Oireachtas Joint and Select Committees

Tuesday, 19 May 2020

Special Committee on Covid-19 Response

Briefing by ICTU, HSA and CIF Representatives on the Reopening of the Construction Industry

Mr. Tom Parlon:

In terms of projects, a couple of weeks ago the Department of Housing, Planning and Local Government deemed a number of social housing projects that were close to completion to be essential and they were allowed to start up again.

That has worked successfully and all of them adopted our SOP before the national protocol came into place.

As regards the extra cost, whether on the taxpayer or someone else, the industry is very conscious that the economy is heading for a major challenge. We all know that. First-time buyers and people buying privately are going to be in a worse situation because incomes will be tightened and qualifying for mortgages in that situation will be more difficult. The reality is that that is going to add to the cost as well and it will be a difficult balance to find.

The Deputy mentioned big projects such as the national children's hospital. There is no question that a complex project like that will involve substantial costs if it is to be completed under the new protocol. I understand that particular project has not opened up yet, and I am sure those discussions and negotiations are going on. Not every site has reopened. Some individuals dealing with public sector clients were extremely disappointed with the cavalier attitudes of the employer representatives when they were closing down sites and the contractors were told it was their problem. Some of those contractors are now saying they need to know what is happening before they open up again. The ball is in the court of the Office of Government Procurement, which is part of the Department of Public Expenditure and Reform. The Government has been extremely supportive of the construction industry because a massive number of construction employees have taken part in the subsidised employment scheme and that has allowed them to go back to work. Many are on the pandemic unemployment payment as well. That is an issue and a major challenge for the current Department of Public Expenditure and Reform and the future Government to deal with, but the cost is just a fact of life. Whatever contractor is advising subcontractors that they will have to cut their costs by 20% is not going to have too many subcontractors coming to the site this week. That is for sure.

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