Showing posts with label Public Spending. Show all posts
Showing posts with label Public Spending. Show all posts

Ireland’s Immigration Crisis

(A podcast on this article is available here).

1️⃣ The “Failure Premium”

Ireland’s immigration challenges are not caused by immigrants, but by the absence of state institutions capable of managing large‑scale arrivals.

> “There was no plan that failed, simply because there was no plan at all.”

The result: high costs, human suffering, and political backlash.


2️⃣ Ireland’s Structural Weaknesses (Pre‑Influx)

Ireland entered the migration surge with:

- Lowest housing stock per capita in Western Europe  

- Rents up 98% in a decade  

- 43% fewer hospital beds than EU average  

- GP lists closed in 75% of practices  

- Minimal public transport outside Dublin  

- Institutional capacity built for 3.6m people, not 5m

This meant zero spare capacity before immigration increased.


3️⃣ Scale of Immigration (2021–2024)

- 500,000+ arrivals in a few years  

- Three consecutive years of 100,000+ arrivals  

- Highest per‑capita intake in the EU  

- 23% of population foreign‑born  

- 75% of population growth from immigration

Ireland had no integration system to absorb this.


4️⃣ A Two‑Tier System Emerges

Ukrainian Refugees

- Immediate right to work  

- Medical cards, welfare, school places  

- €800/month host payment  

- Ireland went 3× beyond EU minimum

Asylum Seekers (Africa, Middle East, Asia)

- €38.80/week  

- 6‑month work ban  

- Years in hotel rooms  

- 70% rejection rate  

- Some forced to sleep rough (2023)


5️⃣ Cruelty in Every Direction

To Immigrants

- Warehoused in hotels at €99/night  

- No language classes, mental health supports, or integration  

- Ukrainians integrated into schools, then told to find housing in a <1% vacancy market

To Local Communities

- No GP expansion  

- No school places added  

- Hotels removed from tourism economies  

- Housing competition intensified  

- Communities blamed as “racist” for raising legitimate capacity concerns

> “You cannot get ‘something’ from ‘nothing’.”


6️⃣ Political Avoidance & Gaslighting

- Government celebrated generosity in Brussels  

- Built no permanent accommodation  

- Outsourced everything to private hotels  

- Now reversing course and blaming communities

The article argues this is not moral leadership, but performative politics.


7️⃣ The Middle Class Will Soon Feel It

The EU–India Free Trade Agreement (2026) will ease movement for skilled Indian workers across the EU.

Implications for Ireland:

- More competition for housing  

- Pressure on wages in tech & professional sectors  

- Increased demand for crèches, GPs, and transport  

- Middle class will enter the same zero‑sum competition as working‑class communities


8️⃣ Final Takeaway

Ireland’s immigration crisis is fundamentally a state capacity crisis.


> “A state that builds institutions absorbs the cost once. Ireland never built them… and everyone will pay the price.”


The article argues that immigration can be a net positive, but only when supported by institutions, planning, and integration systems—all of which Ireland failed to build.

Delivering Homes, Building Communities (2025–2030): Summary

Overview
Prepared by Ireland’s Department of Housing, Local Government and Heritage, Delivering Homes, Building Communities sets out the Government’s housing strategy for 2025–2030. It aims to deliver 300,000 new homes by 2030 through a mix of public and private sector collaboration, addressing both supply and affordability challenges. The plan builds on Housing for All and represents the largest housing investment in the history of the State.

