Republic losing out on new business because of ‘housing constraint’, Ibec warns

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The State is now losing out on new business and investment because of the “housing constraint”, Ibec has said.

To ensure “continuous” investment in infrastructure, it calls for the establishment of a national infrastructure fund.

In its submission, Ibec calls for €3.5 billion of this year’s projected budgetary surplus to be placed in the infrastructural fund along with the €6 billion already in the National Reserve Fund, building to a target of €30 billion by 2030. He said the group’s proposed public investment fund could end the “famine or feast” pattern to capital spending in Ireland, which has persisted since the 1970s, with governments spending at the top of the business cycle only to find themselves having to cut back in a downturn.

 

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