Dáil Éireann Debate, Tuesday - 27 July 2021
731. Deputy Brendan Griffin asked the Minister for Housing, Local Government and Heritage if his Department has carried out any analysis on the increase in timber prices as a result of licencing difficulties in the forestry sector; the impact which this is having on housing construction; and if he will make a statement on the matter. [40689/21]
View answerIncreasing the supply of housing is a priority for the Government and for my Department in particular.
I am aware that the Construction Sector has faced a number of considerable challenges over the past year, not least the restrictions on construction activity introduced to combat the spread of COVID-19 and the impact of Brexit and related supply issues. Domestically, delays are being experienced in relation to the licensing of forestry operations. My colleague, the Minister for Agriculture Food and the Marine is currently implementing measures to address this issue.
Across Europe, supply issues have been affecting the price of timber due to increased demand. This is an international issue and other construction materials, such as steel, concrete and plastics have also been affected and these developments are being monitored closely. Throughout this period, colleagues across Government have engaged with representatives from across the construction sector.
Changes in relation to building material costs are monitored and recorded by the Central Statistics Office (Wholesale Price Index for Building & Construction Materials). Issues relating to increases in construction costs generally and measures to address such issues, are matters for the Minister for Public Expenditure and Reform. The Department of Public Expenditure and Reform facilitates the Construction Sector Group. This Group considers opportunities to introduce reforms to assist with tackling inflation in the wider construction sector.
Given my Department’s role in relation to public housing, we of course are concerned with regard to construction costs and recognise that significant material cost increases will likely result in increased tender costs. In this regard, we continually monitor tender cost trends through ongoing engagement with colleagues in local authorities and through engagement with other Departments and the Society of Chartered Surveyors Ireland (SCSI). My Department continues to work with each local authority to ensure that projects are developed and progressed in a cost effective manner.
