Excerpts from the executive summary of the 107-page framework document
This Framework for Sustainable Economic Renewal sets out the Governments vision for the next phase of Irelands economic development, which is predicated on successfully addressing the severe economic situation we face, restoring stability to the public finances, and beginning the process of restoring competitiveness...
The resolution of Lisbon Treaty issues is important to the success of this plan as any uncertainty about Irelands future position in the European Union is a serious threat to our future economic performance, in particular, the attraction of foreign investment...
The Framework consists of... five Action Areas:
1:Meeting the Challenge - Securing the Enterprise Economy and Restoring Competitiveness.
• A fiscal support is being applied to pump billions of euro into the economy through unparalleled investments in infrastructure which will make the economy more competitive. This constitutes proportionately the largest capital programme in the EU;
• Capital investment allocations will be reviewed to identify scope for re-prioritisation towards more labour-intensive activities;
• Steps to broaden the tax base will be taken, having due regard to the recommendations of the Commission on Taxation.
2:Building the Ideas Economy - Creating the "Innovation Island"
• Up to €500 million will be generated to create a venture fund, known as "Innovation Fund - Ireland", to support early stage RD-intensive SMEs. The capital will be divided into five venture funds of between €75-150 million;
• The new fund will be operated in co-ordination with existing financial supports from Enterprise Ireland for early stage RD intensive SMEs, in order to ensure efficient allocation of resources and avoid overlaps.
3:Enhancing the Environment and Securing Energy Supplies
• The Government will increase the production of renewable electricity in a cost-effective manner to meet the new increased target of 40 per cent of electricity from renewable resources by 2020;
• Over the next two years an estimated € 400 million will be spent by the private sector building an additional 400mw of wind power to meet our 2010 target for 15 per cent of our power to come from renewable electricity supplies;
• The East West interconnector will be completed in 2012 while planning further interconnection to the UK and the Continent;
• €30 million will be spent in 2009 helping the installation of better insulation in over 25,000 houses.
4:Investing in Critical Infrastructure
• We will continue investment under Transport 21 concentrating on completion by 2010 of the five major inter-urban motorways, continuing development of the Atlantic Road Corridor, increased public transport capacity and maintaining the momentum on project planning and statutory approvals;
• Investment will be made in 2009 of €1.3 billion capital funding in social housing, €102.5 million in Affordable Housing Initiatives and other Private Housing Supports, and €560 million in Water Services;
• A capital allocation is being made in 2009 to the school building programme of €581 million with a third-level capital investment of €265 million.
5:Efficient and Effective Public Services and Smart Regulation
• The Special Group on Public Service Numbers and Expenditure Programmes will recommend by end-June 2009 reductions in public service numbers, further rationalisation of State agencies and reallocation of staff and expenditure resources;
• We will use centralised and specialised procurement to acquire goods and services more effectively, efficiently and at lower cost to the taxpayer, including through the introduction of e-auctions;
• Public Bodies will share services for functions such as payroll, human resources, financial management, procurement and ICT systems management;
• Performance assessments will be developed in areas of the Public Service where none currently exist.