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€6.5 billion for capital spending this year

Brian Cowen - Reassures on Government's spending plans
Brian Cowen - Reassures on Government's spending plans

Taoiseach Brian Cowen has moved to answer criticism of the Government's capital spending plans.

Mr Cowen told business leaders in Dublin last night that the State will invest €6.5 billion this year, which represents 5% of Ireland's output.

His comments at IBEC's president's dinner in the Mansion House follow concern expressed by the Construction Industry Federation that the Government needs to start new capital projects.

Mr Cowen told the audience that the Irish capital programme was one of the largest in the euro zone and was crucial in supporting jobs.

He said the money would be spent on labour intensive areas such as school building, maintenance and energy efficiency measures.

However, Mr Cowen acknowledged that his comments were short on detail. He said the Government was working to finalise the capital review programme and it would publish it soon.