Budget Offers Major Housing And Schools Capital Investment

The Finance Minister has officially unveiled much-mooted capital investment for Irish schools.

Brian Lenihan also announced a major allocation for housing, which could provide a much-needed boost for the construction sector.

In yesterday's Budget speech the Minister said €889m would be invested in education buildings, in addition to €1.65bn for social housing.

Next year 5% of GDP, roughly €8.2bn, will be invested as follows:

• €1.65 billion to be spent to housing programmes in 2009, with Government to take an equity share in affordable housing
• €20 million for the Home Energy Saving Scheme in 2009, an increase of €15 million on 2008
• €5 million for warmer homes scheme
• €889 million investment for capital education projects next year, €581 million, or two-thirds of the total education capital budget, will be devoted to the school building programme
• €265 million capital investment for third level education projects.

As well as support for social housing projects, first time buyers are also inline for a tax relief scheme, which will see the current 20% increased to 25% during years one and down, and 22.5% for the following three years.


The top rate of commercial property stamp duty is also cut from 9% to 6%.

Leading up to 2011, the total capital investment is estimated to be in the value of €24.6bn.

(PR/JM)