Employers group Ibec today welcomed the Government’s €39 billion capital spending programme saying it represents an “important vote of confidence in the Irish economy”.
The Construction Industry Federation (CIF) and Science Foundation Ireland (SFI) have also responded positively to the plan, but Opposition parties said the spending review was too limited and too late.
Fine Gael enterprise spokesman Richard Bruton said the new plan represents a €14 billion reduction in the spending that the Government had committed to between 2011 and 2013 under the original National Development Plan.
"This is a 45 per cent reduction in the investment programme. Based on ESRI estimates that cut in investment means 140,000 fewer jobs in the construction phase alone," he said.
Ibec director Brendan Butler said the scale of the programme was ambitious by international standards and that it provided an opportunity to enhance the growth potential of the economy.
"The certainty that now exists about the Government's investment plans will deliver a much needed stimulus to the domestic economy," he said.
Mr Butler said the onus was now on Government departments and agencies to ensure funding for the infrastructure projects started flowing as soon as possible.
The CIF said the new plan represented a reduction on previous targets but that the commitment to invest should send a positive message to the international community that "Ireland remains determined to address its infrastructure deficits in the key areas of health, education, transportation, water services and energy".
"The announcement also provides a degree of certainty and clarity for the construction industry that has been absent for some time and is extremely welcome given that existing jobs in the industry are under huge pressures," CIF policy director Martin Whelan said.
SFI director general Prof Frank Gannon said the announcement "unambiguously reaffirms the central role that research and development is playing in our economic rejuvenation".
The Irish Congress of Trade Unions said the scale of the plan could have been worse, but that the Government's investment should have been much bigger.
"Ireland has a serious infrastructural deficit, mass unemployment in construction and related occupations and the wider economy needs a greater boost than this package will deliver," ICTU economist Paul Sweeney said.
Sinn Féin TD Aengus Ó Snodaigh described the announcement as a well fashioned publicity stunt to masquerade a ruthless budget of cuts as investment and stimulus.
"The Taoiseach is telling us that he is investing to improve the lives of our citizens but the harsh reality is that this cabinet meeting tolls the death bell for economic recovery," he said.
Labour transport spokesman Joe Costello said the plan would do little to lift confidence among investors or consumers that the Government has a strategy to create jobs or restore growth.
"It is disappointing that there is no prospect of growth in funding for Enterprise Ireland, given that not everyone can work in a high-tech environment," he said. "Equally, the decision to cut the primary school building programme, given the labour-intensity of such projects is a serious backward step."
Fine Gael transport spokesman Simon Coveney said many elements of the plan were to be welcomed but that reducing investment in other projects "was the wrong way to get the economy back on track".
"Let's not pretend that this plan will actually increase spending in infrastructure. The truth is that even the Government admits this revised National Development Plan cuts spending by €1 billion, and the true figure is likely to be much higher."
