When politicians aim to convey a sense of proactive stance towards a problem, often a contingency plan they bring forth is to form a new government department. This can be viewed as their countermeasure, a pioneering direction in dealing with the issue, a token of commitment toward the problem. One such instance can be observed in Taoiseach Simon Harris’s announcement of incorporating a new department of infrastructure as part of the Fine Gael election manifesto. A positive interpretation of this move could be Harris’s comprehension of Ireland’s considerable difficulties in delivering housing, water, energy infrastructure, and his earnest efforts to address them. Conversely, the skeptics might see this as a mere strategic move showcasing his problem-solving intent. Regardless, this issue is pivotal, encompassing significant economic and social aspects – from the housing crisis to future investment risks.
At a recent event held by the American Chamber of Commerce Ireland, Harris stated that Ireland needs to reduce bureaucracy and other deterrents blocking the execution of housing and large projects. Business executive Elaine Murphy, who presides over the chamber, emphasized the same point. She noted that a critical transition was required for Ireland. According to her, while the country is doing well in maintaining strong relationships with corporations and excelling in diverse talent and research & development, it’s high time to address the prevailing bureaucratic issues.
This crossroad is perilous. The American term, “white-glove” reflects how an upscale restaurant treats its customers. The equivalent expression in Ireland is plámás, meaning we need to placate multinational corporations which are losing patience with our planning system and lagging water and energy developments. Harris may have correctly pinpointed the problem, but forming the department of infrastructure might not be the ideal solution. It’s a vital issue, involving €500,000 suburban three-bed houses at the heart of the property price rise, €40 million pre-election gimmicks with little demand, and the actual winners of the budget – a family of five with an income exceeding €70,000.
Harris highlighted the issue, yet proposing a new infrastructure department is not a persuasive proposal. It would likely be a lengthy process to establish, due to decisions on which aspects of other divisions should be moved, along with the whole logistical process. This wouldn’t address the primary shortfalls in expertise observed in certain sectors which are not due to the Civil Service’s inadequacies but rather the more complex challenges they are contending with.
The notion of institutional modification is commendable, nevertheless alternatives should be contemplated. The Housing Commission, as seen in its report published earlier this year shared these debates and consequently – in relation to its terms of reference – conceived the notion of a housing delivery supervisory executive. This small unit of specialists would be tasked with highlighting the entirety of what should be completed and guarantee its execution. This is required because of the abundant contradictions and inadequacies within policy – for instance, local authority project approval is exasperatingly slow, and there is lack of coordination in delivering utilities such as water and energy to zones, as well as zoning land inadequacy in suitable locations. Often, local and national policies seem to be at odds.
The ‘system’ would resist the notion of a fresh infrastructure division or any innovative supervisory construction. The Minister for Housing and their division’s response to the Housing Commission’s scheme highlighted this. The Commission remarked that there is not nearly enough consideration given to the expenses encountered by the delay in housing supply. Ireland frequently finds justifications to avoid constructing homes. The same holds true for crucial infrastructure in numerous cases. A small ‘not in my backyard’ minority can impose an effective veto.
This executive wouldn’t be a magical solution. Disputes would arise concerning the bounds of their authority. However, they could serve as a necessary facilitator and bring focus on what should be done to unify the different factions of the system. Additionally, this concept could evolve to form a housing and infrastructure focused NTMA-like entity, a concise organisation, independent from departmental structures, whilst remaining connected to them.
The wealth of know-how amongst Ireland’s departments, the Transport Infrastructure Ireland, and in terms of finance, at the National Development Finance Agency, a part of NTMA, is significant. The Department of Education demonstrates effective proficiency in school construction. The need of the hour is to channelise these abilities and make a political decree ensuring their implementation, regardless of opposition from some quarters, to work towards solving urgent issues like housing and energy targets.
As suggested in the housing plan from Sinn Féin, a single local authority may be assigned as a powerhouse of expertise for authorities throughout the country. However, at present Ireland’s efforts are far from satisfactory. Pledged 2030 energy targets seem a distant dream as only a single wind farm project was sanctioned in the year’s third quarter while offshore wind development remains sluggish. Given an optimum scenario, housing completions might reach 34,000-35,000 this year, as per latest CSO estimates, yet fall short of the proposed 40,000.
Earlier, the government passed a new planning bill, but its substantial execution remains daunting and critics fear that some of its features may lack effectiveness. Resistance to a new department of infrastructure or any other kind of novel oversight structure is expected from the current “system”. This was evident from the Minister for Housing and his department’s reactions to the Commission on Housing’s plan.
Clearly, adopting the identical approach for different outcomes is futile and pumping more public funds with the expectation of favourable outcomes is inadvisable. The housing crisis has serious societal repercussions and foreign investors are now reconsidering their projects due to diminishing confidence in Ireland’s delivery capabilities.
While Ireland can’t control the outcome of the US election or the effects of a Trump victory on foreign direct investment, it can focus on ironing out its internal affairs. Though it’s not necessary that a new department of infrastructure could be the solution, mere cosmetic housing schemes or tax benefits won’t suffice. It is promising if politicians are beginning to recognise the need for substantial changes before the general elections.