'Out of the silo - Rethinking government, what it does and how it does it ' is a series of facilitated discussions organised in co-operation with PricewaterhouseCoopers, the professional services firm
This session discussed the question of how to maintain the momentum of strategic investment in the light of last month's Spending Review and its impact on the Northern Ireland Executive's capital infrastructure programme, which was designed to help develop a wealth generating economy less reliant on its public sector. Downloadable report from the the session: "Maintaining a Competitive Infrastructure".
The Spending Review signalled major reductions in capital expenditure (DEL) over the next four years. The reductions are frontloaded. There will be a step change from next year -- a 28%, real-terms decrease from this year's allocation, falling to 40% in Year 4, 2014-15. Yet, there is a clear correlation between investment in infrastructure and long term growth; a reliable infrastructure is essential to economic growth. Stepping down or pausing investment risks not only growth but Northern Ireland's competitiveness. While it is certainly a challenge for traditional funding methods it is but a reflection of the bigger challenge for government and overstretched public finances: how to achieve growth friendly deficit reduction.
As set out in the "National Infrastructure Plan 2010" published in in October, the momentum could be maintained through smarter use of public funding, improved private sector investment models, new sources of private capital and a review of those aspects of the regulatory regime that stand in the way of greater private sector investment. The Plan envisages a new hierarchy for infrastructure investment that would prioritise the maintenance of existing assets and the freeing up of capital through to delivering transformational, large scale projects that are part of a clear, long term strategy. It would focus not just on public investment but on unlocking private sector investment in networks and systems in energy, transport, digital communications, flood protection, water and waste management, on their interdependence; and on smarter use of public funding, targeted interventions, and reducing the costs of procurement and provision.
Download a copy of the National Infrastruction Plan 2010 from the HM Treasury web site.
For more information contact Kim McKnight, (T) 02890 347400.