Oireachtas Joint and Select Committees

Tuesday, 21 May 2013

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Effects of Black Economy: Discussion with Construction Industry Federation

2:10 pm

Mr. Tom Parlon:

We are inclined to poor-mouth, as do probably most people who come to these rooms. There are lots of difficulties but, on the other hand, we still have a huge industry even though we are down at €8 billion. We employ more than 100,000 people. In terms of sophisticated jobs, Diageo is building a new brewery which is state-of-the-art in terms of output. It is a cutting edge project and the company won the right to build it in St. James's Gate, rather than anywhere else in the world.

As members know, it is a big international company. There are 860 construction workers there currently working on high-tech material. There is a big deadline to finish it by July and beer will be brewed in the new place by then. They are working on approximately six different levels on the site and this project is the first I have heard of suspended scaffolding. There is no room for it downstairs so it is hung from above so as to work on different levels. In Intel, there are close to 3,000 people working in construction and if everything goes to plan, there could 6,000 people building state-of-the-art chip plants that will run the world. Glanbia has just turned the sod on a new site to build a state-of-the-art milk processing plant.

We have the capacity in the industry to do all of this. We have skills in management and the people on the ground, such as electrical or mechanical engineers. The committee might only look at the black economy but the bulk of work is in the legitimate economy. Smaller members around the country involved in house building, repairs and upgrading energy efficiency may see the white van brigade out and about. We have a figure of 100,000 former construction workers signing on currently, although the Minister for Finance used the figure of 70,000 when we last met. Many people with construction skills are signing on but wish to work.

In some ways one could ask whether we should blame people for taking a job from the next-door neighbour to do a bit of work. That neighbour may be concerned she is paying too much tax already and may look to pay cash for the job. It is a challenge and we must incentivise people back to the real economy. We have great capacity to contribute to the recovery of the economy.

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