Irish Premier Brian Cowen has given a strong indication the construction sector will benefit from a next week's budget.

The State is expected to announce a 'very, very significant' capital investment programme, which could help reinvigorate the ailing building industry.

The package is said to include the schools building and refurbishment scheme.

Mr Cowen told the Dáil €2.3b had been invested in schools with a €4.5b commitment in the present development plan.

Across Ireland over 40,000 children now learn in new schools, with a further 45,000 sitting in refurbished buildings or classroom extensions.

The Taoiseach said this development scheme "can continue".

-- Advertisement --

"Therefore there will be a certain degree of offset from the public capital programme for the decline in private-sector activity, particularly in the construction business although it won't offset it totally."

Mr Cowen was countering claims by Labour leader Eamon Gilmore, who suggested the government had taken a 'business as usual' approach to rising unemployment.

"The scale of what has been happening - I don't think the Government has fully grasped this," said Mr Gilmore.

He asked: "What steps are the Government taking to find, source and encourage new jobs?"

"They knew what was happening the construction industry. It was now in the professions, where young solicitors, architects and engineers were losing jobs," added the Labour TD.

Mr Cowan hinted that a long-term plan to combat ongoing problems would be unveiled by the Finance Minister in next week's budget.

He said the government would "continue by prioritising those areas that will give us an economic return more quickly than other projects, major investments in a public capital programme, which is very, very significant".

Inward investment in Ireland in the first nine months of the year was ahead of 2007, which Mr Cowan suggested was "a fair achievement".

(PR/JM)