Key Objectives
  • Deliver 300,000 new homes by 2030, including 72,000 social homes and 90,000 Starter Home supports.
  • Commit €20 billion annually in development finance, with over €9 billion from State sources and the remainder from private investment.
  • Ensure a fair, sustainable housing system that promotes homeownership, affordable rents, and social inclusion.
  • Tackle vacancy, dereliction, and homelessness, while regenerating communities across urban and rural Ireland.
Core Structure
  • The plan is organised under two main pillars, each containing four priority areas.
  • Pillar 1 – Activating Supply
  • Activating Land and Infrastructure
  • Ensure a strong pipeline of zoned and serviced land.
  • Deliver key infrastructure (water, transport, energy) to make sites “shovel ready”.
  • Implement the Planning and Development Act 2024 to streamline planning and judicial review.
Facilitating Investment and Viability
  • Attract domestic and international capital for housing development.
  • Reform apartment standards and introduce tax incentives (e.g., 9% VAT rate).
  • Capitalise the Land Development Agency (LDA) and Housing Finance Agency to expand their role.
  • Launch a €1 billion Infrastructure Fund to remove delivery bottlenecks.
  • Increasing Skills and Modern Construction Methods (MMC)
  • Use Modern Methods of Construction (e.g., modular building) in at least 25% of new social and affordable housing.
  • Expand training and apprenticeships in construction.
  • Promote innovation through Enterprise Ireland’s Built to Innovate programme.
Securing Additional Supply, Ending Dereliction & Vacancy
  • Expand the Vacant Property Refurbishment Grant and Derelict Property Tax.
  • Support regeneration through the Urban Regeneration and Development Fund (URDF) and Living City Initiative.
  • Enable local authorities to use Compulsory Purchase Orders (CPOs) more efficiently.
Pillar 2 – Supporting People
Ending Homelessness and Promoting Inclusion
  • Introduce a National Homeless Prevention Framework.
  • Expand the Housing First Programme and strengthen homelessness legislation.
  • Increase housing for older people, disabled persons, and the Traveller community.
Providing More Social Homes
  • Deliver an average of 12,000 new social homes per year.
  • Streamline approval processes and standardise designs.
  • Enhance local authority delivery capacity and improve maintenance of existing housing stock.
Increasing Affordable Homeownership and Protecting Renters
  • Deliver 15,000 affordable housing supports annually through the Starter Homes Programme.
  • Extend schemes such as Help to Buy and First Home.
  • Introduce national rent controls, a rent price register, and stronger tenant protections.
  • Regulate short-term lets and expand purpose-built student accommodation.
Investing in Villages, Towns, and Cities
  • Focus on urban regeneration and compact, sustainable development.
  • Support rural housing and revitalisation through the Town Centre First initiative.
  • Fund remediation for defective concrete blocks and apartments.
  • Support the Dublin City Taskforce and An Ghaeltacht development plans.
Funding and Implementation
  • Backed by record State and private investment, including:
  • €102 billion in critical infrastructure.
  • €3.5 billion for electricity grid upgrades.
  • €12.2 billion for water services.
  • €2.5 billion additional capital for the Land Development Agency.
  • A new Housing Activation Office will coordinate national delivery.
  • The Cabinet Committee on Housing will oversee progress with measurable metrics.
Conclusion
The plan presents a comprehensive, delivery-focused framework to address Ireland’s housing shortage through large-scale construction, affordability measures, and community regeneration. It combines state-led investment, private sector participation, and modern construction innovation to achieve sustainable housing for all.

The full document is available here.
Podcast available here.

My take on the government's plan:

Ireland’s latest housing plan is impressive on paper but hopeless in practice. Delivering Homes, Building Communities promises 300,000 homes by 2030, 72,000 of them social but anyone familiar with Ireland’s housing machine knows these targets exist more for headlines than for homes.

The same problems that hobbled Housing for All remain untouched: endless planning delays, a shorthanded construction sector, and bureaucratic drift that kills urgency. Ministers can talk about “modern methods of construction” and “activation offices” all they like but rebranding inefficiency doesn’t fix it.

The funding looks vast, but much of the €275 billion figure is repackaged spending or long-term capital that won’t translate into actual roofs any time soon. Developers face higher borrowing costs, local resistance remains entrenched, and the State still can’t build quickly without tripping over its own regulations.

Ireland doesn’t lack ambition; it lacks execution. The document reads more like political theatre than a credible delivery plan heavy on verbs, light on realism. 

Unless there’s a fundamental shift in how planning, labour, and finance are coordinated, this plan will end up exactly where most of its predecessors have: filed neatly under “aspiration”.

The Folly of the Irish Government's Mobile Phone Pouch Initiative in Schools

In an era where technology is increasingly integrated into every aspect of education, the Irish government's decision to allocate €9 million in Budget 2025 for mobile phone pouches in secondary schools has sparked significant debate regarding its practicality and effectiveness. Critics argue that this initiative not only contradicts the educational need for technology but also represents a misallocation of resources that could be better utilised elsewhere.

