IN any economy, it’s extremely difficult to determine where to prioritise government spending when there are so many pressing demands from areas such as health, education and capital investment. It’s even harder when you don’t have a government.
In this respect, it’s probably not entirely surprising that in recent weeks Northern Ireland has had strike action in the health service, ongoing financial difficulties in schools, and a critical Audit Office report into delays and overspend on capital projects.
The absence of an Executive and Assembly certainly isn’t solely to blame for any of these issues, but it definitely hasn’t helped.
Post the December general election, there seems to be a new energy and imperative amongst the parties locally to get a deal done, and more positive noises emanating about a return to power-sharing in the near future.
This is something that we would very much welcome, not least so that we can have locally-elected ministers making decisions around where to prioritise spending and to help ensure it is spent in the economy and society’s interests.
Clearly there will be difficult decisions to make and many demands on the finite amount of resource. But one area that needs urgent attention is Northern Ireland’s infrastructure, and ensuring capital spending is going where it needs to.
The recent Audit Office report highlighted a number of projects that are delayed and others where there are considerable overspends.
The A5 upgrade, for instance, linking counties Derry and Tyrone, has a £300m overspend and has overrun by 10 years, the report outlined. The Regional Children's Hospital has a £130m overspend and has overrun by five years.
The cost of building Ulster University’s new Belfast campus is now expected to be more than £100m over budget, and the European Investment Bank (EIB) has withdrawn a £150m loan because of delays.
As readers of this paper well know, the new GAA stadium at Casement Park has an overspend of £33m and it has still not started three years after the expected completion date.
The critical care centre at the Royal Victoria Hospital is over budget by £57m and has overrun by eight years.
Meanwhile, the new maternity hospital in Belfast is six years overdue and is £17m over budget.
One concern, amongst many, is that overspend in some areas will impact on the ability to spend in others. Delays also put funding streams at risk.
As we move into 2020, and as we anticipate (perhaps optimistically) that there will be a restoration of the Executive and Assembly, I would urge all involved to put capital spending and investment in our infrastructure high up their priority list.
And this should be aligned with a robust procurement process and a focus on quality, not just cost.
Good decision-making and delivery in this area has a significantly positive impact on the economy and society as a whole - generating and sustaining jobs, contributing to economic output, enhancing competitiveness, and, most importantly, enhancing people’s lives.
:: Susan Mason is head of the Royal Institution of Chartered Surveyors (RICS) in Northern Ireland?
