Joan Collins (Dublin South Central, Independent) | Oireachtas source

I will be brief because I am not really au faitwith the various aspects of the building sector. However, we are in a state of emergency and crisis because people have no homes. This committee was initiated in order to allow members to sit down and work with people with building know-how. Mr. Parlon made the point that the average ballpark figure for building a house is €300,000, with €150,000 of that being for construction costs and labour. I would like a breakdown of all of that. Many building sites no longer operate by way of direct labour but via the relevant contracts tax, RTC, system whereby a self-employed person employs five or ten workers to go on site. This deal is made with the developer in advance.

I do not believe the prices we see represent the real cost, although perhaps they do. However, with €150,000 going on costs, I would like to see a breakdown for the materials used and in respect of labour. I would like to see how these costs are arrived at, how much goes on labour, what goes on VAT and how much goes on development levies. Also, how much of a profit margin does the industry expect across the board? The costs may be genuine, but an open and honest approach must be made to show this, because people do not believe the stories anymore. They have gone through a great deal and they do not trust developers and builders anymore. If there was a willingness on the part of the building industry to work with the State on the basis of the actual costs and what profit they are willing to accept, the State could adopt a more open approach and agree to work with it on the issue. It could then examine whether it could provide the amenities required, such as drains, water pipes and so on. However, we cannot do that until we have an honest appraisal from the construction industry on the costs and the profit margin required.

Does the construction industry think there should be a cap on land prices over the coming period - as there was had some decades ago - in order to try to stop the inflationary aspect of house prices into the future? Would this help control construction costs and ensure that everybody involved gets a fair cut, makes some sort of profit and gets a job and there is a benefit for all, rather than contributing to house prices increasing again?