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.

Job opportunities in Education roll-out

One building sub sector that struggled to keep up during the property boom of the past few years was the Education. Listening to Ministerial announcements you might have believed that year on year there was a massive roll out of new schools. But disproportionate fund allocation, poorly planned infrastructure in Rapid Population Growth areas and inflated land prices combined to hinder those charged with delivering schools in achieving their goals.
With the slowdown in Irish residential output this year and probably next year, the Department of Education and Science (DES) Planning and Building Unit has been afforded the opportunity to catch up.

In 2008 €600m of Exchequer funding will be spent on school development, with 200 projects ranging from new school buildings to roof repairs planned for completion before year's end. Another 350 projects are scheduled to start between now and early next year. The works will be carried out primarily in the Eastern Region of Ireland (Dublin, Kildare, Meath, Wicklow and Louth) in areas of Rapid Population Growth, where it will take at least two to three years to meet the school requirements for the current level of new housing stock. Parts of Cork, Galway and Limerick have also been highlighted as areas that will experience large-scale Education infrastructure development in the next 18 months.

In 2005 the Irish Government announced a plan to provide 23 new post-primary schools and four primary schools as bundle projects through Public Private Partnership from 2006 to 2009. Plans are now at an advanced stage on three of these bundles. The first – a bundle of four schools (Two in Laois, two in Offaly) – will be built by the Macquarie Partnership for Ireland (MPFI), a consortium that includes Pierse Contracting. Work is expected to start on these in early summer. Another scheme is scheduled to begin later this year with the other penciled in for early 2009. Further projects are planned for 2009.

From a construction jobs perspective, this is all good news. School building presents an opportunity for those looking to migrate from residential development to a sector that requires similar skills.

The DES Planning and Building Unit says that the slowdown in housing has had the effect of making tenders and land prices more cost effective. In this scenario, once funding can be maintained, Education roll out should provide sustainable construction job opportunities for a wide variety of construction trades people and construction professionals in the coming years.