CIF calls for infrastructure investment

THE Construction Industry Federation (CIF) has called for investment in public infrastructure projects through a build and leaseback form of public private partnership as one way of resurrecting the state’s ailing finances.

Employment in construction has shrunk by more than 18% in the last 12 months according to figures from the Central Statistics Office.

In an end-of-year statement, CIF warned Ireland faced “massive” job losses in construction in 2009 unless cancelled public road and public transportation projects were reinstated, labour intensive school and social housing building programmes were brought forward and the proposed national pay deal was scrapped.

CIF director-general Tom Parlon said a survey of companies across the construction sector by his organisation had shown widespread job losses were inevitable unless something was done to increase the pipeline of public sector infrastructure projects.

“Ireland has a clear need in terms of schools, primary healthcare and social housing,” he said. “These are labour intensive areas and there is a huge potential therefore to save jobs while at the same time building badly needed infrastructure.

“The exchequer would also benefit immediately as every €100 million spent on infrastructure generates €47m in taxes on direct labour and social welfare savings and has wider benefits in terms of increased spending.

“The construction of a local school creates more than 200 full-time jobs for two years, which would make a huge contribution to any local economy. If the state were to invest an additional €200m next year in this way it would bring massive benefits. The CIF has suggested an alternative ‘build and leaseback’ funding mechanism to help the state find this funding.

“The CIF has also met with the secretary general of the Government’s main spending departments to explore ways of bringing forward vital projects that have been impacted by the recent cutbacks in the budget. Any proposals will have to comply with EU procurement laws but we’re confident that alternative mechanisms can be found to ensure that large-scale productive infrastructure projects vital for the Irish economy can be delivered.”

He said CIF had already discussed the issue of a build and leaseback scheme with the Department of Education and had outlined to the Department of Finance and to the Department of An Taoiseach the need for an additional funding of €200m for national secondary roads.

“We are also working with professionals within the construction industry to identify new funding mechanisms of major infrastructure projects that reflect the current budgetary conditions. The state is already paying in excess of €34m and this proposal would provide permanent school buildings with very little cost to the state.”