Cork Chamber seeks Action on Capital Spending Review

30th July 2010

Cork Chamber today welcomed the release this week of the Government's "Infrastructure Investment Priorities 2010-2016". Businesses in Cork will welcome a commitment to investment in infrastructure nationally.

Conor Healy, Chief Executive, Cork Chamber stated, "While it is appreciated that there is a small number of nationally-significant infrastructural schemes named for Dublin, the Chamber would like to believe that the overall balance of capital expenditure will reflect the National Spatial Strategy. We welcome the reassurance of Minister Batt O'Keeffe's recent comments in this regard".

"Perhaps it should be acknowledged that the drop in capital expenditure from €9bn in 2008 to €5.5bn in 2011 and subsequent years will bring the directly-supported jobs in the supply chain back to 2002 levels. While much of this job-destruction has been suffered already, the proposed levels of expenditure suggest that further losses will be suffered over the next 12 months until the expenditure levels stop falling. This is simply an acknowledgement of the state of the national finances. Accordingly, it is essential that whatever money is available for investment can be shown to be capable of providing replacement jobs for those lost and to be lost in the supply-chain to the capital investment programme", Mr Healy continued.

According to Kevin Murray, Chairman of Cork Chamber's Transport and Infrastructure Committee, "The Chamber is pleased to note that the Government recognises that "there are however (road) projects that can yield considerable economic benefit, with the key consideration being to improve the road transport accessibility of export-oriented enterprises". We believe that this is consistent with points made in our recent report "Cork to World" which presented a compelling argument for the upgrade of the N28 Cork to Ringaskiddy Road. We would also argue that the N28 is the key international gateway for the Atlantic Corridor".

"The Chamber notes the shift in transport priorities from private to public transport and trusts that this will provide funding for the early introduction of Bus Rapid Transit in Cork City and an integrated transport hub at a redeveloped Kent Station. We would also hope that Minister Dempsey, in the same way that he confirmed that the promised railway to Navan would proceed, would be able to confirm that the proposed suburban railway stations on the existing Cork-Mallow line will be built to support sustainable communities", Mr Murray went on to say.

Mr Murray concluded by saying, "We note with some concern the sweeping suggestion that €200m per annum could be raised by increased tolling of both new and existing roads. We would be very concerned that any such revenue generation measures would be examined in detail for their possible adverse impacts on traffic congestion in cities, and that such revenues would only be spent on maintenance and capital road works in the region. While we note the positive comments regarding the need to provide funding for road maintenance and repairs, we are anxious that this funding would be delivered in the short term to prevent further deterioration of roads damaged last winter".

For further information please contact:
Conor Healy, Chief Executive, Cork Chamber, tel (021) 4509044 / (087) 9471858
Lucy O'Donoghue, Membership Development & P.R. Manager, Cork Chamber, tel (021) 4509044

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