asked the Minister for the Environment if, given the continuing decline of private sector investment in construction, underlined by CSO figures on the number of planning permissions granted for building projects in the first quarter of this year, he thinks it may be appropriate for the Government to overhaul its policy in relation to private sector involvement in construction, especially in view of the catastrophic level of unemployment and total lack of confidence in the sector.
Written Answers. - Construction Industry Investment.
37.
The decline in private sector investment, particularly in the areas of industrial and commercial development, has been the major factor in the overall decline in the output of the industry in recent years. The Government's response to the industry's problems has been twofold — to keep public investment in the industry at the highest sustainable levels, including the retention and expansion of existing incentives, and to create the conditions that will be conducive to increased private investment.
The national plan provides for an increase of 9½ per cent in public investment in the industry between 1984 and 1987. Over the period of the plan, construction will account for an increased share of public capital programme expenditure and overall public investment in the major works programmes of my own Department — roads, sanitary services and housing — will increase by 15 per cent by 1987.
I would also refer the Deputy to the package of employment, taxation and financial incentives which was announced on the 23 October. A number of the measures, provided for in this package are of particular relevance to the construction industry. They have been welcomed by both sides of the industry and I have no doubt that they will have a major impact on output and employment, both within the industry and in the industries associated with it. The package includes major incentives for the development of the Custom House dock site and of designated inner city areas in Dublin, Cork and Limerick, a generous new scheme of house improvement grants, and grants for the provision of community, leisure and other facilities in areas of social need.
The Government are satisfied that by keeping public investment in the industry at a high level, and by introducing new incentives as indicated, they have created the basis for a restoration of confidence in the industry and for increased private sector investment.