On Tuesday, Finance Minister Jack Chambers sidestepped the matter of the government’s plan for the € 14 billion Apple was ordered to return in back taxes imminent payment to the treasury. Prior to Budget Day, the Taoiseach had hinted at a clear plan for the way these funds would be used but rather than this, Chambers has committed to establishing a framework for their allocation by the start of next year.
The inference from this is that there was not a mutual agreement between the three government parties regarding the use of this significant sum. The lack of consensus indicates that the topic of these repayments will likely become a focal election issue, with a general election potentially being called as early as November.
Consequently, deferring the decision seems to be the most prudent action. Any plan unveiled on Budget Day would likely have been disregarded amidst the election campaign. Now, both governmental and opposition parties have the freedom to propose their plans to the voters. Ideally, the resulting government formation will incorporate the best ideas.
This course of action, whether intentional or not, will bring a sense of democratic validity to the spending of the largest financial bonanza in the nation’s history. It also affords the parties an opportunity, should they choose, to contemplate not just the allocation but also the application of the funds.
In order to optimise taxpayer value, two overarching concerns must be addressed. Firstly, there are doubts over the state’s capacity to effectively oversee a substantial project, let alone multiple ones simultaneously. The fiasco associated with the National Children’s Hospital is the prime cause of this concern. Its numerous administrative failings overshadow the successful completion of large-scale infrastructure projects like the motorway system or the Dublin port tunnel.
The crux of the matter is that the insights gathered, both good and bad, throughout years of project implementation need to be assimilated, whether this occurs via a proposed department of infrastructure as suggested by the Taoiseach or another method. Another concern relates to the state’s capacity to carry out these projects. Currently, the economy is said to be functioning at nearly full capacity. This implies that all available resources from labour and equipment to other requisite assets are maximally employed. Moreover, less tangible facilitators such as planning systems are operating to their full extent. Thus, it is incumbent upon the political parties to allocate some of their election policy space to addressing these challenges and assuring the judicious use of the Apple funds, as they craft their campaign manifestos.