Construction lobby to meet troika reps

CONSTRUCTION employers are due to meet representatives of the IMF/EU/ECB troika this afternoon; when they will highlight a €2bn loss to the exchequer this year and detail likely future losses.

The delegation, led by representative body, the Construction Industry Federation (CIF), will also draw attention to what they see as the failure of relevant agencies to get to grips with the growing black economy in general contracting, one-off house building, and the residential repair, maintenance and improvements (RPI) sector.

The CIF will also outline the potential to grow the Irish economy by favouring productive investment in areas such as transport, education, water, energy and broadband over day-to-day spending.

The meeting will also be informed of the growing frustration amongst employers arising from the delayed implementation of planned reform of sectoral wage agreements, including the Registered Employment Agreement for the Construction Industry.

“In the context of a planned adjustment of €3.6bn in this December’s budget, tackling the loss of an estimated €2bn per annum in taxes and social welfare payments should be a Government priority. However, the black economy in one-off house building and home repair and improvements is growing and whatever action has been taken to date is clearly not working,” according to CIF director general Tom Parlon.

He added: “A joined up approach is required. Measures should include a mandatory requirement on all construction clients to advise the Revenue Commissioners of the commencement of any construction project with costs of €3,000 or more, and to identify the contractor employed. The payment of building grants and other incentives (including a proposed VAT rebate) should be made conditional on work being carried out by tax compliant contractors.”

“Whilst Ireland has to implement agreed budgetary adjustments in order to maintain international confidence in the management of the public finances, in allocating scarce Exchequer resources the focus has to be on job retention and development. Continuing to cut capital investments in education, health, water, energy and digital communications is the wrong policy and is the primary reason unemployment is getting worse, not better.”