Pressure mounts for construction to fully reopen

Around 50% of sites are closed even though HSE evidence has shown building sites and projects can operate safely, says Construction Industry Federation

At the moment, only what is being deemed as essential construction work is continuing, largely comprising public sector-related projects and foreign direct investment-targeted work.

Pressure is building on the Government to fully reopen construction sites, with fears growing that the bulk of the industry is likely to remain closed beyond the next Covid restriction review date of April 5.

Reports suggest that only a partial loosening — to allow for an increase in housebuilding, in the main — could be allowed next month.

However, that is not enough, according to the Construction Industry Federation (CIF).

It said it is “deeply concerned” over the prospect of the sector remaining in lockdown and its reopening date being postponed beyond April 5. 

The CIF said the industry, as a whole, is “deeply frustrated” that around 50% of construction sites are closed even though HSE evidence has shown building sites and projects can operate safely.

It is also understood that international investment backers of Irish construction firms are becoming frustrated with the lack of progress and clarity.

At the moment, only what is being deemed as essential construction work is continuing, largely comprising public sector-related projects and foreign direct investment-targeted work.

“The current partial lockdown has no positive impact on our national efforts to mitigate Covid-19,” said CIF director general Tom Parlon.

“The economic impact of this unnecessary lockdown is hugely damaging to our 57,000 enterprises, our 145,000 employees, our clients, the wider economy and society generally,” he said.

Mr Parlon said the uncertainty over reopening is “destabilising” the construction industry and is “undermining our ability to deliver essential housing and infrastructure our economy and society will require in the post-Covid period.” 

In terms of numbers, the CIF has put the cost of the industry’s shutdown at 800 fewer houses being built per week, €32m in lost revenue to the State’s coffers, €156m in lost profit and wages per week, €427m in lost output, and nearly 2,800 fewer people employed.

It also said it means there are around 60,000 construction workers costing the exchequer €21m in weekly pandemic unemployment payment (PUP) costs rather than contributing to the economy.

“Ireland is the only country to shut down its construction industry and this is having a number of unintended consequences that, again, are hugely detrimental and totally unnecessary,” said Mr Parlon.

“On a weekly basis, I hear from members about the impact of the lockdown on the mental health of our workers. Thousands of workers are now considering leaving Ireland in search of work in any other jurisdiction. 

"This will have a significant impact on the medium-term capacity to deliver essential housing and infrastructure for both private and public sectors,” he said.

Ireland’s attractiveness to overseas investment could also take a hit, with the costs to the country potentially being “immeasurable”, the CIF said.

“This shutdown impacts primarily on private sector-related construction whilst most public sector projects continue. This targeting and ongoing uncertainty about reopening on April 5 is impacting on investment decisions,” Mr Parlon said.

“What is most frustrating is that the industry has proven construction sites can be kept Covid-19 free due to national and CIF safety protocols,” he said.

“Concerns about mobility are totally unfounded as cases on sites have never surpassed 56 whether there are 80,000 or 40,000 construction workers on site regardless of the variant of Covid-19 we face. We’re calling on the Government to end this unnecessary lockdown and allow our industry to contribute to economic recovery and ending the housing crisis because it is safe to do so,” Mr Parlon said.

The CIF said this lockdown will see new housing supply fall short of the revised projection for 24,000 completions this year. It also said site closures mean many building firms are facing challenges around cash flow, working capital requirements and staff retention.