are dealing with. And that is what they expect of their government and they are entitled to expect that.

"So we have to give the direction, and the leadership, and the rationale, and the reasons why we made the choices we are going to take.

"And as I said clearly in my speech to the parliamentary party: there is no painless way of doing this," he said.

"This is the exercise that we are involved in -- having to make political choices and sticking by them and going out and batting for them and explaining to people why we have taken the route we are taking.

"Clearly the status quo position is not an acceptable scenario going forward. We have to make our moves now," he added.

Meanwhile, Mr Cowen declined to comment on yesterday's story in the Irish Independent which revealed that the final cost of the Dail's new shop had risen to a staggering €1.3m.

The Taoiseach said he was not aware of the case and suggested it was the responsibility of the management of the Houses of the Oireachtas.

"Obviously we have to make sure that all expenditures are such that they are demonstrably areas of priority. I don't know who made that decision, whether it was the Oireachtas Commission, they run the Oireachtas. I can't comment as I'm not aware of it," he said.

- Fionnan Sheahan

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