Ireland's infrastructure is lagging 25% behind that of high-income European economies, according to the Irish Fiscal Advisory Council. In a new report the spending watchdog said housing, health, transport and electricity all require investment.
The fiscal council estimated 68,500 homes need to be built a year to catch up and meet a growing population. That is more than double last year's housing output. The fiscal council said the planning and objection system is holding back tens of thousands of homes.
It said that "time will tell" whether the Government's recent planning legislation, designed to overhaul the system, will "bear fruit”. It estimated 80,000 workers are needed to address Ireland's infrastructure needs, which equates to 47% increase from current levels.
It warned that an additional burst of spending could add to inflation. Instead, the fiscal council advocated increasing taxes or reallocating spending from elsewhere. The organisation said that the population is set to grow by 10% in the coming decade.
On the health system, the council said that Ireland's inhabitants are now aging rapidly, and the number of people aged 65 or over will more than double in the next 30 years. It said if health capital investment grew by 5% every year from its current high level, Ireland would reach average European infrastructure levels by 2033.
