House prices are the largest single threat to continued economic stability and to future competitiveness, according to the Irish Business and Employers' Confederation.
In its submission to the Government on the new National Development Plan, IBEC warns that the current economic circumstances demand a new set of economic and social priorities, as well as a mind-set that sees Ireland as a net contributor to the EU, perhaps within a decade.
The confederation argues that a "very significant" investment in infrastructure is needed. According to IBEC director, Mr Peter Brennan, a complete switching of resources into infrastructure is required. However, he dismissed the idea that the Minister for Finance, Mr McCreevy, should again breach his capital spending limits in the 1999 budget. The private sector, according to Mr Brennan, could pick up almost 100 per cent of the cost of several major projects, including the port tunnel and a sewage treatment plant in Dublin Bay, without breaching any of the Maastricht guidelines.
Overall, IBEC believes we need to spend £14 billion on infrastructure.
The second priority for the new millennium, according to IBEC, is competitiveness. It recommends boosting the education technology investment fund, helping Irish firms which are dependent on the British market, assisting small firms, increasing funding for science and technology, strengthening the links between industry and third-level colleges, increasing support for basic research and expanding the Information Society Initiative.
Other issues include measures to help the food sector to move to a more competitive environment, as well as initiatives to support the marine and associated industries. Overall, 30 per cent of European Regional Development Fund money, which last year totalled £352 million, should be spent on this.
However, Mr Brennan pointed out that this allocation was likely to fall significantly over the six-year funding period.
The third priority is employee and human resources development. This includes a national programme to tackle labour and skills shortages, employer-led training programmes, increased funding to primary and secondary education, facilitating the return to work and improving the employability of the long-term unemployed, as well as developing entrepreneurship.
All European Social Fund money, currently running at bout £350 million a year, should be used for these purposes, according to IBEC. This money is unlikely to fall off over the coming years, particularly as EU Commissioner, Mr Padraig Flynn, is in charge of it.
The final priority, according to IBEC, is balanced regional development. A new initiative to capture the potential of Ireland's regions is needed. The Government should also give a commitment that the poorest regions in the country should receive an above average share of available resources, according to IBEC.
The confederation is also calling for a single plan for the whole island to give effect to the cross Border co-operation measures set out in the Belfast Agreement.
