CIF’s Top 10 Tips to Revive the Irish Economy

The Irish Construction Industry Federation (CIF) has says it has given the Irish Government a get out of jail free card with a 10 point plan to revive the ailing Irish economy and recreate the construction jobs being lost in the current downturn. And all of this will come at no cost to the Irish exchequer. CIF Director General Tome Parlon says: “the 10-point economic plan would cost the Exchequer nothing and in reality would generate significant revenue flows”.

CIF’s 10-Point Plan

1. Stamp Duty holiday for homebuyers until end of 2009 In order to increase the volume of property transactions in 2009, thereby supporting the flow of VAT and other property-related taxes, and re-igniting private consumer-led economic activity, stamp duty on transactions of residential property should be halted until 2010.

2. Tax credit scheme for first- time buyers Mechanisms to release the volume of VAT tied up in built but unsold houses would provide a significant boost to Exchequer receipts and support the national economic recovery.

3. Deliver on planned direct Exchequer capital spending, with particular focus on labour intensive projects within the National Development Plan
Falling construction activity has resulted in lower tender prices across the construction sector, providing the State with a narrow window of opportunity. Because of the enormous labour-intensity of construction work, investment in public building has an immediate payback in terms of employment taxes and wider induced economic and employment activity.

4. Use off-balance sheet funding mechanisms to bring forward additional projects 80% of all Irish pension funds are invested overseas, and mechanisms must be explored to prevent this further flight of capital out of Ireland into overseas property.

5. Stamp duty holiday for commercial developments until end of 2009 In order to attract investment into Irish commercial property, Stamp Duty should be abolished for all property transactions in 2009. Because there are no transactions taking place in any case, this abolition will be cost-neutral, but will promote competitiveness of Irish commercial property compared to our competitor economies.

6. Expedite processing of planning applications at local authority and An Bord Pleanala level Hundreds of planning applications for small-scale residential improvement works and other larger labour intensive developments are currently delayed within the planning system. These applications should be prioritised and dealt with within the statutory time period.

7. Employers holiday on PRSI and PAYE payments to help reduce unemployment Unemployment is going to be the most vicious consequence of this recession. As workers in all sectors of the economy move from being contributors of taxation through their employment to recipients of social welfare benefits, the Exchequer faces a double blow. The most immediate way of countering this is to reduce the costs of PRSI and PAYE contributions during the next year.

8. Prevent banks from stopping overdrafts without six months' notice Construction is an investment activity and as such the banking sector has an important role in ensuring that investment in construction projects can be commenced and continue though the construction cycle. Irish businesses, across all sectors, are facing significant difficulties when dealing with their banks, whose willingness to deliver on their promises no longer exists. Just as with the planning system, a number of employment-protecting construction jobs are ready to commence if only the banking sector would re-open the normal lending procedures.

9. Remove cap on tax deductibility for charitable donations Charitable donations are a vital source of income for all charities in Ireland. But current regulation does not allow charities or corporations to maximise the impact of these charitable donations. Government should instigate reforms to remove the cap on tax deductibility for Irish companies who donate to registered Irish charities.

10. Slash top VAT rate to below UK's until end of 2009 Competition between leading European economies is growing as the volume of world economic activity falls. Ireland’s prohibitively high VAT regime undermines Irish competitiveness compared to the United Kingdom. To prevent further flights of investment from Ireland to Northern Ireland or Great Britain, the top rate of VAT in Ireland should be reduced to below that of the United Kingdom for the remainder of the year.


Click here for the latest Irish Construction Jobs

Irish Construction professionals seek Russian Olympic construction job opportunities

In 2007, China was the coffee shop of Irish business (In Beijing you couldn’t turn a corner without bumping into someone from Ireland looking for a business opportunity). In 2008, the UAE and Saudi Arabia came in to focus, and numerous construction professionals took advantage of good value long haul flights to seek out opportunities in the Middle East. But in 2009 it may be Russia that becomes the next haunt of the somewhat smaller army of Irish developers, architects and engineers who are looking for the next big deal. And there is still plenty of business to be done.

Enterprise Ireland (EI) has become the advance guard of Irish industry, looking to build sustainable business relationships for Irish firms on foreign soils and sands. EI recently brought a group of Irish architects and engineers on trips to Saudi Arabia and Russia.

The delegation of Irish engineers and architects that traveled to Russia visited the little known resort of Sochi, in Southern Russia, which will host the Winter Olympics in 2014. There is after all €2.2bn in deals up for grabs in Sochi.

The group that traveled to Saudi Arabia was looking at ways to get involved in Saudi Arabia’s Grand Designs including an environmental city.

EI, in conjunction with the Construction Industry Federation (CIF), the Royal Institute of Architects Ireland (RIAI) and Engineers Ireland has embarked on a number of “Leadership for Growth” programmes aimed at exporting the expertise garnered by Irish construction firms, Irish architects and Irish engineers in the past few years.

