Irish Fiscal Advisory Council says rationale for State investment fund ‘weak’

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Irish Fiscal Advisory Council chairman says ‘spending now risks low value for money'

Low incomes and poverty, Budget 2024 predictions, and Dublin Port’s plan for a new bridge over the Liffey

Speaking to reporters on Tuesday, acting IFAC chairman Prof Michael McMahon said: “Spending now risks low value for money, especially given that investment spending is typically concentrated in already constrained sectors.” He said price pressures and labour shortages continued to dog the construction sector, where “costs remain high relative to even just two or three years ago”.

IFAC also strongly criticised the Government’s plan to breach its own spending rules each year until 2026. The watchdog said that relying on bumper tax revenues, much of which are windfall in nature, risked repeating Ireland’s past mistakes in the lead-up to the 2008 financial crisis.

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