CIF Holds Emergency Talks

Irish builders have held an emergency meeting in Dublin to look at ways the government's infrastructural spending could save jobs in the sector.

The Construction Industry Federation identified infrastructure spending as the key to saving jobs, increasing exchequer revenues and providing a platform for economic recovery.

The talks brought together all of the major construction employers, including the major material suppliers, representatives of the architectural, engineering and surveying professions, major contractors and house builders.

CIF Director General Tom Parlon said: "Construction currently employs 190,000 people in the economy and is capable of increasing that number if the flow of public infrastructure projects is increased."

Mr Parlon said there is a risk that government decides to reduce infrastructure projects, which he said would be "the entirely wrong thing to do" from the economy’s perspective.

He said: "Government should take advantage of the competitive tendering environment and abundance of highly skilled productive resources. There has to be an emphasis on labour intensity and projects that are vital for long term productive competitiveness of the economy."


Mr Parlon said research shows that every €100m spent on construction projects creates 1000 jobs and generates nearly €50m for the exchequer through income, taxes and social welfare savings.

He said action is needed within the next month.

The measures identified by the meeting which will be brought forward to Government include:

• Reinstatement of all cancelled ready to go labour intensive infrastructure projects and fast tracking of additional labour creating or ‘shovel ready’ projects in the National Development Plan (NDP)
• Elimination of NDP projects that don’t give an immediate pay back in terms of jobs and revenues (spending with low construction intensity)
• Simplification of existing Public Private Partnership arrangements and the identification of new arrangements to attract private finance
• Diversion of proposed borrowing of €1.6bn this year for The National Pension Reserve into infrastructure projects vital for the productive competitiveness of the Irish economy
• Overhaul of public procurement procedures and the elimination of blockages and delays arising from statutory bottlenecks
• Identification and fast tracking by local authorities of projects that are capable of generating employment but are currently delayed in the system
• Introduction of a substantial First Time Buyers grant. The exchequer will benefit immediately and substantially from this measure through increased VAT receipts. This measure should apply for a limited time period only
• Residential stamp duty holiday, again for a limited period only, to kick-start transactions in the second-hand market
• Reduction in the rate of commercial property stamp duty to 4% to bring it into line with competing economies
• Government to meet its own commitments in relation to agreements to buy houses for social and affordable use. (Agreements have been concluded but payment in many cases is not forthcoming)
• A range of planning issues to be addressed by the overhaul of the planning system. (For example the appeals process and the expiry of planning permissions)

(PR/BMcC)