Malcolm Noonan (Carlow-Kilkenny, Green Party) | Oireachtas source

Increasing the supply of housing is a priority for the Government and for our Department in particular. I am fully aware that the construction sector has faced a number of considerable challenges over the past year, not least the restrictions on construction activity introduced to combat the spread of Covid-19 and the impact of Brexit and related supply issues. Throughout this period, colleagues across Government have engaged with representatives from across the sector. Indeed the Minister, Deputy Darragh O'Brien, met with the Irish Home Builders Association recently, on 12 June, and the issue of increases in materials was one of the issues raised.

Across Europe, supply issues have been affecting the price of timber due to increased demand. Other construction materials such as steel, concrete and plastics have also been affected and these developments are being monitored closely internationally. However, while the Society of Chartered Surveyors Ireland tender price index reveals that national construction tender prices increased by 1.3% in the second half of 2020, it is still significantly less than tender price inflation levels being experienced before the Covid-19 pandemic. While there was elevated construction sector inflation in 2019, construction price inflation slowed overall in 2020 as a result of Covid-19.

The Department of Public Expenditure and Reform facilitates the construction sector group. This group considers opportunities to introduce reforms to assist with tackling inflation in the wider construction sector.

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