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National Development Plan.

Dáil Éireann Debate, Tuesday - 20 March 2007

Tuesday, 20 March 2007

Ceisteanna (105)

Richard Bruton

Ceist:

170 Mr. Bruton asked the Minister for Finance if he has carried out an assessment of the capacity of the construction industry to deal with added work under the national development plan; and his findings on same. [10190/07]

Amharc ar fhreagra

Freagraí scríofa

As part of the preparatory process for the National Development Plan 2007-2013, consideration was given to the capacity of the construction industry. My Department, together with the Department of the Environment, Heritage and Local Government, which is the lead Department with immediate responsibility for the construction industry, examined this issue.

As Chapter 1 of the Plan indicates, current tender price inflation, employment and tendering patterns suggest that the construction industry is operating well at its present level of activity and that it has the capability to grow without generating significant additional inflationary pressures. Recent trends in tender prices in civil engineering contracts indicate that:

Tender prices for civil engineering projects in the sector have remained competitive;

Despite increased activity and opportunity for construction firms, the number of tenderers for individual projects has remained healthy with no discernible fall-off; and

Foreign firms and partnerships between Irish and foreign firms competing for business is increasingly becoming a feature of large projects with contracts awarded to such consortia in a number of cases including major road, water and waste water projects.

The Government's view is that the construction industry has the capacity to produce the additional output under the NDP. Our open labour market and greater participation from foreign construction firms support this view. In addition, if the level of new housing output begins to ease, this will free up resources for other construction projects, including those under the NDP. Leading indicators of construction activity and developments in the industry generally will, of course, continue to be monitored over the period of the NDP.

Question No. 171 answered with QuestionNo. 130.
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