Oireachtas Joint and Select Committees

Tuesday, 20 November 2018

Joint Oireachtas Committee on Housing, Planning and Local Government

Impact of Brexit on Ireland's Housing Market: Discussion (Resumed)

11:00 am

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

If Deputy Ó Broin does not mind I will tag my question on to the end of his because I have to go to the Chamber at 12.30 p.m. and then to the Business Committee at 1 p.m.

Mr. Tom Healy of the Nevin Economic Research Institute, NERI, mentioned to us last week - I am not quoting him word for word – that in general we have had nearly two decades of a dysfunctional housing market. The lack of supply in recent years did not just happen. It came from a blanket dysfunctional housing market. We cannot just ramp it up in one year or two years. It is taking time. Bearing that in mind and in respect of the Rebuilding Ireland plan, we cannot wait for the UK to make up its mind. We have to plough on with our intention for this country, and this plan is a moving document and presumably adaptable throughout this time.

We did a lot of work in this committee on the costs of construction and on universal design, especially when we talked about housing options for older people.

We estimated that the increase in cost of universal design was approximately 3%. We are doing a lot of work to offset that later. The cost of materials may go up if tariffs are introduced or maybe they will not. It is a hypothetical question. I presume we are looking at other measures to offset costs elsewhere in construction. We mentioned that many materials are imported from and exported to the UK, specifically 50% of wet materials and, as Deputy Ó Broin said, 30% of wood. Dr. Tom Healy also said that we need to diversify more quickly away from oil and fossil fuels. When it comes to the 2040 plan, I ask Mr. Hogan in particular what key infrastructural plans he thinks are important to push ahead with more quickly than previously planned? What projects are under way that he thinks will help us through this transition period?

Other matters are probably not within the remit of the Department of Housing, Planning and Local Government. I will ask the committee if we can write to the Department of Justice and Equality about work permits. Have we looked at the processing time to get a work permit for anybody who is from outside the EU? With regard to the skill shortages that we know we will have into 2020 and 2021, we have looked at many new construction technologies to try to diminish the number of cranes or Manitou equipment or whatever might be on site. A smaller workforce might be required on site with newer technologies that are available. I was on site last week though I will not mention where or what. Are we looking at a wide range of technologies to speed up the process of construction? Are we putting much into research on construction? Are we looking at technology in other countries? While this is probably the business of the Department of Education and Skills, further investment is needed in apprenticeships.

We had the Society of Chartered Surveyors Ireland at a meeting and its representatives mentioned the ongoing engagement they have with their members here, in Australia, and in Canada, keeping them abreast with what is happening here and, it is hoped, encouraging them to come back here. What work are we doing to retain talent that we currently have? It all comes down to viability in the construction sector and providing certainty and consistency for the next ten to 20 years. I know Project Ireland 2040 is trying to provide it. Will the witnesses elaborate on that? I know there was a lot of public consultation for the 2040 plan for over a year. I know the Department of Foreign Affairs and Trade has a lot of regular engagement with stakeholders. What work is the Department of Housing, Planning and Local Government doing, such as roadshows, to engage with the relevant stakeholders or the Construction Industry Federation?

Unfortunately, I have to leave but I will read the Official Report. My two queries relate to key infrastructure projects and the cost of construction. I know the latter is a hypothetical question but it relates to however much we can prepare for this. I know the Department has prepared for the worst-case scenario and there is a whole-of-Government approach to this. I would love to hear more on key infrastructure projects.

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