Dáil Éireann Debate, Wednesday - 27 May 2020
456. Deputy Michael McGrath asked the Minister for Business, Enterprise and Innovation if an analysis has been carried out by her Department on the impact on productivity in the construction sector as a result of Covid-19 restrictions and social distancing; the impact in terms of input costs; the way in which that will impact the viability of housing and apartment projects; and if she will make a statement on the matter. [8005/20]
View answerThe Department of Business, Enterprise and Innovation does not have policy responsibility for the construction sector although the Department and its agencies do engage in a limited way with the sector, mainly from a developmental perspective. Therefore an analysis of the type referred to in the question, including as regards impacts on the housing market, has not been undertaken.
One area of involvement, through Enterprise Ireland, is in he promotion and internationalisation of indigenous enterprise. In this regard, Enterprise Ireland supports a limited number of firms (approximately 750 out of a total of 50,000 construction enterprises) with construction products and services looking to engage with international markets.
In an effort to realise the potential of digital tools and processes within Ireland’s construction sector and improve productivity, Enterprise Ireland has played a lead role in supporting the adoption of Building Information Modelling (BIM) in recent years – including its initial convening of the National BIM Council in 2016. This has largely been driven by the increasing requirement for BIM in international markets, and the need to equip the Enterprise Ireland client base, as well as potential exporters, with the competencies necessary to engage with markets in which BIM adoption is standard.
The Roadmap for Reopening Society and Business sets out a gradual easing of restrictions with Phase 1 including a phased return of outdoor workers including construction workers. The roadmap suggests a gradual reopening of sites with a focus in Phase 1 on site preparation and outdoor work with indoor work accommodated in Phase 2. Social distancing requirements will continue to apply. The construction industry is largely not public facing and can adopt safe work practices in a controlled environment, ensuring all public health guidelines are adhered to.
The reliance of the construction sector on foreign-national labour means there is potential for labour supply shortages as activity recommences if a share of the workforce has left Ireland during the COVID-19 restrictions. The sector also relies heavily on material inputs such as concrete, steel and other building materials and as such it will be important that supply chain issues (e.g. manufacturing, mining/quarrying, freight transport) do not prevent projects from progressing. Construction activity is also reliant on a functioning planning system (especially important for some strategic projects underway in the multinational sector) and use real estate services as the primary route to market. These interdependent activities, which are components of other sectors, would also need to be active in order to minimise disruptions. Ensuring that bottlenecks in the supply of labour, raw materials and supporting sectors are swiftly addressed will minimise the potential impact on productivity in the construction sector as activity restarts.
In support of the work of the Construction Sector Group - composed of the key Construction stakeholders in the public and private sectors to support the delivery of Project Ireland 2040, and which includes representation from the Department of Business, Enterprise and Innovation - the Department of Public Expenditure and Reform commissioned an international benchmarking and economic analysis of the causes of productivity trends in the construction sector in Ireland. This was prior to the impact of Covid-19 on the Irish and global economies.
This analysis, which is now complete, contains a series of recommendations for enhancing the productivity performance of the Irish Construction sector, and the membership of the Construction Sector Group has approved an action plan to deliver these actions. The implementation of these actions will be monitored through the quarterly meetings of the Group and which will form part of its annual work programme.
