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Budget Commentary
PUBLIC AFFAIRS
Ronan Murray, President and Conor Healy, CEO Cork Chamber.
Budget commentary
In the run-up to Budget 2023, the challenges facing the government mounted, with an accelerating energy and inflation crisis driven by the war in Ukraine overtaking housing as the headline issue. Essentially, the country is faced with multiple crises across energy, inflation, housing and climate change, all of which needed urgent attention, action and investment. The question following the publication of Budget 2023 is whether those challenges have been met with adequate action and investment?
Cork Chamber made a strong budget submission focused on urging the government to think differently on how to better tackle the key issues including inflation and business competitiveness, housing, energy and renewables and infrastructure and transport. In the run-up to budget day we lobbied government representatives strongly for pandemiclevel supports for businesses to help them cope with rocketing energy bills that are starting to arrive.
This is an unprecedented crisis and extraordinary measures are required to assist businesses and households to cope with the pressures of escalating inflation and energy prices. We welcome the size of the €1.25 billion budget package of business supports given that it recognises the size of the challenge facing businesses with energy bills quadrupling and quintupling even before winter sets in. Our concern is that the 40% rebate may not be enough as the winter progresses and prices rise further as heating costs are added. The chamber made clear in its reaction to the budget that the government will need to be nimble in reacting to the evolving situation and ready to introduce new business support measures if the situation requires, to keep businesses afloat. We will be consistently advocating to government on this in the coming months.
The cost of living supports package for households was also really important both to cushion people against rising inflation and energy prices and to support the wider economy and consumer spending on which much of our economy depends. It is important to recognise that the two are intrinsically linked. That was
accompanied by significant moves to improve the affordability of childcare which the Chamber highlighted in its submission. It is a vital element to supporting our labour market.
On housing, the measures to increase affordable and social housing supply, as well as supports for landlords, house buyers and renters are welcome but this budget did not tackle the viability challenge for high density housing developments or directly address the private sector supply of housing. We advocated in our budget submission for some fresh thinking on solving the housing crisis, looking to Vienna for inspiration and a proven model of delivery for affordable housing, as well seeking common sense amendments to existing schemes such as cost rental and Croí Cónaithe, to increase viability and housing supply.
The opportunity was missed in Budget 2023 to make these amendments or to tackle the core unviability of high-density housing on brownfield sites in Cork and other cities. We need to see these sites developed to meet housing needs and create sustainable urban centres. The Vienna model is under consideration at government level but further measures need to be introduced, particularly for development of city centre brownfield sites. Being in the midst of an energy crisis has put a new focus on the need to transition to a clean energy system while ensuring the security of energy supplies. Apart from confirming the budget for MARA, there was a lack of focus on renewable energy in Budget 2023. Cork should be a global hub for offshore wind, hydrogen and renewable energy and, given recent investor exits from offshore wind developments, it was surprising not to see more in Budget 2023 on investment in and speeding-up renewable energy development and deployment. The Chamber will be doing everything in its power to ensure that Cork delivers on its potential as a global renewables hub in the coming months, including pushing government to invest and incentivise necessary supporting supply chain and port infrastructure.
Members of Cork Chamber’s Pre-Budget Submission Committee Conor Healy, CEO; Ronan Murray, President; Rory Kelleher, Director of Public Affairs, Sustainability & Communications; Seamus Downey, Chair and Margaret Kelly, Public Affairs & Sustainability Executive with Minister for Public Expenditure & Reform, Michael McGrath T.D. ahead of Budget 2023.
Energy efficiency should always be considered the first fuel and Budget 2023 has provided significant funding to drive this agenda forward, targeting residential communities, those in fuel poverty and businesses, with a retrofit roadmap for SMEs underway.
To meet the climate change challenge, decarbonising transport is a keystone to progress, so the announcement of increased transport infrastructure budgets are welcome as well as the extension of the public transport fare reductions. If we are to deliver on our 2030 climate targets and Cork’s aim of being Climate Neutral by 2030, accelerated capital investment in transport infrastructure is one of the fastest ways to achieve progress. Finally, in our Budget 2023 submission we emphasised the need for rapid delivery of key infrastructure for Cork such as the events centre, a new elective hospital and additional garda resources. The €15 million to support the development of the events centre in Cork is welcome and a decision will be made by the end of the year at Cabinet level for the go-ahead of a new elective hospital. Additional budget investment in An Garda Síochána will support the requirement for additional Garda resources in Cork city centre.
Our advocacy in advance of Budget 2023 overwhelmingly highlighted opportunities to continue to invest in vital medium and long-term capital investment plans and in urban infrastructure and housing, as well as business supports in the face of an inflation and energy crisis. We will continue to advocate for those important opportunities to be taken in the coming months.
To read budget submission go to
