Brian O'Shea
Question:225 Mr. O'Shea asked the Minister for the Environment and Local Government the esti mated percentage inflation in the construction industry; and if he will make a statement on the matter. [9068/01]
Written Answers. - Inflation Levels.
The trend in tender price inflation is considered the most useful indicator of inflation in the construction industry. On this basis, my Department estimates that overall construction tender prices have increased, on average, as follows in recent years:
|
Year |
Construction Tender Price Inflation |
|
1997 |
10% |
|
1998 |
12% |
|
1999 |
12% |
|
2000 |
12.5% |
These data are set out in my Department's review of the construction industry "Review 1999: Outlook 2000-02" published in August 2000, a copy of which has been placed in the Oireachtas Library, together with my covering press statement expressing concern at the trend in construction tender price inflation.
The construction industry is working close to existing capacity and this is a major factor contributing to tender price inflation. The Government will shortly publish an action plan to expand the capacity of the construction industry. This will set out supply side measures to counter the increase in tender price.