The Government's Summer Economic Statement is based on a "very optimistic scenario" and "falls into the realm of fantasy economics", Social Democrats deputy leader Cian O'Callaghan has said.
Speaking on RTÉ's Morning Ireland, Deputy O'Callaghan said the plan was published "as if there was going to be no major fallout from the tariffs and the potential trade war with the US".
Watch: Govt's NDP based on 'very optimistic scenario’ – O’Callaghan
Mr O'Callaghan, who is his party's spokesperson on public expenditure and reform, said "it is likely that it will not be possible" for the Government to deliver on all the promises made during the election due to tariffs.
He stressed that the Government has published statements and forecasts "based on a 0% tariff rate".
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Mr O'Callaghan said that the Government should focus on accommodation and food, adding that his party does agree with targeted support for the hospitality industry.
He said investment in infrastructure in Ireland is behind comparable countries, with a 25% lower rate of investment in infrastructure in recent years in Ireland.
"So that means, in September when children go back to school, you've got kids in schools with leaking roofs where the rain water comes in and it is captured in buckets," he said.
He added that the country is "way behind" in terms of public transport, adding that there are "huge pressures" around housing and healthcare, where he said investment is "absolutely key".
Mr O'Callaghan also said there are significant gaps in funding in healthcare, adding that elective hospitals are underfunded in the plan.
He also said that Ireland has a "much less productive" construction sector than other countries and described the National Development Plan as "the vaguest document" the Government has ever published.
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Taoiseach hopes EU, US reach agreement on tariffs
Taoiseach Micheál Martin said he acknowledged the threat posed by US tariffs, adding that he hoped the EU and the US could reach an agreement.
Speaking on the same programme, he said if there was no agreement, Europe would be in a "very serious situation".
"And I would say a trade war between Europe and the US would have implications for the world economy," he said.
He said public transport investment was a key feature in cutting emissions in half by 2030.
But he said the big-ticket item for emissions reductions, which was more private sector-driven, was offshore wind and the development of renewables in Ireland.
Dublin 'not sustainable' without metro - Taoiseach
Mr Martin said the Government was "projecting surpluses" across the next few years when asked about funding for the NDP.
He added that €14 billion from Apple receipts would go towards the NDP, along with €3bn from AIB share sales and a further nearly €3bn from the Climate and Nature Fund.
"Allocations from it will be specifically allocated to the Metro... which is clearly a climate infrastructural piece because obviously the more people we can get on public transport the better," he said.
He said he could not see Dublin "being sustainable" over the next number of decades without a metro.
Investing in 'productive capacity of economy'
The Taoiseach said the Government is investing in the "productive capacity of the economy".
"When we invest in water, when we invest in energy, and we do need to invest in those, we're protecting existing jobs and enabling the creation of future jobs in our economy," he said.
"So, investment in infrastructure is important and critical for the future of jobs in this country."
He added that the IMF suggests that the Government has the spending capacity over the next five years in its forecast in terms of total expenditure spent by the Irish Government.
He said if a trade war broke out, the Government would reconsider the overall budget but said they were committed and "capital is going to be the priority...no matter what".
Social housing builds
He said there are "record numbers" of social housing being built and there has been "an extraordinary number of commencements" in housing.
He said the private sector has to be involved in building houses, and it cannot be done solely by Government.
"Without State intervention in the last number of years, we wouldn't be at 30-odd thousand houses per year.
"When the Government came in in 2020, we were at about 20,000 houses. We've upped that to 30-odd, but that's not enough," he said.
"And the private sector is going to have to take up more and we've got to increase activity in the private sector to get to that level of house building. I've been saying that consistently since the formation of government.
He stressed that the NDP has capacity to get to 12,000 social houses per year.
Rent pressure zones
In relation to rent pressure zones, Mr Martin said all the decisions the Government has taken is designed to get the private sector moving in terms of house building.
"If we don't get manage to do that and that's not all dependent on the NDP, it's dependent on policy changes that we've already made and that we will continue to make a very clear landscape for private sector investment in apartment building and in housing into the future."
