Building site shutdowns will not happen, insists housing minister 

The Housing Minister is insisting that building sites will not shut down despite industry fears that the rising cost of materials will force some projects to grind to a halt.

Darragh O'Brien said the Government wants to "ensure that it remains on track" to meet this year's housing target of 24,600 new builds.

"Yes, inflation is indeed a challenge across Europe and the developed world, but we want to ensure that homes keep being delivered at the pace they are. We've seen 36,000 commencements up to March, as well as the largest first-time buyer mortgage drawdowns since 2007, so the outlook is good," he said.

Mr O'Brien said measures brought by his Cabinet colleague Michael McGrath to "soften the blow of inflation" had worked to ensure government building projects were able to continue. He was speaking at the launch of Ireland’s largest purpose-built scheme for older persons in Crumlin in Dublin on Monday.

Public Expenditure Minister Michael McGrath recently published details of the Inflation Co-operation Framework, which offers back-payment of a proportion of inflation-related costs on contracts since January 1 this year. 

Darragh O’Brien, TD, Minister for Housing, Local Government and Heritage,  as Fold Housing opens Ireland’s largest purpose-built scheme for older persons in Crumlin. Picture: Conor Healy / Picture It Photography

Mr O'Brien said this framework would have assuaged fears raised by the Society of Chartered Surveyors Ireland (SCSI) and the Construction Industry Federation about the impact of rising prices. He said the framework allows measures to be made to review fuel and material cost inflation.

"I can tell you anecdotally that we have seen some sites, not stop, but that have been at risk prior to the changes that we made," said Mr O'Brien. "Those changes have been very much welcomed. I think they will work and that we will do everything we can to ensure that closures — which won't happen — don't happen."

Mr O'Brien said the Government is confident the target of 24,600 new builds will be met as the country "has a good pipeline of homes". 

However, he admitted he could not say where or when the planned 5,000 apartments through the Croí Conaithe cities fund, which is planned to jumpstart dormant planning applications, might come from or be finished. He said that the fund was open for expressions of interest and applications would be assessed in six weeks.