Oireachtas Joint and Select Committees

Tuesday, 12 December 2017

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Cost of Doing Business in Ireland: Discussion (Resumed)

4:00 pm

Mr. Tom Parlon:

With regard to the granting of work permits in the construction sector, the whole of Europe is a massive resource. No matter where one goes in Ireland, there are people from every corner of Europe working in the construction sector. We do not see it as an issue. We have got back approximately half of the professional and skilled workers we lost and we are still encouraging others to come back. The big issue in the construction sector is taking advantage of new technology and faster ways of engaging in off-site production and so on. The amount of labouring work done on a site is much lower than it ever was.

With regard to water services, the issue for the construction industry is securing a water supply connection. There is quite a delay in that regard. When our house builders sit down to engage in internal discussions with the IHBA, they are more agitated by the difficulty in securing connections with the ESB or Irish Water than by other issues because it is a nightmare. For an individual unit, it costs €5,000 up front to have a water supply connected. That is a direct cost which is passed on to the first-time buyer. An ESB connection costs much less as customers will continue to pay on a monthly basis though their electricity bill.

We know from our recent discussions with IDA Ireland and our big players who deal directly with FDI and other infrastructural projects that the planning process is horrendous. I am annoyed most by the respect afforded to vexatious objectors who live 100 miles away from a proposed project and choose to throw their oar in. When the proposed amendment to Planning and Development (Strategic Infrastructure) Act 2006 is examined, that factor has to be taken into account. Clearly, people who have genuine objections and concerns about a future development have a right to express them.

Earlier this week I attended the launch in Grangegorman of the new apprenticeship scheme by the Minister for Education and Skills. The bulk of the apprenticeships are not in the construction sector. We still have a good pipeline of fitters, plumbers and electricians coming through, but the number with wet skills such as block laying and plastering is scarce. The intensive house building that will have to happen in the next few years will be a struggle. It will be difficult because we are competing for workers with farming and the hotel and catering industries. I have read commentary that workers are leaving these sectors to work in the construction industry because our pay rates are substantially higher, but that is putting pressure on the industry because we are subject to a sectoral employment order. We used to have a registered employment agreement to set pay rates, but now we have a sectoral employment order. The Minister made a commitment to direct 20% of school leavers to apprenticeships in the next few years.

It is a major challenge to get those school leavers into apprenticeships because the system has been designed to encourage them to move towards third level colleges. Third level colleges have a vested interest in attracting them because they are their bread and butter. However, that has led to many square pegs being put in round holes. If someone wants to enter an apprenticeship, he or she must first find an employer and go through his or her local SOLAS office and so on. Many changes could be made to make apprenticeships more attractive. A challenge for our industry and others is encouraging people to enter it. It is very positive for young people coming out of school and so on that they have choices. Our challenge is to sell the construction industry as one which offers a good long-term career to them.