In the summer economic statement, published by the Government yesterday, the Government has placed an increased emphasis on capital investment. I believe there is a clear consensus across the House that there is a need to increase investment in the economy. This year we will probably spend approximately €4.5 billion from direct Exchequer funding on capital investment, which is pretty much half of what is was just under ten years ago when, at the peak, €9 billion per year was spent on capital investment.

It is Fianna Fáil's view that instead of redirecting money out of the rainy day fund, which is yet to be established, there are other avenues the Government should pursue more aggressively and more ambitiously to bring about greater capital investment. I cite the example of public private partnerships, PPPs. We are told by the National Treasury Management Agency, NTMA that Ireland should be doing more in the area of public private partnerships. We have pressed the Government on this issue and there will be a review of the domestic 10% rule on the amount of investment through public private partnerships. This is welcome. Will the Tánaiste confirm whether the review will be completed in time for the budget and for the announcement of the new national capital plan?

The European Investment Bank has made clear, publicly, that it is prepared to do more by way of investment in PPPs. When one looks at the unmet needs in the economy in Dublin and across the State - be they road projects such as the Cork-Limerick M20 motorway, public transport projects, the need for the roll-out of broadband throughout the country, investment in renewable energy projects, schools and third level institutions - it is our clear view that this avenue presents real potential for greater investment. We learned today that the NTMA has raised money on the markets at negative bond yields. This shows that investors are prepared to pay Ireland for the privilege of lending to us. One thing is absolutely certain, the favourable and benign investment environment that we have now will not last indefinitely. The wheel will turn and we need to lock investment into the Irish economy at the low rates currently available.

The second avenue the Government needs to pursue is the Ireland Strategic Investment Fund, ISIF. The fund has some investments here but more than €6 billion is invested outside Ireland. It is sitting on more than €6 billion in its global portfolio, which is invested in debt and equity instruments everywhere but Ireland. The fund is planning to transition that to Irish investment over a period of five years. Again, there is huge scope for ambitious investment on commercial terms in projects that are badly needed for the economy and for the citizens. Will the Government prioritise exploring those avenues, will it review the role of the Ireland Strategic Investment Fund and will it review the very conservative, and in our view overly restrictive, approach to PPPs for meeting the investment needs of the economy?

Deputy Michael McGrath is absolutely right when he said that capital investment fell severely because of the economic situation we faced. The crisis had its impact on our infrastructure and this is what we must now correct. The way we will do so is by prudent management of the economy and in making the very best use of the resources we have in the period ahead.

I will outline what the Government is actually doing. We are providing for a 66% increase by 2021 on the 2016 levels of capital investment. Effectively, this means the State is almost back to the levels of before the economic crash and the crisis. By any standard that is very significant in terms of the potential for investment in capital infrastructure.

The Deputy has made the point that every other avenue should be explored and of course I agree with him. In my own area of responsibility, for example, I recently met managers involved with the Ireland Strategic Investment Fund, ISIF, to discuss how we can support business. This is an area we need to focus on given the challenges posed by Brexit. I also wish to acknowledge the point - the Deputy has already referred to it - that Ireland's reputation is such that we are in the excellent position in respect of lending and getting the kinds of rates that make it feasible for us to continue to borrow at very suitable rates to invest in our infrastructure. The summer economic statement is all about how we do that in a way that is sustainable.

The Department of Finance is currently reviewing the role of the Ireland Strategic Investment Fund, which was established at a time when private investment was constrained and the banking system was restricted in its capacity to finance the real economy. Preliminary results acknowledge strong economic growth and an increased availability, as Deputy McGrath has rightly said, of private sector investment. This reflects the progress in the economy and the financial system since its establishment about which I have already spoken. Importantly, the Department has acknowledged that based on cashflow modelling, it will not be required to fully deploy its funds to meet its mandate. On this basis the Government will consider whether an element of the ISIF should be reoriented towards complementing the role of the rainy day fund.

I thank the Tánaiste. My core point is that direct Exchequer funding of capital investment needs to be ambitiously complemented by additional investment through public private partnerships and the role of the strategic investment fund. Instead of looking at the fund with a view to putting it into the rainy day fund, the Government needs to ensure that the transition of the fund into Irish investment, from the global portfolio with more than €6 billion, must be accelerated. There are projects in every Department and in every part of this country that could be implemented and commenced on commercial terms. The fundamental point is that we are in exceptionally benign times in the context of the investment market. We are raising money at negative interest rates for the first time in our history as far as I am aware. Now is the time to lock in investment at those favourable terms because I can assure the Tánaiste of one thing; those terms will not last forever. Now is the time to do it. There is no point in coming back to the well in a few years' time when we are paying multiples of what we currently pay on interest rates. I ask that the Government explores these avenues in an ambitious way. It will find support from our party in respect of the budget and the investment plan, if it does this in a meaningful and tangible way.

The Deputy makes very relevant points on this being a good period for investment. The Government is keenly aware of that. As the Deputy is aware, the Minister, Deputy Donohoe, has been making visits across the EU to discuss that very issue. For the first time the European Investment Bank now has a centre in Dublin. This is very important and is another sign of its support for Ireland. The potential for investment is clearly there.

I agree with Deputy McGrath, as does the Government, that other avenues should be explored for capital funding. That is what we will be doing in the months ahead and in the lead-up to the budget. The bottom line is that compared with where it was, the economy is in such good shape that in the next few years, we will go back to those pre-crash levels of investment in capital infrastructure that everybody knows are badly needed.