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.


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2,000 construction jobs for North Dublin

The Irish construction industry may not after all be in a free falling downturn. In 2009 the Irish construction industry has dusted itself down from the hammering it took in 2008 and a number of significant Irish construction jobs opportunities will emerge in the coming months. Foremost amongst these construction job opportunities will be Treasury Holdings’ €800m Spring Cross, Ballymun Town Centre regeneration scheme.

The developer expects to get to work on the final part of the Ballymun Regeneration scheme in North Dublin in the coming months, and says that 2,000 construction jobs will be created by the development during the projects three-year construction programme, which will finish in 2012.

The development will include over 60,000 sq m of retail space, 28,000 sq m of office space and over 11,000 sq m of leisure facilities.

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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.

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Irish Budget 2008 – Let’s try National Development Plan B

It was very much a case of National Development Plan B, when Irish Finance Minister Brian Lenehan TD unveiled his economy jump-start budget, which may result in some construction job activity in the education, housing renovation and infrastructure sectors.

The Irish Construction Industry Federation was quick to welcome the budget because Minister Lenehan did not go as far as expected in making cuts in the National Development Plan. But concern remains about how quickly the Government can get future infrastructure developments on site.

Transport 21
A quick look at the revised Transport 21 Plan shows that because many projects were at such an advanced stage of planning they could not be cut back. So, plans for Luas extensions and the Metro projects will proceed, despite misgivings from some quarters. Likewise the interurban route remains on track for completion by 2010. After that, smaller, but not necessarily small roads projects, will feel the pinch. With a capital budget of €900m Minister for Transport Noel Dempsey has listed six road projects that have been deferred for at least a year. These include the Arklow to Rathnew road in Co Wicklow (back to 2010) and the Atlantic Corridor with the rescheduling of the N18 Oranmore to Gort section a cause for concern regarding access between Galway and Shannon Airport. If these projects are delayed for too long, the big worry here is that the Government will return to a stop/start piecemeal roads programme associated with the 80s. And with fixed price contracts now in place and an Irish civils industry geared up to deliver, it would make sense for the Government to get some mechanism in place to deliver the necessary roads network and complete these smaller but vital regional urban links.

Education
In the weeks leading up to the budget, Minister for Education Batt O’Keefe granted approval for 25 new school building projects to proceed to the tender and construction phases: a clever political move? Minister O’Keefe has been one government minister who has been lauded for his openness in presenting the effects of the budget on his Department’s spending plans. And while he faces great criticism on class sizes and student grants cuts, the fall in the price of land and the deficit of school buildings in the country means that much will be expected from his department in the next 18 months. Minister O’Keefe has a capital allocation for next year of €889 million – an increase of €79 million, or almost 10%, on 2008 spending.

Commercial development
The reduction of stamp duty on commercial property from nine to six percent could be enough to renew activity in the commercial property market. According to a number of real estate agencies there is growing interest in European property from foreign speculators and the three-percentage point cut makes the Irish commercial market a very attractive option for anyone looking to expand their European property portfolio. However, whether this proves the case is dependent on more money being available on the market.

Housing
A revised housing loans scheme and increase in mortgage interest relief for first time buyers has also been welcomed by the construction industry. However this may take some time to work its way through the system. However the €15m allocation to the Home energy Saving Scheme, while well short of the originally planned allocation is good news for those in the housing renovation sector and should create job opportunities for those working with energy efficacy products such as BER assessors, insulation installers, window installers and in indeed renewable energy products.

Construction job opportunities
Those looking for construction jobs in school building and housing renovation should be particularly happy with the budget. While those looking for construction jobs in road and rail development may have to wait and see how quickly future projects can be rolled out.