Cement group chief optimistic

Brian O’ Mahony,

Without property disposals of close to 500,000, the profit decline would have been worse. But overall, he remains optimistic. Accepting that the boom times are over, he points out that even if construction activity falls a full 10% this year it will still be only back at 1999 levels, which was still a boom time for the economy.

Without doubt, the global cycle will have a bearing on the future, as will the slowdown on the delivery of the

National Development Plan.

In the case of the latter, the plan is likely to take 10 years to roll out and not six as originally envisaged.

“I think that was a political decision that could not be delivered on due to the capacity constraints in the construction sector,” he said.

Given the slowdown economically, there is no doubt in his mind that the sector will adapt to the new conditions. In the case of hard-pressed first-time buyers, where affordability is an issue, Mr McNerney expects to see a shift in the type of home being built to reflect the level of earnings and potential earnings of those coming into the

market. While accepting that earnings power in the years ahead has probably been diminished considerably by the global economic slowdown and the dip in inward investment, Mr McNerney still thinks house prices will more than likely continue to rise.

What will change is that builders will build cheaper houses to reflect the changed earning power in the market.

That will result in smaller houses for first-time buyers being built.