asked the Minister for the Environment the number of building workers unemployed in December 1982, and November 1986; and the steps the Government intend taking to tackle the unemployment problem in the building industry.
37.
Ceisteanna — Questions. Oral Answers. - Building Industry Unemployment Statistics.
33.
asked the Minister for the Environment in view of the recent review of the construction industry by his Department which conceded that building workers are leaving the industry in considerable numbers and emigrating, and in view of the serious threat this poses to the pool of skilled labour in the Irish construction industry if he considers that it is vital to encourage investment in the industry; and if he will make a statement on the matter.
I propose to take Questions Nos. 33 and 37 together.
The number of building workers on the live register in December 1982 was 37,017. The figure for November 1986 is not yet available.
Since they took office the Government have pursued a threefold policy in relation to the construction industry. First, the general economic policies pursued by the Government have been designed to restore a favourable climate for private investment in construction. Secondly, public capital investment has been kept at the highest sustainable level; it showed an increase both in 1985 and 1986. Thirdly, private investment has been boosted by a range of incentives such as the grants for house improvements, the £2,250 grant for new houses, the expanded publicly funded housing loan schemes, the redevelopment proposals for the Custom House docks site, and the inner city designated areas. I am satisfied that the Government's policy towards the industry is the correct one and indeed the only one which can lead to stable and sustainable growth both in output and employment.
Does the Minister have the most up-to-date unemployment figures available?
The figure for the end of October is 43,550 which represents a drop of 4,404 in the figures since the beginning of this year.
The unemployment figure was 37,000 when the Minister came to office and is now around 44,000. The Minister says this constitutes a drop but I can tell him that most of those people are working in London, Birmingham and New York.
A question please, Deputy.
Does the Minister agree that one major step to help the building industry would be a reduction in the VAT rate which was imposed on house building by the Government?
As I have explained on a number of occasions, Exchequer funding in relation to the construction industry now amounts to over 70 per cent of the total turnover of that industry. Therefore, it will be seen that through a range of different measures the Government have identified the difficulties which the construction industry face and have endeavoured to provide in different ways capital investment being kept at the highest sustainable level. It was increased this year by 5 per cent over 1985 which, in turn, showed an increase of 4 per cent over 1984. The primary cause of the decline in the industry has been the slowing down in the level of private investment, not public investment. As the Deputy is aware, when VAT rates were harmonised, and in relation to the industry increased by 10 per cent, compensating adjustments were made. For example, the new house grant for first time purchasers was increased from £1,000 to £2,000.