Oireachtas Joint and Select Committees

Tuesday, 9 May 2023

Joint Oireachtas Committee on Housing, Planning and Local Government

Modern Construction Methods: Discussion (Resumed)

Mr. Tom Parlon:

I will start off. I thank the Deputy for the question. The construction industry is traditional to its core, not just in Ireland, but all over. That may be one of the reasons we are not moving on. One needs very substantial upfront funding to develop a modular factory, which it effectively is. I have been to see a number of them and I am aware that some of them are part of bigger organisations and some of them are attempting to fund themselves. You then need a pipeline surety. If you are manufacturing cars, you will know before you turn on the line that there will be demand for them at the other end. That is something that still needs to be done.

Earlier, my colleague mentioned the need for standardisation through standards etc. The investment has been a factor, as has the surety of the pipeline. Who will fund a big operation unless it is guaranteed? In fairness to the OPW regarding the crisis with housing Ukrainian people, it embarked on a particular programme. It gave an opportunity to the industry, which I think is responding very well. I have seen some of the units that have turned out. Of course it has been delayed. I know Ciaran O'Connor was before the committee on the last day. The bulk of the delays were to do with sites that were not ready. There are lots of units that are ready to go on-site immediately.

That will be an exemplar for the industry. Pricewise, they will not be any cheaper than what you would get via the traditional means. However, it is an exemplar and it is important in terms of the quality of the units, the siting, the landscaping and the final product where people are going to live. I heard Deputy Ó Broin say recently that this should be employed to provide other houses as soon as that pipeline is up and running. The pipeline is essential. It is good. The industry sees it as very positive that the OPW have set out for 750 units. Maybe, when Deputy Ó Broin takes over as Minister for Housing, Local Government and Heritage, he may talk about 7,500 homes and that would give a great opportunity. I know Gerry McCaughey, who comes from the Deputy's own background. Do you remember where he came from? He established a very substantial business in California. He sold out, I believe, to some other big player. He had a design office in County Monaghan and there were 40 people there. These were highly qualified people and unfortunately the business was wound up-----

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