EI says nearly 100 company executives are completing the Enterprise Ireland’s international selling programme, which is made up of eight training modules.

See also Exporting the Tiger


Click here for the latest construction professional jobs

Exporting the Tiger – Irish construction seeks global opportunities

At the centre of the Irish Construction Industry Federation (CIF) Annual Conference 2008, which took place at the Radisson SAS Hotel, Dublin, was opportunities that lie ahead for the Irish construction industry in the coming years. At a time when cashflow management is the focus for many Irish construction firms, the CIF has continued its drive to find opportunities abroad for Irish companies. And those that attended were in no doubt at the end of the conference as to where many of those opportunities will lie in the years ahead. constructionjobs.ie was also in attendance and highlights what the experts see as key opportunities on the global construction stage for Irish construction firms and construction professionals.

Eastern Europe set to build
Presenting on opportunities in Europe, Annette Hughes of DKM Economic Consultants said that a number countries in Central and Eastern Europe will be in a stronger position in terms of construction and construction recruitment activity than those in Western Europe in the next two years. She pointed particularly to infrastructural works in Slovakia, Romania, Macedonia Bulgaria, Poland and Czech Republic. Of the Eastern and Central European countries prospects for expenditure are particularly high in Poland. The hosting of the 2012 European Championships has driven Poland into a major infrastructural development programme, helped in no small way with European Structural Funds that all the new Member States scan avail of. Infrastructure expected to be the only sector growing across Euroconstruct Area, especially in Poland and Slovakia.
Elsewhere, Russia, Turkey and Romania seem well placed to cope with current crisis and housing and infrastructure developments are expected to continue.
A €57bn investment in infrastructure is expected in Russia over next two years. This will be spent on roads, energy, railways plus preparation for Winter Olympics in 2014.
There will also be greater focus on the energy efficiency of buildings, with extensive investment expected in Germany’s power stations. And with the predicted end of the current downturn expected in 2010, when markets start to grow again climate change challenges will expand the role for renewable energy projects across Europe.

Latest Construction Job opportunities in Mainland Europe

Looking East
Speaking about construction opportunities in China Ray Doyle of CHIRL sourcing solutions said that Irish companies looking to Asia will have to be prepared to put in the time to develop opportunities .
He highlighted a number of planned projects. The Shanghai to Beijing train line is set to start in 2010 and when completed in 2014 at a cost of €25bn will have a total length of 1318km. Work will also start on the €4bn Shanghai - Hangzou Maglev train line in 2010, with a resulting 169km of new train line within Shanghai when completed in 2014. China is also planning to develop 30Gw of wind farms by 2020.

Latest Construction Job Opportunities in Asia

Construction opportunities in the UK
A presentation by Kevin Kavanagh of Enterprise Ireland highlighted opportunities for Irish companies in the UK over the coming years.
Key areas that offer potential for Irish firms include
London Olympics – £10bn
Building Schools for the Future – £12bn over five years
Crossrail – £16bn
Regeneration of the West End – £5bn
Commonwealth Games 2014 in Scotland – A £288m Roads Programme

Latest Construction Job Opportunities in the United Kingdom

Other speakers looked at Construction Opportunities in Ireland (Transport 21 and power infrastructure rollout) and construction opportunities in the Middle East, which we will update in the coming weeks. But, ultimately, it was a case of those who have the set up and capacity to export their expertise should be looking very seriously at realigning their companies to deliver on a global scale.

Find the latest construction jobs and the world's latest construction job hotspots

Construction job opportunities in the Middle East

The recent visit to Dublin of Khajeh Daloui, the Iranian government's deputy head of housing and construction, is another in a series of high profile initiatives aimed at attracting Irish contractors and construction professionals to take up construction jobs in the Middle East.

The fact that CIF's Director General Tom Parlon was also on hand to support the Iranian minister shows how important the Middle Eastern market is becoming to Irish building contractors looking to export their expertise.

In April Enterprise Ireland hosted the “Construction Opportunities in the Gulf States” seminar in Dublin where delegates heard high profile speakers from UAE and Saudi Arabia make presentations on construction product and services opportunities in the Middle East.

The Middle East now accounts for 30 per cent of all recruitment activity the goes through constructionjobs.ie. Construction professionals who have already taken up positions with firms in the region are finding themselves playing a key role in some of the world’s most exciting development schemes.

