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Dáil Éireann debate -
Wednesday, 19 Apr 1972

Vol. 260 No. 4

Ceisteanna—Questions. Oral Answers. - Building Industry Profits.

19.

asked the Minister for Local Government if his attention has been drawn to a report (details supplied) that exorbitant profits are being made by some people in the building industry; if he will indicate the average profit made by builders who are engaged in the erection of local authority housing; if he will state the percentage increase in building costs over the past five years; and if he will hold an inquiry into the matter.

I have seen press reports of this statement. Normally, local authority housing contracts are made on the basis of a lump sum quotation which is accepted following public advertisement and keen competition. The lump sum is, as a rule, based on priced bills of quantities, the unit rates of which are inclusive, and do not show the profit element separately. Records are not available, therefore, of the average profit made by local authority housing contractors. It is probable that the level of profit varies widely and depends on many factors, some of which—such as weather and strikes—are outside the builders' control.

It is felt however that competition for available contracts and the surveillance over tender prices for local authority housing operated by my Department are reasonably effective in ensuring that, as a general rule, exorbitant profits are not made on such contracts. According to official figures published by the Central Statistics Office, the wholesale price index for materials used in the building industry rose by 31 per cent approximately between 1967 and June, 1971, the latest date for which published figures are available. Figures published by the office on earnings of skilled and unskilled operatives in the building and construction industry indicate that earnings for these categories of workers rose by 44 per cent and 42 per cent respectively between March. 1969—the base date from which the published figures are available—and June, 1971.

I do not propose to hold the inquiry suggested in the press report. I will, however, have any concrete evidence which may be submitted to my Department in support of the allegations fully investigated.

Is the Minister satisfied that there is no truth whatever in the allegations that have been made?

The allegation made was a statement that was not borne out by facts. If any evidence is brought forward to substantiate the allegation I would be interested in having the matter examined.

Would the Minister not consider taking the initiative in this instance?

The Deputy is referring to statements made by a certain gentleman. If that person can substantiate his statements he should do so. I think it is unfair to make comments off the cuff without backing them up with facts.

Is it not the Minister's job to do this? He is the person responsible for local authority housing.

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