Construction Federation outlines plans for recovery

The Construction Industry Federation (CIF) has warned that decisive action needs to be taken by the Government as 690 construction jobs are being lost each month in the Mid East region of Meath, Kildare and Wicklow. The figures are contained in a detailed submission put to the Government by the CIF in which they outlined that urgent action is needed to avert over a further 7425 jobs losses this year throughout Kildare, Meath and Wicklow and almost 55,000 jobs nationally. At its height in 2008 there were 33,900 jobs in construction throughout Kildare, Meath and Wicklow. Estimates from the CIF put the current figure at the end of January 2009 at 25,615 a drop of 8,085 jobs in one year. CIF projections warn that this figure will fall further by 7,425 bringing total construction jobs losses to over 15,500 by the start of 2010. As part of the ongoing discussions with the Government about a proposed recovery plan, the CIF has outlined a range of measures that can be taken immediately to help protect construction jobs in the Mid East region and help to stabilise the economy. CIF Director General Tom Parlon said: 'There is a real threat that the annual output from the sector, which was worth €38bn in 2007, or 24 per cent of GNP, could fall by more than half, to below €14bn by the end of next year, unless the range of measures outlined by the CIF are put in place. This huge downturn in output is already having drastic consequences in every part of the country and will continue to have so if there isn"t urgent action. The jobs losses referred to relate to those working directly in the construction industry and don"t include the thousands who work in services associated with housing and related professional services. 'Addressing the problems in construction represents a most immediate and effective way of stemming job losses, boosting government revenues and improving confidence across the economy. A number of specific government measures are required in relation to the residential and commercial property markets, public capital investment and improving our existing stock of buildings'. Mr Parlon continued: 'In the first instance Government must reinstate all projects cancelled or deferred as a result of the Budget cut backs in capital spending. Ireland is uniquely positioned in terms of having a list of projects that are ready to go or at a very advanced stage of planning, yet we have chosen to delay or cancel these projects at a time when their construction would make a huge contribution to employment and to overall economic activity.' CIF is recommending that the Government introduce a time-bound incentive package for first time house buyers. CIF also recommends that Government take advantage of the excellent value available in the market place to help meet its social housing requirements. Specifically, CIF believes that, with market prices in many cases at or below construction cost, the Government should acquire an additional 10,000 units throughout the country for social housing purposes. CIF proposed that the Government should immediately reduce commercial property stamp duty from six per cent to four per cent to bring Ireland"s transaction costs into line with those of its competitor economies. Addressing Ireland"s infrastructure deficits must be a priority both in terms of providing for the longer term competitiveness of the economy and to immediately provide for economic activity, jobs and increased government revenues.' Projects are ready to go across all areas of public infrastructure, including roads, public transportation, education, health, environmental projects such as the rollout of waste and waste water improvement schemes, social housing, justice and sports and leisure. 'Other economies are attempting to put in place economic recovery plans based on infrastructure development but are nowhere near Ireland in terms of having a list of projects that can be commenced immediately. In addition, CIF recommends additional Government investment in the country"s network of national primary and secondary roads that are included in Transport 21 but have yet to be started, and new additional investment in labour intensive school, social housing and primary health care building projects.' The CIF also recommends the introduction of enhanced Government incentives for homeowners to improve the energy efficiency of their homes. Over 900,000 houses, half of the existing housing stock, were built prior to the 1990, when the first building regulations were introduced. Retrofitting these houses to improve their energy efficiency would create a substantial new industry and achieve significant reductions in energy costs for home owners and savings for the State under Kyoto. Tom Parlon concluded: 'On average 690 jobs have been lost each month over the last year throughout the Mid East Region of Kildare, Meath and Wicklow. To stem the loss of jobs CIF are calling on the Government to take steps to protect jobs and boost construction activity, which in turn will help the wider economy. The range of measures outlined coupled with decisive direction from Government in relation to current expenditure, would make an immediate contribution to economic recovery and help Ireland meet the competitiveness challenges that threaten the economy in the medium and long term.'