Fine Gael and Fianna Fail pact to be formally agreed today

Fine Gael and Fianna Fail pact to be formally agreed today

Fine Gael and Fianna Fáil are today expected to formally agree a document that they hope will form the basis of a programme for government over the next five years if it can entice some smaller parties to sign up to it.

The document sets out a list of ten missions that will shape government policy over the coming five years. Goodbody Stockbrokers say it is clear that the State will play a larger role in the Irish economy over this period.

There will be increased state involvement in the provision of housing, a larger healthcare sector and a commitment to pilot state-sponsored childcare, according to reports this morning.

The Land Development Agency looks set to play the leading role in ramping up state provision of both social and affordable housing. The LDA was launched in 2018 to better manage the State’s landbank and unlock state land for new housing.

It is already active on sites with development costs in excess of €1bn, but Goodbody say it will come under a lot more pressure to ramp up housebuilding quickly to achieve housing targets in the coming years, especially in the context of a private housebuilding industry which is being bit hard by the current restrictions.

According to Goodbody Stockbrokers, "With a commitment to no income tax increases over the period, budget deficits will remain a feature in Ireland for the foreseeable future. Although the document appears to be light on specifics, it does appear that the overall thrust of the economic recovery plan is very different to that of the GFC period, with fiscal consolidation being replaced by fiscal stimulus, funded by increased borrowing."