The construction industry has shown a remarkable capacity to meet demand, having doubled output since 1994. Nonetheless, it is generally accepted that the construction industry may now be operating at or close to existing building capacity and that this capacity will need to expand further to ensure the delivery of the National Development Plan, 2000-2006.
In considering this issue, it must be borne in mind that Ireland, as part of the EU Internal Market, has access to building capacity outside its borders. There is already substantial participation in building projects from construction firms and workers located in other EU member states, and especially from Northern Ireland. The size of the investment in the NDP, and the promotion of public private partnerships, should encourage greater participation by firms from other EU member states in the design and construction of projects frequently in joint ventures with local firms.
The Government, in partnership with the industry, has already taken a number of steps to expand domestic building capacity. The serviced land initiative will result in the servicing of more than 1000,000 housing sites, over the period 1999 to 2001, for a total investment of around £100 million.
The intake of apprentices into the building trades has more than doubled from 2,300 in 1993-94 to 5,600 in 1999-2000. The Government has given a commitment, in the Programme for Prosperity and Fairness – February 2000 – to give priority to the provision of additional training places for the greatly increased intake of apprentices.
The NDP provides the building product manufacturers with a firm medium term basis for undertaking investment to expand capacity. No problems are currently foreseen in ensuring that there will be adequate supplies of building plant and equipment. However, the Government is not complacent in regard to the challenges posed for building capacity by the NDP, which contains building projects with a value in excess of £22 billion. In September 1999, I asked the forum for the construction industry to expedite a study of the capacity of the industry. Last February, I published the interim report of the forum, together with a press statement setting out the positive position in relation to the implementation of each of the report's seven core recommendations. The forum's final report is due by the end of July next. Copies of the interim report and press statement have been placed in the Oireachtas Library.
