Oireachtas Joint and Select Committees

Wednesday, 19 June 2019

Committee on Budgetary Oversight

Fiscal Policy and Budgetary Planning: Discussion

Ms Jeanette Mair:

I thank Deputy Broughan for mentioning Mariana Mazzucato, who is quoted in our forthcoming report examining productivity in construction. The Deputy was correct to say she is very strong on the role of innovation in transformative economic policy and investment in human capital, research and development and so on. A significant element of our budget submission, which will be formalised in the next few weeks, focuses on the role of research and development and innovation in construction, linking education and training across the industry and sector. Education is the primary activity of universities and institutes of technology and that feeds into skills development for the sector. The production of goods and services is the primary activity of companies in construction. Therefore, our ultimate aim is to have a designated centre for construction research, development and innovation which would be a bridge between academia, the research community and the construction sector. We have committed to pursuing and progressing that agenda and have already established a joint industry-academic steering committee to work through the construction sector group in that regard. In our submission, we will call for greater investment in construction-related research and development and innovation and, in particular, for a consideration of the existing research and development tax credit and how it meets the needs of construction SMEs. It is often the case that the types of activities and services construction companies provide are difficult to capture in the black and white review Revenue conducts in respect of the construction research and development credit. We need to continue to build links between the education and training sectors and industry so that, as Mr. Lucey detailed, our pilot scheme, which is to be launched in the autumn, can garner additional stakeholder support. A focus of the scheme and many of the policies CIF is adopting are about embracing a whole-life career in construction. It should not just be about the initial qualification that gets one a job but about providing tools and supports through employers for lifelong learning and career progression. That will allow us to offer rewarding and sustainable careers to those choosing to enter the industry and to improve the diversity of the sector.

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