Construction industry wants €15bn housing and infrastructure package

CIF delegation met ministers Donohoe and McGrath this week

CIF wants a €15bn construction investment over the next six years. Picture: Sam Boal

The Government should take advantage of the current low interest rates to invest an additional €15bn over the next six years in infrastructure and housing, Ireland's construction industry has said.

Making their pre-budget submission, the Construction Industry Federation (CIF) published an economic report which says that every €1 billion invested in infrastructure, housing and other construction-related activity leads to €1.85b in additional GDP, 1,200 additional jobs and €140m in exchequer revenue.

A CIF delegation met with Minister for Finance Paschal Donohoe and Minister for Public Expenditure Micheal McGrath this week, to identify infrastructure and housing projects which they could underpin economic recovery in other sectors such as tourism and retail in the short term.

CIF Director General Tom Parlon: "The construction industry is the economic sector best-placed to generate the economic activity to erode the debt from dealing with Covid-19." Picture: Sasko Lazarov/Rollingnews.ie

CIF Director General, Tom Parlon said the Government has a unique opportunity to drive recovery and solve the housing crisis, build climate change resilience and facilitate our Covid-19 response by increasing investment in infrastructure, housing, and other construction activity.

"The reality is that the construction industry is the economic sector best-placed to generate the economic activity to erode the debt from dealing with Covid-19 as we have proven we can operate at capacity within the Covid-19 context," he said.

"We believe the ambition to do so is there within the Government. What is required now is a fundamental recalibration of how the industry and Government operate to ensure essential housing and infrastructure is delivered optimally.

Recommendations included in the pre-budget submission include; a multi-annual deep retrofit scheme for homes; increasing Irish Water’s operational budget to €2bn per annum; an additional €3bn into regional projects; and establish a €50 million SME-focused fund to support companies in taking on new apprenticeships.

The CIF’s economic impact analysis shows that construction generated directly and indirectly over €50bn for the economy, contributing €19bn to the economy through wages and profits.

They said that with money available at very low interest rates, the Government can generate multiple economic and social benefits whilst the industry delivers essential housing, infrastructure and the specialist buildings.

“The construction industry is best-placed of all economic sectors to rebuild Ireland’s economy in 2021 and shape a sustainable, dynamic, and citizen-focussed Ireland 2040," Mr Parlon said.

"Our research shows that every euro invested in the construction industry today has the greatest positive impact across the economy. Due to the industry’s scale and scope and its output, the industry can accelerate economic recovery in the immediate term and over the next 25 years."