Mairead Farrell (Galway West, Sinn Fein)
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106. To ask the Minister for Public Expenditure and Reform the work that the construction sector group is currently undertaking to advance the roll-out of modern methods of construction; and if he will make a statement on the matter. [10530/23]

Mairead Farrell (Galway West, Sinn Fein)
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This question asks about the construction sector group that is currently undertaking the roll-out of modern methods of construction, MMC, if the Minister of State would like to discuss the issue.

Ossian Smyth (Dún Laoghaire, Green Party)
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The latest version of the national development plan, NDP, capital investment tracker provides updates on over 270 projects and 140 programmes, including almost 100 projects costing in excess of €50 million. Driving productivity and increasing innovation in construction sector capacity is imperative to the Government to deliver on the projects outlined in the NDP. The construction sector group and its subgroup are working on seven actions to increase this innovation and productivity. These include the build digital project to increase digital adoption and the establishment of the construction research centre, known as Construct Innovate, to enhance research in the construction sector, along with MMC.

An MMC leadership and integration group, led by the Department of Enterprise, Trade and Employment, has been set up. This group will ensure a co-ordinated approach between new and existing entities of MMC and will focus on the risks, challenges and barriers to promote MMC. The group has commenced mapping the existing ecosystem for MMC.

In addition, an MMC working group was established by the Construction Industry Federation, CIF, consisting of member companies from the housing, specialist mechanical and engineering services, civil engineering, modular manufacturers and general contracting companies. CIF, under the construction sector subgroup, has published reports to identify key market requirements to drive the adoption and implementation of MMC on a wider scale for both domestic and export markets. In addition, the CIF has launched the MMC smart off-site association to support the full ecosystem of companies operating in this space.

Furthermore, the demonstration park for MMC at Mount Lucas is progressing positively. The project management team, chaired by SOLAS, has been put in place and includes the Departments of Further and Higher Education, Research, Innovation and Science; Housing, Local Government and Heritage; and Enterprise, Trade and Employment; and the Laois-Offaly education and training board, ETB. Major themes to be embedded into the demonstration park include productivity, innovation, cost reduction and sustainability. The expected delivery date for the park is the fourth quarter of 2023. The demonstration park is collaborating with the build digital project and Construct Innovate.

The National Standards Authority of Ireland, NSAI, is now offering certifications on the construction stage and sign-off on MMC products and building system installation compliance under building regulations. This will improve residential construction product assessment processes and ease certification of new building methods, the introduction of sustainable construction materials and oversight of on-site installation.

Mairead Farrell (Galway West, Sinn Fein)
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The construction sector group was established by the then Department for Public Expenditure and Reform in 2018 and was a collaborative effort on the part of State and industry. Things like that are very welcome, especially if they serve a public purpose. The group has tried to promote the transition to sustainable construction, known commonly as MMC. The group has produced many good reports. The technology testing centre in Galway has opened, which I welcome. I understand what the Minister of State has said and the matters he has outlined but we need to be realistic that the transition has been frustratingly slow. I sometimes wonder if we are making any real and significant progress at all. Does the Minister of State feel we are making progress or does he feel it is happening at a very slow pace?

Ossian Smyth (Dún Laoghaire, Green Party)
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I know that progress is being made but there are two sides to it. There is a commercial imperative to do this for reasons of efficiency and progress in technology. The Government also has to provide support through educational schemes, as we have laid out, and bring the different partners together. Ireland is famous for its construction. We have built a lot of major projects abroad over the years. There is a strong tradition in the sector. However, if we stick with that tradition of on-site construction and the use of traditional methods, we will not get the innovations we see in other countries. The major problem in this country, and the primary focus of the Government, is the housing crisis. A large part of the answer to that crisis will be MMC, including modular housing and off-site construction. That will result in efficiencies and greater delivery of services.

Mairead Farrell (Galway West, Sinn Fein)
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I completely agree with the Minister of State about the role that MMC can play. However, we know that the percentage of homes being built by MMC remains very small. I do not think the State has created the demand for MMC. We know the industry itself is still in its infancy and it will not grow sufficiently fast unless we are willing to nurture it. That means creating the demand for those services and seeking the help of those services to deliver homes. There are approximately 100 MMC providers in the State but only approximately one quarter of them provide complete housing solutions. We can see the impact of MMC in other countries. Some countries have begun turning away from building data centres. Given that one of the benefits of MMC is that they are far more environmentally friendly, this highlights the shortcomings of the current approach. Dublin City Council, the local authority that has done the most in terms of MMC, previously had a framework agreement for MMC suppliers to tender for the delivery of homes but that is no longer available. We need to have that focus coming from the State as well.

Ossian Smyth (Dún Laoghaire, Green Party)
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I agree with everything the Deputy has said. We can look at other countries and recognise that in some cases they are more advanced in their construction methods than we are. That is not only true in Europe but also in Asia. I have spoken to people in China responsible for social housing delivery and so on through off-site construction. Part of what is happening now is that because the State has clearly laid out its financial investment plans for the coming decade under Housing for All and the NDP, there is a clear market for companies that are involved in MMC and have many years of experience of building, for example, apartment blocks off-site to come to Ireland and invest here. We have clearly laid out that 30,000 homes were completed in Ireland in the past calendar year. We are going to be delivering that quantity every year until 2030. We are creating a market supported by the State, working with the private sector, where there will be an enormous quantity of construction activity that can support a major investment by an MMC provider in Ireland. Providing that guarantee of spending will attract the right players into the country.