The Minister for Finance Michael Noonan has told the Fine Gael ardfheis, that problems marring the Irish construction industry have been used as the 'scapegoat' of the economy. He said the pressure on the construction industry became such a dominant part of the economy "it consumed the resources for investment in manufacturing industry and small business and went to over 20 per cent of GDP".
-- Advertisement --
In a country the size of Ireland building and development should represent 8-9 per cent of GDP but "it has dropped down now to almost 5 per cent" he said.
Mr Noonan continued: "We have to move the overhang, get it out of the way" and then restore the construction industry to "a much smaller role but a real role because it's very important that that would happen in Irish society."
Whilst employment in the industry will never reach pre-recession levels, it could bounce back to allow a "significant core" to work in this area.
"It has become the scapegoat of the economy but I want to stress you can’t have a proper economy without that area being a vital area as well" Mr Noonan said during a debate on the economy.
(HMc/GK)
