The groups said that now is an ideal time for the Government to invest in strategic projects that will support Ireland’s renewed economic growth by creating jobs in the indigenous sectors of the economy.

The groups believe that the Public Capital Programme should be maintained at a minimum of €5.5 billion per annum over the next five years, with a target of 5% of GDP for Government capital expenditure.

Given Ireland’s remaining infrastructure deficit, this level would represent a positive investment plan relative to our EU partners. An increase in domestic demand would also reinforce the improving performance of the export sector and will ensure a balanced return to growth.

Speaking at today’s press briefing, IBEC director general Danny McCoy said: “With Ireland beginning to emerge from recession, it is vital that the Government reviews its capital investment priorities or risk losing the momentum built up over the last number of years. Despite current economic conditions, the challenge of funding a capital investment programme is by no means insurmountable, and the urgent need for a reduction in public spending should not compromise Ireland’s future prosperity. Capital investment that supports economic development must therefore be fast tracked.

“The cost-benefit arguments of a strong capital programme that delivers necessary infrastructure and gets workers off the Exchequer’s social welfare bill have been well rehearsed already. Since 2007, more than 140,000 construction jobs have been lost, with employment in the sector dropping from 270,000 to 130,000. Government has a huge role to play in halting this process. With construction prices having fallen by 30%, now is an ideal time for Government to put in place specific investment plans representing good value for money to protect jo