Dáil Éireann Debate, Tuesday - 28 September 2021
109. Deputy Alan Dillon asked the Minister for Housing, Local Government and Heritage his views on and plans to address the concerns regarding the increasing cost of raw materials in the construction industry with a particular focus on the potential impact of house building; and if he will make a statement on the matter. [46231/21]
View answerHousing for All sets out a pathway to economic, societal and environmental sustainability in the delivery of housing. Reducing construction costs is critical to increasing supply. Recent analysis by industry indicates that construction build costs account for approximately 47% of total apartment development costs.
Prices for a large number of construction materials have increased significantly over the last 12-18 months. The CSO Wholesale Price Index shows the annual increase for building and construction materials to be 9.9% to the end of July 2021.
Construction material supply issues are also being experienced in other markets. These issues appear to result from a range of factors including Brexit, the disruption caused by Covid 19 and increased global demand.
Reducing residential construction costs is a key theme within Housing for All, with actions centred on analysis, innovation, research and productivity through a whole-of-government approach in collaboration with Industry. These structures and actions include:
The new Construction Technology Centre under development by Department of Enterprise Trade and Employment will prioritise residential construction - supporting innovation, modern methods of construction and digitalisation.
The Construction Sector Group led by Department of Public Expenditure and Reform will implement a pipeline of cost reducing innovations and productivity measures for the residential construction sector. This group will also carry out an analysis of costs with a view to reducing these costs and increasing standardisation.
The role of enterprise agencies will be expanded to include the provision of funding and supports for innovation and productivity-related projects in the domestic residential construction sector.
The public sector will continue to provide projects to help with the capacity building process through public tenders for innovations such as rapid delivery housing.
Whilst recognising that the cost of construction materials is subject to external influences, Housing for All commits the State to playing a more central role in leading and funding these structures with a view to reducing the costs of construction in collaboration with the construction sector.