Belgium: Construction trade and skilled labour jobs

The Lotto Sports Arena, Antwerp, a 7,500 capacity sport and concert venue built in 2007




Ageing workforce presents recruitment challenge

Belgium is divided in to three regions:

The Dutch speaking region of Flanders or Flemish region in the north;

The French speaking southern region of Wallonia in the south and;

Brussels, the capital region, in the centre, which is predominantly French speaking

Unemployment rates vary considerably between the regions. Brussels was 19% at the end of May, 2007, Wallonia 13% and Flanders only 5.6%. Flanders accounts for about 60 % of the Belgian economy and 60 per cent of the Belgian construction industry.

Employment challenge
Due to an ageing population, particularly in Flanders, a major challenge for the Flemish construction sector is that of replacing workforce. 46% of the construction workforce is now 40 years and older.
Nationally the Belgian construction industry needs an annual skilled workforce intake of about 17,000 new workers to replace those who leave each year. In the next few years, this will increase as a larger number move towards retirement than ever was the case in the past.

Bottleneck vacancies
VDAB is the Flanders public employment service, and each year it compiles a list of ‘Bottleneck’ vacancies. Bottleneck vacancies take longer to fill than average. Because of serious skills shortages pretty much every vacancies in the Belgian construction industry is considered such.
At the moment from a trades perspective in terms of Bottleneck vacancies carpentry and furniture making are the hardest posts to fill. This is followed by stonemasons and finally maintenance people.

Top 10 Most Difficult Belgian Construction Vacancies to Fill

• 1. Carpenters/furniture makers (2,456)
• 2.Masons (1,566)
• 3.Building maintenance people (1,040)
  
• 4.Painters/interior decorators (822)
  
• 5. Roofers (789)
  
• 6. Plasterers (586)
  
• 7. Civil engineers (485)
  
• 8. Industrial painters (416)
  
• 9. Pavers (411)
  
• 10. Formworkers (410)

A few shortages are of a qualitative nature and due to a lack of competences or specific technical skills. This is particularly so in the case of building maintenance personnel, painters and formworkers. But the main reason for most Bottleneck vacancies is a shortage of candidates. There are just too few candidates available on the Belgian labour market.


Belgian Construction Outlook
Over the past two years Belgium has experienced a small decrease in activity in the residential construction market, particularly in Flanders. Non residential building activities have taken over as the motor of the construction industry in Belgium.
Key areas of development include the construction of new industrial sites, logistic and commercial centres, offices and hospitals. It is anticipated that this will continue for some time.

Over the coming years the Belgian government will undertake a number of ambitious investment programmes which will result in the construction of new schools, infrastructure and social housing. The majority of this construction work will be carried out in the Flanders region.

Sources: VDAB (Flemish Public Employment Service), Belgian Confederation of Construction Enterprises, EURES (EU job mobility association),

Minister’s Gaffe increases pressure on Irish Government to deliver NDP

CIF Director General, Tom Parlon chats to Irish Environment Minister John Gormley and CIF President, Hank Fogarty at the FIEC conference in Dublin Castle


Judging by the commentary in newspapers over the weekend Stephen Staunton can relax, as there is a new ‘Gaffer’ in town. Minister for Finance Brian Lenihan’s somewhat undiplomatic proclamation that the Irish economy has come to a “shuddering stop” was greeted with unease by the delegates gathered for the FIEC European Construction Conference held in Dublin last weekend.

Addressing the conference in Dublin Castle, Construction Industry Federation (CIF) president Hank Fogarty argued that reducing infrastructure spending would be a very negative reaction. He said: “Across Europe the best solution has been to invest in infrastructure and planning to ensure future economic success.”

There is growing pressure on the Irish Government to deliver creative solutions in maintaining momentum on the €184bn National Development Plan (NDP) as opposed slamming the till shut. With the levels of employment in the Irish Construction industry still very high, it will be difficult to re-establish some level of momentum once overall market conditions improve if cutbacks in spending is the only solution the Government can present.

Hank Fogarty also challenged the Irish and other European governments to lead by example in the drive to reduce carbon emissions in the built environment.

He said: “There are a range of issues that should be used by the government to help bring about more reductions in our energy consumption. The most recent report from Sustainable Energy Ireland added to the record price for crude oil, should serve as a wake up call to all sectors of the economy with regard to tackling climate change. With the introduction of new building energy regulations from 1 July, which set out improvements in energy efficiencies of new residential buildings, there is an ideal opportunity for the Government to lead by example in the battle on energy usage. The Government, through Local Authorities, State Agencies and Government Departments has the largest property folio in the country and there is a ready-made opportunity for them to lead by example with regard to energy saving initiatives. By spearheading a programme aimed at the stock of exiting buildings the Government can reduce greenhouse gas emissions and improve our environment in the most efficient and cost effective way possible.”

Also speaking at the conference CIF director general Tom Parlon said that house building needed to return to a sustainable level of about 50,000 new homes a year saying “house building is a big contributor to the exchequer and these revenues would dry up if the industry stalls.” He said that trick was to get to a sustainable level of production that will keep people employed.