Keir Starmer’s Labour Party has struck a resonant chord swiftly on its entry, perhaps owing to anticipation built over 14 years of sitting in the opposition. With Rachel Reeves, the new chancellor of the exchequer, her inauguration script stressed on the party’s mega objective of revamping the economy’s groundwork. Her point of focus was the restructuring of the planning system which she perceives to be stagnant and always adverse to upsetting any balance. Hence, critical infrastructure and housing often go unbuilt. Strikingly similar, isn’t it? Reeves has assured swift action. A national planning policy framework draft is slated for release before Parliament’s August recess under Labour’s plan. This signals a clear intent towards swift construction of housing and infrastructure and overpowering any roadblocks that come in the way. How this turns out in the real world remains to be seen. This focus on planning and regulation mirrors the fact that the Labour administration has a tight budget. However, Reeves choosing this as the central aim of her inaugural speech is indeed noteworthy, as is the resolve to hasten things.
Concurrently, across the Irish Sea, talk of planning reforms has been rife. However, their seriousness is questionable. Detailed work on the planning Bill initiated in 2022, with promises of its early 2023 enactment. Now, Housing Minister Darragh O’Brien’s assurance that it would be approved before the summer recess “come what may” will not see fulfilment. The Bill, crucial for large infrastructure as well as housing projects, is supposed to pass the Seanad only the upcoming week and not reach complete Oireachtas approval until autumn.
Questions loom large about whether it will be endorsed before calling a general election. It remains vulnerable to any political upheaval that might terminate the current Government’s term, and even after approval, whether all necessary steps to enforce it can be realised before an Autumn election is doubtful. At the same time, the Opposition protests about inadequate time for proper scrutiny, and planners voice apprehension over its flaws. Perhaps, Keir Starmer’s Labour might just end up teaching Ireland a lesson on how it should be done.
Job one from here on out: withhold belief in anyone’s pronouncements on the budget.
Trump’s return to power is a ticking time bomb following Biden’s blunders, signaling grave implications for Ireland. An impending worry hangs over Ireland with the possible move of Michael McGrath to Brussels, creating significant budget ambiguity.
For Ireland, akin to the UK, strategizing represents only a slice of the larger picture, yet it is an indispensable slice. Reeves is endeavoring to lure substantial private investment into housing and infrastructure, requiring absolute stability in terms of planning. This does not ensure an automatic green light for proposals but guarantees a transparent framework within which they can be strategized, along with an understandable estimation of the decision-making duration. For instance, Apple’s intention to construct a data center near Athenry, in Galway, could have been justifiably debated either way, but the prolonged four-year planning process to decide and tackle legal issues is unjustifiable.
Unavoidably, such procrastination cannot continue amidst pressing needs for improved infrastructure in water, energy, and housing sectors. Others crucial problems include operational snags within the state mechanism, labor deficit in construction, and escalating cost and delays attached to grand projects. However, with a exchequer brimming with money and budget surplus, Ireland can tackle these issues, unlike the financially strained Labour in Britain. Ironically, Ireland may find itself outmatched by UK in attracting foreign investment if it capsizes to avail the situation.
Growing signs indicate a sluggish progress, far from the needed pace. IDA Ireland, while revealing its mid-year results recently, cited inflated energy prices as a severe hurdle to foreign direct investment growth. It underscored the critical need to invite vast new investments into wind energy. Chairman Feargal O’Rourke flagged the principal risk of faltering in execution, i.e., inaction. The concern is immense for the relentlessly optimistic organization that views this as a significant call for caution.
Debates are heating up over whether to extend to a second week the child benefit during autumn or reduce inheritance tax or offer another cycle of energy credits. All the talk is pointless if it doesn’t translate into valuable action.
A slew of entities, including influential organisations like the National Competitiveness and Productivity Council along with Ibec, the business lobby, are voicing the urgent need to future-proof Ireland’s business model, according to their pre-budget submission. There are apprehensions that by the time the wider necessity to expedite this shift is recognised, it may prove too late. Indications of investments beginning to shift out of Ireland are already noticeable. Housing, beyond its social implications, poses an economic quandary, with large-scale investors expressing increasing concern about employee housing and access to environmentally-friendly energy and water resources.
There seems to be insufficient political drive and concentration to address these pressing issues. For instance, contentious matters were postponed during the run-up to local elections. Consequently, the much-needed governmental approval for the Shannon water pipeline project, aimed at strengthening water supply across large parts of the state, proceeded to the next planning phase only post elections. This delay resulted in the loss of crucial months. There’s also been a delay in the amendment of the National Planning Framework, initially due in April. This vital plan is set to provide guidance on population projection, housing development and infrastructure prioritisation. The pace of progress in offshore wind projects is not optimistic, casting doubt on whether this promising solution will be realised within a reasonable timeframe.
The situation risks deteriorating further. The summer will likely be consumed by debates over policies to increase child benefits, reduce inheritance tax or distribute another round of energy credits to sweeten the electorate ahead of general elections. As such, the significant yet politically arduous issues may get overlooked.
While propositions for establishing additional ‘agencies’ to expedite solutions should be viewed cautiously, the Housing Commission’s appeal for a potent organisation responsible for supervising housing delivery seems apt. It’s apparent that the current system is ill-equipped. A wider infrastructure might well be encompassed within this proposed entity’s remit. Ireland is starkly failing in addressing its long-term social and economic challenges, which are of utmost importance.