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Dáil Éireann debate -
Tuesday, 15 May 1979

Vol. 314 No. 4

Ceisteanna—Questions. Oral Answers. - House Building Costs.

18.

(Cavan-Monaghan) asked the Minister for the Environment the percentage increase in the house building price cost index for the months of February, March and April, 1979.

The percentage increases in the house building cost index were as follows: 1 February 1979 to 1 March 1979, 0.29 per cent; 1 March 1979 to 1 April 1979, 2.08 per cent; 1 April 1979 to 1 May 1979, 0.17 per cent.

(Cavan-Monaghan): Would the Minister agree that that shows a dramatic increase in the cost of house building and that the trend seems to be now that the increase has taken off again; that those are substantial increases taken in conjunction with the increases for December and January?

I would not agree that they are exorbitant.

(Cavan-Monaghan): Surely 2.08 per cent represents a very big increase?

No, it is not exorbitant.

Anyone would agree that the increases are alarming, depending upon the extent of the alarm one would want to express. Could the Minister give any explanation as to why the prices have increased by that amount?

Are we talking about the first three months of the year?

I presume a number of factors are involved in this.

Next question.

I think the Minister wants some time to reply.

The index is really ignoring the labour and material costs which would normally not exceed 65 per cent of the total price of a house. It does not include items such as overheads, profits, interest charges, land development and so on.

What is causing the increase?

In relation to the labour content in the factories the Minister referred to, I should like to know if the Minister is aware of extreme skilled labour shortages in any of the sectors of the building industry which would contribute?

Throughout the building industry at present there is a shortage of skilled labour, particularly blocklayers.

In view of that would the Minister consider the position highly alarming as it undoubtedly will result in extreme increases in costs?

It is highly alarming but the main reason for the shortage of blocklayers is because no apprentices were taken on in the previous four years.

The Minister should stand on his own hind legs.

What I have stated is true. In conjunction with AnCO we are making provision for a proper apprenticeship scheme.

(Cavan-Monaghan): Does the Minister agree that the increases now disclosed show a reversal of the position about which he was boasting a few moments ago, that the price increases had slowed down towards the end of last year?

They did and I should like to confirm that they slowed down in the last two quarters of last year.

(Cavan-Monaghan): That position has been reversed and they are airborne again.

The figure should be judged on the overall returns for any one year.

Ten or 15 minutes ago the Minister told the House that the reduction in the price index trend for the third and last quarter would be maintained but now he has told us the exact reverse.

That is not a question; that is argument.

The Minister is either misleading the House or not reading his replies correctly.

The remaining questions will appear on tomorrow's Order Paper.

I seek permission to raise on the Adjournment the reason why only some candidates for the European Parliament election are aided by public funds. I should also like to raise the content of Question No. 21 on today's Order Paper.

I will communicate with the Deputy.

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