Dáil Éireann Debate, Tuesday - 7 March 2017
156. Deputy Joan Burton asked the Minister for Finance the level of construction inflation that has been experienced by his Department in each of the past six years and to date in 2017 in respect of construction projects and other capital projects; the way in which he monitors construction inflation and the mechanisms he employs to establish this; and if he will make a statement on the matter. [11536/17]
View answerMy Department monitors inflation across the economy on an ongoing basis, including in the construction sector. For example, the National House Construction Cost Index, published by the Department of Housing, Planning, Community and Local Government, provides an indication of labour and material cost developments within the construction industry. The latest available figures suggest annual house construction cost inflation of 0.1 per cent on average between 2010 and 2016. A number of construction sector organisations also conduct periodic assessments of construction costs in Ireland. For example, in May of last year, the Society of Chartered Surveyors Ireland (SCSI) published a report The Real Cost of New House Delivery which examined the component costs of housing delivery in the Dublin region.
As part of Rebuilding Ireland, the Action Plan for Housing and Homelessness, detailed studies into construction costs are currently ongoing. A Working Group, chaired by the Department of Housing, Planning, Community and Local Government, has been established to work with industry representatives in order to benchmark housing delivery input costs in Ireland. It is my understanding that the Housing Agency is also coordinating an independent review and analysis of delivery costs in Ireland. Both of these studies are due to be completed during the first half of 2017.
With regards to the construction projects undertaken by my Department over the past six years, a project to update fire and electrical systems has recently been completed in offices shared by my Department and the Department of Public Expenditure and Reform. The programme was managed by the Office of Public Works. My Department made a fixed contribution to the total cost of the project.
