In recent years the construction industry has shown remarkable capacity to meet demand, having doubled output since 1994. Nonetheless, it is generally accepted that the construction industry may now be operating at or close to existing building capacity; and that this capacity will need to expand further to ensure the delivery of the national development plan 2000-2006. In considering this issue, it must be borne in mind that Ireland, as part of the EU internal market, has access to building capacity outside its borders. There is already substantial participation in building projects from construction firms and workers located in other EU member states, and especially from Northern Ireland. The size of the investment in the NDP and the promotion of public private partnerships should encourage greater participation by firms from other EU member states in the design and construction of projects.
The Government, in partnership with the industry, has already taken a number of steps to expand domestic building capacity, including the supply of serviced land.
The intake of apprentices into the building trades has doubled from 2,300 in 1993-94 to 5,600 in 1999-2000. The employers' training levy of 0.7% of payroll, announced in the budget, should allow FÁS to cater for the increased intake of building trade apprentices.
No problems are currently foreseen in ensuring that there will be adequate supplies of building materials and plant. Again, the NDP provides the building product manufacturers with a firm medium term basis for undertaking investment to expand capacity.
However, the Government are not complacent in regard to the challenges posed for building capacity by the NDP – which contains building projects with a value in excess of £22 billion. In September, 1999, I asked the forum for the construction industry to expedite a study of the capacity of the industry. I am pleased to inform the House that I have recently received an interim report and recommendations from the forum which I will publish shortly. The forum's final report is due by the end of July next.
