Oireachtas Joint and Select Committees

Tuesday, 18 September 2018

Committee on Budgetary Oversight

Priorities for Budget 2019: Discussion (Resumed)

4:00 pm

Photo of Maria BaileyMaria Bailey (Dún Laoghaire, Fine Gael) | Oireachtas source

Mr. Parlon's bucket list is much shorter this year, which is great. I would not be supportive of a relocation tax because I am in favour of fairness in society. Some people in the construction industry who were burned in the downturn stayed in the country and fought their way through and it would be unfair to them. I would like to see other mechanisms pursued and the 2040 plan gives certainty that there will be Government investment in infrastructure and housing over the next 20 or so years. When people see sustainability in the sector they might come back here. I spoke to Deputy Chambers about insurance, which can be a big barrier for anybody who has been out of the country for over five years and wants to come back and set up again. That is an area on which we could focus.

There are also mechanisms in the 2040 plan to address infrastructural challenges such as demographic challenges, climate action and competitiveness. People often think it is just about building a house but it is about the infrastructure around that, which is far more complex. Multi-annual funding is required for Irish Water and we need to seriously look at the subcontracts that will be involved in that.

I fully agree with what was said about the problems with procurement. These go back a long way and have not yet been dealt with. I have never believed that the lowest price is the best price and I always question somebody who comes in too low on a bid as there must be other problems in such cases, which lead to issues around the transfer of risk. I also agree with what was said about the extension of the help-to-buy scheme, which is due to finish shortly. When it was first announced, people said, "But we are not building anything in that price bracket." However, it allowed for certainty in the construction environment in that price bracket in order that banks could give mortgages at that level.

I was not aware of the work permit delays, and I am normally very au faitwith the area. I was delighted to hear the points made about that issue. The skills shortage is leading to inflation and we are hearing stories about prices being agreed but people walking off a site because they can get more on another. A huge volume of work is being done by Engineers Ireland, as well as the witnesses present today, in the form of expos and other things which can incentivise people to come back here.

It all comes back to the statutory roadmap which we have for the next 20 years, which gives certainty in the sector whatever the strand of construction or engineering. It will incentivise students to go into apprenticeships, construction studies, mechanical and civil engineering work or other STEM subjects. Significant work is being undertaken in primary and secondary schools, especially in third and fourth class in primary schools. It will not fix the problem tomorrow or next year but there is a long-term plan. The mentality of the short-term quick fix has gone. The 2040 plan does not get enough recognition for being a strong roadmap which gives certainty in the sector.

I agree with the majority of the report but I am concerned about reducing commercial rates. I fully accept that the suggestion is being made in good faith but I wonder how we would then supplement the income of local authorities. Is there an alternative?

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