A Step Backward in Technological Education

The primary criticism of the phone pouch policy centers around the notion that it limits students' access to technology at a time when digital literacy and access to information are paramount. The argument is that smartphones, when used appropriately, can be powerful tools for learning, research, and collaboration. Instead of fostering an environment where students can learn to navigate and utilise technology responsibly, the government appears to be promoting a culture of restriction. This move seems particularly out of touch given the increasing emphasis on digital skills in modern curricula and the workforce. 

The opposition, including figures like Sinn Féin's Mary Lou McDonald, have labeled this expenditure as a "scandalous waste of public money," highlighting the struggles many schools face with basic funding for heating and lighting, let alone advanced technological infrastructure. The critique is not just about the cost but the principle behind it—funds could be better directed towards enhancing digital education tools, improving IT infrastructure, or addressing more pressing educational needs like teacher recruitment and retention.

Evidence and Impact

While proponents, including Education Minister Norma Foley, argue that the pouches reduce distractions and improve student well-being, the evidence for such claims is not unanimously supported. A study by the University of Chicago, cited in discussions, suggests that students perform better when their phones are less accessible, but this doesn't necessarily translate to all contexts or all students. Critics point out that the implementation of such policies can be circumvented, as noted by OECD research where nearly a third of students found ways around mobile phone bans. This raises questions about the efficiency of spending significant public funds on a solution that might not fully address the issue it sets out to solve.

Moreover, feedback from schools that have already implemented similar systems shows mixed results. Some principals describe the pouches as "transformational" for school culture, yet there's a recognition that while they might improve focus in some scenarios, they do not address the broader spectrum of digital education needs. Schools are already dealing with the challenge of integrating technology into education in a way that prepares students for a digital future, and this initiative might be seen as a step in the opposite direction.

Alternative Uses for Funds

The €9 million could have been allocated towards initiatives that directly enhance educational outcomes. Teacher unions and educational bodies have expressed frustration over the prioritisation of this project over others like increasing teacher numbers, expanding special education, or even providing schools with the necessary technology like laptops or tablets. The Teachers’ Union of Ireland (TUI) has been particularly vocal, emphasizing that the funds could have been used for recruiting teachers or supporting pastoral care more effectively.


The introduction of mobile phone pouches in Irish secondary schools at this juncture seems not only misaligned with the current educational paradigm but also potentially counterproductive. Instead of limiting access to technology, there should be an emphasis on teaching students how to use it responsibly and effectively. The initiative has sparked a necessary debate on how educational policies are formulated and where public funds should be directed in education. It underscores a broader need for policies that are informed by a comprehensive understanding of modern educational requirements rather than focusing on singular, potentially short-sighted solutions. 

This debate is not just about mobile phones but about how Ireland envisions the future of education in a digital era. The consensus among critics is clear: education should not be about blocking technology but about harnessing it for learning, creativity, and preparing students for the challenges of the 21st century.

Ireland's Spending on Education: An International Comparison

Ireland has been steadily declining in government spending on education as a percentage of GDP in recent years. In 2008, Ireland spent 4.9% of its GDP on education, but by 2020, that number had fallen to 3.1%. This decline is in stark contrast to the OECD average, which has remained relatively stable at around 4.9% over the same period.

Data from: Our World in Data

There are a number of factors that have contributed to Ireland's declining education spending:

  • The financial crisis of 2008 had a significant impact on the Irish economy, and government spending on all fronts was reduced as a result.
  • In addition, Ireland has seen a significant increase in the number of students attending third level education in recent years, which has put a strain on resources.

The decline in government spending on education has had a number of negative consequences:

  • First, it has led to larger class sizes and less access to resources for students. 
  • Second, it has made it more difficult for schools to attract and retain high-quality teachers.
  • Third, it has contributed to a decline in the quality of education in Ireland.

Ireland's declining education spending is a matter of concern for many people. There is a growing consensus that Ireland needs to invest more in education in order to remain competitive in the global economy. The government has made some commitments to increasing education spending in recent years, but it remains to be seen whether these commitments will be enough to reverse the trend.

In terms of how Ireland compares with other wealthy countries in this regard, Ireland is one of the lowest spenders on education as a percentage of GDP. Only Chile, Mexico, and Turkey spend less on education as a percentage of GDP than Ireland. The United States, Canada, the United Kingdom, and most other European countries spend significantly more on education as a percentage of GDP than Ireland.

If Ireland wants to remain competitive in the global economy, it needs to invest more in education. The government needs to make a long-term commitment to increasing education spending and to ensuring that all students have access to a high-quality education.