Summary of Economic Policy Measures may 2014

The government’s ambition, as per the Action Plan for Jobs, is to have 100,000 more people in work by 2016.  Recent policy measures have been announced to improve the economy.

 

Key Announcements

Economic Impact

Infrastructure Stimulus

€200m extra investment

Construction Strategy

60,000 jobs

Ireland Strategic Investment Fund

€6.8 billion funding

Rural Development Programme (RDP), 2014-2020

€4 billion funding

LEADER funding

€250m funding

Irish Water

€200m extra investment

‘Best Young Entrepreneur’ Competition

€2m fund

 

Infrastructure Stimulus

  • €200m extra Investment, additional to the €3.3bn Exchequer capital investment in 2014
  • This will fund new projects including new road schemes, social housing, and a range of tourist related works to help support long term jobs.
  • These projects will be spread around the country and create jobs on a regional basis.
  • Funding will come from the proceeds of the sale of State assets (Bord Gáis, ESB).

 

Construction Strategy

  • It aims to help families find affordable and quality homes by tripling housing output by 2020, and to get skilled construction workers back to work, adding 60,000 jobs by 2020.
  • 75 actions to remove obstacles to appropriate development in  areas including housing, planning, financing, the commercial sector, infrastructure and public investment, standards and regulation, and skills and competitiveness.

 

Ireland Strategic Investment Fund (ISIF)

  • The ISIF will have €6.8 billion in funding available for investment in the Irish economy.
  • The ISIF will absorb the NPRF and its €6.8 billion in resources will be channelled towards productive investment in the Irish economy.  Investment will be on a commercial basis with a dual mandate of investment return and economic impact in Ireland.
  • This legislation has now been published and enactment is expected before the summer.

 

Rural Development Programme (RDP), 2014-2020

  • A strategic investment in Rural Ireland and the agri-food sector
  • The government is providing National Exchequer funding to bring the total amount available for RDP schemes to over €4 billion in the period to 2020.
  • It will enhance the competitiveness of the agri-food sector, managing natural resources in a sustainable manner, and ensuring the balanced development of rural areas.

 

LEADER funding under the Rural Development Programme 2014-2020

  • A €250 million funding package announced on 12 May 2014 (part of €4bn RDP above)
  • EU Regulations stipulate a minimum of 5% of the Rural Development Programme is allocated to LEADER, but Ireland has decided to increase its proportion to 7%.
  • Themes will include: Rural Economic Development and Job Creation including Rural Tourism, general Enterprise Development, Broadband and support for the development of Rural Towns and social inclusion.
  • Local Action Groups will submit Local Development Strategies in the 2nd half of 2014.

 

Irish Water

  • €200m additional capital investment over 2015-2016, increasing investment in water and waste water infrastructure, from €310m in 2014 to €410m in both 2015 and 2016.
  • This will ensure better water quality, fewer leaks, less waste and pollution.
  • Includes €51m for a first free fix where households identify leaks in their connection.

 

€2million ‘Best Young Entrepreneur’ Competition

  • A total fund of €2m available to invest in winning businesses and entrepreneurs in every county. The competition is open to individuals aged 30 and under.
  • To foster a culture of entrepreneurship among young people in Ireland, to promote entrepreneurship as a career choice.
  • Winners will get investment of up to €75,000 (national level) or €25,000 (county level).
  • Mentoring, marketing and other supports will also be available to participants.